Latin America and the Caribbean could see new economic opportunities through digital trade, according to a new report from three major international institutions.

The World Trade Organization (WTO), Inter-American Development Bank (IDB), and World Bank jointly produced the report.

Titled Digital Trade in Latin America and the Caribbean: Connecting Markets, Powering Growth, the study looks at how technology is helping economies reach international markets.

Over the past two decades, exports of digitally delivered services have grown fivefold across the region. This growth has been faster than exports of goods and other services.

Despite this progress, the region still has a small share of the global market. Latin America and the Caribbean currently account for just 2% of worldwide exports of digitally delivered services.

The report says this shows there is room for further growth.

Greater use of technology could help the region increase its exports. Better policies could also support economies that currently perform at lower levels.

The study estimates that these changes could raise exports of digitally deliverable services by an average of 4.5% each year.

The report also points to opportunities within the region itself. Trade between LAC countries remains limited compared with Europe, Asia, and North America.

It is also much lower than the trade in goods between countries in the region. This suggests that there is room to expand cross-border services.

Several factors can affect a country’s ability to take part in this growing market. These include internet access, infrastructure, and open markets.

Rules, payment systems, customs, and shipping processes also play a role. Businesses also need skilled workers and access to finance.

The report provides governments with several policy options. Countries can choose steps based on their own needs and priorities.

The aim is to help economies improve their ability to take part in global markets. The report also encourages stronger links between countries in the region.

The WTO, IDB, and World Bank can support these efforts through technical help, policy advice, and financing.

For Caribbean countries, the findings highlight the potential for businesses to reach customers beyond their local markets.

Greater use of technology could help create new opportunities for trade, services, and economic growth across the region.