- The COVID-19 pandemic will continue to shape the outlook for emerging markets and global supply chains in 2022, according to Agility Emerging Markets Logistics Index 2022 Report.
- About two-thirds of those surveyed expect record freight rates to approach historic levels. in 2022. while 80% see supply chain bottlenecks
- Gulf countries have created the most dynamic and robust business environment in emerging markets
- Large population, domestic manufacturing capacity and e-commerce development see China, India and Indonesia at the forefront. domestic logistics opportunities.
- The advanced and well-connected export markets of China, India and Mexico are the strongest emerging markets for international logistics opportunities.
China has risen to the top of the annual Agility Emerging Markets Logistics 2022 index, with emerging markets dominating eight out of ten investment locations. Asia Pacific countries and Persian Gulf countries.
The index, published by transport and logistics analyst Transport Intelligence (Ti) and service chain provider and investor Agility, ranks the world’s top 50 emerging markets based on logistics infrastructure, business conditions and digital readiness.
The study examines the competitiveness of emerging market countries and compares them in a way that is useful for shippers, transporters, distributors and other actors in the supply chain.
“All 50 countries in the index compete for foreign investment. Everyone wants to expand their middle class. Everyone wants to join the knowledge economy and become indispensable as suppliers, markets and innovators. The pandemic cannot change that,” the report says.
Global supply chains were characterized by bottlenecks, capacity constraints and high freight rates in 2021, as retailers, manufacturers and logistics service providers struggled with the ongoing effects of the Covid-19 pandemic.
Key findings from the report include:
- COVID 19. 2020 pandemic continues to shape outlook for emerging markets and global supply chains in 2022;
- Accelerated transition to e-commerce, digitization and sustainability is a legacy of the Covid-19 pandemic.
- Global economic the outlook for 2022 is bright, but supply chain challenges persist.
- Digital readiness requires connectivity, compatibility and culture, and countries in Asia and the Persian Gulf dominate the results of the Agility Emerging Markets Logistics Index in 2022.
The results not only highlight the countries who survived the pandemic most successfully, but also strongly emphasize the emergency aid that for many countries the pandemic dictated s end. not social and economic opportunities in 2022,” the report says. The industry professionals who responded to the 2022 Index survey offered a largely positive outlook for the future despite the challenges.
About two-thirds of respondents expect record freight rates to approach historic levels in 2022, and 80% of respondents see supply chain congestion breaking.
Uncertainty about the strength of the global recovery continues, with more than a third of respondents saying a global recession is “likely” or “certain” in 2022, while the Middle East and North Africa, Central Asia, South America and South America. Not all sub-Saharan regions are likely to see growth in 2022.
Emerging markets in Asia Pacific offer the strongest domestic and international logistics capabilities, the report finds, although the results show a decline in the region’s domestic logistics market leadership. The Gulf countries have created a dynamic and robust business environment that not only drives emerging markets but increasingly follows global best practices.
E-commerce, technological adoption of digital business practices and investments in sustainable energy resources show that emerging markets in both regions are leading the way in terms of digital readiness.
Large populations, domestic manufacturing capacity and the development of e-commerce see China, India and Indonesia at the forefront of domestic logistics capabilities.
The highly developed and well-connected export markets of China, India and Mexico are the strongest emerging markets for international logistics opportunities.
The United Arab Emirates (UAE), Malaysia and Saudi Arabia are among the leading trade indicators, with the Gulf states increasingly dominating the measure. In addition to the United Arab Emirates and Saudi Arabia, there are also Qatar, Bahrain and Oman in the top ten, and Kuwait in twelfth place.
The UAE tops the first ever Digital Readiness Ranking, which measures all 50 emerging markets in terms of their adaptability and readiness for a digitally led and resilient post-pandemic global economy. The rest of the top 10 are Malaysia, China, Saudi Arabia, India, Thailand, Qatar, Indonesia, Chile and the Philippines.
At the very top China and India maintain their position at the top of the index, ranking first and second overall.
The top 10 emerging logistics markets included the United Arab Emirates, Malaysia, Indonesia, Saudi Arabia, Qatar, Thailand, Mexico and Turkey. Vietnam fell from eighth to 11th place in 2021.
But while China and India outperform the index, the Gulf states and Southeast Asian markets offer increasingly strong growth, according to the report.
China is indispensable as a leader in the global supply chain, and its position as one of the world’s most important logistics markets has matched its position as one of the world’s most promising future developments, the report said.
The world’s second largest economy is the best emerging market in terms of domestic and international logistics capabilities, although its business fundamentals fall two places. The country is third in the new category of digital readiness.
The rapid development of the Chinese electronic market also affects its overall performance. E-commerce retail revenue is expected to exceed US$1.5 trillion in 2022, helping to drive a domestic fast food market worth more than US$90 billion.
India was second overall in 2022 after recovering from the effects of the disruption caused by the Covid-19 pandemic at the macroeconomic level.
The UAE is third overall, scoring best in business fundamentals and digital readiness. Emirates Airlines combines these key strengths with top five rankings in domestic and international logistics capabilities.
Malaysia’s fourth overall ranking in the Agility Emerging Markets Logistics Index 2022 scored strongly in both the Business Fundamentals and Digital Readiness rankings.
Indonesia’s fifth overall ranking in the 2022-2022 Agility Emerging Markets Logistics Index is based on the top ten in the domestic and international logistics category and the new category of digital readiness.
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