Trade in services grows faster than in goods

While many associate global trade with tangible goods, ports, and shipping containers, the reality is that the trade in services is experiencing more robust growth. This trend has been evident since the 2008 financial crisis, with services increasingly becoming the engine of global commerce.

Sectors such as software development, consulting, financial services, transportation, and tourism are at the forefront of this expansion. The World Trade Organization (WTO) forecasts that while trade in goods will see a real growth of 1.9% in 2026, services are projected to grow by 4.8% this year and 5.1% in 2027. This divergence highlights a significant shift in the global economic landscape.

Services encompass a broad range of activities, including transportation, travel, and digital services like software and AI applications. For countries like Austria, a strong performance in services, especially tourism, is crucial for compensating for deficits in their trade of goods. This dynamic allows them to maintain a healthier overall trade balance.

Within the services sector, commercial services, including financial, computer, and professional services, are showing the most significant growth. Digital services, increasingly powered by artificial intelligence, are a key component of this expansion. However, the long-term impact of the AI boom on trade, particularly in relation to hardware like chips, remains a subject of ongoing economic analysis.

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With services, like tourism, Austria can compensate for this deficit.