Trend of 4 groups of services trade
Global commercial services trade recorded a year-on-year increase of 8% in the first half of 2023, according to a report by the World Trade Organization (WTO).
What is trade in services? It is the buying and selling of intangible activities that do not result in the transfer of physical goods.
While spending on transportation services declined 8%, mainly due to plummeting shipping rates, spending on travel increased 46%, as tourism continued to recover following the Covid-19 pandemic.
Other commercial services, including financial services, rose 7 percent in 1H2023, while merchandise-related services grew 5 percent.
Among others, trade in services comprises activities such as freight transport, banking, education, tourism, information technology and entertainment.
According to the WTO, in the second quarter of 2023, services trade showed the following year-on-year rates in four subdivisions: transport (-11 percent), travel (+35 percent), «other commercial services) (+8 percent) and merchandise-related services (+4 percent).
Services trade
In retrospect, world commercial services exports grew to $7.0 trillion in 2022, up 14.8% from 2021, largely due to a strong resurgence in travel services trade and, to a lesser extent, transport services trade following the demise of the Covid-19 pandemic.
During 2021 and 2022, Europe and the Middle East recorded the largest increases in travel services exports, rising 67.2% to $530.3 billion and 102% to $118.3 billion, respectively.
Continents
Over the same period, travel services imports increased in value in all regions, led by Europe (up 75.4% to $451.4 billion) and followed by Asia (up 38.9% to $242.9 billion) and North America (up 110.3% to $147 billion).
The global travel industry anticipates continued growth in demand due to rising per capita income, improving consumer confidence and the lifting of pandemic-related travel restrictions in China in early 2023.
