Economic

UN Trade and Development said services are reshaping global trade and that many developing and least developed countries remain on the margins of services-driven export growth.

According to UNCTAD, global trade in services grew by about 5.3% annually over the past decade and now accounts for more than a quarter of total trade. The organisation says this growth has been driven by digitally deliverable services, including information technology, finance, and professional services.

UNCTAD says participation remains uneven. Its data show that developing economies recorded the fastest average annual growth in digitally deliverable services exports between 2015 and 2024, while least developed countries lagged behind and saw stronger growth in goods exports than in digitally deliverable services. Separate figures also show that services account for a substantial share of intermediate inputs in both OECD and non-OECD economies.

The organisation links that shift to ‘servicification’, which it describes as the increasing integration of services across production, including logistics, finance, digital design, and marketing. UNCTAD says outcomes for developing economies depend on infrastructure, skills, and regulatory settings that support services-intensive production.

UNCTAD also says trade policy is becoming increasingly important as negotiations include more provisions on digital trade, including cross-border data flows, data protection, electronic transactions, and digital infrastructure. It says such provisions can reduce regulatory fragmentation and improve predictability, while restrictive measures can limit access to key services and reduce participation in global value chains.

The organisation says policymaking remains constrained by limited data, especially in developing countries. Gaps in detailed services trade statistics, including by sector, partner, and mode of supply, make it harder to identify competitive strengths, assess barriers, and negotiate effectively.

UNCTAD convened the 12th session of its Multi-year Expert Meeting on Trade, Services and Development in Geneva on 15 and 16 April to examine servicification and its implications for diversification. According to the organisation, discussions focused on how policy frameworks, regulatory choices, and trade agreements shape outcomes, and on the need to align data, policy, and implementation more closely.

UNCTAD says it is complementing that work with analytical and capacity-building support, including its Primer on data for trade in services and development policies, as well as work with the Caribbean Community through the Trade-in-Services Information System.

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