By Elishya Perera
SINGAPORE (CWBN)_ Despite the economic downturn and disruption in trade and cash flows owing to the COVID-19 pandemic this year, Singapore has been ranked the world’s second-most connected country in the 2020 edition of the DHL Global Connectedness Index (GCI).
The global trading hub was ranked first for the size of its international flows in goods, capital, information and people, in comparison to its domestic economy.
However, the Asian country missed out on the top spot in the overall GCI ranking as the world’s most globally connected country to the Netherlands. Belgium, the United Arab Emirates and Ireland were the other nations which completed the top 5.
The GCI, which tracks the globalisation of 169 countries and provides a detailed analysis based on more than 3.5 million data points, is compiled by the Deutsche Post DHL Group in collaboration with the New York University Leonard N. Stern School of Business.
According to the report, current forecasts suggest that the index will fall significantly in 2020 owing to restrictions brought about by the pandemic such as closed borders, travel bans and grounded passenger airlines. However, the report added that the overall level of connectedness is unlikely to fall below levels seen during the 2008-2009 global financial crisis.
Referring to the aforementioned restrictions, the GCI report this year was titled “The State of Globalisation in a Distancing World”.
Steven A. Altman, a senior research scholar at NYU Stern and director of the DHL Initiative on Globalisation, said while globalisation did not collapse in 2020, the pandemic did transform (at least temporarily) how countries connect. So as travel plummeted, digital flows surged, he said.
“My hope is that the COVID-19 jolt to globalisation will, with due reflection, focus minds on how to strengthen our connections to foster a healthier, more prosperous, and more resilient future,” Altman stated.
According to the report, Europe claimed the top spot as the world’s most globalised region, with 8 of the 10 most globally connected countries located within the bloc. Accordingly, Europe leads on trade and people flows, while North America is the top region for information and capital flows.
It was also noted that several Southeast Asian countries performed well, as Cambodia, Singapore, Vietnam and Malaysia struck well above their weight in terms of international flows. The report claimed that regional supply chains were a key factor for these nations in global trade.
Edited by Kaveesha Fernando
