(18.01.2023) World services trade activity weakened in the fourth half of 2022 and would remain lackluster in early 2023, according to the World Trade Organization's (WTO) Services Trade Barometer.
Initially, the year 2022 was marked by a revival in world services trade activity, so that by the second quarter of 2022 the barometer had surpassed its pre-Covid performance, standing at 105.5. In the third quarter, demand for travel, information and communication technology (ICT), and finance was expected to keep the world services trade activity expanding.
However, industry activity has weakened globally, pushing the WTO barometer slightly below the benchmark value of 100. This slowdown could continue until the first quarter of 2023, mainly as a result of subdued growth prospects in the major service economies.
Financial services (107.8), passenger air transport (105.2), and ICT services (103.2) were more resilient to the downturn in world trade for services and are well above the general trend.
Conversely, construction (92.9), container shipping (92.8) and services Purchasing Managers' Index (PMI) (91.1) showed declines indicating a sharp contraction.
For its part, the WTO's Goods Trade Barometer, published on November 28, also points to a probable slowdown from the end of 2022 to the beginning of 2023, in line with the tumultuous period the industry is currently undergoing.
Last modification 18.01.2023