🌍 Current Trends of Global Trade & FDI
Global Trade • Nepal Trade • FDI • Country Classification • WESP
⏱️ Your 30-Minute Memory Plan
🧠 MASTER MEMORY MAP
1. Global Trade
Think: "Trade was 4.7, then slows to 2.7."
Combined world trade in goods and services grew by approximately 4.7% in 2025, exceeding world GDP growth of 2.9%. Total current US dollar value reached US$34.65 trillion.
Growth is projected to slow to 2.7% in 2026.
2. World Trade in Merchandise
C = China → exports +9.2%
A = AI → 42% of global trade growth
🌏 Asia
Contributed 71% of total merchandise trade volume growth in 2025.
🇨🇳 China
Exports increased 9.2% in volume terms. Sales to the US declined by 20%.
🤖 AI Goods
Semiconductors and processors accounted for 42% of global trade growth.
⛏️ Fuels & Mining
Product value decreased by 4%.
3. World Trade in Commercial Services
T = Transport → 2%
O = Other services → 10%
Commercial services exports reached US$9.56 trillion in 2025, increasing by 8% from the previous year.
4. Intellectual Property & Digital Trade
🧠 Intellectual Property
IP-related services exports grew by 9% in 2025.
Previous year growth: 12% in 2024.
💻 Digital Trade
Digitally delivered services reached US$5.26 trillion.
Growth: 10%
Share of world exports: 15.2%
Europe remains the largest exporter of digitally delivered services with a 53.4% share, followed by Asia at 23.3%.
5. Global Value Chains (GVCs)
AI restructuring
Rerouting of trade
Shortening of chains
🌍 Geopolitical Alignment
Trade between hypothetical East/West blocs is growing 4% slower than trade within those blocs.
🇺🇸🇨🇳 US-China
US imports from China fell by 29% in 2025.
🔄 Rerouting
Trade is increasingly being rerouted through connecting economies such as ASEAN members.
🤖 AI
AI technologies have high import content of approximately 70–90%.
Nepal Foreign Trade & Investment
Customs & connectivity
Exports
Imports
Services
Nepal's merchandise trade is influenced by its strategic location between India and China.
Customs & Trade Flow Infrastructure
Physical → Dry ports, ICDs, cargo complexes, roads & bridges
Regional → India & China transit agreements
Nepal's Export Products
Fruits, tea, coffee, herbs, spices, cardamom, saffron, silk, rubber, jute and bamboo.
I = Industrial
Textiles, apparel, limestone and coal.
S = Specific LDC trends
Coffee, tea, cocoa, gold and ores.
Nepal's Import Products
Machinery and equipment.
E = Energy & commodities
Liquid petroleum and chemical fertilizers.
F = Foodstuffs
Maize, rice and other food/feed products.
Nepal's Trade Partners
Important agreements: BIPPA + DTTA
Prospects for Trade in Services
Software development, data processing, BPO and KPO.
T = Tourism
Trekking, rafting, paragliding, healing and cultural/religious tourism.
P = Professional services
Engineering, technical consultancy and education.
Foreign Direct Investment in Nepal
FITTA 2019 + Industrial Enterprises Act 2020
I = Incentives
100% foreign ownership in most sectors and protection against nationalization.
F = Facts
359 FDI projects approved.
G = Gap
Commitment is much higher than actual inflow.
| Investor | Cumulative Share |
|---|---|
| 🇨🇳 China | 45.34% |
| 🇮🇳 India | 21.54% |
| 🇭🇰 Hong Kong | 5.98% |
| 🇺🇸 United States | 3.60% |
NRs. 44.4 billion commitment
↓
NRs. 7.04 billion actual inflow
Country Classification
Developed → Developing → LDC → Total
LDCs are a subgroup of developing economies.
World Economic Situation and Prospects
T = Trade
R = Risks
S = Structural shifts
📉 Growth Projections
⚠️ Key Risks
🤖 AI Boom
AI-related goods accounted for 42% of global trade growth in 2025.
🛢️ Energy Prices
Higher oil prices could reduce merchandise trade growth by 0.5 percentage points.
🌾 Food Security
Fertilizer supply disruptions create pressure on global food systems.
🚢 Trade Policy
Frontloading created a one-off boost to trade in 2025.
🔀 Structural Shifts
Trade is increasingly organized around geopolitical blocs.
2. US-China decoupling
US imports from China fell by 29% in 2025.
3. Digital transformation
Digitally delivered services reached $5.26 trillion.
Numbers You MUST Remember
| Number | What it represents |
|---|---|
| 4.7% | World goods + services trade growth 2025 |
| $34.65T | Total world trade value |
| 4.6% | Merchandise trade growth 2025 |
| $26.26T | Merchandise exports |
| 71% | Asia's contribution to merchandise growth |
| 42% | AI goods' contribution to trade growth |
| $9.56T | Commercial services exports |
| $5.26T | Digitally delivered services |
| 15.2% | Digital trade share of world exports |
| 29% | Fall in US imports from China |
| 359 | Nepal FDI projects approved |
| 45.34% | China's cumulative FDI share |
| 37 / 125 / 44 / 162 | Developed / Developing / LDC / Total |
⚡ 30-SECOND BRAIN TEST
→ 4.7%
→ 4.6%
→ Asia: 71%
→ 42%
→ $5.26 trillion
→ India and China
→ 359
→ China: 45.34%
→ 37 / 125 / 44
→ 162
