Merchandise trade (% of GDP)

This economic indicator reflects the proportion of a nation's total economic output that is derived from the exchange of goods across borders, calculated by summing the values of merchandise exports and imports and then comparing this aggregate to the country’s overall GDP, all expressed in current U.S. dollars. A higher ratio suggests a more open economy that is actively engaged in international trade, which can signify competitiveness and diversification in markets. Conversely, a lower figure may indicate a more domestically focused economy or potential trade restrictions. This metric offers valuable insights into a country's economic health, trade policies, and level of globalization, highlighting the intricate relationship between domestic production and global commerce. Monitoring changes in this ratio can help assess trends in economic integration and vulnerability to international market fluctuations. Source: