Unleashing digital trade and investment for sustainable development in Asia-Pacific
The report shows significant digital trade and investment disparity, with six economies responsible for 85% of exports while least developed countries (LDCs) represent less than 1%.
Digital trade and investment in Asia-Pacific have surpassed the global average, accounting for a quarter of the USD4 trillion trade in digitally deliverable products. However, there is a significant disparity, with only six economies responsible for 85% of the region’s exports, while least developed countries (LDCs) contribute less than 1%.
Recognizing the urgency of the situation, the UN Economic and Social Commission for Asia and the Pacific (ESCAP), the UN Conference on Trade and Development (UNCTAD), and the UN Industrial Development Organization (UNIDO) have jointly produced the Asia-Pacific Trade and Investment Report 2023/2024: Unleashing Digital Trade and Investment for Sustainable Development. The report emphasizes the need for collaborative efforts to ensure that digital trade and investment become catalysts for inclusive and sustainable development.
Despite rapid growth in digital trade, LDCs in the Asia-Pacific region face various challenges that hinder their participation. These challenges include underinvestment in crucial infrastructure, a shortage of skilled workers, and regulatory complexities that drive up operational costs. As a result, these countries accounted for less than 1% of the region’s exports of digitally deliverable services in 2022.
Why does it matter?
As the Asia-Pacific region experiences significant digital trade and investment growth, the disparity between advanced economies and least developed countries still demands immediate action. Bridging the digital divide and implementing effective trade and investment policies are crucial for ensuring that digital trade and investment serve as engines for inclusive and sustainable development.
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DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.