The World Economic Forum (WEF) published in early October a new edition of its annual study of the competitiveness of 141 countries around the world: the Global competitiveness report. The purpose of this report is to assess the potential of global economies to achieve sustained growth in the medium and long term.
The changing nature of economic competitiveness in a world increasingly transformed by new digital technologies is creating a new set of challenges for governments and businesses. For this reason, since last year's edition (2018), the WEF report has used a new methodology to capture the dynamics of the global economy in these times of the fourth industrial revolution. Indeed, according to the authors of the report, many of the factors that will have the greatest impact on competitiveness in the future have never been at the center of major policy decisions in the past. These include idea creation, entrepreneurial culture, openness and agility.
The Global Competitiveness Index (GCI) assesses all the factors that determine an economy's level of productivity - considered to be the most important factor determining long-term growth. The framework is built around 12 main productivity factors that are equipweighted. These pillars are as follows: Institutions, Infrastructure, Ability to integrate technology, Macroeconomic stability, Health, Education and skills, Goods market, Labour market, Financial system, Market size, Business dynamism and Innovation.
The 2019 world ranking is led by Singapore (84.8), the United States (83.7) and Hong Kong (83.1). Luxembourg ranks 18th in the world (77.0). The Netherlands ranks 4th (82.4), Germany 7th (81.8), France 15th (78.8) and Belgium 22nd (76.4).
The ranking within the European Union is led by the Netherlands, Germany and Sweden (81.2). Luxembourg ranks 8th in the European Union.
(Translated by the editorial team of Luxembourg.lu)