Global Competitiveness Report

The Global Competitiveness Report (GCR) was a yearly report published by the World Economic Forum. Between 2004 and 2020, the Global Competitiveness Report ranked countries based on the Global Competitiveness Index, developed by Xavier Sala-i-Martin and Elsa V. Artadi. Before that, the macroeconomic ranks were based on Jeffrey Sachs's Growth Development Index and the microeconomic ranks were based on Michael Porter's Business Competitiveness Index. The Global Competitiveness Index integrates the macroeconomic and the micro/business aspects of competitiveness into a single index.

The report "assesses the ability of countries to provide high levels of prosperity to their citizens". This in turn depends on how productively a country uses available resources. Therefore, the Global Competitiveness Index measures the set of institutions, policies, and factors that set the sustainable current and medium-term levels of economic prosperity."

Description

Since 2004, the report ranks the world's nations according to the Global Competitiveness Index, based on the latest theoretical and empirical research. It is made up of over 110 variables, of which two thirds come from the Executive Opinion Survey, and one third comes from publicly available sources such as the United Nations. The variables are organized into twelve pillars, with each pillar representing an area considered as an important determinant of competitiveness.

One part of the report is the Executive Opinion Survey, which is a survey of a representative sample of business leaders in their respective countries. Respondent numbers have increased every year and is currently just over 13,500 in 142 countries (2010).

The report notes that as a nation develops, wages tend to increase, and that in order to sustain this higher income, labor productivity must improve for the nation to be competitive. In addition, what creates productivity in Sweden is necessarily different from what drives it in Ghana. Thus, the GCI separates countries into three specific stages: factor-driven, efficiency-driven, and innovation-driven, each implying a growing degree of complexity in the operation of the economy.

The report has twelve pillars of competitiveness. These are:

  1. Institutions
  2. Appropriate infrastructure
  3. Stable macroeconomic framework
  4. Good health and primary education
  5. Higher education and training
  6. Efficient goods markets
  7. Efficient labor markets
  8. Developed financial markets
  9. Ability to harness existing technology
  10. Market sizeboth domestic and international
  11. Production of new and different goods using the most sophisticated production processes
  12. Innovation

In the factor-driven stage countries compete based on their factor endowments, primarily unskilled labor and natural resources. Companies compete on the basis of prices and sell basic products or commodities, with their low productivity reflected in low wages. To maintain competitiveness at this stage of development, competitiveness hinges mainly on well-functioning public and private institutions (pillar 1), appropriate infrastructure (pillar 2), a stable macroeconomic framework (pillar 3), and good health and primary education (pillar 4).

As wages rise with advancing development, countries move into the efficiency-driven stage of development, when they must begin to develop more efficient production processes and increase product quality. At this point, competitiveness becomes increasingly driven by higher education and training (pillar 5), efficient goods markets (pillar 6), efficient labor markets (pillar 7), developed financial markets (pillar 8), the ability to harness the benefits of existing technologies (pillar 9), and its market size, both domestic and international (pillar 10).

Finally, as countries move into the innovation-driven stage, they are only able to sustain higher wages and a higher standard of living if their businesses are able to compete by providing new or unique products. At this stage, companies must compete by producing new and different goods using the most sophisticated production processes (pillar 11) and through innovation (pillar 12).

Thus, the impact of each pillar on competitiveness varies across countries, in function of their stages of economic development. Therefore, in the calculation of the GCI, pillars are given different weights depending on the per capita income of the nation. The weights used are the values that best explain growth in recent years For example, the sophistication and innovation factors contribute 10% to the final score in factor and efficiency-driven economies, but 30% in innovation-driven economies. Intermediate values are used for economies in transition between stages.

The Global Competitiveness Index's annual reports are somewhat similar to the Ease of Doing Business Index and the Indices of Economic Freedom, which also look at factors affecting economic growth (but not as many as the Global Competitiveness Report). Data from the Global Competitiveness Index relating to the strength of auditing and reporting standards, institutions and judicial independence is used in the Basel AML Index, a money laundering risk assessment tool developed by the Basel Institute on Governance.

Limitations

In spite of the World Economic Forum's Global Risks Report which is increasingly identifying environmental pressures as the dominant risks to humanity, none of the indicators used to determine this report's competitiveness ranking reflect any of the countries' environmental dimensions such as energy, water, climate risks, resource or food security, etc. The Global Competitiveness Report 2018 and 2019 used the ecological footprint as a context indicator, but the footprint was not included in the scoring algorithm that determines the ranking.

2019 rankings

This is the full ranking of the 2019 report:

Rank Country Score
Increase 1  Singapore 84.8
Decrease 2  United States 83.7
Increase 3  Hong Kong 83.1
Increase 4  Netherlands 82.4
Decrease 5  Switzerland 82.3
Decrease 6  Japan 82.3
Decrease 7  Germany 81.8
Increase 8  Sweden 81.2
Decrease 9  United Kingdom 81.2
Steady 10  Denmark 81.2
Steady 11  Finland 80.2
Increase 12  Taiwan 80.2
Increase 13  South Korea 79.6
Decrease 14  Canada 79.6
Increase 15  France 78.8
Decrease 16  Australia 78.7
Decrease 17  Norway 78.1
Increase 18  Luxembourg 77.0
Decrease 19  New Zealand 76.7
Steady 20  Israel 76.7
Increase 21  Austria 76.6
Decrease 22  Belgium 76.4
Increase 23  Spain 75.3
Decrease 24  Ireland 75.1
Increase 25  United Arab Emirates 75.0
Decrease 26  Iceland 74.7
Decrease 27  Malaysia 74.6
Steady 28  China 73.9
Increase 29  Qatar 72.9
Increase 30  Italy 71.5
Increase 31  Estonia 70.9
Decrease 32  Czech Republic 70.9
Steady 33  Chile 70.5
Steady 34  Portugal 70.4
Steady 35  Slovenia 70.2
Increase 36  Saudi Arabia 70.0
Steady 37  Poland 68.9
Decrease 38  Malta 68.5
Increase 39  Lithuania 68.4
Decrease 40  Thailand 68.1
Increase 41  Latvia 67.0
Decrease 42  Slovakia 66.8
Steady 43  Russia 66.7
Steady 44  Cyprus 66.4
Increase 45  Bahrain 65.4
Increase 46  Kuwait 65.1
Increase 47  Hungary 65.1
Decrease 48  Mexico 64.9
Increase 49  Bulgaria 64.9
Decrease 50  Indonesia 64.6
Increase 51  Romania 64.4
Decrease 52  Mauritius 64.3
Decrease 53  Oman 63.6
Decrease 54  Uruguay 63.5
Increase 55  Kazakhstan 62.9
Increase 56  Brunei 62.8
Increase 57  Colombia 62.7
Increase 58  Azerbaijan 62.7
Decrease 59  Greece 62.6
Decrease 60  South Africa 62.4
Steady 61  Turkey 62.1
Steady 62  Costa Rica 62.0
Increase 63  Croatia 61.9
Decrease 64  Philippines 61.9
Decrease 65  Peru 61.7
Decrease 66  Panama 61.6
Increase 67  Vietnam 61.5
Decrease 68  India 61.4
Increase 69  Armenia 61.3
Increase 70  Jordan 60.9
Increase 71  Brazil 60.9
Decrease 72  Serbia 60.9
Decrease 73  Montenegro 60.9
Decrease 74  Georgia 60.9
Steady 75  Morocco 60.0
Decrease 76  Seychelles 59.6
NEW 77  Barbados 58.9
Decrease 78  Dominican Republic 58.3
Decrease 79  Trinidad and Tobago 58.3
Decrease 80  Jamaica 58.3
Decrease 81  Albania 57.6
Increase 82  North Macedonia 57.3
Decrease 83  Argentina 57.2
Increase 84  Sri Lanka 57.1
Decrease 85  Ukraine 57.0
Increase 86  Moldova 56.7
Steady 87  Tunisia 56.4
Decrease 88  Lebanon 56.3
Increase 89  Algeria 56.3
Decrease 90  Ecuador 55.7
Decrease 91  Botswana 55.5
Decrease 92  Bosnia and Herzegovina 54.7
Increase 93  Egypt 54.5
Increase 94  Namibia 54.5
Decrease 95  Kenya 54.1
Increase 96  Kyrgyzstan 54.0
Decrease 97  Paraguay 53.6
Decrease 98  Guatemala 53.5
Decrease 99  Iran 53.0
Increase 100  Rwanda 52.8
Steady 101  Honduras 52.7
Decrease 102  Mongolia 52.6
Decrease 103  El Salvador 52.6
Decrease 104  Tajikistan 52.4
Decrease 105  Bangladesh 52.1
Increase 106  Cambodia 52.1
Decrease 107  Bolivia 51.8
Increase 108  Nepal 51.6
Decrease 109  Nicaragua 51.5
Decrease 110  Pakistan 51.4
Decrease 111  Ghana 51.2
Decrease 112  Cape Verde 50.8
Decrease 113  Laos 50.1
Decrease 114  Senegal 49.7
Increase 115  Uganda 48.9
Decrease 116  Nigeria 48.3
Decrease 117  Tanzania 48.2
Decrease 118  Ivory Coast 48.1
NEW 119  Gabon 47.5
Decrease 120  Zambia 46.5
Decrease 121  Eswatini 46.4
Increase 122  Guinea 46.1
Decrease 123  Cameroon 46.0
Decrease 124  Gambia 45.9
Decrease 125  Benin 45.8
Decrease 126  Ethiopia 44.4
Increase 127  Zimbabwe 44.2
Increase 128  Malawi 43.7
Decrease 129  Mali 43.6
Decrease 130  Burkina Faso 43.4
Decrease 131  Lesotho 42.9
NEW 132  Madagascar 42.9
Decrease 133  Venezuela 41.8
Decrease 134  Mauritania 40.9
Increase 135  Burundi 40.3
Increase 136  Angola 38.1
Decrease 137  Mozambique 38.1
Steady 138  Haiti 36.3
Decrease 139  Democratic Republic of the Congo 36.1
Decrease 140  Yemen 35.5
Decrease 141  Chad 35.1


2018 rankings

This is the top 30 of the 2018 report:

  1.  United States 85.6 (+1)
  2.  Singapore 83.5 (+1)
  3.  Germany 82.8 (+2)
  4.   Switzerland 82.6 (−3)
  5.  Japan 82.5 (+4)
  6.  Netherlands 82.4 (−2)
  7.  Hong Kong 82.3 (−1)
  8.  United Kingdom 82 (—)
  9.  Sweden 81.7 (−2)
  10.  Denmark 80.6 (+2)
  11.  Finland 80.3 (−1)
  12.  Canada 79.9 (+2)
  13.  Taiwan 79.3 (+2)
  14.  Australia 78.9 (+7)
  15.  South Korea 78.8 (+11)
  16.  Norway 78.2 (−5)
  17.  France 78 (+5)
  18.  New Zealand 77.5 (−5)
  19.  Luxembourg 76.6 (—)
  20.  Israel 76.6 (−4)
  21.  Belgium 76.6 (−1)
  22.  Austria 76.3 (−4)
  23.  Ireland 75.7 (+1)
  24.  Iceland 74.5 (—)
  25.  Malaysia 74.4 (−2)
  26.  Spain 74.2 (+8)
  27.  United Arab Emirates 73.4 (−10)
  28.  China 72.6(−1)
  29.  Czech Republic 71.2 (+2)
  30.  Qatar 71 (−5)

2017–2018 rankings

This is the top 30 of the 2017–2018 report:

  1.   Switzerland 5.86 (—)
  2.  United States 5.85 (+1)
  3.  Singapore 5.71 (−1)
  4.  Netherlands 5.66 (—)
  5.  Germany 5.65 (—)
  6.  Hong Kong 5.53 (+3)
  7.  Sweden 5.52 (−1)
  8.  United Kingdom 5.51 (−1)
  9.  Japan 5.49 (−1)
  10.  Finland 5.49 (—)
  11.  Norway 5.40 (—)
  12.  Denmark 5.39 (—)
  13.  New Zealand 5.37 (—)
  14.  Canada 5.35 (+1)
  15.  Taiwan 5.33 (−1)
  16.  Israel 5.31 (+8)
  17.  United Arab Emirates 5.30 (−1)
  18.  Austria 5.25 (+1)
  19.  Luxembourg 5.23 (+1)
  20.  Belgium 5.23 (−3)
  21.  Australia 5.19 (+1)
  22.  France 5.18 (−1)
  23.  Malaysia 5.17 (+2)
  24.  Ireland 5.16 (−1)
  25.  Qatar 5.11 (−7)
  26.  South Korea 5.07 (—)
  27.  China 5.00 (+1)
  28.  Iceland 4.99 (−1)
  29.  Estonia 4.85 (+1)
  30.  Saudi Arabia 4.83 (−1)

2016–2017 rankings

This is the top 30 of the 2016–2017 report:

  1.   Switzerland 5.81 (—)
  2.  Singapore 5.72 (—)
  3.  United States 5.7 (—)
  4.  Netherlands 5.57 (+1)
  5.  Germany 5.57 (−1)
  6.  Sweden 5.53 (+3)
  7.  United Kingdom 5.49 (+3)
  8.  Japan 5.48 (−2)
  9.  Hong Kong 5.48 (−2)
  10.  Finland 5.44 (−2)
  11.  Norway 5.44 (—)
  12.  Denmark 5.35 (—)
  13.  New Zealand 5.31 (+3)
  14.  Taiwan 5.28 (+1)
  15.  Canada 5.27 (−2)
  16.  United Arab Emirates 5.26 (+1)
  17.  Belgium 5.25 (+2)
  18.  Qatar 5.23 (−4)
  19.  Austria 5.22 (+4)
  20.  Luxembourg 5.2 (—)
  21.  France 5.2 (+1)
  22.  Australia 5.19 (−1)
  23.  Ireland 5.18 (+1)
  24.  Israel 5.18 (+3)
  25.  Malaysia 5.16 (−7)
  26.  South Korea 5.03 (—)
  27.  Iceland 4.96 (+2)
  28.  China 4.95 (—)
  29.  Saudi Arabia 4.84 (−4)
  30.  Estonia 4.78 (—)

2015–2016 rankings

This is the top 30 of the 2015–2016 report:

  1.  Switzerland 5.76 (—)
  2.  Singapore 5.68 (—)
  3.  United States 5.61 (—)
  4.  Germany 5.53 (+1)
  5.  Netherlands 5.50 (+3)
  6.  Japan 5.47 (—)
  7.  Hong Kong 5.46 (—)
  8.  Finland 5.45 (−4)
  9.  Sweden 5.43 (+1)
  10.  United Kingdom 5.43 (−1)
  11.  Norway 5.41 (—)
  12.  Denmark 5.33 (+1)
  13.  Canada 5.31 (+2)
  14.  Qatar 5.30 (+2)
  15.  Taiwan 5.28 (−1)
  16.  New Zealand 5.25 (+1)
  17.  United Arab Emirates 5.24 (−5)
  18.  Malaysia 5.23 (+2)
  19.  Belgium 5.20 (−1)
  20.  Luxembourg 5.20 (−1)
  21.  Australia 5.15 (+1)
  22.  France 5.13 (+1)
  23.  Austria 5.12 (−2)
  24.  Ireland 5.11 (+1)
  25.  Saudi Arabia 5.07 (−1)
  26.  South Korea 4.98 (—)
  27.  Israel 4.98 (—)
  28.  China 4.89 (—)
  29.  Iceland 4.83 (+1)
  30.  Estonia 4.71 (−1)

2014–2015 rankings

This is the top 30 of the 2014–2015 report:

  1.  Switzerland 5.80 (—)
  2.  Singapore 5.65 (—)
  3.  United States 5.54 (+2)
  4.  Finland 5.50 (−1)
  5.  Germany 5.49 (−1)
  6.  Japan 5.47 (+3)
  7.  Hong Kong 5.46 (—)
  8.  Netherlands 5.45 (—)
  9.  United Kingdom 5.41 (+1)
  10.  Sweden 5.41 (−4)
  11.  Norway 5.35 (—)
  12.  United Arab Emirates 5.33 (+7)
  13.  Denmark 5.29 (+2)
  14.  Taiwan 5.25 (−2)
  15.  Canada 5.24 (−1)
  16.  Qatar 5.26 (−3)
  17.  New Zealand 5.20 (+1)
  18.  Belgium 5.18 (−1)
  19.  Luxembourg 5.17 (+3)
  20.  Malaysia 5.16 (+4)
  21.  Austria 5.16 (−5)
  22.  Australia 5.08 (−1)
  23.  France 5.08 (—)
  24.  Saudi Arabia 5.06 (−4)
  25.  Ireland 4.98 (+3)
  26.  South Korea 4.96 (−1)
  27.  Israel 4.95 (—)
  28.  China 4.89 (+1)
  29.  Estonia 4.71 (+3)
  30.  Iceland 4.71 (+1)

2013–2014 rankings

This is the top 30 of the 2013–2014 report:

  1.  Switzerland 5.67 (—)
  2.  Singapore 5.61 (—)
  3.  United States 5.54 (—)
  4.  Finland 5.51 (+2)
  5.  Germany 5.48 (+2)
  6.  Sweden 5.48 (−2)
  7.  Hong Kong 5.47 (+2)
  8.  Netherlands 5.42 (−3)
  9.  Japan 5.40 (+1)
  10.  United Kingdom 5.37 (−2)
  11.  Norway 5.33 (+4)
  12.  Taiwan 5.29 (+1)
  13.  Qatar 5.24 (−2)
  14.  Canada 5.20 (—)
  15.  Denmark 5.18 (−3)
  16.  Austria 5.15 (—)
  17.  Belgium 5.13 (—)
  18.  New Zealand 5.11 (+5)
  19.  United Arab Emirates 5.11 (+5)
  20.  Saudi Arabia 5.10 (−2)
  21.  Australia 5.09 (−1)
  22.  Luxembourg 5.09 (—)
  23.  France 5.05 (−2)
  24.  Malaysia 5.03 (+1)
  25.  South Korea 5.01 (−6)
  26.  Brunei 4.95 (+2)
  27.  Israel 4.94 (−1)
  28.  Ireland 4.92 (−1)
  29.  China 4.84 (—)
  30.  Puerto Rico 4.67 (+1)

2012–2013 rankings

This is the top 30 of the 2012–2013 report:

  1.  Switzerland 5.72 (—)
  2.  Singapore 5.67 (—)
  3.  Finland 5.55 (+1)
  4.  Sweden 5.53 (−1)
  5.  Netherlands 5.50 (+2)
  6.  Germany 5.48 (—)
  7.  United States 5.47 (−2)
  8.  United Kingdom 5.45 (+2)
  9.  Hong Kong 5.41 (+2)
  10.  Japan 5.40 (−1)
  11.  Qatar 5.38 (+3)
  12.  Denmark 5.29 (−4)
  13.  Taiwan 5.28 (—)
  14.  Canada 5.27 (−2)
  15.  Norway 5.27 (+1)
  16.  Austria 5.22 (+3)
  17.  Belgium 5.21 (−2)
  18.  Saudi Arabia 5.19 (+1)
  19.  South Korea 5.12 (+5)
  20.  Australia 5.12 (—)
  21.  France 5.11 (−3)
  22.  Luxembourg 5.09 (+1)
  23.  New Zealand 5.09 (+2)
  24.  United Arab Emirates 5.07 (+3)
  25.  Malaysia 5.06 (−4)
  26.  Israel 5.02 (−4)
  27.  Ireland 4.91 (+2)
  28.  Brunei 4.87 (—)
  29.  China 4.83 (−3)
  30.  Iceland 4.74 (—)

2011–2012 rankings

This is the top 30 of the 2011–2012 report:

  1.  Switzerland 5.75 (—)
  2.  Singapore 5.63 (+1)
  3.  Sweden 5.61 (−1)
  4.  Finland 5.47 (+3)
  5.  United States 5.43 (−1)
  6.  Germany 5.41 (−1)
  7.  Netherlands 5.41 (+1)
  8.  Denmark 5.40 (+1)
  9.  Japan 5.40 (−3)
  10.  United Kingdom 5.39 (+2)
  11.  Hong Kong 5.36 (—)
  12.  Canada 5.33 (−2)
  13.  Taiwan 5.26 (—)
  14.  Qatar 5.24 (+3)
  15.  Belgium 5.20 (+4)
  16.  Norway 5.18 (−2)
  17.  Saudi Arabia 5.17 (+4)
  18.  France 5.14 (−3)
  19.  Austria 5.14 (−1)
  20.  Australia 5.11 (−4)
  21.  Malaysia 5.08 (+5)
  22.  Israel 5.07 (+2)
  23.  Luxembourg 5.03 (−3)
  24.  South Korea 5.02 (−2)
  25.  New Zealand 4.93 (−2)
  26.  China 4.90 (+1)
  27.  United Arab Emirates 4.89 (−2)
  28.  Brunei 4.78 (—)
  29.  Ireland 4.77 (—)
  30.  Iceland 4.75 (+1)

2010–2011 rankings

This is the top 30 of the 2010–2011 report:

  1.  Switzerland 5.63 (—)
  2.  Sweden 5.56 (+2)
  3.  Singapore 5.48 (—)
  4.  United States 5.43 (–2)
  5.  Germany 5.39 (+2)
  6.  Japan 5.37 (+2)
  7.  Finland 5.37 (–1)
  8.  Netherlands 5.33 (+2)
  9.  Denmark 5.32 (–4)
  10.  Canada 5.30 (–1)
  11.  Hong Kong 5.27 (—)
  12.  United Kingdom 5.25 (+1)
  13.  Taiwan 5.21 (–1)
  14.  Norway 5.14 (—)
  15.  France 5.13 (+1)
  16.  Australia 5.11 (–1)
  17.  Qatar 5.10 (—)
  18.  Austria 5.09 (–1)
  19.  Belgium 5.07 (–1)
  20.  Luxembourg 5.05 (+1)
  21.  Saudi Arabia 4.95 (+6)
  22.  South Korea 4.93 (—)
  23.  New Zealand 4.92 (–3)
  24.  Israel 4.91 (+3)
  25.  United Arab Emirates 4.89 (–2)
  26.  Malaysia 4.88 (–2)
  27.  China 4.84 (+2)
  28.  Brunei 4.75 (+4)
  29.  Ireland 4.74 (–4)
  30.  Chile 4.69 (—)

2009–2010 rankings

This is the top 30 of the 2009–2010 report:

  1.  Switzerland 5.60 (+1)
  2.  United States 5.59 (–1)
  3.  Singapore 5.55 (+2)
  4.  Sweden 5.51 (—)
  5.  Denmark 5.46 (–2)
  6.  Finland 5.43 (—)
  7.  Germany 5.37 (—)
  8.  Japan 5.37 (+1)
  9.  Canada 5.33 (+1)
  10.  Netherlands 5.32 (–2)
  11.  Hong Kong 5.22 (—)
  12.  Taiwan 5.20 (+5)
  13.  United Kingdom 5.19 (–1)
  14.  Norway 5.17 (+1)
  15.  Australia 5.15 (+3)
  16.  France 5.13 (—)
  17.  Austria 5.13 (–3)
  18.  Belgium 5.09 (+1)
  19.  South Korea 5.00 (–6)
  20.  New Zealand 4.98 (+4)
  21.  Luxembourg 4.96 (+4)
  22.  Qatar 4.95 (+4)
  23.  United Arab Emirates 4.92 (+8)
  24.  Malaysia 4.87 (–3)
  25.  Ireland 4.84 (–3)
  26.  Iceland 4.80 (–6)
  27.  Israel 4.80 (–4)
  28.  Saudi Arabia 4.75 (–1)
  29.  China 4.74 (+1)
  30.  Chile 4.70 (+2)

2008–2009 rankings

This is the top 30 of the 2008–2009 report:

  1.  United States 5.74
  2.  Switzerland 5.61
  3.  Denmark 5.58
  4.  Sweden 5.53
  5.  Singapore 5.53
  6.  Finland 5.50
  7.  Germany 5.46
  8.  Netherlands 5.41
  9.  Japan 5.38
  10.  Canada 5.37
  11.  Hong Kong 5.33
  12.  United Kingdom 5.30
  13.  South Korea 5.28
  14.  Austria 5.23
  15.  Norway 5.22
  16.  France 5.22
  17.  Taiwan 5.22
  18.  Australia 5.20
  19.  Belgium 5.14
  20.  Iceland 5.05
  21.  Malaysia 5.04
  22.  Ireland 4.99
  23.  Israel 4.97
  24.  New Zealand 4.93
  25.  Luxembourg 4.85
  26.  Qatar 4.83
  27.  Saudi Arabia 4.72
  28.  Chile 4.72
  29.  Spain 4.72
  30.  China 4.70

You can find the computation and structure of the GCI pp. 49–50 of the Global Competitiveness Report 2013–2014, Full Data Edition.

See also


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