International Trade in Services 2023 – Annual Bulletin
This Annual Bulletin 2023 on International Trade in Services 2023 was published by the United Nations Conference On Trade And Development. Global services trade has experienced significant growth and transformation in recent years, particularly following the disruptions caused by the COVID-19 pandemic. The “Trade in Services, Annual Bulletin, 2023” report provides a comprehensive analysis of the current state of global services exports, highlighting key trends, regional performances, and the importance of services in the global economy.
Global Services Trade Overview
Global services exports reached $7.9 trillion in 2023, growing by 8.3% annually. At the regional level, Latin America and the Caribbean recorded the highest annual growth in services exports at 12%, followed by Africa at 9% and Europe and Northern America both over 8%. Asia witnessed an increase of nearly 8%. The fastest annual rise in services imports was noted in Asia and Europe, both surpassing 10% in 2023. African economies recorded imports just 0.8% higher than in 2022.
Structure of Services Exports
Since the COVID-19 pandemic in 2020, other business services have overtaken travel as the top internationally traded service category. In 2023, other business services represented $1.9 trillion or 25% of all services exports. Travel came in second at $1.5 trillion, followed by transport at $1.4 trillion. Europe and Northern America were dominated by exports of business, financial, insurance, telecommunication, computer, and intellectual property-related services, which made up over 50% of their total services exports. In Asia and Oceania, those service categories also surpassed 50%. Latin America and the Caribbean’s most exported service was travel at 42% of total exports. In Africa, travel accounted for 35% of services exports.
Developing Economy Trends
The top 10 services exporting developing economies captured 21% of the global services market in 2023, a rise of 5 percentage points compared to 2010. However, most of this additional market share was captured by just a few leading exporters like China, India, Singapore, and the UAE. The market share of the next 10 ranked developing economies (rank 5 to 14) remained flat, with a marked decrease during the pandemic. Developing economies trading more in knowledge-intensive services have been more successful in advancing exports. Bigger losses of market share during COVID-19 indicate higher dependency on travel services exports, which plummeted in 2020.
Regional Trends in Telecom and Computer Services
Regions with more developed economies – Asia, Europe, and Northern America – recorded higher average growth than other regions in telecom and computer services exports from 2016 to 2019. With the pandemic, Africa Latin America, and the Caribbean increased their exports of these services, recording much higher growth between 2020-2023 than the previous four years. Europe and Northern America’s increase in telecom and computer services exports was stronger before 2020, while Asia and Oceania remained close to 14% growth in both periods. Digitally deliverable services trade surged during the pandemic, with telecom and computer services exports expanding to over $1 trillion in 2023, two-thirds of which were exported by Europe.
Leading Exporters and Importers
The 10 leading services exporters in 2023 were:
- United States ($1.0 trillion)
- China ($381 billion)
- United Kingdom ($584 billion)
- India ($338 billion)
- Singapore ($328 billion)
- Germany ($439 billion)
- Ireland ($398 billion)
- France ($360 billion)
- Netherlands ($312 billion)
- United Arab Emirates ($166 billion)1
These top 10 exporters represented over 55% of global services exports in 2023. The 10 leading services importers were:
- United States ($748 billion)
- China ($552 billion)
- Germany ($502 billion)
- United Kingdom ($394 billion)
- Ireland ($389 billion)
- Singapore ($295 billion)
- France ($320 billion)
- Netherlands ($296 billion)
- India ($246 billion)
- Japan ($226 billion)1
These top 10 importers accounted for over 54% of global services imports in 2023.
Africa’s Services Trade
After 2016, Africa’s low share in world services trade increased modestly up to 2019, but the COVID-19 pandemic pushed African market shares to the lowest in 12 years. Long-distance international travel, transport and related services represent a substantial part of African services exports. As these services trade was hampered in 2020-2021, Africa’s total services exports only recovered in 2022, reaching $150 billion in 2023. In 2023, Sub-Saharan Africa’s share in African services exports dropped to around 50%, down from 60% in 2016-2017. International travel receipts of $52 billion in 2023 equaled the 2019 level for the continent, with just over half exported by Northern Africa.
Least Developed Countries (LDCs)
In 2023, LDCs exported $48 billion worth of services and recorded solid growth rates in main categories. Transport exports reached $14.5 billion, up 1.5%. Travel services grew 28% annually to over $16 billion, still 20% less than 2019 levels. Except for transport, LDCs registered lower growth rates than other developing economies in most service categories.Over the last 15 years, LDCs’ share in global services exports stood between 0.6-0.8%. Their share in imports decreased from around 1.6% before 2015 to 1.1% in 2023
Services Trade by Partner
Singapore’s top services export markets in 2022 were:
- United States ($45 billion)
- European Union ($44 billion)
- Japan ($30 billion)
- Australia ($29 billion)
- China ($24 billion)1
The Netherlands’ top services export markets were:
- European Union ($154 billion)
- Germany ($41 billion)
- United States ($31 billion)
- United Kingdom ($30 billion)
- Ireland ($23 billion)1
Singapore’s top services import sources were:
- United States ($67 billion)
- European Union ($28 billion)
- China ($26 billion)
- Hong Kong ($14 billion)
- Japan ($14 billion)1
The Netherlands’ top services import sources were:
- European Union ($140 billion)
- United States ($50 billion)
- United Kingdom ($32 billion)
- Germany ($30 billion)
- Ireland ($21 billion)1
Importance of Services
In developing economies, the services sector accounted for 61% of total value added in 2022, compared to 80% in developed economies. Services represented 45% of total employment in developing countries in 2023, versus 74% in developed countries. In 2023, services made up about 19% of total exports of goods and services for developing economies, compared to 30% for developed economies. International trade relies heavily on supporting services that are internationally sold.
Conclusion
The “Trade in Services, Annual Bulletin, 2023” report underscores the resilience and adaptability of the global services trade, particularly in the wake of the COVID-19 pandemic. As services become increasingly vital to economic growth and international trade, understanding their dynamics will be essential for policymakers and businesses alike. The ongoing trends indicate a shift towards knowledge-intensive services, with developing economies making strides in diversifying their service exports, although challenges remain, particularly for LDCs and regions like Africa. The future of global services trade will likely hinge on continued innovation and the ability to leverage digital platforms for service delivery.