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Global economy has ‘failed to recover’ so far, says DHL 

Global economy has ‘failed to recover’ so far, says DHL 
Global economy has ‘failed to recover’ so far, says DHL 

“Global trade has continued to normalize after the pandemic-related boom, and the recovery of the global economy has so far failed to materialize,” says DHL Group CEO Tobias Meyer.

Meyer says they’ve planned for different scenarios earlier this year, so they are “well on track” to make targets this year. “In the current market environment, we will closely monitor our costs. [We’ll] continue investing in growth areas of our global business and service quality. We are well prepared for the moment when the global economy recovers.”

Bloomberg is reporting that the war between Israel and Hamas has the potential to disrupt the world economy. It could also even tip the globe into recession if more countries are drawn in. 

ALSO READ: Expert analysis – Logistics and supply chain lessons from Israel-Hamas war

In an exclusive interview with Locate2u News, supply chain expert from The Smart Cube, Ritesh Kumar, warns that the war could potentially increase air and road freight rates globally. This is due to increased jet fuel and crude oil prices.

Israel is a significant player in the global semiconductor supply chain. Kumar also warns about chip production and innovation disruption. “The war could potentially lead to trade regulations and customs procedures changes. Governments may implement sanctions or restrictions on trade with involved parties, impacting international trade,” says Kumar.

New hope for improved economy

Expert research conducted by Goldman Sachs shows the global economy has the potential to outperform expectations in 2024.  

“That outlook is based on our economists’ prediction for strong income growth (amid cooling inflation and a robust job market). [It’s also based on] expectation that rate hikes have already delivered their biggest hits to GDP growth, and their view that manufacturing will recover,” the study finds. 

The worldwide GDP is expected to increase by 2.6% next year on average. Goldman Sachs research’s forecasts for GDP growth in 2024 are more optimistic than the consensus for eight of the world’s nine largest economies. “Our economists expect US growth to outpace its developed market peers again.”

DHL financial strength

Against higher interest rates and cross-border conflicts, DHL group achieved free cash flow of $1 billion in the third quarter to nearly $3 billion in the first nine months of 2023. 

DHL managed to weather the storm and still improve its performance despite global influences—group revenue in the third quarter stood at $21 billion. 

The DHL Group closed with a net profit of $863 million in the third quarter of 2023.

According to the group, the decline in revenue at DHL Express considers adverse currency effects and lower fuel surcharges. 

About the author

Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.

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