WASHINGTON — Digital trade – international trade that is ordered or delivered online – quintupled in two decades in Latin America and the Caribbean to nearly $90 billion and it is rapidly becoming a powerful engine of growth across the region, creating new opportunities for businesses, workers, and entrepreneurs while helping countries compete in an increasingly digital global economy, according to a new report.
The analysis released today by the Inter-American Development Bank (IDB), the World Trade Organization (WTO), and the World Bank Group, Digital Trade in Latin America and the Caribbean: Connecting Markets, Powering Growth, examines how digital technologies are reshaping trade across the region and identifies policies needed to unlock their full potential and boost growth and competitiveness.
The region's exports of digitally delivered services nearly quintupled from $18.5 billion in 2005 to $87.7 billion in 2024. The increase underscores the growing importance of digitally delivered services to the region’s trade performance and economic growth, the report finds.
Digital services are lowering barriers to international markets, reducing costs, accelerating innovation, and improving resilience. Digital platforms are enabling small businesses, entrepreneurs, and women-led firms to reach customers worldwide, while advances in artificial intelligence and other technologies are creating new possibilities for cross-border trade in goods and services.
The report underscores major opportunities for expansion since the region only captured 2% of global exports of digitally delivered services in 2024. Countries such as Brazil, Mexico, Costa Rica, and Argentina have emerged as regional leaders, while foreign direct investment in digitally enabled industries is helping strengthen capabilities and competitiveness across the region.
The report also points to a promising opportunity: deeper regional integration in digital trade. In 2023, only 8.4% of exports of digitally deliverable services stayed within the region – well below levels seen in Europe and Asia.
“Latin America and the Caribbean countries have substantially increased their exports of digitally delivered services in recent decades, but there is still significant potential to expand them further,” said Fabrizio Opertti, manager of the Productivity, Trade and Innovation Sector at the IDB. “To realize this untapped potential and boost productivity, countries across the region need to improve connectivity, modernize regulatory frameworks, streamline and digitalize border procedures, reduce information barriers through stronger trade promotion, and strengthen the digital capabilities of firms and workers.”
Significant challenges remain, including gaps in digital infrastructure and connectivity, fragmented regulations, limited payment system interoperability, trade and customs bottlenecks, digital skills shortages, and insufficient financing for innovative firms.
To address these challenges, the report calls for action in eight key areas: expanding digital infrastructure, strengthening and modernizing regulations, improving payment interoperability, streamlining trade procedures, promoting digital exports, strengthening digital skills, increasing access to finance, and improving the measurement of digital trade.
The report concludes that governments, businesses, and international organizations must work together to expand the region’s participation in digital trade, increase integration into the global economy, and create new opportunities for firms and workers.
About the WTO
The World Trade Organization (WTO) deals with the global rules of trade between WTO members. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. The overall objective of the WTO is to help its members use trade as a means to raise living standards, create jobs and improve people’s lives. Visit our website: www.wto.org
About the World Bank Group
The World Bank Group has a bold vision: to create a world free of poverty on a livable planet. In more than 100 countries, the World Bank Group provides financing, advice, and innovative solutions that improve lives by creating jobs, strengthening economic growth, and confronting the most urgent global challenges. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.
About the IDB
The Inter-American Development Bank (IDB), a member of the IDB Group, is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the Bank works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise, and knowledge, it promotes growth and well-being in 26 countries. Visit our website: https://www.iadb.org/en
Andres Cavelier
Communications Specialist
Janaina Borges De Padua Goulart
Communications Sr Specialist
