How Service-Oriented are LatAm's Export Economies?

Have you ever considered how much of your country's exports come from services? While we may traditionally think of the goods that our countries send abroad — like blueberries, oil, or cheese — as the only type of export they ship to the world, that's not the case at all. Roughly 23% of all exports around the world come in the form of services.

The tiny Caribbean country of Antigua and Barbuda, which doesn't have even 100K citizens, has the world's most service-oriented economy. According to the World Bank's 2021 numbers, 95% of all of its exports come in the form of services. In Antigua's case, tourism accounts for most of them.

When looking at LatAm countries, tourism is also often a substantial component of service exports. Such is the case with the Dominican Republic, which has 39% of its total exports accounted for by services, mainly in the form of travelers seeking to enjoy its tropical paradise. Costa Rica is not far behind, with a 38% rate, welcoming adventurous tourists seeking to explore its many national parks and wildlife. The country also provides IT services, offering a talented pool of developers.

But Panama is the most service-oriented country in Latin America, mainly due to its world-famous Panama Canal. However, its services are surprisingly robust. Contrary to the assumption that its entire economy revolves around the canal, Panama has strong banking, commerce, health, and tourism industries. Services exports contribute $14B yearly — a 7x growth since 2000.

Focusing on the development of services is crucial for countries seeking to enter the modern age of globalization and technology.