Will services make the world rich? American fried chicken can now be served from the Philippines

finance
Created 6/24/2024
Updated 6/24/2024

In April, a New York fried-chicken shop went viral for using a virtual cashier from the Philippines, highlighting the rise of service exports from developing countries. This trend, facilitated by improved connectivity, has led to a 60% increase in service exports over the past decade, reaching USD7.9 trillion in 2023. Services exports, traditionally dominated by rich countries, are now increasingly emerging from developing economies in areas like IT and business services. Despite challenges, such as fewer job opportunities compared to manufacturing, developing nations are leveraging low labor costs and English proficiency to grow their service sectors. To sustain this growth, these countries need to focus on improving education and developing well-functioning cities that can support service industries.

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