DHL Global Connectedness Index 2020 signals recovery of globalization following Covid-19 setback
The UAE has emerged as one of the top five most globally connected countries in the world according to the recently released DHL Global Connectedness Index 2020.
Now in its seventh edition, the report compiled in collaboration with DHL and the NYU Stern School of Business provides a comprehensive assessment of globalization during the Covid-19 pandemic. It tracks international flows of trade, capital, information and people across 169 countries and territories, finding that the UAE, along with the Netherlands, Singapore, Belgium and Ireland, lead the global ranks.
After holding steady in 2019, current forecasts imply that the index will fall significantly in 2020 due to the distancing effects of Covid-19 on societies, such as closed borders, travel bans and grounded passenger airlines.
Trade and capital flows have already started to recover and international data flows surged during the spreading pandemic as in-person contact went into the online world, boosting international internet traffic, phone calls and e-commerce.
“Connected supply chains and logistics networks play an essential role in keeping the world running and stabilizing globalization especially at a time of a crisis that spans our globe. This reminds us of the need to stay prepared for any challenge,” stressed John Pearson, CEO, DHL Express.
“The UAE has remained resilient to the global pandemic, prompted by the government’s vigilant efforts to contain the spread very early on and minimize the country’s health, safety and economic impact,” commented Nour Suliman, CEO, DHL Express MENA.
“This report demonstrates both the dangers of a world where critical linkages break down and the urgent need for more effective cooperation in the face of global challenges,” remarked GCI lead author Steven A. Altman, Senior Research Scholar and Director of the DHL Initiative on Globalization at the NYU Stern School of Business.
Digital flows surging, trade and capital flows recovering, people flows plummeting
Predictably, lockdowns and travel bans to curb the spread of the virus have led to an unprecedented collapse of people flows in 2020. The number of people traveling to foreign countries is on track to fall 70% in 2020, according to the latest UN forecast. International tourism may not return to its pre-pandemic level until 2023.
In contrast, trade, capital, and information flows have held up surprisingly well. International trade has rebounded strongly after a sharp plunge at the onset of the pandemic and remains a vital backbone for economies worldwide.
