• Global trade has rebounded strongly,sustaining economies around the world
• 'Digital globalization' raced aheadas people flows plummeted
• Singapore leads the pack of six AsiaPacific countries ranked among the top30
• Five Asia Pacific countries dominatedlist of top 10 countries that "punch above their weight"

SINGAPORE - Media OutReach - 3December 2020 - Today, DHL and the NYU SternSchool of Business released the DHL Global Connectedness Index 2020 (GCI). The report, now in its seventh edition,is the first comprehensive assessment of globalization during the spreading COVID-19pandemic. It tracks international flows of trade, capital, information andpeople across 169countries and territories. After holding steady in 2019, current forecasts imply that theindex will fall significantly in 2020 due to the distancing effects of COVID-19on societies, such as closed borders, travel bans and grounded passengerairlines. Nonetheless, the pandemic is unlikely to send the world's overalllevel of connectedness below where it stood during the 2008 -- 09 globalfinancial crisis. Trade and capital flows have already started to recover andinternational data flows surged during the spreading pandemic asin-person contact migrated online, boosting international internet traffic,phone calls and e-commerce.

In the seventh edition released today, the DHL Global Connectedness Index 2020 signals recovery of globalization from the COVID-19 setback

"Thecurrent crisis has shown how indispensable international connections are formaintaining the global economy, securing people's livelihoods and helpingcompanies strengthen their trading levels," says John Pearson, CEO of DHLExpress. "Connected supply chains and logistics networks play an essential rolein keeping the world running and stabilizing globalization especially at a timeof a crisis that spans our globe. This reminds us of the need to stayprepared for any challenge. The recent vaccine breakthrough has put a spotlighton the systemic importance of fast and secure medical logistics dependent on aworldwide interconnected network that effectively ensures internationaldistribution."

WhileCOVID-19 has disrupted business and life around the world, it has not severedthe fundamental links that connect nations. "This report shows thatglobalization did not collapse in 2020, but that the pandemic did transform -- atleast temporar­ily -- how countries connect. It also demonstrates both thedangers of a world where critical linkages break down and the urgent need formore effective cooperation in the face of global challenges," comments GCI leadauthor Steven A. Altman, Senior Research Scholar and Director of the DHLInitiative on Globalization at the NYU Stern School of Business. "Strongerglobal connectedness could accelerate the world's recovery from the COVID-19pandemic, as countries that connect more to international flows tend to enjoyfaster economic growth."

Six AsiaPacific countries ranked among top 30, Southeast Asia countries outperformexpectations

Inthe report, six Asia Pacific countries are ranked in the top 30 for overallconnectedness -- a measure of both their depth and breadth of connectivity --with Singapore ranked second, Malaysia 16^th, Taiwan (China) 19^th,South Korea 22^nd, Hong Kong S.A.R. 25^th, and Thailand at30^th. Singapore took the top spot on the depth scale, which measuresinternational flow relative to domestic activity, followed by Hong Kong S.A.R.at a close second. On the breadth dimension, which captures whether a country'sinternational flows are spread out globally or more narrowly focused, AsiaPacific countries also scored well, with South Korea and Japan coming in at fifthand sixth respectively.

Ofparticular note, the list of economies that have punched well above theirweight in terms of international flows are led by Cambodia, Singapore, Vietnam,Malaysia, the Netherlands, Malta, the United Arab Emirates, Mozambique,Hungary, and Thailand. Fully half of these top 10 countries are located inSoutheast Asia, a region where countries tend to have unusually high tradedepth. The report finds that Southeast Asian countries benefitted from linkageswith wider Asian supply chain networks as well as ASEAN policy initiatives promotingregional economic integration.

"Overthe years, globalization and greater international connectedness have not onlyraised the living standards and income levels of people all over Asia, it hasalso helped to keep trade and critical supplies moving during challenging timessuch as during this pandemic. Greater international connectedness driveseconomic recovery and prosperity, and at DHL Express we have seen how thegrowth of cross-border e-commerce has built great businesses and improved livesacross the region," said Ken Lee, CEO of DHL Express Asia Pacific. "With the recentsigning of the RCEP, we areconfident that Asia Pacific countries will bounce back from this pandemicstronger and become even more connected."

The COVID-19stress test for globalization: Digital flows surging, trade and capital flowsrecovering, people flows plummeting 

Predictably, lockdowns and travel bans to curb the spread of the virushave led to an unprecedented collapse of people flows in 2020. The number ofpeople traveling to foreign countries is on track to fall 70% in 2020,according to the latest UN forecast. International tourism may not return toits pre-pandemic level until 2023. In contrast, trade, capital, and informationflows have held up surprisingly well. International trade has rebounded strongly after a sharp plunge at theonset of the pandemic and remains a vital backbone for economies worldwide.

Capital flows were hit harder. Foreign direct investment (FDI) flows,which reflect companies buying, building or reinvesting in operations abroad,could fall 30-40% this year, as also projected by the UN. However, strongpolicy responses by governments and central banks have helped to stabilizemarkets. Digital information flows have surged as the pandemic has sent work,play and education online. People and companies rushed to stay connecteddigitally, driving double-digit increases in global internet traffic.

The DHL Global Connectedness Index employs more than 3.5 million datapoints to track the globalization of 169 countries over the period from 2001 to2019. It measures each country's global connectedness based both on the size ofits international flows relative to the size of its domestic economy ('depth')and the extent to which its international flows are distributed globally ormore nar­rowly focused ('breadth'). This year's GCI report also marks the startof the new DHL Initia­tive on Globalization at New York University's SternSchool of Business. The new research initiative aims to create a leading centerof excellence for data-driven glo­balization research. To learn more about its work,visit the website at www.stern.nyu.edu/globalization.

Noteto editors:

The reportwas commissioned by DHL and authored by Steven A. Altman and Phillip Bastian ofthe New York University Stern School of Business. The methodology used tocalculate the 2020 DHL Global Connectedness Index is largely unchanged from previouseditions of the index. The only significant methodological change introduced inthis edition is the addition of international scien­tific research collaborationas a component mea­sure within the information pillar of the index. The dataused to compute the index have been com­pletely updated both to extend theresults up to 2019 as well as to incorporate revised source data for prioryears. They document and dissect levels of globalization, both at the globallevel and for 169 countries and territories that together account for 99% ofthe world's GDP and 98% of its population.

The reportand additional background information can be downloaded at www.dhl.com/gci.

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New York UniversityStern School of Business, located in the heart ofGreenwich Village and deeply connected with the City for which it is named, isone of the nation's premier management education schools and research centers.NYU Stern offers a broad portfolio of transformational programs at the graduate,undergraduate and executive levels, all of them enriched by the dynamism anddeep resources of one of the world's business capitals. NYU Stern is acommunity that fosters inclusion, belonging, diversity and equity, and inspiresits members to embrace change in a globally changing world.  Visit www.stern.nyu.edu.