UNCTAD: Digital services reshape global trade and LDCs out of the race

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UNCTAD Report: Digitally Deliverable Services Account for 56% of Global Services Exports

A recent UNCTAD report revealed that digitally deliverable services now account for 56% of global services exports, while the share of least developed countries (LDCs) has fallen to just 0.6%—an indication of the widening digital divide.

According to the “Global Trade Update” report issued by the United Nations Conference on Trade and Development (UNCTAD) in September 2026, digitally deliverable services have become the main engine of global trade growth, achieving average annual growth of 7.1% over the past decade, and now capturing 56% of total global services exports.

Accelerating Growth Reshaping the Trade Map

Global services exports grew by 8.3% in 2025 alone, outpacing goods trade growth. The share of services in total global trade rose to 27%, while services accounted for 71% of global intermediate inputs in 2022.

This shift is attributed to the phenomenon of “servicification,” whereby services such as logistics, finance, insurance, design, and data management have become deeply embedded in production and exports, even when the final product is a physical good.

A Widening Gap: LDCs at the Back of the Pack

Conversely, the data reveal stark disparity in the distribution of gains from the digital revolution:

Indicator Advanced Economies Least Developed Countries
Share of digital services in services exports 61% 16%
Share of global services exports Dominant 0.6%
Services export growth (annual) High Only 3%

The LDCs’ share of global services exports fell from 1% in 2010 to 0.6% in 2025, while their digital services export growth has nearly stalled since 2014.

In the high-value commercial services market (research, consulting, and engineering), which exceeds $2 trillion in size, LDCs capture only 0.4%.

AI: Opportunity or Doubled Threat?

AI holds enormous potential to transform the services sector, but UNCTAD warns that it could deepen existing gaps rather than bridge them, because AI infrastructure requires investments in computing, data, and human capital—resources concentrated in the hands of a few large economies and companies.

The report notes that fewer than one-third of developing countries have adopted national AI strategies, placing them in a weak bargaining position in the future digital economy.

Three Pillars for Closing the Gap

UNCTAD identifies three priorities to ensure more equitable participation in digital services trade:

  1. Improving services trade data: Effective strategies cannot be designed without understanding what is traded, who is trading it, and how it supports the economy.

  2. Strengthening digital infrastructure and skills: Reliable connectivity, digital payment systems, and digital skills are prerequisites for competitiveness.

  3. Meaningful participation in international rule-making: 55% of preferential trade agreements signed between 2000 and 2025 included digital trade provisions, but developing countries’ participation in drafting them remains limited.

Source

Source: United Nations Conference on Trade and Development (UNCTAD), “Global Trade Update” report, September 2026.