Trade in services in the context of COVID-19

The World Trade Organization’s study offers information about the early consequences of the pandemic, as it affects trade in services across various sectors, as well as shipment methods. The authors state that services account for over two-thirds of economic output and attract over two-thirds of foreign direct investment, providing the majority of jobs globally and representing over 40% of all global trade. Logistics and the tourism and travel sector have been the hardest hit as a result of the COVID-19 pandemic and the resulting crisis. Restrictions on movement and enforced social distancing have had the greatest impact on suppliers and consumers. Interruptions to the supply of services are having a wide-ranging impact on the economy and trade, given the sector’s important role in other areas of economic activity. Reduced trade in goods contributes to reduced trade in services, resulting in an economic slowdown. Labour productivity and trade performance, including in the services sector, will be key to economic recovery at all levels. This underlines the importance of injecting new momentum into developing trade in services, and especially infrastructure services such as finance, telecommunications, supply chains, transportation and logistics.