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The DHL Global Connectedness Report 2024 (GCR) published in collaboration with the Stern School of Business at New York University was published earlier this month. The report provides a comprehensive analysis of global trade, highlighting that globalization is at a record high, despite the lingering effects of the pandemic and various geopolitical conflicts. The GCR examines trade, capital, information, and people flows around the world, measuring the global connectivity of 181 countries and territories.

The latest edition reveals that globalization reached a record high in 2022 and remained close to that level in 2023, despite global disruptions such as the Covid-19 pandemic, the wars in Ukraine and Gaza, the trade conflict between the US and China, and Brexit. This clearly refutes the notion of a declining trend in global flows. The growth of global trade played a crucial role in the increase of global connectivity. 

The share of global economic output accounted for by international trade reached a record high in 2022. After a slowdown in 2023, trade growth is expected to accelerate in 2024. The globalization of information flows has been particularly pronounced over the past two decades, although current data suggests that this growth is stagnating, partly due to reduced research collaboration between the US and China. There is an increase in the globalization of companies, as they expand their international presence and generate more revenue abroad.  Other highlights include:

• USA and China: Business relations between the US and China continue to decline. Trade flows between the two countries have decreased by about a quarter since 2016. The decline in direct trade between the US and China accelerated in 2023. However, the US and China are still more connected to each other than most other country pairs.

• No trend from globalization to regionalization: Predictions of a global shift from globalization to regionalization are not reflected in international flow patterns - at least not thus far. In fact, most international trade flows occur over consistent or even longer distances, with the share within large geographic regions decreasing. In terms of trade, only North America shows a clear shift towards more regionalized trade patterns.

• Russia and Europe: The EU and Russia have decoupled and severed the once vital bond between them. Russia has turned away from Western-oriented countries, and foreign investments in Russia have plummeted. Among the major G20 economies, Russia experienced the largest decline in global connectivity within a year in 2022.

• Ranking of the most connected countries: Singapore ranks as the country with the highest level of global connectivity, followed by the Netherlands and Ireland.  Five EU Member States can be found in the first 10 most connected countries. Singapore has the largest international trade flows in relation to its domestic economy, while the United Kingdom has the most widely distributed flows.

The comprehensive report is accessible at www.dhl.com/gci.