With the end of the year drawing near, economists have had a chance to evaluate and report on the most competitive economies in the world. The World Economic Forum has been reporting on the global competitiveness of 141 economies that comprise 99% of the world’s gross domestic product (GDP). This report measures the economic growth of each country’s monetary value of goods and services. Typically speaking, the more competitive the economy, the more successful the country is in terms of market strength and growth. The WEF just recently finalized and released its top 10, comparing the economies on a number of categories for an overall rank.
1.Singapore – Receiving a score of 84.8 of 100, up from 83.4 last year, Singapore has ranked top in the categories of infrastructure, financial systems, institutions, health, product and labor markets. Experts say that the country will truly reach its peak performance economy when it focuses on the promotion of entrepreneurship.
2. The United States – The United States received a close second score of 83.7, down from 85.6 last year. The country is the most competitive large economy, scoring astronomically in the categories of innovation and business dynamics. They will need to turn their attention to addressing issues in trade and domestic competition to take the throne next year.
3. Hong Kong SAR – Very impressively, Hong Kong has climbed 4 places since 2018 to take third in the rankings this year with a score of 83.1. The country ranks top in the categories of macro-economic stability, product market, financial systems, and health. Hurting Hong Kong the most from reaching the top of the list is their low innovation capability.
4. The Netherlands – The Netherlands is also on the rise since 2018, jumping up 2 spots on the list, reigning a score of 82.4. Its macro-economic stability beats every other economy, and infrastructure and business dynamism are also note-worthy. Where the Netherlands falls short is the adaptation of the Information and Communication Technology (ITC), which hinders its analysis and research.
5. Switzerland – Dropping down 1 place from last year, Switzerland still holds high performances in categories like macro-economic stability and health, coming in at a total score of 82.3. Switzerland is also the highest-ranking economy in terms of employed graduates and job training, both on-the-job and vocational. This economic powerhouse ranks dead last for its tariff regime, very complex as it is.
The remainder of the list reads Japan, Germany, Sweden, The United Kingdom, and Denmark, respectively. While several factors are analyzed to compute these standings, many of the world’s most powerful economies remain within the top 10 year after year.