DHL Global Report Sees Resilient International Flows
Despite the shocks the world has faced over the past decade, international flows are remarkably resilient, the recent DHL Global Connectedness Index (GCI) indicates. For example, trade, capital, and information flows are now well above pre-pandemic levels, the report says.
"Most types of international flows are likely to continue growing in 2023, albeit at a slower pace. This is due mainly to weaker global economic growth following large interest rate increases aimed at curbing inflation," the reports says.
The GCI "strongly rebuts the notion that a major retreat from globalization is underway and underscores the potential of a more connected world." Still, today’s threats to globalization are real and demand serious attention. "We can’t assume that globalization won’t shift into reverse," the report notes in its opening. DHL's Global Connectedness Index measures globalization based on international flows in four domains: trade, capital, information, and people. The 2022 summary report lists 10 key takeaways, including in a few areas that should particularly resonate for those in the cross-border ecommerce market:
World trade reached 10% above the pre-pandemic level in mid-2022.
Despite fewer US-China flows, no broad fracturing of the world economy into rival blocs.
The globalization of information flows continued in 2021.
Most flows contradict predictions of a shift from globalization to regionalization.