The Expanding Role of Services in Global Trade and Development

Strategic Insights -

The global economy is undergoing a significant shift as services emerge as a standalone sector and essential inputs across primary industries and manufacturing. However, the lack of quality data and statistical capacity in developing countries hinders the understanding and harnessing of the sector's potential. To address this challenge, the United Nations Conference on Trade and Development (UNCTAD) has launched a new report, "Primer on data for trade in services and development policies," which aims to make the complex statistical landscape more accessible and connect to broader capacity-building efforts.

Key Takeaways:

  • The global services sector has grown by an average of 5.3% per year between 2014 and 2024, outpacing goods exports at 2.5% annually.
  • Digitally deliverable services expanded at a rate of 6.4% annually worldwide and 8.6% in developing countries.
  • Services contribute over 40% of global value added in exports, with more than half in developed economies and one third in developing economies.
  • Only 15 developing economies regularly publish partner-disaggregated services trade statistics, compared to 95% of developed economies.
  • The new report aims to make the complex statistical landscape more accessible, particularly for developing countries with reduced statistical capacity.
  • The report connects to broader capacity-building efforts of UN Trade and Development, including its TrainForTrade program and the Trade-in-Services Statistics Information System (TiSSTAT).
  • Developing economies require continued support through capacity-building, technical assistance, and knowledge-sharing to turn services into engines of growth, diversification, and job creation.
  • Strengthening national statistical capacities and collaboration between data producers and users will be key to ensuring that services trade data becomes more accessible, policy-relevant, and widely used.

Statistics:

  • 5.3% average annual growth rate of global services exports between 2014 and 2024
  • 6.4% annual growth rate of digitally deliverable services worldwide
  • 8.6% annual growth rate of digitally deliverable services in developing countries
  • 40% contribution of services to global value added in exports
  • 50% contribution of services to global value added in exports in developed economies
  • 30% contribution of services to global value added in exports in developing economies
  • 15 developing economies regularly publish partner-disaggregated services trade statistics
  • 95% of developed economies regularly publish partner-disaggregated services trade statistics

Sources:

  • United Nations Conference on Trade and Development (UNCTAD) - news release
  • "Primer on data for trade in services and development policies" - UNCTAD report
  • "Shaping the future: Driving economic transformation for equitable, inclusive and sustainable development" - UNCTAD16 conference theme