Services have become the most dynamic component of international trade
WTO report says trade in services has grown 5.4 per cent per year since 2005.
According to the 2019 edition of the World Trade Report from the World Trade Organization (WTO) services have become the most dynamic component of international trade.
On average, services account for about half of GDP worldwide. For developed economies, they account for around three-quarters of GDP and their proportion is increasing rapidly in developing economies.
The report says trade in services has grown 5.4 per cent per year since 2005, while trade in goods has grown at 4.6 per cent on average.
Trade in computer services and research and development have recorded the most rapid annual growth over the past decade.
The WTO says the share of services in global trade could increase by 50 per cent by 2040 thanks to lower trade costs and the reduced need for face-to-face interaction due to digitalization.
The report notes however that policy barriers to services trade – mainly regulatory measures – are much more complex than in goods trade.