Figure 32-1 The Growth in World Merchandise Trade, 1950–2017
1 shows, since 1950 the volume of world trade has grown much faster
than world real GDP. The world’s real GDP has increased by more than
ten times, an average annual growth rate of 3.6 percent. Over the same
period, however, the volume of world trade has increased by almost 38
times, an average annual growth rate of 5.6 percent.
The volume of world trade has grown much faster than world GDP
over the past six decades. The figure shows the growth of real GDP and
the volume of trade since 1950. Both are expressed as index numbers, set
equal to 100 in 1950. Real world GDP has increased more than ten times
since 1950; world trade volume has increased by almost 38 times. The
major global recession in 2009 is clearly evident with the sharp decline in
the flow of trade in that year. Note that this figure shows only the trade in