Trade in creative products reached new peak: UNCTAD

Trade in creative products reached new peak: UNCTAD

(Hong Kong and India are the only developing countries, apart from China, holding the 4^th and 6^th position respectively)

World trade in creative goods and services comprising of arts and crafts, books, graphic and interior design works, fashion, films, music, new media, printed media, visual, as well as audiovisuals, totaled a record US$624 billion in 2011, up from US$559.5 billion in 2010 and US$536 billion in 2009, according to the UNCTAD Global Database on the Creative Economy.

This sector has now exceeded its pre-crisis peak of US$620.4 billion in exports in 2008. The minor decrease in the overall consumption of creative products after 2008 reflected the fragility of the post-crisis recovery in developed countries mainly due to the rise of public deficits, currency volatility, and high levels of unemployment, especially in the most advanced countries.

UNCTAD figures show that creative services exports jumped to US$172 billion in 2011, up from US$163.8 billion in 2010, and a near tripling in terms of value from the 2002 total of US$62 billion. Architecture and related services, cultural and recreational services, audiovisual services, advertising, and research and development services are the core activities comprising creative services.

The overall global trade in creative products has more than doubled from 2002 to 2011, with the average annual growth rate of 8.8%. Growth in developing country exports was stronger still, averaging 12.1% annually for the period. Such exports of creative goods and services reached US$227 billion in 2011, or 50% of the global total. China remains the leading exporter of creative goods. Its creative-products exports tripled from US$32 billion in 2002 to US$125 billion in 2011 at an annual growth rate of 14.7%. Overall, however, there are very few developing countries among the top 20 global players in the world market for creative goods, UNCTAD notes. Of the top ten exporters worldwide, Hong Kong and India are the only developing countries, apart from China , holding the 4^th and 6^th position respectively.

 Source: UNCTAD

Domestic demand for creative products has increased in recent years in the emerging economies of Asia, Latin America, and Africa, the statistics show, although the trend has not extended to North Africa and some countries in West Asia. Before the recession, the global market had been boosted by increases in "South-South" trade in creative products.

Source: UNCTAD

Design is the largest contributor to trade in creative industries, and in 2011, it accounted for over 66% of total exports of creative goods. New media has been the faster growing creative sector in recent years, the statistics show. The level of exports has grown by 13.8% annually. Publishing and printed media is a sector facing challenges due to the explosion of electronic publishing and distribution, but trade flows nonetheless amounted to US$43 billion in 2011. The global market for visual arts is another multi-billion dollar business characterized by fierce competition and the potential for huge commercial gains. Attention also should be draw to the fact that the market for art crafts is significant. It increased from US$17.5 billion in 2002 to over US$34 billion in 2011.

Source: UNCTAD

Warm regards,

Dr. S P Sharma

Chief Economist

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PHD Research Bureau

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