A tech company in India delivers software updates to a client in Germany via the internet. A radiologist in the United States interprets medical images sent electronically from a hospital in Kenya. A secure data exchange platform in Estonia provides digital public services to a government agency in Malaysia.
These are all examples of trade in digitally enabled services, a key driver of job creation, economic growth, and poverty reduction, particularly in developing economies. From 2015 to 2024, growth of exports in these services was 90 percent in high-income countries and 125 percent in lower and upper-middle income countries. Growth surged after the COVID-19 pandemic lockdowns prompted many more people to rely on digital services. Meanwhile, merchandise exports (not shown) grew by 47 percent from 2015 to 2024.
The global reach of digitally enabled services means geographical distance is less of a barrier than it is for trade in other services and goods, which is welcome news for small, geographically isolated economies. Virtual distance matters though, and that’s why regulatory frameworks and solid infrastructure are key to unlocking digitally enabled services trade. Read about how to get digital ready. For analysis of the latest global trade trends, see the Trade Watch.
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