The World Trade Organisation (WTO) recently published a report outlining the significant rise in the value of digitally delivered services, which reached a staggering $3.8tn in 2022. This accounts for over half (54%) of total global services exports and represents an almost fourfold increase since 2005. The annual growth rate of digitally delivered services from 2005 to 2022 averaged 8.1%, which is faster than the growth of goods exports and other services exports. The report states that digital delivery includes cross-border services traded via various digital platforms, such as the internet, apps, voice and video calls, digital intermediation platforms, online gaming, music and video streaming, and remote learning.
Composition of Digitally Delivered Services Exports and Regional Trends
The report found that business, professional, and technical services accounted for approximately 40% of digitally delivered services exports in 2022, followed by computer services (20%), financial services (16%), intellectual property-related services (12%), insurance services (5%), telecoms services (3%), audiovisual and other personal, cultural, and recreational services (3%), and information services (1%). The fastest growth in digital services exports occurred in Asia, which accounted for almost a quarter of all digitally delivered services originating from Asian economies, followed by North America with a 19% share. Europe held over half of the global exports of digitally delivered services in 2022. However, growth in Africa continued to lag, with the region holding less than a 1% share of digitally delivered services exports.
Growth Projections and Risks to Global Trade
According to a UN report, the growth of global trade is expected to remain subdued in 2023, with a projected 1.7% growth in global merchandise trade volume. The WTO also highlighted the risks to this forecast, including geopolitical tensions, food insecurity, potential financial instability, and increasing levels of debt. The value of world merchandise trade reached $25.3tn in 2022, supported by high global commodity prices. In addition, the report found that the value of global commercial services trade increased by 15% in 2022 to $6.8tn.
Conclusion
In conclusion, the WTO’s report on the surge in global exports of digitally delivered services emphasizes the importance of digital platforms in global trade. The composition of digitally delivered services exports reveals the significant contribution of business, professional, and technical services, computer services, and financial services, among others. While Asia and Europe dominate global exports, growth in Africa continues to lag. The projected growth in global trade volume remains subdued, with risks such as geopolitical tensions and food insecurity posing significant threats.
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