The eagerly awaited 2019 edition of the World Economic Forum's Global Competitiveness Report, which ranks the competitiveness of 141 countries worldwide, places the Grand Duchy in 18th place overall. That means the Grand Duchy has risen by one place since the 2018 edition. The 2019 ranking is headed by Singapore, followed by the United States and Hong Kong. The Netherlands rank 4th, Germany 7th, France 15th, and Belgium 22nd.
The Grand Duchy's profile
According to the report, the Grand Duchy's main strong points are its macroeconomic stability (1st place), its institutions (9th place), its financial system (10th place), and the markets for products (11th place) and labour (12th place).
The Luxembourg Chamber of Commerce, WEF's national partner institution in compiling the study, concludes that "international talents are among the driving forces behind a competitive financial centre on an international scale, an evident entrepreneurial culture, and an advancing ecosystem of innovation". The Grand Duchy achieves its worst scores for the small size of its market (77th place) and business dynamism (42nd place).
Within the European Union, the Grand Duchy ranks 8th. Here, the ranking is headed by the Netherlands, Germany, and Sweden. Globally, the Asia-Pacific region is the most competitive, closely followed by Europe and North America.
About the Index
The Global Competitiveness Index is a composite index that analyses 103 different indicators, divided among 12 pillars: Institutions, Infrastructure, ACT adoption, Macroeconomic stability, Health, Skills, Product market, Labour market, Financial system, Market size, Business dynamism, and Innovation capability. Each indicator, on a scale of 0 (worst performance) to 100 (best performance) shows the distance between each individual economy and the ideal situation.
In 2018, the World Economic Forum made substantial changes to its methodology for assessing economies, placing more emphasis on the impact of the Fourth Industrial Revolution. As a result, the Index examines the relationship between competitiveness, social cohesion and ecological sustainability. According to the authors, it is only by pursuing a sustainable, holistic policy beyond the electoral cycle that national economies will be able to stay competitive in the long term.
- Institutions: 9th (score 76/100)
- infrastructure: 17th (85)
- Ability to integrate technology: 20th (78)
- Macroeconomic stability: 1st (100)
- Health 28th (93)
- Education and skills: 17th (79)
- Goods market: 11th (68)
- Labor market: 12th (74)
- Financial system: 10th (87)
- Market size: 77th (50)
- Business dynamism: 42nd (66)
- Innovation: 19th (68)