Global Apparel Trade Rises 7% in First Half of the Year, WTO Reports

The global apparel trade continues to rise despite the global geopolitical situation. The World Trade Organization (WTO) shows apparel trade growth of 7% during the first half of the year compared to the same period last year. For the full year 2024, growth remained at 2% compared to the full year 2023.

In textile products, growth was 7% in the first six months of the year compared to the first six months of 2024. However, last year did not grow at all in year-on-year terms, as reported in the WTO’s Global Trade Outlook and Statistics released on Tuesday.

Along with the strong performance of fashion trade, the agency has also raised its forecast for world merchandise trade volume growth in 2025 to 2.4%, up from 0.9% estimated in the August interim report. This is slightly lower than the same period in 2024, when it stood at 2.8%. However, the outlook for 2026 has been lowered to 0.5%, noticeably below the 1.8% estimated in August.

The outlook for world trade next year has been lowered to 0.5%

In the first half of the year, world merchandise trade was up 6% year-on-year. Despite a “strong performance” in this period, trade flows in North America are expected to make a “negative contribution” to world merchandise trade growth both this year and next. Asia will make the largest contribution this year, but will reduce its contribution in 2026. Europe and the rest of the world will contribute “moderately”.

The volume of world merchandise trade increased by 4.9% in the first half of the year, with a faster-than-expected pace of growth, explained by the “anticipation of imports in North America,“ which is expected to increase by4.9% in the second half of the year.This was due to the “anticipation of imports in North America” in anticipation of higher tariffs, but also to macroeconomic conditions and increased demand for AI-related goods.

Indeed, the WTO acknowledges that, “but for higher tariffs and increasing policy uncertainty, macroeconomic conditions would have been favorable for trade growth in 2025.“ So, despite the fact that, overall, higher growth is expected this year, the outlook for the second half of 2025 and next year is less optimistic.

“With higher tariffs already in place and trade policy still uncertain, anticipated purchases are expected to decline as accumulated inventories are depleted and GDP growth slows,“ the text concludes. It also notes that “possible signs of weakness have been observed in trade and manufacturing production in developed economies” such as lower business and consumer confidence, and slower employment and income growth.