Global Services Trade Experiences Moderate Slowdown in First Quarter of 2025, WTO Reports
Geneva – July 31, 2025 – The World Trade Organization (WTO) today released its latest report, “Services trade growth slows in first quarter of 2025,” indicating a moderation in the pace of global services trade expansion during the initial three months of the year. While the sector continues to demonstrate resilience, the data suggests a return to more moderate growth patterns following a period of robust expansion.
According to the WTO’s analysis, the value of international services trade experienced a noticeable slowdown in the first quarter of 2025 compared to the latter half of 2024. This trend is observed across various service categories and geographic regions, though the specific drivers and magnitudes of the slowdown may vary.
The report highlights that while the overall growth rate has decelerated, the services sector remains a significant contributor to global economic activity. Services trade has consistently outperformed goods trade in recent years, reflecting the increasing digitalization of economies and the growing importance of cross-border service delivery through means such as digital platforms and electronic delivery.
Several factors could be contributing to this observed slowdown. Economic uncertainties in major global markets, potential shifts in consumer and business spending patterns, and evolving geopolitical landscapes may be influencing the demand for and supply of various services. Furthermore, the report suggests that the exceptionally strong growth witnessed in previous periods may have been partly driven by pent-up demand and specific pandemic-related shifts, the effects of which are now normalizing.
Key sectors that contribute to international services trade include transport, travel, financial services, insurance, intellectual property services, telecommunications, computer and information services, and business services. The WTO’s detailed breakdown of trade flows within these categories will offer valuable insights for policymakers, businesses, and researchers seeking to understand the nuances of this moderation.
The WTO emphasizes the importance of open and predictable services markets for fostering economic growth and development. The report underscores the need for continued international cooperation and dialogue to address any emerging challenges and to ensure that the services sector can continue to be a driver of innovation and prosperity.
The organization’s commitment to monitoring global trade trends and providing timely data remains crucial in navigating the complexities of the international economic environment. The insights from this report will be instrumental for stakeholders in adapting their strategies and for shaping policies that support a dynamic and inclusive global services economy.
Further analysis and updates on services trade performance are anticipated as more data becomes available for subsequent quarters of 2025. The WTO continues to play a vital role in facilitating informed discussions and promoting a stable and rules-based international trading system.
Services trade growth slows in first quarter of 2025
AI has delivered the news.
The answer to the following question is obtained from Google Gemini.
WTO published ‘Services trade growth slows in first quarter of 2025’ at 2025-07-31 17:00. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.