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Hong Kong ranks first in terms of depth of merchandise trade and depth of FDI flows
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The city ranks fourth in terms of the scale of its international flows relative to domestic activity.
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Globalization has reached a record level, despite the pandemic and geopolitical conflicts
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The data indicates robust intra-Asia trade flows and intercontinental trade demand between Asia and the West.
HONG KONG SAR – Media OutReach Newswire – March 14, 2024 – DHL and New York University’s Stern School of Business today released the new DHL Global Connectedness Report 2024, the most comprehensive analysis available on the he state and trajectory of globalization. This year’s DHL Global Connectedness Index ranks Hong Kong SAR, China 10th.th out of 181 economies, losing four places since 2017.
Despite the decline, Hong Kong is
ranked fourth
on the depth score among 181 economies with significant international flows compared to domestic activity. Hong Kong also stands out for the depth of merchandise trade (ranking 1st for both exports and imports) and the depth of FDI flows (ranking 1st for inward and outward FDI flows). Its global connectivity reaffirms the city’s position as a gateway for flows between mainland China and the rest of the world. This also reflects the growing importance of the Greater Bay Area as well as Macau’s rise in the rankings.
During the launch of the DHL Global Connectedness report,
John Pearson, CEO of DHL Express, said: “The most recent findings of the DHL Global Connectedness report unequivocally dispel the notion of a reversal of globalization trends. Far from being just a buzzword, globalization is an influential force that has profoundly reshaped our world and holds great potential. “Opportunities allow individuals, businesses and entire nations to flourish in unique ways. Embracing globalization allows us and our customers to forge a bright future, fostering an increasingly interconnected world, more prosperous for all – and ready for future growth.”
“In the face of global challenges, Hong Kong remains resilient and continues to play a crucial role in facilitating trade between Asia and the rest of the world, as evidenced by its high ranking in the pillars of trade and capital,” said
Andy Chiang, Senior Vice President and General Manager of DHL Express Hong Kong and Macau. “The recent expansion of our Central Asia hub at Hong Kong International Airport reaffirms our belief in the city’s important role as an international aviation hub to facilitate trade flows. We will continue to leverage our global network and infrastructure to strengthen interconnectivity and expand the market. reach our customers. »
The report also contains a ranking of economies that share Hong Kong’s international flow, with mainland China topping the list at 61%. The rest of Hong Kong’s connections were spread around the world, but mainly with major Asian economies. The United States (5%) and the United Kingdom (2%) also feature prominently in relations with Hong Kong.
Globalization remains despite the problems of the world
The report finds that globalization reached a record high in 2022 and remained near that level in 2023 – despite a series of global shocks over the past decade, including the Covid-19 pandemic, wars in Ukraine and elsewhere. Gaza, the trade conflict between the United States and China. , and the withdrawal of the United Kingdom from the EU. The facts strongly refute the idea that the growth of global flows has reversed.
The growth of trade has played a crucial role in strengthening global connectivity. The share of global production traded internationally reached a record level in 2022. After a slowdown in 2023, trade growth is expected to accelerate in 2024. The globalization of information flows has been particularly strong during the two recent decades, although the latest data shows a slowdown in their growth, partly due to less research collaboration between the United States and China. Business globalization is increasing, with companies expanding their international presence and making more sales abroad.
The report says there is considerable potential for continued growth in global flows. He estimates the current level of globalization at only 25%, on a scale from 0% (meaning no flows cross national borders) to 100% (borders and distance no longer matter).
Intra-Asian trade flows remain strong while the West remains a key trading partner of Asia.
Facts show that Asia-Pacific markets are closely related to each other in the region. In fact, at least 70 percent of countries in the Asia-Pacific region have significant trade with their Asian counterparts. Looking at these countries’ top 10 connections, six or more are with an Asia-Pacific market, citing robust intra-Asia trade. The Asian region is also closely linked to the West, with many having the US or UK among their top ten connections.
Ties between the United States and China are deteriorating and Russia is experiencing an unprecedented decline in global connectivity, but there is no broader division of the global economy between rival blocs.
DHL’s Global Connectedness report also shows that ties between the United States and China continue to shrink, with the share of flows between the two countries decreasing by around a quarter since 2016. However, the two countries remain significantly connected, demonstrating larger flows than almost any other country. another pair of countries. Russia and Europe have decoupled, leading Russia to face an unprecedented decline in connectivity, more than twice as large as any previous decline recorded among the world’s 20 largest economies. At the same time, data analysis demonstrates that there is no broader division of the global economy between rival geopolitical blocs.
Singapore ranks among the most globalized countries, followed by the Netherlands and Ireland.
Singapore reaches first place. The Netherlands and Ireland are in second and third place. 143 economies became more globally connected, while only 38 saw their level of connectivity decline. Other data shows that Europe is the most connected region in the world, followed by North America, the Middle East and North Africa.
Globalization has not given way to regionalization
Furthermore, the report shows that predictions of a shift from globalization to regionalization are not materializing – at least for now – in the structure of international flows. In fact, most international flows take place over stable or even longer distances, with a decreasing share within large geographical regions. In the area of trade, only North America shows a clear evolution towards more regionalized business models.
The DHL Global Connectivity Report
Published regularly since 2011, the renowned DHL Global Connectedness Report (formerly DHL Global Connectedness Index) provides reliable results on globalization trends by analyzing 15 types of international trade, capital, information and people flows. The 2024 edition is based on nearly nine million data points. It ranks the connectivity of 181 countries, representing 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 each country’s globalization patterns.
The report was commissioned by DHL and written by Steven A. Altman and Caroline R. Bastian of New York University’s Stern School of Business.
Note to editors:
The report and other resources are available at
dhl.com/globalconnectedness.
Hashtag: #DHL
The issuer is solely responsible for the content of this announcement.
