Digital trade in Latin America and the Caribbean reached $87.7 billion as online exports surged

# Overview

# What the numbers show

The jump to $87.7 billion reflects growing cross-border sales that are ordered or delivered through digital channels. The report models a scenario in which ongoing technological advances and improved policies could sustain annual growth in digitally deliverable services exports of up to 7.9% through 2040.

# Where opportunities lie

Small and island economies in the Caribbean can use digital services to reach international customers without depending on physical transport networks. The report highlights these practical benefits for small businesses, entrepreneurs and women-led firms. Foreign direct investment in digitally enabled industries is helping to build local capacity in some markets.

Another clear opportunity is intra-regional trade. Only 8.4% of the region's digitally deliverable services exports stayed within Latin America and the Caribbean in 2023—much lower than intraregional shares in Europe and Asia. Strengthening cross-border digital links among neighboring economies could expand market access and reduce dependence on distant markets.

# Main obstacles to faster growth

The report identifies concrete barriers that must be addressed if the region is to convert potential into larger digital-trade shares:

• Digital infrastructure and connectivity gaps remain significant across many countries. Uneven broadband access limits who can produce and consume digital services.
• Fragmented regulatory frameworks create uncertainty for cross-border digital transactions. Different rules across countries raise compliance costs.
• Limited interoperability between payment systems and fragmented customs procedures slow transactions and add friction for exporters and buyers.
• Skills shortages and restricted access to financing constrain firms' ability to scale digital offerings.

# Policy and private-sector priorities

The report points to several practical policy and market actions. Improving broadband and connectivity, harmonizing regulatory standards, enabling interoperable payments, modernizing customs for digital goods and services, and expanding access to finance and skills training can all reduce trade frictions. At the same time, continued FDI into digital sectors can transfer know-how and help firms reach export markets.

# What this means for stakeholders

• Governments: Prioritize digital infrastructure investment, simplify cross-border rules, and coordinate regional payment and customs interoperability.
• Businesses: Invest in digital skills and platforms to reach foreign customers, and explore regional marketplaces to reduce dependencies on distant buyers.
• Investors and donors: Target financing and technical assistance to projects that close infrastructure, skills and payment gaps.

# Bottom line

The region's digital exports have grown quickly and present a realistic path to deeper market access for small and island economies. But the current share of global digital-service exports remains small, and several concrete barriers must be resolved to sustain faster, more inclusive growth through 2040.