Developing Economies Break Trillion-Dollar Barrier in Digital Services Exports

In a landmark achievement for 2023, developing economies surpassed a trillion dollars in exports of digitally deliverable services, as reported by UNCTAD. However, least developed countries face challenges due to unequal distribution of digital trade benefits, infrastructure issues, and systemic inequalities, necessitating international cooperation and targeted interventions.

In a significant milestone, developing economies exceeded a trillion dollars in exports of digitally deliverable services in 2023, marking the first time this threshold has been crossed, according to UN Trade and Development (UNCTAD) data. This achievement stands against the backdrop of a global total of USD 4.5 trillion in such exports. Digitally deliverable services include sectors like IT consulting, creative industries, telecommunications, and financial services, all of which can be conducted remotely over computer networks.

Despite the potential of digital technologies to transform global service trades, the benefits remain unevenly allocated. UNCTAD reports that while these services constitute 56% of total service exports globally, they account for only 20% in the least developed countries (LDCs). From 2015 to 2023, LDCs experienced a 43% growth in the value of these services; however, their share of global exports declined from 0.24% to 0.19%.

According to Torbjorn Fredriksson, head of the e-commerce and digital economy programme at UNCTAD, this decline highlights ongoing challenges such as infrastructure deficits, a digital skills gap, and limited market access. Without targeted measures, the digital economy might exacerbate rather than reduce existing disparities. UNCTAD is actively working towards inclusive digital trade by developing international guidelines for e-commerce quantification, with an upcoming meeting set to focus on enhancing digital trade statistics.

(With inputs from agencies.)