Philippines improves one spot in global connectedness index

BW FILE PHOTO

NEW DELHI, India — The Philippines inched up a spot in the latest ranking of the most globally connected markets in the world, according to Germany-based logistics giant DHL.

In the DHL Global Connectedness Index, the Philippines ranked 65th out of 181 countries, with 2022 as its reference period. In 2021, it ranked 66th in the same index.

During a five-year period, Philippines dropped seven spots from its 58th ranking in 2017.

According to the report, the Philippines had an overall score of 52.1 out of 100 in 2022, slightly up from its score of 51.8 in the year prior.

The index measures the breadth and depth of a country’s integration with the rest of the world based on a measure of its international trade, capital, information, and people.

For depth, or the distribution of international flows relative to its activity, the Philippines scored 43.9 in 2022 and ranked 126th overall.

The Philippines’ distribution of international flows across countries or breadth received a score of 61.9, with a rank of 29th.

DHL Express Chief Executive Officer John Pearson said that for countries like the Philippines to attract and increase investments, they should continue to improve infrastructure and the ease of doing business.

“If countries just carry on the things they’re doing by making it attractive to invest in, making it easier to do business, and setting up the infrastructure for domestic and inbound logistics,” Mr. Pearson said at a media briefing.

The Philippines’ top global connections were the United States, China, Japan, Singapore, and South Korea.

The Philippines’ flow in trade received a score of 52.9 out of 100 with a rank of 60th in 2022. It was lower than the 61 score it received in 2021.

For information measure, or the flow of data across borders, the Philippines received a score of 51.5 and ranked 69th overall. This was lower than its previous score of 61 in 2021.

The Philippines scored 50.7 in capital investments, ranking 54th.

Meanwhile, Singapore topped the list as the most globalized out of 181 countries, unchanged from the previous year.

“As a city-state with major port operations and a thriving financial sector, Singapore is uniquely positioned to excel in globalization,” the report said.

Rounding out the top five were the Netherlands, Ireland, Luxembourg, and Malta.

Among Asian countries, Hong Kong ranked 10th overall, while Malaysia ranked 26th and South Korea ranked 34th. Taiwan ranked 35th, followed by Thailand (39th), Vietnam (45th) and Japan (50th).

Mr. Pearson said global connectedness was at a record-high level in 2022 despite the lingering effects of the coronavirus disease 2019 (COVID-19) pandemic and geopolitical tension from the Russian invasion of Ukraine, the trade conflict between the US and China, and the United Kingdom’s withdrawal from the European Union.

The report places the world’s globalization at 25%, on a scale from 0% (which means there are no flows across national borders) to 100% (meaning borders and distance have ceased to matter at all). — A.H.Halili