Hong Kong Tops Globalization Index by Toppling Singapore

According to a recent report by Ernst & Young in cooperation with the Economist Intelligence Unit (EIU), Hong Kong has topped the 60 largest economies in the world in terms of globalization. Singapore, ranked first in 2009 fell to third while Ireland jumped one level, ranking number two this year.

The Globalization Index 2010 measures and tracks the performance of the world’s 60 largest economies in relation to separate indicators in five broad categories: openness to trade, capital movements, exchange of technology and ideas, movement of labour and cultural integration. The report is understood to have analysed based on two sources of original research - degree of globalization relative to GDP and a survey of more than a thousand senior business executives worldwide.

Agnes Chan, Ernst & Young’s regional managing partner of Hong Kong and Macao told “Hong Kong has overtaken Singapore as the most globalized economy in the world. Two out of the top three economies are from Asia-Pacific, which shows how the region is embracing globalization.” Experts believe the city’s policies coupled with the status as a gateway to invest and trade with China has helped Hong Kong in a big way to spread its potential as the largest globalized destination.

According to the latest report, Hong Kong is followed by Ireland, and Singapore is placed third. The rest of the countries in the top ten list are - Denmark(4), Switzerland(5), Belgium(6), Sweden(7), Netherlands(8), Hungary(9) and Finland(10). In 60th position, the least globalised nation on the index is Iran, closely followed by Algeria and Venezuela.

The report states after a brief pause in 2009 and a modest rebound in 2010, the world’s largest 60 economies will continue to globalize steadily between now and 2014, driven by the continued global economic recovery, technology innovation and the rise of the emerging markets.

By Jose Roy