Hong Kong ranks 18th in DHL Global Connectedness Index
DHL's Global Connectedness Index (GCI) has put Hong Kong in 18th place overall for trade connectivity, measured by international flows of trade, capital, information and people
DHL's Global Connectedness Index (GCI) has put Hong Kong in 18th place overall for trade connectivity, measured by international flows of trade, capital, information and people.
The latest edition of the GCI placed Hong Kong second out of 169 countries on the depth dimension of the index, which reflects the significant amount of the city's international flow compared to the size of its domestic economy.
The high depth score of Hong Kong is positively associated with the city's GDP per capita, especially in the trade pillar, consisting of the merchandise and service trades. Hong Kong ranked first globally in merchandise trade (merchandise exports and imports relative to GDP), and retained its position as the seventh most connected market for the overall trade pillar.
Hong Kong's structural characteristics, such as its small size, direct access to the sea and common languages with other major economies, are key factors that helped the city attain one of the top depth scores globally.
'Hong Kong has continued to rank well in our GCI reports as a global connected economy because of its well-established reputation as a hub for finance, commerce and trade as well as its strong intermediary role between mainland China and the world,' said DHL Express Hong Kong and Macau managing director Herbert Vongpusanachai.
'Hong Kong has favourable policies that target international flows in place and has continued to bolster domestic infrastructure such as the Hong Kong-Zhuhai-Macau Bridge and an upcoming third runway at the Hong Kong International Airport,' Mr Vongpusanachai added.
The new GCI report represents a comprehensive assessment of developments in globalisation across 169 countries and territories. Despite growing anti-globalisation tensions in many countries, connectedness reached an all-time high in 2017, as the flows of trade, capital, information and people across national borders all intensified significantly for the first time since 2007.
The GCI report found that the world's top five most globally connected countries in 2017 were the Netherlands, Singapore, Switzerland, Belgium and the United Arab Emirates.
Eight of the top 10 most connected countries are located in Europe, helping make it the world's most connected region, in particular for trade and people flows.
At the global level, the GCI shows that even after globalisation's recent gains, the world is still less connected than most people think it is. For example, just 20 per cent of economic output around the world is exported, seven per cent of phone call minutes (including calls over the Internet) are international, and only three per cent of people live outside the countries where they were born.
Emerging economies have much lower average levels of connectedness than advanced economies. The largest gap is found in information flows, into which advanced economies are nine times as deeply integrated.
Economies where international flows exceed expectations the most are Cambodia, Malaysia, Mozambique, Singapore, and Vietnam.
Countries or markets that integrate more deeply into international flows tend to enjoy faster economic growth and even the top-ranked countries have untapped opportunities to strengthen their global connectedness.