Weekly Geopolitical Report – Plunging U.S. Service Exports (December 6, 2021)

by Patrick Fearon-Hernandez, CFA | PDF

When people think about a country’s exports, imports, and trade balance, they often focus only on physical goods (sometimes referred to as “commodities” or “merchandise”).  That makes some sense, given that physical goods account for the majority of international trade for most countries.  Trade in physical goods can also be volatile, and it can have big implications for a country’s domestic politics.  All the same, services are also a big part of international trade.  In this report, we take a close look at the role of services in U.S. trade.  We highlight how U.S. trade in services plummeted as a result of the global COVID-19 pandemic, and how it’s now starting to bounce back.  We end with a discussion of how that plunge and budding rebound may affect investors.

Read the full report