Globalization hit a high and 2022 despite global shocks
Narayan 24---Subhash Narayan is the infrastructure editor at Mint. (“Globalisation is at a record high despite the pandemic and geopolitical conflict: DHL report”, Mint, 3-13-2024, https://www.livemint.com/economy/globalisation-is-at-a-record-high-despite-the-pandemic-and-geopolitical-conflict-dhl-report-11710316627204.html)//AN
Globalisation hit a record high in 2022 and remained close to that level in 2023 despite a series of global shocks over the past decade, including the pandemic, wars in Ukraine and Gaza, the US-China trade conflict, and the UK's withdrawal from the EU, the DHL Global Connectedness Report, 2024 said.
This evidence strongly rebuts the notion that the growth of global flows has gone into reverse. Trade growth played a crucial role in boosting global connectedness, said the report, adding that the share of global output traded internationally hit a record high in 2022 and, after a slowdown in 2023, is expected to accelerate in 2024.
The report, released by DHL and New York University’s Stern School of Business in Delhi on Wednesday, is regarded as one of the most comprehensive available analyses of the state and trajectory of globalisation. It tracks flows of trade, capital, information and people to measure the globalisation of 181 countries and territories.
The globalisation of information flows has been especially strong over the past two decades, even though the latest data shows this growth has stalled, partly due to less research collaboration between the US and China, the report said. Corporate globalisation is rising, it added, with companies expanding their international presence and earning more sales abroad.
John Pearson, CEO, DHL Express, said, “The [report’s findings] unequivocally dispel the notion of globalisation reversing course. Far from being a mere buzzword, globalisation 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 globalisation allows us and our customers to forge a promising future, fostering an increasingly interconnected world, more prosperous for all, and poised for further growth.”
The report said there was considerable potential to continue growing global flows. It pegged the world’s current level of globalisation at just 25%, with 0% meaning no flows across national borders and 100% meaning the disappearance of borders.