Digitalisation will drive cross-border services trade. Trade in services is growing faster than trade in goods, with the potential to boost world trade. Barriers in services are higher than in goods trade, making the sector vulnerable to protectionism. The immediate outlook for services trade is weakening. Cross-border regulation can reduce costs, but the US-China dispute is increasing barriers. Lower entry barriers in services can reduce inequality, but clustering of firms may raise regional inequality. Climate change will transform the tourism sector.