As we start the new year, it’s helpful to look back and reflect on the previous year to gain insights on market trends and current world issues affecting international trade. 2022 was a turbulent year in many ways, and the global trade scene was no exception.
To help gain a better understanding of what 2023 may bring, we’ll review significant events that impacted trade during 2022 and discuss the implications of last year’s industry happenings. We’ll also highlight useful tips and tools for trade-savvy companies.
Top Global Commodities in 2022
Oil, gas, technology, and agricultural products saw the highest demand in the global market during 2022. To get an overall sense of the latest market trends, let’s examine some key data findings published by the Observatory of Economic Complexity (OEC), which is described as ‘the world’s leading data visualization tool for international trade data.’
According to the OEC, in October 2022, the United States exported $180B and imported $283B, resulting in a negative trade balance of $102B. Between October 2021 and October 2022, the exports of the United States increased by $16B (9.73%) from $164B to $180B, while imports increased by $31.6B (12.6%) from $251B to $283B.
The top five US exports in October 2022 were crude petroleum, refined petroleum, aircraft parts, petroleum gas, and soybeans. The top five US imports were crude petroleum, cars, telephones, computers, and commodities not elsewhere specified.
Noteworthy Global Events Affecting Global Trade in 2022
Numerous global events affected the 2022 global trade scene, including an economic downturn, political instability, tightening trade regulations, new technologies, large-scale climate events, and more. Here are the most notable events that impacted global trade in 2022:
COVID-19 Pandemic
1. The COVID-19 global pandemic froze factories, halted border crossings, and virtually shut down the world in 2020, leading to far-reaching impacts on the worldwide market and deeply disturbing supply chains. Still, a remarkable rebound in global trade has been made as international entities recover from the blow.
China-United States Trade War
2. China and the US have a notoriously troubled trade history, seeing the recent increase in sanctions, tariffs, and other barriers. However, the effects of these measures are not isolated to the participating nations alone but have a ripple effect throughout the global market. The desire to control the tech industry – specifically semiconductor technology – features prominently in this conflict.
Brexit
3. The United Kingdom withdrew from the European Union in January 2020, transforming foreign policy and restricting trade with the implementation of new regulations. The implications of this historic move are still being felt throughout the global economy.
2022 Russian Invasion of Ukraine
4. Beyond the China-US trade war is the Russian Invasion of Ukraine, which began in February 2022, with far-reaching global implications. The effects of the war are being felt across the global economy and amplifying the energy crisis.
Increased Inflation
5. Throughout 2022, the cost of living soared in many regions with an economic slowdown and high inflation rates. Prospects for economic growth in 2023 remain meager.
Extreme Weather Events
6. Logistical challenges created by the global pandemic and geopolitical conflicts have been further compounded by seemingly unprecedented extreme weather events, including severe winter storms, earthquakes, hurricanes, flooding, and more.
Global Trade Management Tools to Implement in 2023
OCR Global Trade Management offers multinational companies a complete, enterprise-level suite of export and import management tools. Our compliance software solutions give traders the tools they need to help them gain control, stay profitable, and trade confidently, even in an unpredictable market.Â
We design our software with our customers and the demands of the industry well in mind. Our four decades of industry experience allow us to create compliance software to revolutionize your company’s approach to global trade in 2023.Â
Request a product demo today. We look forward to working with you.
