Global trade in commercial services experienced a significant slowdown in the first quarter of 2025, with year-on-year growth falling to 5%, a rate approximately half of that recorded in 2024 and 2023, according to the World Trade Organization (WTO). The deceleration was primarily driven by the appreciation of the US dollar and heightened economic uncertainty.
The slowdown was most pronounced in Europe and North America, where services exports increased by only 3% year-on-year, a sharp drop from the 8% and 11% growth rates seen in the same period of 2024, respectively. In contrast, services exports in Asia demonstrated resilience, maintaining strong growth at 9%.
The primary catalyst for the overall deceleration was the “Other commercial services” category, which includes a wide array of digitally deliverable services. This category, which represented 60% of global services trade in 2024, saw moderated growth. Notably, exports from the European Union in this category remained flat in US dollar terms.
Performance across specific sectors varied:
Financial Services: Growth in financial services exports slowed to just 3% year-on-year, a reflection of reduced investment and the impact of exchange rate movements. While exports from the European Union and the United States saw modest 2% growth, the United Kingdom was a notable exception, posting a robust 10% increase, fueled by strong exports to the United States (+13%).
Intellectual Property (IP) Services: Trade in IP-related services expanded by 4%, down from 7% in the previous year. This sector remains highly concentrated, with the EU and US accounting for nearly 70% of global exports.
Construction: Global construction exports experienced a significant contraction, falling by 15% year-on-year. This decline, which reversed a strong performance in 2024, was led by key economies including China (-25%), the Republic of Korea (-15%), and the European Union (-6%), and is attributed to delays in investment due to economic uncertainty.
Computer Services: A bright spot in the data, computer services exports were only marginally affected by the broader slowdown. Strong global demand for solutions related to artificial intelligence (AI), digital transformation, and cybersecurity continued to drive growth. India’s computer services exports grew by 13% and Ireland’s by 9%, signaling continued momentum in this sector.
The WTO’s report indicates a broad-based moderation in services trade, largely tied to macroeconomic pressures, while highlighting the sustained strength of the digital and technology sectors.
