The Swiss economy remains the most competitive in the world, while Croatia has stagnated at 77th place on the competitiveness list of 140 countries, according to a report released on Wednesday by the World Economic Forum (WEF) for 2015-2016.
Seven years after the global financial crisis, the global economy is characterized by a ‘new normal’ – high unemployment, lower productivity, and subdued economic growth. The WEF warns in its new report, known for gathering politicians and business leaders annually in the alpine resort of Davos, that uncertainties regarding geopolitical tensions, situations in developing countries, energy prices, and currency fluctuations threaten to disrupt this. On the other hand, the WEF emphasizes that other trends, such as the so-called fourth industrial revolution and new consumption patterns, could lead to a new wave of significant innovations that stimulate economic growth.
Whether a particular economy remains trapped in the ‘new normal’ or progresses depends, the WEF points out, on its level of competitiveness. Therefore, this institution publishes an annual competitiveness report, which includes a list of 140 countries based on an assessment of about ten competitiveness factors, including institutions, infrastructure, health, education, market size, and macroeconomic environment.
In the report, competitiveness is defined as “a set of institutions, policies, and factors that determine the level of productivity of a country,” and it also includes the results of a survey among business people regarding government effectiveness and transparency. Among the 10 most competitive countries in the world this year are all the countries that were also highly ranked last year, but in a different order.
Switzerland has retained the title of the most competitive economy in the world for the seventh consecutive year, thanks to, among other things, the efficiency of the labor market, innovation, and resilience to crises and market shocks. As last year, Singapore follows Switzerland, while the United States retains third place. Germany has moved up from 5th to 4th place, followed by the Netherlands, which was in 8th place last year. Japan remains in 6th place, as it did last year, and Hong Kong holds the 7th position on the list. Finland has dropped from last year’s 4th to 8th place, followed by Sweden, which has advanced from 10th place, and the United Kingdom, which has slipped from last year’s 9th to 10th place.
