Worldwide value of services to reach $5 trillionStaff Writer | September 14, 2016
Over the last decade, global services exports have grown at an annual average rate of around 6.5% - higher than the growth rate of nominal global GDP and global goods exports.
PwC report China is the largest services exporter in the E7
PwC economists report that the G7 economies contribute just under 40% of global services exports, with the U.S. ranking as the world’s largest exporter.
But between 2010 and 2015, it was Japan that enjoyed the highest growth in services exports (10.4%) of the G7, followed by France (7.7%) and Germany (6%).
However, the value of Japanese services exports remains some way behind the U.S. and UK.
But it’s in the E7 that the fastest growth has occurred since 2010, with average annual growth of services exports above 10% in every E7 economy.
China is the largest services exporter in the E7, enjoying average annual services exports growth of 14.3% since 2010. Though India (15.2%) and Turkey (15.2%) have been the top performers.
On average, the EU’s CEE economies (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia) have outperformed the wider EU at attracting foreign investment.
This is due, in part, to their low labour costs and relatively fast labour productivity growth.
Average monthly job creation in the U.S. to date in 2016 (186,000) has been slightly below PwC’s prediction from the start of the year of around 200,000 – but the job creation data for June and July were more impressive.
If this continues, PwC economists would expect the Fed to raise interest rates before the end of the year. ■