KOF Globalisation Index: degree of globalisation still below pre-pandemic levels

Historically, globalisation has often been influenced by significant events: the COVID-19 pandemic was one such event. Following a sharp decline in 2020 due to the pandemic and the resulting collapse of trade and international relations, the KOF Globalisation Index for 2021 is recovering slightly, although it will not reach its pre-pandemic level of 2019.

Economic globalisation increased in 2021

While the overall conditions for economic globalisation (de jure) have remained largely stable, significant growth in trade (de facto) has been evident. This is mainly due to the sharp rise in consumer spending on goods after the pandemic year of 2020. Trade in services, on the other hand, has remained subdued. In addition, financial integration has decreased, possibly because of greater market volatility and investor caution in the uncertain economic environment following the pandemic.

Social globalisation declined slightly overall in 2021

This situation was influenced by opposing trends owing to the persistent effects of the pandemic. For example, traditional in-person exchanges such as tourism and migration stagnated as a result of the ongoing travel restrictions. In contrast, the digital segment recorded significant growth. The increase in online communication and internet usage shows that connectivity has become increasingly digitalised – especially during the pandemic. The degree of political globalisation continues to grow moderately, while the overall conditions (de jure), such as the number of posts at international organisations, have increased.

Country comparison

The fact that Switzerland comes top of the current rankings is due in particular to its high levels of exports and imports, its influential role in the global financial sector and the presence of numerous international organisations in Switzerland. Switzerland is followed by the Netherlands and Belgium – two countries that are strongly integrated into the global economy through international trade and the financial sector.

Countries such as Sweden, the United Kingdom, Austria, Germany, Denmark, Finland and France come next in the rankings. Their place in the top ten is largely due to the economic, social and political interdependence of member states within the European Union.

Smaller countries – such as Switzerland, the Netherlands and Belgium – often have more links to large economies and neighbouring states. These stronger links outside their own borders in turn lead to a higher degree of globalisation. In contrast, large economies such as China and the United States reveal more complex globalisation patterns. The US is economically less globalised, but politically more so. China, on the other hand, is a major political player on the world stage but ranks lower in terms of both economic and social globalisation.

Countries such as Albania, Rwanda and Georgia are climbing up the rankings, indicating an increasing openness to global trade, digital connectivity and international diplomacy. These changes underline the stronger growth in globalisation among developing and emerging economies. Low-income countries have already exceeded the level of globalisation achieved before the pandemic, while the overall index is still slightly below this level.