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The services sector has emerged as the most dynamic sector of the world economy, contributing almost one-third of world gross value added, half of world employment, one-fifth of global trade and more than half of the world
FDI flows. A brief idea of the current trends4 in the sector follows below:
The global services performance are as given below:
• In 2015, in the US$ 69 trillion world gross value added (GVA), the share of services (at current prices), and growth rate (at constant prices), improved marginally to 63 per cent and 2.3 per cent respectively over 2014.
• In the last 14 years, the share of the services sector in world GVA has declined by 2.9 percentage points (pp). Among the world’s top 15 countries in terms of gross domestic product (GDP), the US ranks first, in both services GVA and overall GDP, China being second and Japan third.
• India ranked ninth in terms of overall GDP and tenth in terms of services GVA in 2015, climbing one rung in both rankings.
• Among these top 15 nations, in the period 2001-14, the maximum increase in services share to GVA was recorded by Spain (9.3 pp), followed by India (7.6 pp) and China (6.6 pp).
• Services sector has not recovered from the impact of the 2008 financial crisis (Brazil being exception).
• In India, the growth rate in the sector was estimated to be 8.8 per cent in 2016-17 with a slight deceleration in 2016–17 (for China it was at
8.0 per cent).
The global employment scenario in the services sector shows a mixed picture.
• As per the World Bank, the share of services in global employment has increased to 53 per cent in 2016 (from 35.9 per cent of 2001).
• Among the top 15 services producing countries, the share of services in employment is high, contributing more than two-thirds of total
employment in 2015 in most of them (except India and China). India has the lowest share of 27.4 per cent.
• Of the 15 countries, in the last 14-year period (2001–15), China had the highest increase in the share of services employment (33.8 pp), followed by Brazil (17.0 pp) and Spain (14.3 pp). For India, the increase was by only 4.5 pp.
As per the ILO Report on “Global Employment and Social Outlook: Trends 2016”, job in the coming years will be mainly in the services sector though with lower rate.