In July 2023, global trade was down 3.2% on the year before, the fastest drop since the start of the pandemic. Eurozone trade fell 2.4% and in China - the world’s largest exporter - it was down 1.5%. Global trade also shrunk by 2.4% in June and it’s set to fall further still, experts say. There are a number of reasons for this. Inflation has made goods more expensive. While high interest rates are dampening demand, especially for items that are usually financed via consumer credit or borrowing such as cars or more expensive furniture items. High interest rates also hamper the ease of obtaining trade finance without which most trade in goods simply cannot flow.