Namibia makes significant progress in global connectedness
DHL 2024 Global Connectedness Report
The 2024 Global Annual Connectedness Report, a collaboration between DHL and the New York University Stern School of Business, has been released, shedding light on global connectedness with a focus on the Globe, Africa and Namibia, according to Dirk van Doorn, Managing Director of DHL Namibia.He said that Namibia has shown notable improvement in global connectedness, climbing 27 spots to rank 102 out of 181 countries globally in 2023. Within Sub-Saharan Africa, Namibia ranks 6th out of 43 countries, surpassing nations like Senegal, Angola, Nigeria, and Kenya.
Furthermore, the report highlights that global connectedness hit a record high in 2022 and maintained a similar level in 2023, showcasing resilience and growth in international trade, capital, information, and people flows, challenging the perception of globalisation in decline.
Singapore emerges as the most globally connected nation, with the Netherlands and Ireland following closely behind. Singapore stands out for its significant international flows relative to domestic activity, while the United Kingdom exhibits the most widely dispersed global flows.
Tensions between the US and China persist, with both nations witnessing a decline in their interactions since 2016. However, their connections remain substantial compared to other countries.
Russia and Europe have experienced a decoupling process, resulting in altered trade patterns and a collapse in foreign investment in Russia, notably seen in a significant decline in global connectedness among major G20 economies in 2022.
No clear division
The report observes no clear division of the world economy into geopolitical blocs. While trade between US-aligned and China-aligned blocs increased during the Covid-19 pandemic, it declined following Russia's invasion of Ukraine, nearly returning to pre-pandemic levels excluding Russia.
Corporate globalisation is on the rise, with companies expanding sales abroad and announcing international projects at a significant rate relative to world GDP. The proportion of mergers and acquisitions and global output outside companies' home countries remains stable.
Despite a record-high share of global trade in world GDP in 2022, followed by a modest decline in 2023, trade growth is expected to accelerate in 2024. Information flow globalization surged over the past two decades but has stalled recently, partly due to US-China tensions and restrictions on international data flows.
Van Doorn underscores that while Namibia progresses in the Global Connectedness Index, further efforts are essential to thrive in the competitive global arena.