GDP data for the first quarter of this year showed the Eurozone stuck in recession and the US quietly humming along.
Specifically, Eurozone output contracted in the first three months of 2013, marking the sixth consecutive quarter of negative growth. In this next phase of the crisis the slowdown has spread to the core of the bloc, with France slipping into recession and Germany recording modest growth.
The mood and outlook in the US is more positive. Unlike the Eurozone, the US economy is around 3% bigger than it was when the sub-prime crisis unfolded and is on track to grow by around 2% this year.
While the recovery is on hold in some advanced economies, businesses are seeking to increase and diversify their revenue base: one area that could contribute to their growth strategy is the booming trade in services which we’ve focused on this month.
On a global scale, service imports amounted to around 3.9 trillion dollars in 2011. Although smaller than the tangible goods market, the growth potential in services is tremendous.
This is because as emerging markets become bigger and wealthier demand for services will shift from the West to the East. In fact, 2010 marked the first time since reliable records began where the value of services imported by emerging economies exceeded that of the G7.
Advanced economies have only to benefit from this trend as most have a advantage in service activities. Our heat map shows specific service sectors ranging from finance, to communication to construction have been growing fast for the past five year.