- World trade has rebounded strongly, sustaining economies all-around the planet
- ‘Digital globalization’ raced forward as men and women flows plummeted
- Singapore prospects the pack of six Asia Pacific nations rated amid the prime 30
- 5 Asia Pacific nations dominated listing of top rated 10 nations that “punch above their weight”
SINGAPORE – Media OutReach – 3 December 2020 – Right now, DHL and the NYU Stern School of Business released the DHL World Connectedness Index 2020 (GCI). The report, now in its seventh version, is the initial in depth evaluation of globalization during the spreading COVID-19 pandemic. It tracks intercontinental flows of trade, funds, information and people across 169 nations around the world and territories. Soon after keeping constant in 2019, existing forecasts suggest that the index will tumble appreciably in 2020 because of to the distancing consequences of COVID-19 on societies, these kinds of as shut borders, vacation bans and grounded passenger airlines. Nonetheless, the pandemic is not likely to ship the world’s over-all level of connectedness underneath exactly where it stood throughout the 2008 — 09 world-wide monetary disaster. Trade and money flows have previously began to recuperate and international details flows surged all through the spreading pandemic as in-individual get hold of migrated on line, boosting intercontinental world-wide-web site visitors, cell phone phone calls and e-commerce.
In the seventh edition released right now, the DHL Global Connectedness Index 2020 alerts recovery of globalization from the COVID-19 setback
“The present-day disaster has shown how indispensable global connections are for preserving the world-wide financial state, securing people’s livelihoods and encouraging corporations strengthen their buying and selling levels,” suggests John Pearson, CEO of DHL Specific. “Connected provide chains and logistics networks participate in an critical job in keeping the planet running and stabilizing globalization specially at a time of a disaster that spans our globe. This reminds us of the require to keep well prepared for any obstacle. The the latest vaccine breakthrough has put a highlight on the systemic relevance of quick and protected health-related logistics dependent on a globally interconnected community that successfully guarantees worldwide distribution.”
Whilst COVID-19 has disrupted business enterprise and life all-around the environment, it has not severed the fundamental back links that hook up nations. “This report demonstrates that globalization did not collapse in 2020, but that the pandemic did completely transform — at minimum temporarily — how countries join. It also demonstrates both the hazards of a entire world where by essential linkages crack down and the urgent need for more efficient cooperation in the experience of world issues,” comments GCI direct writer Steven A. Altman, Senior Analysis Scholar and Director of the DHL Initiative on Globalization at the NYU Stern Faculty of Enterprise. “Stronger global connectedness could accelerate the world’s recovery from the COVID-19 pandemic, as international locations that hook up far more to international flows tend to enjoy quicker economic growth.”
6 Asia Pacific nations around the world ranked among top 30, Southeast Asia nations outperform anticipations
In the report, six Asia Pacific international locations are rated in the top 30 for overall connectedness — a measure of each their depth and breadth of connectivity — with Singapore rated second, Malaysia 16th, Taiwan (China) 19th, South Korea 22nd, Hong Kong S.A.R. 25th, and Thailand at 30th. Singapore took the leading spot on the depth scale, which measures worldwide flow relative to domestic exercise, followed by Hong Kong S.A.R. at a shut next. On the breadth dimension, which captures no matter if a country’s international flows are distribute out globally or a lot more narrowly concentrated, Asia Pacific nations around the world also scored nicely, with South Korea and Japan coming in at fifth and sixth respectively.
Of distinct note, the checklist of economies that have punched perfectly higher than their weight in phrases of worldwide flows are led by Cambodia, Singapore, Vietnam, Malaysia, the Netherlands, Malta, the United Arab Emirates, Mozambique, Hungary, and Thailand. Absolutely fifty percent of these top 10 nations around the world are located in Southeast Asia, a region exactly where international locations are inclined to have unusually high trade depth. The report finds that Southeast Asian nations benefitted from linkages with broader Asian provide chain networks as very well as ASEAN plan initiatives endorsing regional economic integration.
“Over the a long time, globalization and higher global connectedness have not only lifted the dwelling criteria and earnings levels of individuals all more than Asia, it has also aided to hold trade and vital provides transferring during challenging occasions these as through this pandemic. Increased global connectedness drives financial recovery and prosperity, and at DHL Express we have observed how the advancement of cross-border e-commerce has built great organizations and improved life throughout the location,” explained Ken Lee, CEO of DHL Express Asia Pacific. “With the current signing of the RCEP, we are confident that Asia Pacific nations will bounce back again from this pandemic more robust and turn out to be even a lot more connected.”
The COVID-19 worry test for globalization: Digital flows surging, trade and cash flows recovering, men and women flows plummeting
Predictably, lockdowns and travel bans to curb the distribute of the virus have led to an unprecedented collapse of people flows in 2020. The selection of people today touring to foreign international locations is on monitor to fall 70% in 2020, according to the most recent UN forecast. Global tourism may well not return to its pre-pandemic degree right until 2023. In contrast, trade, capital, and facts flows have held up incredibly well. Intercontinental trade has rebounded strongly right after a sharp plunge at the onset of the pandemic and remains a critical backbone for economies globally.
Cash flows were hit more difficult. Overseas direct expenditure (FDI) flows, which mirror firms shopping for, making or reinvesting in operations abroad, could slide 30-40% this 12 months, as also projected by the UN. Nevertheless, powerful policy responses by governments and central banking companies have aided to stabilize marketplaces. Digital information and facts flows have surged as the pandemic has despatched get the job done, engage in and education on the net. Persons and firms rushed to stay related digitally, driving double-digit increases in worldwide world-wide-web targeted traffic.
The DHL International Connectedness Index employs far more than 3.5 million information factors to monitor the globalization of 169 countries around the period from 2001 to 2019. It actions each and every country’s world wide connectedness based each on the size of its international flows relative to the dimensions of its domestic economic system (‘depth’) and the extent to which its worldwide flows are dispersed globally or far more narrowly centered (‘breadth’). This year’s GCI report also marks the start of the new DHL Initiative on Globalization at New York University’s Stern School of Company. The new study initiative aims to create a major middle of excellence for data-driven globalization exploration. To study more about its do the job, check out the website at www.stern.nyu.edu/globalization.
Note to editors:
The report was commissioned by DHL and authored by Steven A. Altman and Phillip Bastian of the New York College Stern School of Small business. The methodology used to determine the 2020 DHL Global Connectedness Index is largely unchanged from past editions of the index. The only considerable methodological modify introduced in this edition is the addition of worldwide scientific study collaboration as a element measure within just the facts pillar of the index. The knowledge used to compute the index have been completely up to date equally to prolong the benefits up to 2019 as effectively as to incorporate revised source info for prior a long time. They document and dissect stages of globalization, the two at the international level and for 169 nations around the world and territories that jointly account for 99% of the world’s GDP and 98% of its inhabitants.
The report and further history facts can be downloaded at www.dhl.com/gci.
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