Digital Trade in Latin America and the Caribbean : Connecting Markets, Powering Growth

Overview & Synopsis

Digital trade is rapidly becoming a powerful engine of growth across Latin America and the Caribbean, creating new opportunities for businesses, workers, and entrepreneurs while helping countries compete in an increasingly digital global economy. The region's exports of digitally delivered services nearly quintupled from $18.5 billion in 2005 to $87.7 billion in 2024, accounting for about one-third of the region’s commercial services exports. Yet the region only captured 2% of global exports of digitally delivered services in 2024, underscoring a major opportunity for expansion. 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. To better position LAC to take advantage of the opportunities presented by digital trade, this report, a joint publication of the World Bank (WB), Inter-American Development Bank (IDB), and World Trade Organization (WTO) 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 capabilities, 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.