Mon 21 September 2026:
Digitally deliverable services outpace wider services trade, but developing economies continue to face a major digital divide
Digitally deliverable services have expanded rapidly over the past decade and now account for 56% of global services exports, according to a new report by the United Nations Conference on Trade and Development (UNCTAD).
The report found that global services exports increased by an average of 6.7% annually over the past 10 years, with growth accelerating to 8.3% in 2025.
Digitally deliverable services, however, grew at an average annual rate of 7.1% during the decade, supported by the rapid expansion of cloud computing, digital platforms and improved internet connectivity.
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Digital Services Span Multiple Industries
The expanding sector includes a wide range of activities, including insurance, financial services, telecommunications, computing, research and development, management consulting, and architectural, engineering and scientific services.
The growth reflects the increasing ability to provide services across borders through digital networks without requiring providers and customers to be physically present in the same location.
Growing Digital Divide
Despite the rapid expansion of digital trade, UNCTAD highlighted a substantial gap between developed and poorer economies.
Digitally deliverable services account for around 61% of total services exports in developed economies, compared with just 16% in least developed countries.
Services exports from least developed countries grew by an average of only 3% annually over the past decade. Their share of global services exports also declined from below 1% in 2010 to 0.6% in 2025.
The figures indicate that many of the world’s poorest economies have not benefited from the digital expansion at the same pace as advanced economies.
AI Readiness Gap Widens
The disparity is also reflected in countries’ ability to adopt and benefit from artificial intelligence.
According to UNCTAD’s AI readiness index, advanced economies recorded an average score of 0.65, compared with 0.41 for developing economies and 0.31 for least developed countries.
The report also found that fewer than one-third of developing countries have adopted a national AI strategy.
UNCTAD warned that unequal access to digital infrastructure, technology, skills and investment could allow rapid AI development to deepen existing economic disparities.
UN Calls for Digital Investment
UNCTAD urged developing economies to strengthen their digital foundations by investing in cross-border payment systems, regulatory frameworks and specialised workforce skills.
The agency said improving digital connectivity and the ability to participate in online services markets will be increasingly important as AI and other emerging technologies reshape international trade.
The report suggests that the expansion of digital services presents significant opportunities for developing countries, but access to infrastructure, skills and supportive policies will determine how widely those opportunities are shared.
