India’s trade deficit as a percentage of global trade fell to 0.6% in 2022 from 0.7% in the pre-pandemic period, the United Nations Conference on Trade and Development (UNCTAD) said on Thursday.

China’s share rose to 4.5% from pre-pandemic levels of 3.5%. In its Global Trade Update, the Geneva-based agency said that global trade in goods and services touched a record high of $28.5 trillion in 2021, up almost 13% from the pre-pandemic levels, boosted by increases in commodity prices, subsiding pandemic restrictions and a strong recovery in demand due to economic stimulus packages.

“The positive trend for international trade in 2021 was largely the result of increases in commodity prices, subsiding pandemic restrictions and a strong recovery in demand due to economic stimulus packages. As these trends are likely to abate, international trade trends are expected to normalise during 2022,” UNCTAD said.

Overall, world trade in 2022 is likely to be affected by factors such as slower than expected economic growth, continuing challenges for global supply chains, rising concerns about debt sustainability, free trade agreements and government policies regulating the trade of high-carbon products, it added.

Trade in goods increased more strongly for developing than for developed countries in Q4 2021. Exports of developing countries in Q4 2021 were about 30% higher than in Q4 2020, while the growth for developed countries was about 15%.

Moreover, trade growth between developing countries (South-South) outpaced global trade during Q4 2021, with an increase of about 32% relative to Q4 2020, and with an increase of about 38% when excluding East Asian economies.

“Similar patterns are found when comparing Q4 2021 with the pre-pandemic level,” UNCTAD said.

As per the report, with the exception of transport equipment, all economic sectors saw a substantial increase in trade in Q4 2021.