Latin America’s Digital Trade Boom Opens a $90 Billion Gateway

The region’s progress is significant, yet Latin America and the Caribbean accounted for only 2% of global exports of digitally delivered services in 2024.

Digital trade is reshaping how Latin America and the Caribbean connect with the global economy, giving companies, independent professionals and entrepreneurs new ways to sell their products and services beyond national borders. Exports of digitally delivered services across the region climbed from $18.5 billion in 2005 to $87.7 billion in 2024, nearly five times their earlier value, according to the report Digital Trade in Latin America and the Caribbean: Connecting Markets, Powering Growth, released by the Inter-American Development Bank, the World Trade Organization and the World Bank Group.

The expansion covers services delivered through digital networks, including software development, financial activities, business support, telecommunications, education and creative work. Businesses can now reach foreign customers without opening offices abroad, while professionals can supply expertise from their homes or local workplaces, creating valuable opportunities in countries where geography and transport costs have traditionally limited access to international markets.

Small Businesses Gain a Wider Route to Global Customers

Digital platforms are reducing many of the costs involved in entering foreign markets, allowing smaller firms to advertise, communicate with buyers, accept orders and deliver certain services online. These tools can be particularly valuable for women-led businesses and entrepreneurs outside major commercial centres, since online access can connect them with customers who were previously difficult or expensive to reach.

Artificial intelligence and other emerging technologies are adding new possibilities by helping companies analyse demand, translate content, improve customer service and manage international transactions more efficiently. Digital systems can also make businesses more resilient during transport disruptions, economic shocks or natural disasters because some commercial activities can continue without relying entirely on physical premises or traditional distribution channels.

Brazil, Mexico, Costa Rica and Argentina have become prominent regional performers, supported by stronger digital capabilities and expanding technology-based industries. Foreign direct investment in digitally enabled sectors is also helping countries acquire expertise, improve business networks and strengthen their ability to compete in markets where technical knowledge, speed and innovation increasingly determine success.

A Fast-Growing Sector Still Holds Vast Untapped Potential

The region's progress is significant, yet Latin America and the Caribbean accounted for only 2% of global exports of digitally delivered services in 2024. This limited share reveals how much room remains for growth if countries can improve connectivity, prepare workers for digital occupations and create business environments that support innovation.

Regional trade presents another missed opportunity. Only 8.4% of digitally deliverable service exports remained within Latin America and the Caribbean in 2023, a much smaller proportion than the levels recorded in Europe and Asia. Better regional connections could help businesses test their services in neighbouring markets, build international experience and expand gradually before competing on a larger global scale.

Shared standards, compatible payment systems and clearer digital rules could make cross-border transactions easier for companies and consumers. Stronger regional cooperation would also give smaller economies access to a broader commercial network, reducing their dependence on limited domestic demand.

Eight Priorities Could Turn Digital Growth Into Wider Prosperity

Weak internet infrastructure, uneven connectivity and shortages of digital skills continue to prevent many people and businesses from participating fully in online trade. Fragmented regulations, customs delays, incompatible payment systems, limited financing and poor access to market information create further obstacles, especially for smaller enterprises without specialist staff or large financial reserves.

The report identifies eight areas requiring focused action: expanding digital infrastructure, modernising regulations, improving payment interoperability, simplifying trade procedures, promoting digital exports, strengthening workforce skills, widening access to finance and improving the measurement of digital trade. Progress across these areas could lower operating costs, give investors greater confidence and help more firms convert local knowledge into internationally competitive services.

Governments will need to work closely with businesses, educators and international organisations so that the benefits reach communities beyond established technology centres. Reliable broadband, practical training, accessible financing and transparent rules can help workers enter better-paying digital careers while giving smaller companies a realistic path into international markets. With the right foundations, the region's digital trade surge could become a broader source of productivity, employment and inclusive economic growth.