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Trade in services rebounds as pandemic disruption fades

Cyprus Mail · 2026-06-21

AI SUMMARY

• What happened: The European Union reported a significant rebound in international trade of services in 2025, with exports of final services reaching a record 61 percentage points above 2017 levels, up from 55 percentage points in 2024. • Why it matters: This recovery indicates a robust resurgence in the service sector following the disruptions caused by the COVID-19 pandemic, highlighting the importance of services like travel, ICT, and business services to the EU economy. • What to watch next: Observers should monitor the ongoing trends in service exports and imports, as well as the potential impacts of international collaboration on economic growth in the EU moving forward.

**Trade in Services Rebounds as Pandemic Disruption Fades**

The European Union (EU) has reported a significant rebound in its international trade of services in 2025, according to data released by Eurostat. Exports of final services reached a record level, standing 61 percentage points above 2017 levels. This marks a notable increase from the previous year, where exports were recorded at 55 percentage points above 2017 levels, indicating a robust recovery in the sector.

Final services encompass a wide array of economic activities, including travel-related services, which have historically been a major contributor to the EU's service exports. Other significant areas include information and communication technology, media, computer services, business services, and financial services. The sector had endured considerable challenges during the COVID-19 pandemic, particularly in 2020 and 2021, when international travel was severely disrupted, leading to a marked decline in service exports.

In contrast, intermediate services displayed a greater resilience during the pandemic. These services experienced only a minor decline of 1 percentage point between 2019 and 2020. In 2024, exports of intermediate services peaked at 68 percentage points above 2017 levels but settled at 66 percentage points in 2025. The primary exports within this category included information and communication technology, media, computers, business and financial services, as well as travel equipment and services.

The intermediate goods sector also achieved new heights in 2025, with exports reaching 48 percentage points above 2017 levels, up from 43 percentage points in 2024. Key categories for these goods included health and pharmaceuticals, education, cultural and sports services, construction materials, and various consumer goods such as electrical appliances and furniture.

Imports of final services also saw an upward trend, climbing to 44 percentage points above 2017 levels in 2025. This increase follows a recovery period after the downturn experienced during the pandemic. Similarly, imports of intermediate services reached a peak in 2025 at 75 percentage points above 2017 levels, representing a 6 percentage point increase compared to 2024. The most commonly imported intermediate services mirrored export trends, highlighting the importance of information and communication technology, media, computers, business and financial services, as well as travel-related services.

Interestingly, imports of intermediate goods had peaked earlier, in 2022, at 84 percentage points above 2017 levels. This surge was largely attributed to rising energy prices. However, by 2025, imports of intermediate goods had decreased to 47 percentage points above 2017 levels. The primary categories for these imports included mining, quarrying, refinery products, chemicals, electricity, and water and waste treatment services.

The data reflects a broader trend of recovery in the EU's service sector as it continues to navigate the post-pandemic landscape. The resurgence in trade activity is a positive sign for the EU economy, suggesting that businesses are adapting and recovering from the disruptions caused by the pandemic. As the region moves forward, the focus on enhancing service exports and imports will likely play a crucial role in sustaining economic growth and stability.

This recovery in trade in services not only highlights the resilience of the sector but also underscores the importance of international collaboration and connectivity in a globalized economy. As travel and other service-related activities continue to normalize, the EU's trade in services is expected to remain a key driver of economic recovery and growth in the coming years.

Source: Cyprus Mail
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