Published 22 October 2024
Discover the future of global trade with the Hinrich-IMD Sustainable Trade Index 2024. The Index evaluates 30 key economies including major economies like the Asia-Pacific, the United States, and China, against 72 measures covering economic, societal, and environmental policies. Visual Capitalist illustrates some of the key findings from this year’s rankings.
At the Hinrich Foundation, we believe that the advancement of trade is essential for economic growth, societal prosperity, and environmental stewardship. The Sustainable Trade Index (STI) 2024 acts as a blueprint for governments, businesses, and communities to shape strategies and policies that integrate sustainable practices into their trade activities.
Through the STI, we are measuring how the world is changing:
Protectionist reconfiguration
Countries are increasingly adopting policies aimed at strengthening their domestic industries and securing supply chains to buffer against global uncertainties. This shift towards protectionism is evident in the increased implementation of both tariff and non-tariff barriers, which are designed to shield local economies from external shocks.
Workforce resilience
Investing in human capital is pivotal for countries to build adaptable and skilled workforces capable of navigating economic fluctuations and global challenges. By fostering a resilient workforce, nations can ensure that their economies remain robust and competitive in an ever-changing global landscape.
Environmental sustainability
Addressing climate resilience presents a complex challenge, as mitigating climate change often necessitates regulatory interventions that can conflict with the principles of open trade. The STI tracks global commitments to environmental conventions, highlighting a steady increase in efforts to integrate sustainability into trade policies.
By leveraging the insights provided by the STI, policymakers, businesses, and civil society can collaboratively address the multifaceted challenges of global trade and work towards a more sustainable and resilient future.
Key Findings
Visual Capitalist illustrates the rankings of the 2024 Sustainable Trade Index:
- New Zealand tops the index, demonstrating exemplary social and environmental policies.
- Australia advanced by two spots to rank third in 2024, surpassing Singapore and Hong Kong
- The world's two largest economies, America and China, rank in the mid-tier, showcasing areas for improvement.
- Economies like Papua New Guinea and Russia are at the lower end, reflecting significant challenges in their policies.
These findings come at a time when the global trading system is experiencing the most severe geopolitical and economic fragmentation in 70 years. Governments worldwide are implementing protectionist trade policies under the guise of responding to post-pandemic inflation and heightened geopolitical tensions. This shift suggests that globalization, once seen as a pathway to collective progress, is now evolving in ways that challenge this notion.
Download infographics on the Hinrich-IMD Sustainable Trade Index 2024.
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Author
Visual Capitalist
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