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Services are becoming the backbone of the global economy, powering production, trade and participation in international value chains, but many of the world's poorest countries remain largely excluded from the fastest-growing segments of the sector, according to a new report from the UN Trade and Development (UNCTAD).

In its Global Trade Update, September 2026 edition, UNCTAD said services now play a central role not only as stand-alone exports but also as critical inputs in manufacturing and agriculture. The report highlights the growing importance of digitally deliverable services, which can be supplied remotely through computer networks, while warning that least developed countries (LDCs) are struggling to keep pace.

Services accounted for 71% of global intermediate inputs in 2022, with the share reaching 78% in developed economies compared with 61% in developing economies, the report said. Services also represented 33% of intermediate inputs in industrial goods exports in developed economies, compared with 27% in developing economies and just 13% in LDCs.

UNCTAD said the figures underscore the need for better measurement of services trade, including services embedded in exported goods, to fully capture their contribution to competitiveness, diversification and economic growth.

Global services exports have expanded rapidly, growing by an average of 6.7% annually over the past decade and accelerating to 8.3% growth in 2025. Digitally deliverable services grew even faster, averaging 7.1% annual growth, and now account for 56% of worldwide services exports.

However, the report found that LDCs have benefited far less from this expansion. Their services exports increased by only 3% per year, while their share of global services exports declined to 0.6% in 2025. Digitally deliverable services make up only 16% of total services exports in LDCs, compared with 61% in developed economies.

According to UNCTAD, participation in higher-value service industries depends on access to reliable digital infrastructure, skilled workers and effective regulatory frameworks. Many developing countries continue to face significant obstacles, including poor internet connectivity, high costs for international payments and persistent shortages of digital skills.

The agency noted that affordability and connectivity gaps remain substantial between developed and developing economies. It also highlighted the challenge of remittance costs, with half of the countries facing the highest remittance fees classified as LDCs.

UNCTAD further warned that the rapid rise of artificial intelligence could widen existing inequalities. Computing power, data resources, financing and technical expertise remain concentrated in a small number of countries and firms, while fewer than one-third of developing nations have adopted national AI strategies.

The report also points to growing complexity in global digital trade governance. Multilateral services trade rules were largely created before the emergence of the digital economy, while newer digital trade provisions have proliferated through regional and bilateral agreements.

Of the preferential trade agreements signed between 2000 and 2025, 55% included e-commerce or digital trade provisions, UNCTAD said. Since 2020, participation in such agreements has included 90% of developed countries, 62% of developing countries and 66% of LDCs.

The expansion of digital trade rules has created a more fragmented regulatory environment, the report noted, making it more difficult for many developing countries to influence emerging standards. UNCTAD called for greater transparency, stronger regulatory cooperation and enhanced negotiating capacity to ensure that future rules take account of varying levels of development.

To address widening disparities, the report identifies three priority areas: improving services trade data, strengthening digital infrastructure and skills, and ensuring more meaningful participation by developing countries in international rule-making.

"Many developing countries, particularly LDCs, remain only marginally integrated into rapidly growing services trade, especially in digitally deliverable services," the report said.

UNCTAD argued that targeted national reforms, combined with international cooperation, could help countries convert services growth into higher productivity, stronger competitiveness and more diversified economies.