Question

explain why service sector is gaining more inportance in the global economy

Answer 1

Services constitute over 50% of GDP in low income countries and as their economies continue to develop, the importance of services in the economy continues to grow.[1]The service economy is also key to growth, for instance it accounted for 47% of economic growth in sub-Saharan Africa over the period 2000–2005 (industry contributed 37% and agriculture 16% in the same period).[1] This means that recent economic growth in Africa relies as much on services as on natural resources or textiles, despite many of those countries benefiting from trade preferences in primary and secondary goods.