The Importance of Women’s Leadership in Economies

The Importance of Women’s Leadership in Economies Around the World

Around the world, companies and organizations are recognizing that gender-diverse leadership is not just a social imperative, but an economic one — unlocking new markets, improving corporate governance and strengthening resilience in times of uncertainty.

In the March 2020 issue of WTCA Meridian , World Trade Centers Association (WTCA) celebrated the critical role of women’s leadership in global economies, highlighting that female entrepreneurs generated twice the revenue of their male counterparts with the same investment. Since then, the landscape of women’s economic participation has experienced both progress and setbacks. As of 2024, women hold 26% of parliamentary seats worldwide, which is more than double the 11% in 1995. Based on the World Trade Organization (WTO) Secretariat Statistics on female leadership and women in management positions, 12% of women are in leadership, decision-making and management roles; while 14% of women are in middle management levels since 2023. However, the proportion of women in senior leadership roles has recently declined to 32%, matching levels seen during the peak of the COVID-19 pandemic in 2020.

International Women’s Day has been celebrated by the United Nations since 1975, serving to highlight women’s issues and achievements. As we celebrate annually on March 8, it is important to not only celebrate the growing presence of women in executive positions across industries, but also to examine the role of trade in advancing gender equality. From real estate to trade development, business conferences to international commerce, women are reshaping the global business landscape, driving innovation and fostering inclusive economies.

Women make exceptional leaders because they bring a unique blend of emotional intelligence, collaboration and resilience to the workplace. Their inclusive leadership style fosters innovation, strengthens teamwork and drives better decision-making.

Studies show that companies with gender-diverse leadership outperform their peers, demonstrating the tangible business benefits of women in executive roles. For example, a report by Morgan Stanley found that gender-diverse companies in Europe outperformed their regional peers by 7.1%, while those in North America saw a 2% outperformance. Women leaders also excel in crisis management, ethical decision-making and mentorship, creating more sustainable and purpose-driven organizations. As they continue to break barriers across industries, their impact on global economies and trade is undeniable, proving that gender diversity is not just an advantage, but a necessity for long-term success.

This article explores the evolving impact of women’s leadership in economies across the five global regions represented by WTCA Members: Asia Pacific, Europe, Latin America, the Middle East & Africa, and North America.

Asia Pacific

Over the past five years, the Asia Pacific region has made notable strides toward fostering gender equality in the workplace and promoting women into leadership roles. As of 2020, women held approximately 20% of managerial positions in the region, with Eastern Asia witnessing an increase from 18% to 28% between 2000 and 2019. In the public sector, women constituted 46% of public administrators, but occupied only 31% of top leadership roles and 30% of senior managerial positions as of 2023.

Efforts to address these disparities have intensified — for instance, the Asia Pacific Women in Leadership Program (APWiL) was established in 2013 to drive change in gender equality across member universities. Despite these initiatives, challenges persist, such as the underrepresentation of women in higher-paying technical fields and ongoing gender pay gaps.

In 2018, a McKinsey & Company report projected that advancing women's equality could add US $4.5 trillion to the collective annual GDP of Asia Pacific countries by 2025, marking a 12% increase over the business-as-usual trajectory. While specific data on the exact contribution of women to the region's GDP in 2025 is limited, ongoing efforts to promote gender equality and women's participation in the workforce have likely led to substantial economic benefits. For instance, the World Bank highlighted in 2024 that raising female labor force participation rates in South Asia to match those of men could increase regional incomes per capita by up to 51%. Concerted efforts across various sectors indicate a positive trajectory toward achieving a more equitable workplace in the Asia Pacific region.

United Nations Conference on Trade and Development (UNCTAD) has also undertaken initiatives to promote gender-inclusive digital economies in this region. In May 2024, UNCTAD introduced six women advocates as part of the 2024-2025 cohort for the eTrade for Women initiative, aiming to empower female digital entrepreneurs and shape policies that foster gender equality in the digital age. These efforts underscore the importance of women's leadership in driving inclusive digital trade and economic growth across the region.

Europe

As of 2023, women hold approximately 35% of senior management positions across the European Union (EU), indicating that roughly one in three leadership roles are occupied by women. This reflects a gradual increase in female representation in senior roles over recent years. Notably, in 2022, the EU enacted the Gender Equality on Boards Directive, mandating that by 2026, 40% of non-executive director positions (or 33% of all director roles) be held by women. This legislative move aims to further enhance gender balance in corporate leadership across member states.

Women in Europe have significantly influenced global economies by championing gender equality and ascending to prominent leadership roles. As of 2024, women occupy nearly 45% of board seats in the Financial Times Stock Exchange 100 Index (FTSE 100) companies, reflecting a substantial increase in female representation at the highest corporate levels. This progress is mirrored across the European Union, where gender equality initiatives have been linked to positive GDP impacts and enhanced productivity.

Latin America

Political instability in Latin America has posed significant challenges for women in leadership. However, despite these obstacles, women have made notable strides in politics, as exemplified by Claudia Sheinbaum's election as Mexico's first female president in 2024. Movements advocating for gender equality in political representation, such as "democracia paritaria," are pushing for equal participation and influence, signaling progress toward more inclusive leadership. Although political instability continues to affect women in leadership, it has also catalyzed efforts to secure greater gender equality in the region.

Achieving true equality requires continued advocacy for gender-responsive policies, equal access to education and representation in traditionally male-dominated industries, like STEM. As of 2023, approximately 27% of entrepreneurs in Latin America are women, indicating a significant presence of women-led startups in the region.

Middle East & Africa

Dr. Ngozi Okonjo-Iweala, the first woman and first African to lead the WTO, emphasizes the need for competent leadership focused on reform rather than solely on breaking gender or racial barriers. Upon assuming her role in March 2021, during the COVID-19 pandemic, she prioritized addressing global supply chain disruptions and revitalizing international trade. In January 2024, she received the Women Business Collaborative's 2024 Trailblazer in Gender Equity and Diversity award, recognizing her efforts to make the global economy more inclusive. Okonjo-Iweala advocates for women's empowerment through improved access to finance and the reduction of systemic constraints, aiming to create equitable opportunities in global trade.

North America

The rise of women in leadership positions across various sectors has been a key factor in driving economic growth and innovation throughout North America. Women now lead a significant number of startups and established companies, particularly in industries such as technology, finance and healthcare. As of 2024, women-owned businesses in the United States account for approximately 39% of all businesses, employing over 12 million people and generating US $2.7 trillion in revenue. Additionally, 57% of women-owned businesses plan to expand in the coming year, indicating a strong trajectory of growth and resilience.

The Way Forward

Efforts such as venture capital funding directed towards female founders and mentorship programs are crucial in narrowing the gender gap in business leadership.

As the global economy continues to evolve, the role of women in trade and leadership remains a crucial driver of sustainable growth and innovation. The WTO and the World Bank have emphasized in their publication "Women and Trade: The Role of Trade in Promoting Gender Equality," that trade expansion offers women increased employment opportunities, higher wages and improved working conditions, thereby enhancing their economic empowerment.

However, persistent challenges, such as limited access to education, financial resources and legal barriers, continue to hinder progress. To create a truly inclusive and equitable global marketplace, businesses, policymakers and trade organizations must work together to implement gender-responsive trade policies, invest in women’s skills development and eliminate systemic barriers that limit their participation. Investing in women’s economic empowerment is not just about equality, it’s a proven strategy for building more resilient, competitive and prosperous economies worldwide. Women continue to lead in innovation, driving both economic and cultural change for the future.