Global trade soars to record $32 trillion in 2022, says UN

Bloomberg 

The value of global trade is set to reach a new record this year, increasing by about 12% to an estimated $32 trillion, according to a UN report that signalled a slowdown heading into 2023.
“The substantial trade growth during the last year was largely due to increases in the value of the trade of energy products,” the United Nations Conference on Trade and Development (Unctad) said in the report
released on Tuesday.
Trade in merchandise goods soared to $25 trillion, an increase of about 10% versus the prior year. Trade in services grew 15% year-over-year to nearly $7 trillion, according to the report.
The UN body expects the inflation-adjusted value of global trade will diminish next year because of the combined impact of geopolitical frictions, lower economic growth, higher prices for goods and record levels of global debt. Based on volumes, “trade continued to increase throughout 2022, a signal of resilient global demand,” the report stated.
Still, weaker economic growth and inflation are likely to hamper international commerce in the year ahead. “While the outlook for global trade remains uncertain, negative factors appear to outweigh positive trends,” Unctad said.

Global debt market lost
$75bn of business in 2022
More debt financing was canceled or postponed globally in 2022 than even during the tumultuous pandemic period.
Roughly 140 fund-raising transactions including bonds, loans, and asset-backed securities worth at least $75 billion were pulled in 2022, only slightly below the combined tally of 2021 and 2020, according to data compiled by Bloomberg.
While that’s as far back as the data goes, it’s likely been several years since so many companies withdrew from the market, given the recent era of cheap and plentiful money.
The war in Ukraine, high inflation, soaring interest rates and recession concerns combined to scare investors off this year. The first quarter alone saw 50 deals shelved and pessimism continued throughout the year as lenders remained wary.
“People are naturally more cautious in a recession,” said Carlo Fontana, global head of syndicate with UniCredit SpA. “It’s taking a bit longer and becoming more complicated to do deals as even relationship lenders are evaluating their exposure.”
Almost 70% of the pulled transactions were bond offerings, including those for highly-rated names including Central American Bank for Economic Integration, Eesti Energia AS, and Johnson Electric Holdings Ltd. Leveraged loans were the next most impacted market with 21 deals dropped, affecting the likes of Mallinckrodt Plc and Topgolf Callaway Brands Corp.

A November sales surge in Europe’s main funding market illustrated how volatile the business of selling bonds has become, with issuers relying on positive headlines that grant a few days of stability to launch new deals. The region’s primary bond market has seen 48 days without any issuance so far this year, the most ever.