The WEF released its Global Competitiveness Report 2018, whose findings state that USA leads the list of nations, followed by Singapore, Germany, Switzerland and Japan.
The report has analysed the competitiveness index based on a range of indicators and a methodology that is more in line with rapid changes propelled by digitisation, The new Global Competitiveness Index 4.0 sheds light on a newly emerging set of factors critical for productivity in the Fourth Industrial Revolution (4IR) and provides a tool for assessing them. Top ten economies. The United States is the closest economy to the frontier, the ideal state, where a country would obtain the perfect score on every component of the index. With a competitiveness score of 85.6, it is 14 points away from the frontier mark of 100, implying that even the top-ranked economy among the 140 has room for improvement. It is followed by Singapore (83.5) and Germany (82.8). Switzerland (82.6) comes in at 4th place, followed by Japan (82.5), Netherlands (82.4), Hong Kong SAR (82.3). The United Kingdom (82.0), Sweden (81.7) and Denmark (80.6) round out the top ten.
Globally, the median score is 60.0. Between the US (85.6, 1st) and Chad (35.5, 140th) there is a wide range of performance across regions and countries. Europe and North America are, combined, home to seven of the 10 most competitive economies. East Asia and the Pacific region, home to the other three top ten economies, achieves the highest median score (72.6) among all regions, ahead of Europe and North America (70.8). At the other end of the spectrum, 17 of the 34 sub-Saharan African economies studied are among the bottom 20 globally, and the region’s median is a low 45.2, less than halfway to the frontier. While regional averages are helpful for global comparisons, there are vast disparities within regions, implying that economies are not necessarily hampered by geography in their quest for competitiveness.
G20 and BRICS:
Within the G20, almost 30 points and 80 ranks separate the United States (85.6, 1st) from Argentina (57.5, 81st), the best and worst performing economies of the group, respectively. Of the BRICS grouping of large emerging markets, China is the most competitive, ranking 28th and with a score of 72.6. It is followed by the Russian Federation, which is ranked 43rd. These are the only two in the top 50. Next is India, which ranks 58th, up five places from 2017: with a score of 62.0, it registers the largest gain of any country in the G20. India is followed by South Africa, which falls five places this year to 67th. Last is Brazil, which slips three places to 72nd place.
Within the G20, on health, the clear leader is Japan, which ranks first with a perfect score of 100, while South Africa is 127th with a score of 43.2.
Differences on the Financial system pillar are small—there are fewer than 20 points between Canada (86.1, 11th) and Italy (64.3, 49th) —but the same cannot be said when it comes to the Macroeconomic stability pillar. While 11 of the 19 members obtain a score above 90 on this pillar, the context in Turkey (67.3, 116th), Brazil (64.6, 122nd) and Argentina (44.9, 136th) remains volatile. The Republic of Korea is the world’s champion in terms of broadbased ICT adoption, with a near perfect score of 91.3 on this pillar. By contrast, India is among the weakest performers, with a score of 28.0 (117th), despite its vibrant IT sector. There is also a physical infrastructure gap among G20 economies (about 30 points between Japan and Indonesia, the best and worst performers, respectively). There are stark contrasts in terms of innovation capabilities, too. While Germany (87.5), the US (86.5), Japan (79.3), the United Kingdom (79.2) and Korea (79.2) are beacons of innovation, other G20 countries are significantly lower. China’s innovation score (64.4) is similar to Italy’s (65.8), not too far from Australia’s (69.8), and more than 10 points above India’s (53.8) and Russia’s (50.7)
You can read the full report here: http://www3.weforum.org/docs/GCR2018/05FullReport/TheGlobalCompetitivenessReport2018.pdf