New York, Mar 13: Despite rising geopolitical tensions, increasing tariffs, and growing uncertainty around global trade policies, globalization continues to remain at historically high levels, according to the DHL Global Connectedness Report 2026, released today by DHL in partnership with the NYU Stern School of Business.
The report, based on more than 9 million data points, tracks international flows of trade, capital, information, and people across 180 countries, representing 99.6% of global GDP and 99% of the world’s population. It provides one of the most comprehensive assessments of the state of globalization worldwide.
According to the report, global connectedness has remained stable since 2022, with globalization levels reaching 25% in 2025, matching the highest level ever recorded on the report’s scale measuring cross-border flows.
John Pearson, CEO of DHL Express, emphasized the resilience of global integration despite political tensions. He noted that the continued strength of globalization highlights the importance of global cooperation in addressing major challenges such as poverty and climate change.
Trade Growth Supported by AI and Pre-Tariff Imports
The report highlights that global trade growth in 2025 was the fastest since 2017, excluding the volatile pandemic period. Increased trade activity was partly driven by companies accelerating imports before the introduction of higher U.S. tariffs.
Demand for AI-related infrastructure and technology also played a major role in boosting global trade. According to World Trade Organization (WTO) data, AI-related products accounted for 42% of the growth in goods trade during the first three quarters of 2025.
While higher tariffs in the United States could slow trade growth slightly in 2026, global goods trade is still expected to expand at an average rate of 2.6% annually through 2029, broadly in line with growth seen over the past decade.
Limited Impact of U.S.–China Trade Tensions
The report finds that trade between the United States and China has continued to decline, falling from 3.6% of global trade in 2015 to 2.7% in 2024, and further down to 2.0% during the first three quarters of 2025. However, these flows represent only a small portion of total global trade, meaning their decline has had limited impact on overall globalization levels.
At the same time, countries and companies are diversifying supply chains and trade partnerships, with nations such as India and Vietnam emerging as key beneficiaries.
Record Movement of Goods and People
The report also highlights several major trends in other global flows:
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Capital: Foreign investment remains resilient, with multinational companies continuing to generate large portions of their sales internationally. While greenfield foreign direct investment announcements declined in 2025, overall FDI flows increased and cross-border mergers and acquisitions remained strong.
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Information: Growth in cross-border data and information flows has slowed since 2021 due to geopolitical tensions and increasing restrictions on data transfers.
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People: International travel, migration, and student mobility have rebounded strongly after the COVID-19 pandemic and are now reaching record levels.
Singapore Tops Globalization Rankings
In the report’s country rankings, Singapore remains the world’s most globalized country, followed by Luxembourg and the Netherlands. Regionally, Europe ranks as the most globally connected region, followed by North America and the Middle East and North Africa.
The United Kingdom stands out for having the most geographically diversified international flows, while the United Arab Emirates has recorded the largest growth in globalization since 2001.
Globalization Still Far From Its Full Potential
Despite strong global connections, the report notes that the current 25% globalization level shows that the world still has significant room to expand cross-border exchanges if policy restrictions are reduced.
Professor Steven A. Altman, Director of the DHL Initiative on Globalization at NYU Stern’s Center for the Future of Management, noted that while political debates around globalization may appear volatile, actual global flows have proven to be remarkably resilient.
“Globalization faces real risks, but the resilience of international flows is equally real,” Altman said, emphasizing the importance of accurately understanding global economic connections when shaping future policy decisions.
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