DHL Global Connectedness Report 2024: Insights into Global Flows Amidst Pandemic and Geopolitical Strains

DHL Global Connectedness Report 2024: Insights into Global Flows Amidst Pandemic and Geopolitical Strains

(IN BRIEF) The DHL Global Connectedness Report 2024 reveals that despite the challenges posed by the pandemic and geopolitical conflicts, globalization has reached record highs. Trade growth has been instrumental in sustaining global connectedness, with Singapore leading the list of most globalized countries. While tensions between the U.S. and China impact global flows, there is no wider split of the world economy between rival geopolitical blocs. Contrary to predictions, global shifts from globalization to regionalization have not materialized. The report underscores the resilience of global flows and emphasizes the potential of globalization for fostering opportunities and prosperity.

(PRESS RELEASE) BONN/ NEW DELHI, NEW YORK, 23-Feb-2024 — /EuropaWire/ — Despite the tumultuous backdrop of a pandemic-stricken world and escalating geopolitical tensions, the latest DHL Global Connectedness Report 2024, a joint endeavor by DHL and New York University’s Stern School of Business, unveils a remarkable revelation: globalization has soared to unprecedented heights.

The report, hailed as the most exhaustive analysis available on the state and trajectory of globalization, scrutinizes the intricate movements of trade, capital, information, and people across 181 countries and territories. Contrary to prevailing anxieties of deglobalization, the findings paint a resolute picture of globalization’s endurance.

In defiance of formidable challenges spanning the past decade, including the upheaval of the Covid-19 pandemic, geopolitical strife, and trade disputes, globalization not only reached a pinnacle in 2022 but sustained near-record levels in 2023. The narrative of a reversal in global flows is unequivocally debunked, with trade growth emerging as a pivotal driver in augmenting global connectedness.

The report underscores the robust expansion of corporate globalization, as companies expand their international footprint and bolster sales abroad. Moreover, it highlights the steadfast globalization of information flows, notwithstanding a recent stall attributed in part to diminished research collaboration between major players like the U.S. and China.

“The most recent findings of the DHL Global Connectedness Report unequivocally dispel the notion of globalization reversing course. Far from being a mere buzzword, globalization is an influential force that has profoundly reshaped our world and has further great potential. Expanding markets and fostering opportunities empower individuals, businesses, and entire nations to flourish in unique ways. Embracing globalization allows us and our customers to forge a promising future, fostering an increasingly interconnected world, more prosperous for all – and poised for further growth,” commented John Pearson, CEO DHL Express.

Singapore Emerges as Globalization Vanguard; U.S.-China Ties Wane

At the forefront of globalization stands Singapore, epitomizing the pinnacle of global interconnectedness. The Netherlands and Ireland trail closely behind, securing their positions as bastions of globalization. Notably, 143 nations witnessed a surge in global connectedness, underscoring a widespread embrace of globalization’s transformative potential.

“Singapore has invested heavily in strengthening our physical and digital connectivity to the world because trade is our lifeblood. We continue to enhance our connectivity and trade links to remain a critical and trusted node in global supply chains, facilitating international trade and flows of capital, information and talent. We look forward to partnering with global companies seeking a launchpad for business growth and supply chain expansion in Asia-Pacific and beyond,” said Ih-Ming Chan, Executive Vice President, Singapore Economic Development Board.

Yet, amidst the overarching narrative of globalization’s ascendancy, fissures in key geopolitical relationships surface. The report reveals a palpable decline in ties between the United States and China, with both nations witnessing a significant reduction in mutual flows since 2016. Meanwhile, Russia confronts an unprecedented plummet in global connectedness, highlighting a rupture in its relations with Europe.

Despite these localized setbacks, the report dispels notions of a bifurcated world economy along geopolitical lines. Contrary to predictions of regionalization supplanting globalization, most international flows persist over stable or even elongated distances, with only North America showcasing a discernible shift towards regionalized trade patterns.

“Deglobalization is still only a risk, not a current reality. Geopolitical threats and public policy shifts have led many to predict a fracturing of the world economy along geographic or geopolitical lines, or even a retreat from international to domestic business. But the latest data still show that international flows are growing and very few countries are cutting ties with their traditional counterparts. It is important to recognize the resilience of global flows because a lopsided focus on the threats to globalization could make deglobalization a self-fulfilling prophecy,” said Steven Altman, Senior Research Scholar and Director of the DHL Initiative on Globalization at NYU Stern’s Center for the Future of Management.

Rising Above Geopolitical Uncertainties: A Call to Embrace Globalization

The DHL Global Connectedness Report implores stakeholders to recognize the resilience of global flows amidst prevailing uncertainties. While geopolitical threats loom large and public policy shifts trigger apprehensions of deglobalization, the data present a stark reality: globalization remains steadfast, with few countries severing ties with traditional counterparts.

In the face of escalating challenges, embracing globalization emerges as imperative for fostering a more interconnected, prosperous world. By capitalizing on expanding markets and cultivating opportunities, individuals, businesses, and nations can chart a course towards a future brimming with promise.

The DHL Global Connectedness Report, a beacon of insight into globalization’s dynamics, reaffirms the enduring relevance of global interconnectedness in shaping our collective destiny. As we navigate an increasingly complex global landscape, the report serves as a lodestar, guiding us towards a future anchored in cooperation, innovation, and shared prosperity.

The DHL Global Connectedness Report

Published regularly since 2011, the renowned DHL Global Connectedness Report (previously DHL Global Connectedness Index) provides reliable findings on globalization trends by analyzing 15 types of international trade, capital, information, and people flows. The 2024 edition is based on almost nine million data points. It ranks the connectedness of 181 countries, accounting for 99.7 percent of the world’s gross domestic product and 98.7 percent of its population. A collection of 181 one-page country profiles provides concise summaries of individual countries’ globalization patterns.

The report was commissioned by DHL and authored by Steven A. Altman and Caroline R. Bastian of New York University Stern School of Business.

Media contact:

Sabine Hartmann
Spokesperson for DHL Express

DHL Group
Charles-de-Gaulle-Str. 20
53113 Bonn
Germany

SOURCE: Deutsche Post AG