Global services trade witnessed a remarkable 10 percent year-on-year increase in the third quarter of 2024, continuing the strong growth observed in the first half of the year, according to the World Trade Organization (WTO).
In Q3 2024, Asia led the charge with a notable 16 percent rise in services exports, followed by an 8 percent increase in Europe. Meanwhile, North America, South and Central America, and the Caribbean experienced a 7 percent growth. This robust expansion was mirrored by a marked growth in imports across regions, driven by high demand for diverse services.
Services trade emerged as a beacon of growth, boasting a 9 percent year-on-year increase in the first three quarters of 2024, in stark contrast to the modest 2 percent growth seen in goods trade during the same period.
Transport services saw a significant 14 percent rise in Q3 2024 as shipping rates soared amidst persistent disruptions on major trade routes. Global freight prices surged to approximately $4,500, nearly four times higher than in Q3 2023, according to data from Freightos.
Asia’s transport services exports skyrocketed by 32 percent, with China and Singapore experiencing peaks of 47 percent and 40 percent, respectively. Leading Asian transport traders’ monthly statistics suggest sustained growth through the year’s end. For instance, China’s transport exports surged by 50 percent in the last quarter of 2024, driven by increased shipments.
International travelers’ expenditure in foreign economies rose by 10 percent in Q3 2024. Over the first three quarters of 2024, global travel receipts exceeded pre-pandemic levels by 15 percent. Growth is stabilizing after the post-pandemic surge, with visa-free schemes adopted throughout 2024 by many economies boosting international tourism. By the end of 2024, international tourist arrivals nearly reached their 2019 levels, indicating a complete sector recovery, according to UN Tourism.
Major events like the UEFA European Football Championship in Germany and the Olympics in France bolstered travel in 2024. Europe’s travel exports grew by 7 percent from an already high base in 2023. Several African economies reported double-digit growth, including Namibia (+32 percent), Morocco (+19 percent), and Tanzania (+18 percent).
Other commercial services, which constitute around 60 percent of total services trade, expanded by an average of 8 percent in Q3. The European Union and the United Kingdom saw a 9 percent increase in exports in this category, while the United States recorded a 7 percent rise. Double-digit growth was widespread across various regions, with South and Central America and the Caribbean economies, including Chile (+32 percent), Argentina (+26 percent), and Peru (+17 percent), showcasing substantial growth rates.
Digitally deliverable services, such as computer, financial, business, and insurance services, were key growth drivers. Computer services exports maintained impressive momentum, surging globally by 13 percent in January-September 2024.
Developed and developing economies alike recorded rapid growth in computer services exports, with Indonesia (+77 percent), Mauritius (+37 percent), and the United States (+18 percent) seeing sharp increases. According to WTO estimates, the European Union’s exports of computer services grew by 15 percent year-on-year in the first nine months of 2024, or 10 percent excluding the largest EU exporter, Ireland.
With dynamic growth across regions and sectors, the services trade continues to be a vital component of global trade, reflecting the world’s shifting economic landscape and the increasing importance of diverse and digitally-driven services.
