Digital services trade growth will widen inequalities

Significance

Digital services exports grew by 9% last year, far outpacing trade in goods and other services. Digital services trade is much more concentrated than other trade categories, with just ten countries accounting for almost two-thirds of digital services exports, widening digital, economic and social inequalities.

Impacts

• Lower-cost India and China have a comparative advantage over advanced states in digitised standardised engineering and technical services.
• The fast pace of technological AI-powered innovations will boost trade in intellectual property rights.
• Greater digital services trade will increase digital, social and economic inequalities between the best-performing nations and the rest.