DHL index predicts recovery of globalisation from COVID-19
“While COVID-19 has disrupted business and life around the world, it has not severed the fundamental links that connect nations,” commented DHL.
"This report shows that globalisation did not collapse in 2020, but that the pandemic did transform – at least temporarily – how countries connect. It also 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. Stronger global connectedness could accelerate the world’s recovery from the COVID-19 pandemic, as countries that connect more to international flows tend to enjoy faster economic growth," commented GCI lead author Steven A. Altman, Senior Research Scholar and Director of the DHL Initiative on Globalisation at the NYU Stern School of Business.
In an announcement made by DHL, the logistics company - alongside NYU Stern School of Business recently released the ‘DHL Global Connectedness Index 2020 (GCI). The report marks the seventh edition of DHL’s assessment of globalisation, and the first to include the spread of COVID-19.
The report tracks international flows of trade, capital, information and people in 169 countries and territories. Whilst holding steady in 2019, DHL highlights that current forecasts are expected to fall significantly in 2020 due to distancing effects fo COVID-19. However, DHL does follow up that “the pandemic is unlikely to send the world’s overall level of connectedness below where it stood during the 2008 – 09 global financial crisis.”
Trade and capital flows have begun to recover, alongside international data flows which experienced a surge during the spread of the pandemic.
"The current crisis has shown how indispensable international connections are for maintaining the global economy, securing people's livelihoods and helping companies strengthen their trading levels. Connected supply chains and logistics networks play an essential role in keeping the world running and stabilising globalisation especially at a time of a crisis that spans our globe. This reminds us of the need to stay prepared for any challenge. The recent vaccine breakthrough has put a spotlight on the systemic importance of fast and secure medical logistics dependent on a worldwide interconnected network that effectively ensures international distribution,” commented John Pearson, CEO of DHL Express.
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