THE global services sector remain depressed in the third quarter of 2020 as it fell 24 per cent compared to the same period in 2019 amid travel and work restrictions, said the World Trade Organisation (WTO) on Tuesday.

According to statistics released by the global trade body, the July-September 2020 fall was "only a small uptick" from the 30 per cent plunge in the second quarter - a marked contrast to the much stronger rebound in goods trade which was only down 5 per cent in the third quarter.

Preliminary data for November further suggest that services trade was still 16 per cent below 2019 levels.

"Prospects for recovery remain poor since a second wave of COVID-19 infections necessitated new, stricter lockdown measures in many countries, with tightened restrictions on travel and related services extending into the first quarter of 2021," the Geneva-based organisation said.

The latest statistics confirm earlier expectations that services trade would be harder hit by the pandemic than goods trade, the report said.

"Unlike goods, services cannot be stockpiled, which means that despite pent-up demand, many of the revenue losses from cancelled flights, holidays abroad, restaurant meals, and cultural and recreational activities are likely to be permanent," it explained.

Travel remains the most affected service sector, down 68 per cent globally versus the previous year. The relaxation of travel restrictions in Europe during the summer months produced only a modest rebound in services trade in the third quarter.

Trade in services, such as construction, recreational, legal, and financial services, remained uneven as some saw doble-digit declines. With building projects delayed or postponed in many countries due to the pandemic, global construction exports were down 16 per cent year-on-year, as several Asian exporters saw sharp drops.

Hardest hit were exports of services in the United States, which fell 24 per cent, and the United Kingdom, which decreased 15 per cent year-on-year.

Computer services remained the most dynamic sector in the third quarter, up 9 per cent due to increasing global demand for cloud computing, platforms and virtual workplaces, said the WTO.

The WTO said preliminary figures on customs data from 72 countries accounting for 92 per cent of the global merchandise trade suggest that the rebound in physical goods that started in the second half of the year picked up strength in October and November. The value of global merchandise trade in October 2020 was 3 per cent higher than in October 2019, with a 6 per cent increase year-on-year for the month of November.