The Western Union Company, a leader in cross-border, cross-currency money movement and payments, today launches a new report, “The Global Services Trade Revolutions: Fuelling post-pandemic economic recovery and growth,” in partnership with Oxford Economics – a leader in global forecasting and quantitative analysis.
“The Global Services Trade Revolutions: Fuelling post-pandemic economic recovery and growth”
The report projects the value of international trade in services* rising from $6.1trn in 2019 to $8.0trn by 2025, equating to an increase of almost a third (31%) in the value of global flows over this period.
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It is predicted this growth will be accelerated by the adoption of new technology and digitization of working practices forced by the onset of the COVID-19 pandemic – which, combined with a shift in attitudes to online interactions, is likely to fuel economic recovery and growth of cross-border trade in services in the coming five years.
Western Union Business Solutions and Oxford Economics’ central forecast scenario envisages a relatively strong economic recovery, but it is also possible that a more pessimistic scenario will unfold, characterized by a steeper near-term contraction and a more prolonged and incomplete recovery (see Comparison of global services export forecasts graph). Still, this scenario would only magnify the relative outperformance of digitally-deliverable services.
“For far too long the global service industry has been undervalued and its importance underestimated. This report shows that this needs to change. The economic impact of COVID-19 will be felt for years to come, but we can clearly see that the regions and industries that recognize and appreciate the value of global services will be in a better position to drive future success and ultimately, recovery,” said Andrew Summerill, President, Payments at Western Union.
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