El global trade in services experienced a significant slowdown in the first quarter of 2025, recording year-over-year growth of 5%, half the pace seen in previous years. This slowdown, which contrasts with the strength of 2023 and 2024, is attributed to a combination of economic factors, including the appreciation of the US dollar and a growing global uncertainty.
The slowdown mainly affected Europe and North America, where the Service exports grew by only 3%, a notable drop compared to 8% and 11% respectively in the first quarter of 2024. In contrast, Asia maintained strong momentum, with growth of 9%, highlighting the region's economic resilience.
"Other business services" and declining subsectors
The main driver of this slowdown was the category of «other commercial services", which encompasses digital, financial and professional services. This sector, which accounted for 60% of global trade in services in 2024, experienced a general slowdown."
In detail:
Business services: Growth slowed, with a 4% increase in the United States and stable exports from the European Union in dollars.
Financial Services: grew by only 3% due to reduced investment activity and exchange rate fluctuations. While the EU and US grew by 2%, Switzerland saw a 3% decline. The United Kingdom, however, stood out with solid growth of 10%.
Intellectual property servicesGrowth was 4%, down from 7% in the same period in 2024, affected by exchange rate volatility.
Construction servicesThis sector suffered the hardest hit, with a 15% year-over-year decline, reversing the previous year's growth. China, South Korea, and the EU were the hardest hit, with declines of up to 25% in the case of the Asian giant.
Sectors that resist the trend
Despite the overall outlook, not all sectors were affected equally. IT services remained solid, driven by strong global demand for artificial intelligence (AI), digital transformation, and cybersecurity solutions. Countries such as India and Ireland They recorded growth of 13% and 9% respectively.
Global transport also showed year-on-year growth of 3%, led by a 10% increase in Asia, highlighting the 31% increase in China.
International tourism continued its recovery, with a 5% increase in trips and surpassing 2019 levels for the first time since the pandemic. Asia was the main driver of this recovery, with a 13% growth in tourism receipts, led by China, Vietnam and JapanIn contrast, North America experienced a 1% drop in tourism revenue.
Performance of major economies
The performance of services trade varied significantly across major economies. Asia, in general, showed strength with double-digit growth in exports of China (+ 13%), India (+12%) and Japan (+11%) until June.
En North America, United States saw a 5% increase, while to Canada recorded a 6% decline. Meanwhile, exports of the European Union to third countries grew by 3%, and the United Kingdom experienced a notable 9% increase in its exports.
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