Klaus Schwab, World Economic Forum
Professor Klaus Schwab Editor World Economic Forum TERMS OF USE AND DISCLAIMER 91-93 route de la Capite The analysis presented in the Global Competitiveness Report 2018 CH-1223 Cologny/Geneva (herein: “Report”) is based on a methodology integrating the latest Switzerland statistics from international organizations and a survey of executives. Tel.: +41 (0)22 869 1212 The methodology, developed in collaboration with leading experts and Fax: +41 (0)22 786 2744 practitioners through a three year consultative process, is designed E-mail: contact@weforum.org to support countries to identify relevant policies and practices. The www.weforum.org findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the World Economic Forum. Copyright © 2018 by the World Economic Forum The Report presents information and data that were compiled and/or collected by the World Economic Forum (all information All rights reserved. No part of this publication may be and data referred herein as “Data”). Data in this Report is subject reproduced, stored in a retrieval system, or transmitted, to change without notice. The terms country and nation as used in in any form or by any means, electronic, mechanical, this Report do not in all cases refer to a territorial entity that is a state photocopying, or otherwise without the prior permission as understood by international law and practice. The terms cover of the World Economic Forum. well-defined, geographically self-contained economic areas that may not be states but for which statistical data are maintained on ISBN-13: 978-92-95044-76-0 a separate and independent basis.
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Preface v
by Klaus Schwab
Summary of Key Findings vii
At a Glance: The Global Competitiveness Index 4.0 2018 Rankings xi
Introduction: A New Economic Compass for the Fourth Industrial Revolution 1
Chapter 1: Global Findings 5
Chapter 2: Regional and Country Analysis 23
Chapter 3: Benchmarking Competitiveness in the Fourth Industrial Revolution: 37
Introducing the Global Competitiveness Index 4.0
Economy Profiles 49
How to Read the Economy Profiles 51
Index of Economy Profiles 53
Economy Profiles 55
Appendix A: Global Competitiveness Index 4.0 2018 Pillar Rankings 615
Appendix B: The Executive Opinion Survey: 623
The Voice of the Business Community
Appendix C: Global Competitiveness Index 4.0 Methodology and Technical Notes 631
Contributors and Acknowledgements 649
Partner Institutes 651
The Global Competitiveness Report 2018 | iii
KLAUS SCHWAB Founder and Executive Chairman, World Economic Forum
With the Fourth Industrial Revolution (4IR), humanity has The results of the GCI 4.0 reveal the sobering entered a new phase. The 4IR has become the lived conclusion that most economies are far from the reality for millions of people around the world, and is competitiveness “frontier”—the aggregate ideal across creating new opportunities for business, government all factors of competitiveness. In fact, the global average and individuals. Yet it also threatens a new divergence score of 60 suggests that many economies have yet to and polarization within and between economies and implement the measures that would enhance their long- societies. This year also marks the tenth anniversary of term growth and resilience and broaden opportunities the beginning of the global financial crisis, which has for their populations. In addition, we find that countries had social and economic consequences of a magnitude have a mixed performance across the twelve pillars unprecedented in recent generations. Combined with of the index and that long-standing developmental a background of growing inequality and geopolitical issues—such as the lack of well-functioning institutions— flashpoints, this has fuelled citizens’ concerns about continue to be a source of friction for competitiveness. globalization and polarized the political debate. Although Yet there are bright spots—in the form of economies global economic growth has been robust over the past that outperform their peers and present valuable case two years, it remains fragile in this changing economic studies for learning more about methods to implement and political context. the factors of competitiveness.
These developments—the 4IR and the At the World Economic Forum’s Centre for the consequences of the Great Recession—are redefining New Economy and Society, the new home of the the pathways to prosperity and, indeed, the very Global Competitiveness Report, we provide a platform notion of prosperity, with profound implications for for leaders to understand and anticipate emerging policy-making. Concerned leaders are grappling for economic and social trends, and to adapt policies and answers and solutions, aiming to go beyond short-term, practices to our rapidly evolving context. This report is reactionary measures. complemented by a range of other benchmarking tools as well as frontier insights on the emerging contours of In this context, the World Economic Forum is the new economy and society. Importantly, the Centre introducing the new Global Competitiveness Index 4.0, also aims to serve as an accelerator for newly emerging a much-needed economic compass, building on 40 solutions, experiments and pilots led by the public and years of experience in benchmarking the drivers of long- private sectors in areas such as designing new industrial term competitiveness. After having conceptualized the policy, closing skills gap, developing new standards Fourth Industrial Revolution, the World Economic Forum for business, and preparing for the future of work. is contributing to global thinking and policy-making by This combination allows policy-makers, business and integrating the notion of the 4IR into the definition of other stakeholders to combine insight and action into competitiveness. accelerating change, and we invite leaders to engage with our platform. The index integrates well-established aspects with new and emerging levers that drive productivity I want to express my gratitude to the core project and growth. It emphasizes the role of human capital, team involved in the production of this report: Thierry innovation, resilience and agility, as not only drivers Geiger, Roberto Crotti, Sophie Brown and Jean François but also defining features of economic success in the Trinh Tan. Additional thanks for the specific contributions 4IR. It calls for better use of technology for economic of Silja Baller, Attilio di Battista, Ciara Porawski, and our leapfrogging—but also cautions that this is only possible former colleague Margareta Drzeniek Hanouz, and the as part of a holistic approach with other factors of strategic guidance of Saadia Zahidi. My deep gratitude competitiveness. Finally, it offers objective, data-driven goes to Professor Xavier Sala-i-Martin for his guidance analysis for dispassionate, future-oriented, and rational over the last 15 years, and to the more than 100 experts, policy-making.
The Global Competitiveness Report 2018 | v
practitioners and governments who were consulted during the GCI 4.0 creation process. Finally, we thank the 160 Partner Institutes, which help administer the Executive Opinion Survey, the results of which provide invaluable data for the GCI 4.0 and other benchmarks.
The Global Competitiveness Report is designed to help policy-makers, business leaders and other stakeholders around the world shape their economic strategies in the era of the Fourth Industrial Revolution. We hope it will also serve as a call to action to engage in the long-term, holistic, agile and far-sighted leadership required to build the competitive economies of the future, lift living standards and provide opportunities for all members of society.
vi | The Global Competitiveness Report 2018
In the midst of rapid technological change, political Twelve pillars of competitiveness. There are a total of polarization and a fragile economic recovery, it is critical 98 indicators in the index, derived from a combination that we define, assess and implement new pathways of data from international organizations as well as to growth and prosperity. With productivity the most from the World Economic Forum’s Executive Opinion important determinant of long-term growth and income, Survey. These are organized into 12 pillars in the GCI the new Global Competitiveness Index 4.0 featured in 4.0, reflecting the extent and complexity of the drivers this report sheds light on a newly emerging set of factors of productivity and the competitiveness ecosystem. critical for productivity in the Fourth Industrial Revolution These are: Institutions; Infrastructure; ICT adoption; (4IR) and provides a tool for assessing them. The key Macroeconomic stability; Health; Skills; Product market; findings below summarize the new tool as well as its Labour market; Financial system; Market size; Business results as revealed by global, regional and country dynamism; and Innovation capability. level analysis. A level playing field for all economies. For the second half A NEW TOOL FOR UNDERSTANDING of the 20th century, the pathway to development seemed AND ASSESSING COMPETITIVENESS relatively clear: lower-income economies would be expected to develop through progressive industrialization New concepts. With the inclusion of new concepts by leveraging low-skilled labour. In the context of the and extensive new data gathering efforts, the GCI 4IR the sequence has become less clear, particularly 4.0 provides novel and more nuanced insights on the as the cost of technology and capital are lower than factors that will grow in significance as the 4IR gathers ever but their successful use relies on a number pace: human capital, innovation, resilience and agility. of other factors. The GCI 4.0 reflects this growing These qualities are captured through a number of new, complexity of policy prioritization by weighting pillars critically important concepts (e.g. entrepreneurial culture, equally rather than according to a country’s current companies embracing disruptive ideas, multistakeholder stage of development. In essence, the index offers collaboration, critical thinking, meritocracy, social trust) each economy a level playing field to define its path to complementing more traditional components (e.g. ICT growth. While sequencing is dependent on the priority and physical infrastructure, macroeconomic stability, of each economy, the index contends that economies property rights, years of schooling). need to be holistic in their approach to competitiveness rather than focusing on a particular factor alone. A New benchmarks. The GCI 4.0 introduces a new strong performance in one pillar cannot make up for a progress score ranging from 0 to 100. The frontier weak performance in another. For instance, investing (100) corresponds to the goal post for each indicator in technology without investing in digital skills will not and typically represents a policy target. Each country yield meaningful productivity gains. In order to increase should aim to maximize its score on each indicator, competitiveness, no area can be neglected. and the score indicates its current progress against the frontier as well as its remaining distance. This approach emphasizes that competitiveness is not a not a zero-sum game between countries—it is achievable for all countries.
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REGIONAL AND COUNTRY RESULTS A mixed performance across the G20 and the BRICS. Within the G20, almost 30 points and 80 ranks separate Top ten economies. The United States is the closest the United States (85.6, 1st) from Argentina (57.5, 81st), economy to the frontier, the ideal state, where a country the best and worst performing economies of the group, would obtain the perfect score on every component of respectively. Of the BRICS grouping of large emerging the index. With a competitiveness score of 85.6, it is 14 markets, China is the most competitive, ranking 28th points away from the frontier mark of 100, implying that and with a score of 72.6. It is followed by the Russian even the top-ranked economy among the 140 has room Federation, which is ranked 43rd. These are the only two for improvement. It is followed by Singapore (83.5) and in the top 50. Next is India, which ranks 58th, up five Germany (82.8). Switzerland (82.6) comes in at 4th place, places from 2017: with a score of 62.0, it registers the followed by Japan (82.5), Netherlands (82.4), Hong Kong largest gain of any country in the G20. India is followed SAR (82.3). The United Kingdom (82.0), Sweden (81.7) by South Africa, which falls five places this year to 67th. and Denmark (80.6) round out the top ten. Last is Brazil, which slips three places to 72nd place. Within the G20, on health, the clear leader is Japan, Regional highlights. Globally, the median score is 60.0. which ranks first with a perfect score of 100, while South Between the US (85.6, 1st) and Chad (35.5, 140th) there Africa is 127th with a score of 43.2. Differences on the is a wide range of performance across regions and Financial system pillar are small—there are fewer than 20 countries. Europe and North America are, combined, points between Canada (86.1, 11th) and Italy (64.3, 49th) home to seven of the 10 most competitive economies. —but the same cannot be said when it comes East Asia and the Pacific region, home to the other three to the Macroeconomic stability pillar. While 11 of the top ten economies, achieves the highest median score 19 members obtain a score above 90 on this pillar, the (72.6) among all regions, ahead of Europe and North context in Turkey (67.3, 116th), Brazil (64.6, 122nd) and America (70.8). At the other end of the spectrum, 17 Argentina (44.9, 136th) remains volatile. The Republic of the 34 sub-Saharan African economies studied are of Korea is the world’s champion in terms of broad- among the bottom 20 globally, and the region’s median based ICT adoption, with a near perfect score of 91.3 is a low 45.2, less than halfway to the frontier. While on this pillar. By contrast, India is among the weakest regional averages are helpful for global comparisons, performers, with a score of 28.0 (117th), despite its there are vast disparities within regions, implying that vibrant IT sector. There is also a physical infrastructure economies are not necessarily hampered by geography gap among G20 economies (about 30 points between in their quest for competitiveness. The existence of Japan and Indonesia, the best and worst performers, pockets of over- or under-performance within each respectively). There are stark contrasts in terms of region suggests the need for proactive policies and innovation capabilities, too. While Germany (87.5), the leadership. For example, in Europe, there are four US (86.5), Japan (79.3), the United Kingdom (79.2) very distinct groups of countries with very different and Korea (79.2) are beacons of innovation, other G20 competitiveness levels and, within the EU, Germany’s countries are significantly lower. China’s innovation score overall competitiveness score (82.8, 3rd) is 20 points (64.4) is similar to Italy’s (65.8), not too far from Australia’s higher than Greece (62.1, 57th). In Latin America, Chile’s (69.8), and more than 10 points above India’s (53.8) and score (70.3, 33rd) is nearly twice that of Haiti (36.5, Russia’s (50.7). 138th). Mauritius (63.7, 49th), Sub-Saharan Africa’s best performer, is nearly 30 points and over 91 places ahead of Chad. In South-East Asia, Singapore (2nd, 83.5) is 34 points closer to the frontier than Lao PDR (49.3, 112th). In some cases, the score differential between two neighbouring countries is large; there are approximately 20 points between the Dominican Republic (57.4) and Haiti (36.5), between Colombia (61.6) and Venezuela (43.2), and between Thailand (67.5) and Cambodia (50.2).
viii | The Global Competitiveness Report 2018
GLOBAL TRENDS AND IMPLICATIONS Sweden, Finland and the United States are some of the most open countries in the world, while the Islamic All economies must invest in broader measures of Republic of Iran and Ethiopia are among the least open. competitiveness today to sustain growth and income in Brazil and India also emerge as relatively “closed”. the future. The results demonstrate a strong correlation between competitiveness and income level. For instance, Technology-based leapfrogging remains elusive. high-income economies make up the entire top 20 The promise of leveraging technology for economic and only three non-high-income economies feature in leapfrogging remains largely unfulfilled. There are, the top 40: Malaysia (25th), China (28th), and Thailand at most, 4.5 billion smartphones in use in the world (38th). However, some economies are over-performers and more than half of humanity has never gone and others under-performers when it comes to putting online. While the promise of ICTs for productivity is in place the building blocks of competitiveness at high—and although ICTs can clearly be catalysts for their current level of income. Economies that under- other drivers of productivity, such as innovation and perform in competitiveness given their current income business dynamism—it would be misguided to rely on level may have difficulty sustaining that level without technology alone to solve all problems, in education, improving their competitiveness. Most of these outlying health, governance or transport infrastructure, for countries are mineral resource-rich—for example, Qatar, example. For many of the least competitive economies, Brunei Darussalam, Kuwait, Trinidad and Tobago, and the root causes of slow growth continue to be the `old’ Venezuela. Despite having a similar level of income as developmental issues such as institutions, infrastructure Chile, Venezuela’s GCI score is nearly 30 points lower. and skills. For technology-based leapfrogging to offer a Countries who want sustained growth and rising income new path to development for low-income economies, levels must invest beyond their current areas of strength. these issues cannot be ignored.
Enhancing the fundamentals of competitiveness today Agility and future-readiness are key in a changing will improve resilience to shocks. Building economic world. Amidst the transformations and disruptions resilience through competitiveness is more important brought about by the 4IR, adaptability and agility than ever in today’s volatile context, with a wide range of all stakeholders—individuals, governments and of vulnerabilities, technological change, geopolitical businesses—will be key features in successful tensions and potential flash points around the world. economies. These concepts are captured through The results reveal that countries that optimize their several indicators in the GCI 4.0. The results show, performance on the factors included in the GCI 4.0 for example, that Singapore’s government is the are also more resilient to various shocks. Likewise, most future-ready' (85.6), followed by Luxembourg's more competitive countries are also better equipped to (79.0) and the United States' (78.3). The United Arab address the challenges of the 4IR. Emirates (76.7) and four other Gulf countries appear in the top 10, which also features Malaysia (71.0, 9th). While openness is good for growth governments must The governments of Brazil (24.9, 129th), Greece (19.4, support those who lose out to globalization. At a time 135th) and Venezuela (7.8, 140th and last) are perceived of escalating trade tensions and backlash against as among the least future-ready’. The skillset of the globalization, the report reveals the importance of population is another criterion of adaptability. With openness for competitiveness: more open economies the right skills, workers can become the actors of the are more innovative and their markets more competitive. economic transformation rather than becoming victims However, while openness has been a win-win' of it. The results suggest that Sweden's workforce is between countries it is at times a win-lose’ within the most technology-savvy (80.6), while vocational countries. Attempting to address inequality by reversing training in Switzerland is by far the most advanced in the globalization is counterproductive for sustained world (92.3). Switzerland is also the most effective with economic growth. Policies should, therefore, focus on active labour market policies encouraging reskilling and improving the conditions of those specifically impacted retraining, while American companies are the most ready by globalization rather than favouring protectionism. to embrace risk or disruptive business ideas (77.5). Combining GCI data with other sources suggests that redistributive policies, safety nets, investments in human Weak institutions continue to hamper competitiveness. capital, and more progressive taxation could help reduce Weak institutions—defined as including security, inequality without compromising a country’s level of property rights, social capital, checks and balances, competitiveness. Additionally, the definition of openness transparency and ethics, public-sector performance must look to concepts beyond trade, freedom of and corporate governance—continue to hinder people’s movement and ideas exchange. Using such a competitiveness, development and well-being in many definition, we find that Singapore, Germany, Netherlands, countries. The Institutions pillar is the second-lowest
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scoring pillar of the 12 GCI pillars (after the Innovation The financial system continues to be a source of capability pillar), with a median score of 53—just over weakness in some economies. The GCI 4.0 introduces halfway to the frontier. For 117 of the 140 economies a new measure of financial stability. Building on the studied, their Institutions pillar performance is a drag on learning from the global financial crisis, this composite their overall competitiveness score. Governments must indicator captures the sturdiness of the banking sector, pay attention to both traditional and emerging knowledge using measures such as the soundness of banks, about strengthening the institutional environment as nonperforming loans, the difference between the credit a factor of productivity. For example social capital—a supply and its trend, and banks’ regulatory capital ratio. broad concept that captures the quality of personal and According to this methodology, Finland, Hong Kong social relationships, the strength of social norms and SAR, Switzerland, Luxembourg and Norway have the the level of civic participation in society—creates more most stable financial markets (all scoring above 95), cohesion within society and more trust among people, while India, China, Russia and Italy—all with a score thus reducing transaction costs. Australia (66.2) and New of 84 or less—are among the G20 economies that Zealand (66.0) boast the highest levels of social capital, present specific vulnerabilities in their financial systems. China (41.0, 125th) and Russia (43.9, 117th) have lower More specifically: India’s financial system stability (83.2) levels of social capital, and Burundi (35.2) and Yemen is mainly held back by relatively low performance on (37.8) place last. soundness of banks and regulatory capital ratios; China’s stability (80.1, 113th) is threatened by the rapid growth A formula for innovation remains obscure for most of private credit; Russia’s financial system stability (79.5) economies. Once the preserve of the most advanced is somewhat limited by the relative fragility of its banks; economies, innovation has become an imperative for and Italy’s performance (76.4) is mainly explained by all advanced economies and a priority for a growing high share of non-performing loans on 2016 banks’ number of emerging countries. And yet the vast majority balance sheets. of them are struggling to make innovation a meaningful engine of growth. The results show that there are only Achieving equality, sustainability and growth a few innovation powerhouses in the world, including together is possible but needs proactive, far-sighted Germany, the United States and Switzerland. The global leadership. There is a worldwide consensus on the median score on the Innovation capability pillar is 36, need for a more holistic model of economic progress by far the lowest score across the 12 pillars. For 77 of that promotes higher living standards for all, respects the 140 economies studied, Innovation capability is the planetary boundaries, and does not disadvantage weakest pillar. In the vast majority of countries, innovation future generations. The results suggest that there is capacity remains extremely limited, very localized and/or no inherent trade-off between equality and growth: it restricted to very few sectors. In order to help countries is possible to be both pro-growth and `pro-equity’, as crack the innovation conundrum, the GCI 4.0 sheds new shown by the strong performance of several northern light on the drivers of the innovation process, from idea European countries in terms of both competitiveness generation to product commercialization. Many of these and inclusion. The relationship between performance factors are intangible, often underpinned by cultural on the GCI 4.0 and on environmental measures is less factors. For example, the index notably captures the conclusive. The most competitive economies have attitude towards entrepreneurial risk. The results show the largest ecological footprints, but they are the most that this attitude is most positive in Israel (83.1) and the efficient (their footprint per unit of GDP is the lowest). It United States (79.4), and tends to be more negative in is therefore incumbent upon leaders to set longer-term most Asian societies, notably in Korea (47.5, 77th). As an priorities and proactive efforts to create virtuous cycles important enabler of creativity, diversity is also captured between equality, sustainability and growth. in the index. Canada (81.5) has the most diverse workforce, ahead of Singapore and the United States. The right corporate culture can also promote creativity by empowering employees and encouraging them to create, challenge and experiment. Corporate culture is the least hierarchical in Denmark (84.9), Sweden (83.8) and other Nordic countries, whereas the patriarchal society of several Asian economies translates into more hierarchical structures, for instance in Korea (51.0, 88th) and China (58.5, 50th).
x | The Global Competitiveness Report 2018 The Global Competitiveness Index 4.0 2018 Rankings
Covering 140 economies, the Global Competitiveness Index 4.0 measures national competitiveness—defined as the set of institutions, policies and factors that determine the level of productivity.
Rank Economy 2018 Diff. from 20172 Rank Economy 2018 Diff. from 20172 Rank Economy 2018 Diff. from 20172 Score1 Rank Score Score1 Rank Score Score1 Rank Score l1 United States 85.6 l48 Hungary l95 Paraguay 53.4 l2 Singapore 83.5 — +0.8 l49 Mauritius 64.3 — +0.9 l96 Guatemala 53.4 +1 +0.5 l3 Germany 82.8 l50 Bahrain l97 Kyrgyz Republic 53.0 l4 Switzerland 82.6 — +0.5 l51 Bulgaria 63.7 — +0.8 l98 El Salvador 52.8 5 0.1 l5 Japan 82.5 l52 Romania l99 Mongolia 52.7 l6 Netherlands 82.4 — +0.2 l53 Uruguay 63.6 4 0.2 l100 Namibia 52.7 +3 +1.1 l7 Hong Kong SAR 82.3 l54 Kuwait l101 Honduras 52.5 l8 United Kingdom 82.0 — +0.2 l55 Costa Rica 63.6 — +1.2 l102 Tajikistan 52.2 — +0.4 l9 Sweden 81.7 l56 Philippines l103 Bangladesh 52.1 l10 Denmark 80.6 +3 +0.9 l57 Greece 63.5 — +1.3 l104 Nicaragua 51.5 4 0.2 l11 Finland 80.3 l58 India l105 Bolivia 51.4 l12 Canada 79.9 1 +0.2 l59 Kazakhstan 62.7 3 — l106 Ghana 51.3 1 +0.3 l13 Taiwan, China 79.3 l60 Colombia l107 Pakistan 51.1 l14 Australia 78.9 — +0.3 l61 Turkey 62.1 +2 +0.5 l108 Rwanda 50.9 +2 +1.2 l15 Korea, Rep. 78.8 l62 Brunei Darussalam l109 Nepal 50.8 l16 Norway 78.2 2 0.1 l63 Peru 62.1 1 +0.4 l110 Cambodia 50.2 5 0.6 l17 France 78.0 l64 Panama l111 Cape Verde 50.2 l18 New Zealand 77.5 — +0.1 l65 Serbia 62.1 +12 +2.3 l112 Lao PDR 49.3 1 +0.7 l19 Luxembourg 76.6 l66 Georgia l113 Senegal 49.0 l20 Israel 76.6 +1 +0.7 l67 South Africa 62.1 4 +0.3 l114 Côte d’Ivoire 47.6 3 — l21 Belgium 76.6 l68 Croatia l115 Nigeria 47.5 l22 Austria 76.3 +1 +0.5 l69 Azerbaijan 62.0 +5 +1.2 l116 Tanzania 47.2 n/a n/a l23 Ireland 75.7 l70 Armenia l117 Uganda 46.8 l24 Iceland 74.5 2 0.1 l71 Montenegro 61.8 — +0.7 l118 Zambia 46.1 2 +1.4 l25 Malaysia 74.4 l72 Brazil l119 Gambia, The 45.5 l26 Spain 74.2 — +0.1 l73 Jordan 61.6 3 +0.1 l120 Eswatini 45.3 1 +1.3 l27 United Arab Emirates 73.4 l74 Seychelles l121 Cameroon 45.1 l28 China 72.6 +1 +0.7 l75 Morocco 61.6 3 +0.2 l122 Ethiopia 44.5 1 +1.3 l29 Czech Republic 71.2 l76 Albania l123 Benin 44.4 l30 Qatar 71.0 +2 +0.8 l77 Viet Nam 61.4 +2 +1 l124 Burkina Faso 43.9 1 +1.3 l31 Italy 70.8 l78 Trinidad and Tobago l125 Mali 43.6 l32 Estonia 70.8 2 0.8 l79 Jamaica 61.3 3 +0.2 l126 Guinea 43.2 1 +0.8 l33 Chile 70.3 l80 Lebanon l127 Venezuela 43.2 l34 Portugal 70.2 +1 +0.6 l81 Argentina 61.0 9 0.6 l128 Zimbabwe 42.6 6 +0.4 l35 Slovenia 69.6 l82 Dominican Republic l129 Malawi 42.4 l36 Malta 68.8 2 0.6 l83 Ukraine 60.9 +5 +1.7 l130 Lesotho 42.3 2 +0.7 l37 Poland 68.2 l84 Macedonia, FYR l131 Mauritania 40.8 l38 Thailand 67.5 +3 +0.6 l85 Sri Lanka 60.9 +1 +1.0 l132 Liberia 40.5 2 +0.6 l39 Saudi Arabia 67.5 l86 Ecuador l133 Mozambique 39.8 l40 Lithuania 67.1 — +0.4 l87 Tunisia 60.8 5 0.1 l134 Sierra Leone 38.8 n/a n/a l41 Slovak Republic 66.8 l88 Moldova l135 Congo, Democratic Rep. 38.2 l42 Latvia 66.2 2 — l89 Iran, Islamic Rep. 60.1 2 — l136 Burundi 37.5 3 0.5 l43 Russian Federation 65.6 l90 Botswana l137 Angola 37.1 l44 Cyprus 65.6 1 +0.2 l91 Bosnia and Herzegovina 60.0 4 0.2 l138 Haiti 36.5 2 +0.8 l45 Indonesia 64.9 l92 Algeria l139 Yemen 36.4 l46 Mexico 64.6 — 0.3 l93 Kenya 59.9 +2 +1.0 l140 Chad 35.5 4 0.2 l47 Oman 64.4 l94 Egypt — 0.1 59.6 +2 +1.4 3 +0.6
+1 +1.1 59.5 3 0.2 — +0.8
1 +0.4 59.3 2 +0.1 4 +0.2
— +1.1 58.5 +10 +3.3 3 +0.2
— +0.9 58.5 +2 +0.8 2 +0.6
— +0.3 58.1 +4 +0.8 1 +0.8
+2 +0.6 58.1 3 +0.1 n/a n/a
— +0.3 57.9 2 +0.1 4 0.1
2 — 57.9 1 +0.5 3 +0.3
+1 +0.9 57.7 5 0.1 10 1.9
1 +0.5 57.5 2 +0.1 4 +0.6
— +1.1 57.4 — +1.8 — +1.8
— +0.3 57.0 +6 +3.1 4 +0.9
— +0.2 56.6 n/a n/a 3 +0.1
+2 +1.3 56.0 4 0.4 2 +0.6
+2 +1.6 55.8 3 +0.4 8 2.1
2 +0.7 55.6 1 +1 3 +0.1
2 +0.6 55.5 1 +0.9 8 2.6
— +1.4 54.9 1 +0.4 4 1.0
+2 +1.7 54.5 5 0.5 n/a n/a
1 +0.9 54.2 1 +0.3 5 +0.7
+2 +1.4 53.8 — +0.3 4 +0.9
2 +0.5 53.7 — +0.4 6 —
+14 +3.4 53.6 — +0.4
l East Asia and l Eurasia l Europe and l Latin America l Middle East and l South Asia l Sub-Saharan North America and the Caribbean North Africa Africa the Pacific
Note: The Global Competitiveness index 4.0 captures the determinants of long-term growth. Recent developments are reflected only insofar as they have an impact on data
measuring these determinants. Results should be interpreted in this context. 1 Scale ranges from 0 to 100. 2 Rank and score differences with 2017 index, calculated using the GCI 4.0 methodology. See Appendix C for details.
The Global Competitiveness Report 2018 | xi INTRODUCTION This year represents a milestone in the four-decade history of the Global Competitiveness Report series, with A New Economic the introduction of the Global Competitiveness Index Compass for the 4.0. Since 1979, when Klaus Schwab published the first Fourth Industrial edition, the series has been providing policy-makers Revolution and other stakeholders around the world with an annual assessment of the drivers of long-term growth.
At the heart of the competitiveness agenda is the recognition that economic growth is a core driver of human development. There is overwhelming evidence that growth has been the most effective way to lift people out of poverty and improve their quality of life. The importance and policy relevance of growth has been re-affirmed through the United Nations’ Sustainable Development Goals (SDGs). Goal 8 calls for “sustained, inclusive and sustainable economic growth” and sets an ambitious target of 7% growth for least-developed countries.1
After a lost decade, economic recovery is well underway, with the global economy projected to grow almost 4% in 2018 and 2019.2 But delivering growth is difficult even in the best of times, and today’s economic environment is increasingly uncertain, challenging and complex. Recovery remains vulnerable to a range of risks and potential shocks.
Many productivity-enhancing reforms announced in the wake of the crisis did not materialize or remain incomplete, while other reforms are in danger of being rolled back. The international governance system is in crisis and in dire need of reform. Globalization, a key driver of growth in the past 30 years, is facing a popular and political backlash. Recent tariff increases by the United States and retaliatory measures by trading partners have increased the risk of a trade war. Escalation in various other conflicts, crises and geopolitical tensions could also impact the global economy.
In addition, the Fourth Industrial Revolution (4IR) is disrupting economies and societies by redefining the way we work, live and interact with each other. The 4IR offers the potential to leapfrog stages of development— but it also makes the pathway to development less certain, notably for emerging economies betting on industrialization and the demographic dividend.
Major economic challenges need long-term solutions, but short-termism prevails in governments, administrations and corporations around the world. The new GCI 4.0 provides a much-needed compass for policy-makers and other stakeholders to bridge this chasm. It offers guidance on what matters for long-term growth. It can inform policy debates and help shape economic strategies and monitor progress.
Like its predecessor, the GCI 4.0 assesses competitiveness through the factors that determine an economy’s level of productivity—widely considered as
The Global Competitiveness Report 2018 | 1 Introduction: A New Economic Compass for the Fourth Industrial Revolution
Figure 1: The Global Competitiveness Index 4.0 2018
Enabling Environment Markets
Pillar 1 Pillar 7 Institutions Product market
Pillar 2 Pillar 8 Infrastructure Labour market
Pillar 3 Pillar 9 ICT adoption Financial system
Pillar 4 Pillar 10 Macroeconomic stability Market size
Human Capital Innovation Ecosystem
Pillar 5 Pillar 11 Health Business dynamism
Pillar 6 Pillar 12 Skills Innovation capability
the most important determinant of long-term growth GCI 4.0, with four In Depth sections addressing the and income. The causal link from productivity to growth following questions: “Is there a formula for innovation?”; and income is firmly grounded in theory and has been “Are institutions still important?”; “Are prosperity, people established empirically, as discussed in detail in Chapter and planet compatible?”; and “Should countries pursue 3. Performance on the GCI 4.0 explains over 80% of openness?” the variation in income levels and 70% of the variation in long-term growth across countries and economies. Chapter 2 analyses GCI 4.0 performance results Beyond income, competitiveness is generally associated by region and for selected economies. Chapter 3 with better socioeconomic outcomes, including life presents the key features of the GCI 4.0 framework satisfaction (see Chapter 1, Figure 14). and methodology, its theoretical underpinnings, and a description of each pillar. Detailed scorecards for The GCI 4.0 framework is organized into 12 main all economies are presented in the Economy Profiles drivers of productivity, or `pillars’ (Figure 1). It places a section. Appendix A reports the GCI results at the pillar premium on factors that will grow in significance as the level, Appendix B describes the Forum’s Executive 4IR gathers pace: human capital, agility, resilience, and Opinion Survey and Appendix C provides additional innovation. information on the GCI 4.0, including its detailed structure. The Global Competitiveness Report website at Competitiveness is an important starting point http://gcr.weforum.org/ is the essential companion of this because it contributes to higher living standards report. It features interactive scorecards and rankings, and generates the resources needed for wider with additional information on each index component, a societal goals. There are, inevitably, tensions—social, download section, shareable infographics and articles. economic, and environmental—between the various dimensions of economic progress. However, there are We hope the report will help policy-makers and no inherent trade-offs among them. We believe that other stakeholders around the world shape their a competitiveness agenda is not just compatible but economic strategies in the era of the 4IR. The Forum is integral to the pursuit of other developmental goals. committed to contributing to these efforts through the Centre for the New Economy and Society, the new home The report is organized as follows: Chapter 1 of the Global Competitiveness Report. distils global findings from the inaugural edition of the
2 | The Global Competitiveness Report 2018 Introduction: A New Economic Compass for the Fourth Industrial Revolution
1 The target is for growth in GDP per capita, which makes it harder to attain given population growth. The 7% mark was reached by only a handful of least-developed countries over the period 2007 2017: Myanmar, Timor-Leste, Ethiopia, Lao PDR and Rwanda. See World Bank, 2018.
2 IMF, 2018a.
International Monetary Fund (IMF), World Economic Outlook Update, July 2018, 2018.
------, World Economic Outlook Database, April 2018 edition, 2018, available for download at www.imf.org/weo.
World Bank, Atlas of Sustainable Development Goals 2018: World Development Indicators, 2018.
The Global Competitiveness Report 2018 | 3 CHAPTER 1 How to sustain growth is a question that preoccupies every government. By drawing a detailed map of the Global Findings competitiveness landscape of 140 economies, the new GCI 4.0 can point towards lessons learned from global analyses. It can also help respond to critical emerging questions about competitiveness in today’s economic, political, technological and social context.
This chapter distils global findings from the inaugural edition of the Global Competitiveness Index (GCI) 4.0, featured below. It also includes four In Depth sections on what the GCI 4.0 tells us are critical questions arising around innovation, institutions, economic progress, and openness.
Competitiveness is not a zero-sum game between countries—it is achievable for all countries. When competitiveness is equated to productivity, it becomes clear that it is neither a competition nor a zero-sum game. All countries can become more productive at the same time. Improving education standards in Country A does not lower standards in Country B; tackling corruption in Country A does not make Country B more corrupt. Hence, the pursuit of national competitiveness does not undermine global cooperation—indeed, openness contributes to competitiveness (see the third In Depth section later in this chapter). This finding is important to reassert at a time when globalization and the global governance system are being put to the test.
While competitiveness is not a zero-sum game between countries, cross-country comparisons can be instructive by pointing to benchmarks and best practices. The GCI 4.0 therefore presents a ranking of countries, as in previous years, but aims to focus the debate instead on three fundamental questions: Which areas should a country prioritize?; Is a country making progress over time?; and `What can a country learn from the highest performing countries?’
This index does this through a distance to frontier' approach, in which performance on each component is evaluated against the frontier’, or ideal state. Stakeholders are encouraged to ask whether their country is moving closer to the frontier in a given area, where its distance to the frontier is the largest, and what it can learn from those who are performing best in selected areas.
There are deep divides between countries when it comes to current competitiveness—and the risk of further divergence The United States is the closest economy to the frontier, the ideal state, as described by the concepts included in the index, where a country would obtain the perfect score on every indicator. With a competitiveness score of
The Global Competitiveness Report 2018 | 5
Figure 1: The competitiveness gap competitive countries adapt and thrive, and the least competitive countries stagnate or decline.1 Similarly, GCI 4.0 2018 score/regional average (0100 scale) within countries the 4IR could increasingly segregate 90 workforces into “low-skill/low-pay” and “high-skill/high- pay” groups, which could exacerbate inequalities and Singapore United States increase social tensions.2 Germany
70 Europe and North America In the age of the Fourth Industrial Revolution all economies have the opportunity to carve a path East Asia and the Pacific to competitiveness For most of the 20th century, the pathway to 60 Middle East and North Africa development seemed relatively clear: lower-income countries would be expected to develop through Eurasia progressive industrialization by leveraging unskilled labour. Today, the sequence has become less clear. For Latin America example, robotics are making light manufacturing less labour-intensive. However, the 4IR is also making it more South Asia feasible for lower-income countries to leapfrog in certain areas. ICTs, for instance, have been shown to facilitate 50 access to basic services and enable new business models. ICTs and globalization enable the rapid transfer Sub-Saharan Africa of ideas and technologies and lower the barriers to innovation, offering new ways to develop. Chad The GCI 4.0 reflects this growing complexity of policy prioritization by no longer weighting the pillars 30 according to a country’s stage of development. Source: World Economic Forum analysis. Instead, the overall score is simply the average of the 12 pillar scores. All competitiveness factors matter for 85.6, it is 14 points away from the frontier mark of 100, all countries, regardless of their stage of development, slightly closer than Singapore and Germany (see the full and any pillar can be considered a potential priority. rankings on page xi). This implies that, even though The 4IR makes it reasonable to take this more the United States is the top-ranked economy among the agnostic approach to income level and calls for a more 140, there is still room for improvement. encompassing approach to policy prioritization. This is supported by the GCI’s results: a country’s overall Globally, the median score is 60. Twenty-one competitiveness depends to a very large extent on that countries, including 18 in sub-Saharan Africa, score country’s performance on the relatively basic drivers of lower than 50. With a score of 35.5—fully 50 points competitiveness (see Chapter 2). behind the United States—Chad is the furthest from the frontier and therefore ranked last. The promise of leveraging technology for economic leapfrogging remains largely unfulfilled The competitiveness gap runs deep across regions Analysis of the GCI pillars makes clear that in many (Figure 1). Europe and North America (the two are countries, the root causes of slow growth and grouped together for the purpose of the analysis) are inability to leverage new opportunities offered by home to seven of the 10 most competitive economies. technology continue to be the `old’ developmental The three others in the top 10—Singapore, Japan issues—institutions, infrastructure and skills. Notably, and Hong Kong SAR—are in the East Asia and the the disappointing economic performance of most Pacific region. Other regions lag significantly behind; Sub-Saharan African countries is more attributable to in particular Sub-Saharan Africa, where eight of the 10 weaknesses in these areas than in any others, and the least competitive economies are found. Additionally, much-vaunted economic leapfrogging will not happen regional averages conceal vast disparities within them. In unless these issues are addressed decisively. Europe, there are four distinct groups of countries with very different competitiveness levels. In Latin America, While there is much hype around the potential of Chile’s score (70.3, 33rd) is almost twice that of Haiti information and communications technologies (ICTs), (36.5, 138th). The existence of pockets of over- or under- and while ICTs can clearly be enablers of productivity performance within each region suggests that there is on some GCI pillars, such as innovation and business little determinism in competitiveness; it is instead the dynamism, it would be misguided to rely on technology result of proactive policies and leadership (see Chapter 2 for a longer discussion). The 4IR is likely to compound these differences in competitiveness for countries that are unprepared to leverage new opportunities. It may result in a further segregated world, in which highly
6 | The Global Competitiveness Report 2018
to solve all problems.3 For example, evidence of Figure 2: Competitiveness and income significant impact technology in areas such as education, health and governance remains anecdotal.4 Additionally, GNI per capita (log scale, US$, 2017) an enabler is not the same as a substitute. There is full 12 complementarity among the drivers of productivity, but little compensability. ICTs cannot, for instance, replace 10 transport infrastructure. 8 Moreover, ubiquitous ICTs and universal internet access remain aspirational: there are, at most, 4.5 billion 6 smartphones in use in the world and more than half of humanity has never gone online.5 ICT adoption—which 4 often serves as a proxy for a country’s general level of technological adoption—is either the weakest or second 30 50 70 90 weakest of the 12 pillars for 57 out of the 140 countries. The second In Depth section later in this chapter GCI 4.0 2018 score (0100 scale) examines how institutions remain a fundamental building block of competitiveness and therefore a prerequisite to l East Asia and the Pacific l Middle East and North Africa fulfilling the promise of leapfrogging. l Eurasia l South Asia l Europe and North America l Sub-Saharan Africa Fostering innovation requires holistic strategies that l Latin America and the Caribbean most economies have yet to master Innovation is especially critical as a driver of productivity Sources: World Economic Forum; World Bank, 2018; national sources. growth and value creation in the 4IR. It is already at the core of the growth agenda of most advanced economies Notes: GNI = gross national income (Atlas method), natural log and a growing number of emerging economies. But transformation. Data for Venezuela is from 2014, and data for Taiwan governments are struggling to understand what makes a (China) is from 2016. N=140, R2= 0.82. country innovative. Enhancing the fundamentals of competitiveness The new GCI adopts a broad approach guided improves resilience to shocks by three principles: first, a country’s capacity to The results reveal that countries that optimize their innovate depends on the quality of a vast and complex performance on the factors included in the GCI 4.0 are ecosystem; second, innovation is a process through on a higher long-term growth trajectory (see Chapter 3, which ideas become successful products; third, Box 3) and achieve higher levels of income (see Figure 2). innovation happens everywhere, not just in a laboratory, More competitive economies are also more resilient to and its outcomes take many forms, from products— various shocks. As shown in previous editions, the more goods and services—to businesses and organizational competitive advanced economies rebounded from the models. Since the GCI 4.0 aims to capture the Great Recession much more quickly, returning to pre- complexity of the innovation process and the breadth crisis levels of employment and growth by 2015, while of the ecosystem supporting it, the index includes less competitive economies experienced protracted softer drivers of innovation—such as creativity and stagnation or even long episodes of recession.6 Building entrepreneurship—that are difficult for stakeholders and economic resilience through competitiveness is more leaders to grasp, let alone to influence. important than ever in today’s volatile context, with a wide range of vulnerabilities, geopolitical tensions and The results of the GCI 4.0 reveal there are only a potential flash points around the world. handful of innovation hubs in the world, for reasons we unpack in the first In Depth section later in this chapter. Likewise, more competitive countries are also The global median score on the Innovation capability better equipped to address the challenges of the Fourth pillar (pillar 12) is 36 out of 100, the lowest score across Industrial Revolution (4IR) and to seize the opportunities the 12 pillars. For 77 of the 140 economies studied, it presents. In particular, competitive economies that Innovation capability is the weakest pillar. Only four prioritize agile and innovative businesses and a skilled `super innovators’ score above 80: Germany, the United workforce, combined with visionary governments, States, Switzerland and Taiwan (China). are better able to handle the negative impacts of new technologies while also being better prepared for the benefits (see Chapter 3, Box 1 for a longer discussion).
The global economy is growing and the short-term outlook looks favourable—but medium-term risks are mounting. Tariff increases by the United States and retaliatory measures by trading partners have increased
The Global Competitiveness Report 2018 | 7
Figure 3: Competitiveness and inclusion is therefore incumbent upon leaders to set longer-term priorities to create virtuous cycles between equality, GCI 4.0 2018 score Gini coefficient (inverted 0100 scale) sustainability and growth. 0 In Depth Sections (perfect The In Depth sections below sift through the results equality) of the Global Competitiveness Index 4.0 to tackle four important questions—and to debunk the assumptions Azerbaijan and myths surrounding them.
Denmark · Is there a formula for innovation? A critical driver of productivity, innovation is bound to assume Germany increased significance in the 4IR. In this section, Viet Nam we show the myriad factors that make for a fertile innovation ecosystem. The difficulty of having all United States these elements in place explains why there are so few innovation hubs around the world. 50 Brazil
(perfect
inequality)
0 100
Sources: World Economic Forum analysis; World Bank, 2018.
the likelihood of escalating and sustained trade actions · Are institutions still important? We show how that could derail the recovery and deter investment. weak institutions continue to act as a drag on Financial market conditions remain accommodating to competitiveness, and urge governments to not lose advanced economies, but this could change rapidly sight of this long-standing governance issue. as levels of public, corporate and/or private debt are very high in many advanced and emerging economies. · Are prosperity, people and the planet Should a shock occur, government capacity will be compatible? We stress the importance of limited and credit markets might seize up again. Now competitiveness for overall economic progress. We is the time to make structural reforms and investment show that more competitive economies are on a to improve productivity. Given the volatile context, the higher long-term growth trajectory (when accounting window might not be open for much longer. for their level of development) and achieve better socioeconomic outcomes than less competitiveness Achieving equality, sustainability and growth economies. together needs proactive, far-sighted leadership There is a worldwide consensus on the need for · Should countries pursue openness? We examine a more holistic model of economic progress that how openness is linked to competitiveness and promotes higher living standards for all, respects inclusion. We argue that being open is almost planetary boundaries, and does not disadvantage future always good for competitiveness, and not generations. Competitiveness is necessary but not necessarily bad for inclusion. sufficient to meet these objectives.
In the third In Depth section, we show that more competitive economies tend to do better on selected socio-economic outcomes. Competitiveness, for instance, has a close and positive relationship with measures of poverty and life satisfaction. The relationship with equality is looser: more competitiveness seems neither to systematically reduce or increase inequality. This implies there is no inherent trade-off between equality and growth: it is possible to be both pro-growth and `pro-equity’, as shown by the strong performance of several northern European countries both in terms of competitiveness and inclusion (Figure 3). The relationship between competitiveness and the environment, however, is less conclusive. The most competitive economies have the largest ecological footprints, but they are the most efficient (footprint per unit of GDP is the lowest). It
8 | The Global Competitiveness Report 2018 In Depth: Chapter 1: Global Findings Is there a formula for innovation? The 4IR is reshaping the economic landscape by changing the drivers of growth and competitiveness. It is no longer possible to rely solely on efficiency and cost- cutting for economic success: innovation, flexibility and adaptation to change are becoming the key ingredients. When change is the only constant, economies that can adopt new ideas, methods or products more quickly will have an edge. That’s why embracing opportunities and leveraging innovations can accelerate growth and development for every economy.
However, the Innovation capability pillar has the lowest performance on average of the 12 pillars on the GCI 4.0, with a median score of just 36, and three- quarters of countries score 50 or lower, indicating they are less than halfway to the frontier (Figure 4). The distribution of scores is so skewed that the pillar’s three best performing economies—Germany (87.5), United States (86.5) and Switzerland (82.1)—are considered statistical outliers.
Why are there so few innovation powerhouses in the world? Innovation is a complex process. It starts with the generation of ideas, some of which lead to inventions, and only a few of which are ever commercialized. Innovations enhance economic productivity only if they reach the desired markets and achieve commercial success. Innovation takes place within an ecosystem of multiple factors. Any factor missing from the innovation ecosystem can prevent new ideas from being generated or evolving into viable commercial products.
The index is designed to capture this complexity and assess countries against it. Both the Innovation capability and Business dynamism pillars enable an assessment of each economy’s innovation ecosystem. Innovation capability is comprised of indicators on the
Figure 4: The innovation ecosystem, descriptive statistics
Score (0100 scale)
Germany: 87.5 United States: 86.5
80 Switzerland: 82.0
75th pctl: 66.3
60 Median: 58.3
25th pctl: 52.7 75th pctl: 50.7
40 Median: 36.2 25th pctl: 30.1
0 Pillar 12: Innovation capability Pillar 11: Business dynamism
Note: Pctl = percentile.
The Global Competitiveness Report 2018 | 9
Figure 5: Innovation ecosystem performance Figure 6: Innovation ecosystem performance By income group By top performer from each income group
Entrepreneurial Interaction and diversity Research and Entrepreneurial Interaction and diversity Research and culture development culture development 100 100 80 80 60 60 40 40 20 20
Administrative Commercialization Administrative Commercialization requirements requirements High income Upper-middle income High income Lower-middle income China Low income India
Source: World Economic Forum analysis. Source: World Economic Forum analysis.
softer' and less tangible aspects of idea generation, lowest scoring of the five. Nonetheless, despite low captured in the Interaction and diversity, as well as levels of research and development these economies Research and development (to develop inventions) and can still adopt technologies developed elsewhere Commercialization (the capacity to successfully bring and adapt them for local needs. For example, in innovation to the market) sub-pillars. The Business some developing economies the diffusion of mobile dynamism pillar captures broader factors, captured in phones has become a platform for delivering financial the two sub-pillars: Administrative requirements (the services.8 extent to which the regulatory framework supports creative destruction by making it easy to found and close The gap between advanced and developing companies) and Entrepreneurial culture (a country's economies is less prominent on the Administrative willingness to take risks and embrace disruptive ideas). requirements sub-pillar, but there is still room for improvement. Further reducing administrative Other GCI components also play a critical role in burdens on starting or closing a business represents determining a country's capability to innovate. These a relatively achievable goal in terms of policy include ICT adoption (pillar 3), quality of education intervention: accessible, low-cost and without (captured in the Skills pillar), intensity of competition requiring cultural shifts. (Domestic market pillar) and availability of financing (Financial system pillar). The top performers in the upper- and lower middle-income brackets, such as China and India, The results demonstrate that the countries with are catching up with or even outperforming the the winning formulas for innovative ecosystems have average among high-income economies. China, for embraced a wide range of measures to achieve example, is already more advanced when it comes to success. On average, high-income economies achieve investing in research and development sub-pillar than significantly higher scores than those in lower-income the average high-income economy, while India is brackets on each of the five sub-pillars that make up not far behind and let down only by its less-efficient the Business dynamism and Innovation capability pillars, bureaucracy for business creation and insolvency. demonstrating that their innovation ecosystems are more The catch-up process is reflected in the emergence developed. Nonetheless, they are still far from the frontier of Chinese and Indian companies in technology- on all dimensions--and all economies have potential for intensive sectors. China is home to 33% of the further progress (Figure 5). world's unicorns’ (private companies valued at over 1 billion) in 2017, up from 12% in 2014.9 The most striking differences are found in the Research and development sub-pillar, which includes Among low-income countries, however, even indicators on R&D spending, patents, publications the best performers are still lagging behind. Kenya, and research institutions.7 For 94 of the 140 for example, underperforms on most of the five economies featured in the report, this sub-pillar is the sub-pillars. This supports the widely-held idea
10 | The Global Competitiveness Report 2018
Figure 7: Innovation ecosystem performance Figure 8: Evolution in attitudes toward entrepreneurial failure
Interaction and diversity Score (17) Germany Japan 7 United States Israel 100 Korea, Rep. China 80 6 Entrepreneurial 40 Research and 5 culture 20 development
4
3
Administrative Commercialization 2 requirements 1 Korea, Rep. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Germany Source: World Economic Forum, Executive Opinion Survey (various editions). United States Note: Response to the survey question: “In your country, to what extent do
Source: World Economic Forum analysis. people have an appetite for entrepreneurial risk?” (1 = not at all; 7 = to a great extent). See Appendix C for more details.
that innovation requires stable conditions—such would allow these economies to more fully translate as well-established institutions, extensive ICT their research efforts into economic growth and adoption, domestic market competition and a increase long-term resilience to technological shocks. favourable education system—and suggests these factors should be priorities for governments in low- For success in the Fourth Industrial Revolution, income economies that are looking to innovation for all economies—whether advanced or developing— employment growth.10 will need to embrace the opportunities offered by innovation. The Global Competitiveness Index helps The exception to this performance gap is found them to identify which factors—from regulations to in the Entrepreneurial culture sub-pillar, which the cultural practices—each country’s government needs GCI results suggest is not a prerogative of advanced to focus on to develop a balanced and dynamic economies. In Uganda, for example, 28.1% of the innovation ecosystem. population are self-described entrepreneurs, the highest percentage in the world.11
Among the best performers, the so-called softer' drivers of innovation--represented by the sub-pillars Entrepreneurial culture and Interaction and diversity--distinguish the super innovators’, Germany and the United States from other innovation hubs found in countries such as Japan and Korea (Figure 7).
One reason why Korea and Japan lag slightly behind their high-income peers on these sub-pillars could be a tendency toward uncertainty avoidance. As Figure 8 shows, despite some recent increases, the appetite for entrepreneurial risk in Japan and Korea is significantly lower than in the United States. Possible explanations include perceived higher opportunity costs to entrepreneurial risk and other cultural factors that make it more difficult to embrace disruptive ideas. In fact, many experts attribute Japan’s `lost decade’ partly to companies’ reluctance to be forward-looking and break away from the status quo. A more vibrant innovation ecosystem
The Global Competitiveness Report 2018 | 11 Chapter 1: Global Findings Strong institutions are a fundamental driver of both productivity and long-term growth. Their benefits extend In Depth: well beyond economics, affecting people’s well-being on a Are institutions daily basis. Adam Smith first highlighted this in 1776, and it still important? has been established as empirically sound time and again ever since.12 Differences in institutional quality underlie many of the reasons for differences between countries in technology and physical and human capital, which can explain a large part of cross-country differences in income (see Figure 9).13 Further, ample empirical evidence has shown the ongoing importance of stable, effective institutions for economic productivity.14
It is because of the importance of these economic building blocks that the first of the GCI 4.0’s 12 pillars assesses the strength and quality of an economy’s institutions. By shaping the ways in which individuals organize themselves and their economic transactions, institutions form the backbone of economic activity and stable societies.
Weak institutions continue to hinder competitiveness, development and well-being in many countries. The Institutions pillar is the second-lowest scoring pillar of the 12 GCI pillars (after the Innovation capability pillar), with a median score of 53—just over halfway to the frontier. For 117 of the 140 economies studied, their Institutions pillar performance is a drag on their overall competitiveness score (Figure 10).
Figure 9: Institutional strength and income Figure 10: Institutions and other drivers of competitiveness By region
GNI per capita (log scale, US$, 2017) Average score (0100 scale) 12 Switzerland 80 n Pillar 1: Institutions n Average of Pillars 212 10 New Zealand Venezuela 70
8 50
Rwanda 30 6 20
4 10 0 20 40 60 80 100
Pillar 1: Institutions score (0100 scale) East Asia and the Pacific Sources: World Economic Forum analysis; World Bank, 2018; national sources. Eurasia Europe and Note: N=140, R2= 0.63. North America Latin America and the Caribbean Middle East and North Africa South Asia Sub-Saharan
Africa
Note: N=140.
12 | The Global Competitiveness Report 2018
Box 1: Defining `institutions’
Economic agents will not invest if they fear they will need to The GCI 4.0 therefore conceptualizes institutions broadly spend excessive amounts of time and money on protecting as including formal, legally binding constraints—rules, laws, their property and monitoring the fulfilment of contractual constitutions and associated enforcement mechanisms—and obligations. Their expectations depend on the levels of trust in informal constraints, such as norms of behavior, conventions society; on whether public institutions are capable of ensuring and self-imposed codes of conduct.1 Pillar 1: Institutions a basic level of security and enforcing property rights, and comprises six sub-pillars and 20 indicators, as shown in are characterized by transparency, efficiency, and checks Table 1.1. and balances; and on the strength of corporate governance standards and prevailing business ethics.
Table 1.1: Structure and composition of Pillar 1: Institutions Worst performer Best performer
Component El Salvador Finland Security El Salvador Japan 1.01 Business costs of organized crime Pakistan Multiple 1.02 Homicide rate Venezuela Finland 1.03 Terrorism incidence Burundi Australia 1.04 Reliability of police services Burundi Australia Social capital Chad Finland 1.05 Social capital Multiple Multiple Checks and balances Bolivia Finland 1.06 Budget transparency Venezuela Finland 1.07 Judicial independence China Norway 1.08 Efficiency of legal framework in challenging regulations Venezuela Singapore 1.09 Freedom of the press Brazil Singapore Public-sector performance Venezuela Singapore 1.10 Burden of government regulation Lesotho Multiple 1.11 Efficiency of legal framework in settling disputes Venezuela Singapore 1.12 E-Participation Yemen New Zealand 1.13 Future orientation of government Yemen New Zealand Transparency Venezuela Singapore 1.14 Incidence of corruption Venezuela Finland Property rights Venezuela Finland 1.15 Property rights Sri Lanka Singapore 1.16 Intellectual property protection Haiti Singapore 1.17 Quality of land administration Angola Finland Corporate governance Ethiopia Multiple 1.18 Strength of auditing and accounting standards Haiti Kazakhstan
Note: See Appendix C for detailed methodology. Visit http://gcr.weforum.org for detailed results.
1 The definition is loosely based on North, 1994. For a longer discussion on the impact of public and private institutions on productivity, and for a full literature review, see World Economic Forum, 2015, Chapter 1.2.
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Among the six sub-pillars of the Institutions pillar, Greece, Italy and Belgium. With a score of 8, Venezuela is global performance is best on Security.15 Here, the median by far the least future-prepared economy. score is 72 and half of all countries score 75 or above, with Finland (97.5) coming closest to being free from In summary, the results of the GCI are a reminder terrorism and crime. With equal scores of 33.8, El Salvador not to lose sight of the fundamental need for strong and Venezuela are the worst performers, but crime and institutions, particularly as institutions have actually violence extract a huge economic and human toll across worsened in some economies over the past year. The fact Latin America. The continent’s largest economies—Brazil that institutional strength as a driver of economic growth (45.8), Mexico (46.0) and Colombia (43.5)—are less than is a perennial yet fundamental correlation and not a new halfway to the frontier. Nigeria, Yemen, South Africa, theory does not make it any less important. Pakistan and the Philippines are other countries with notable problems related to violence, crime or terrorism, and where the police are considered unreliable. Across all countries, the relationship between the prevalence of organized crime and the perceived reliability of the police is strikingly close.
Transparency is the weakest sub-pillar overall. Scores are assessed using Transparency International’s Corruption Perception Index (CPI), for which the World Economic Forum’s Executive Opinion Survey is a source (see Appendix B). On the CPI’s scale, ranging from 0 (“highly corrupt”) to 100 (“very clean”), two-thirds of the 140 GCI countries score lower than 50 and the median is just 43. When advanced economies are excluded, the median drops to 36. The worst-performing region is Eurasia but Latin America and the Caribbean is home to the world’s most corrupt country, Venezuela, which has a score of 18.
Public sector performance is the second weakest sub-pillar. Unnecessarily burdensome regulation creates delays, raises transaction costs, reduces accountability, and disproportionately penalizes smaller businesses and average citizens. It creates room for corruption and arbitrary decisions, which is reflected in the close association between the scores for this sub-pillar and those of the Transparency sub-pillar.
The overall level of `future preparedness’—which will become increasingly important in the 4IR—is very low. The Public sector performance sub-pillar is made up of indicators reflecting a government’s ability to prepare for the future, and covers policy stability, responsiveness to change, long-term vision and the adaptability of the legal framework to technological change. The median score is just 45, yet the most future-prepared governments are not necessarily those of the most competitive economies. Only three—Switzerland, the United States and Singapore— feature in the top 10 of both lists. The East Asia and the Pacific and Middle East and North Africa regions outperform Europe and North America, with Singapore (85.6) scoring highest followed by Luxembourg (79.0), the United States (78.3), and the United Arab Emirates (76.7). The relationship between future-preparedness and income level is positive but extremely loose, with Malaysia and Rwanda, for example, scoring significantly higher than
14 | The Global Competitiveness Report 2018 In Depth: Chapter 1: Global Findings Are prosperity, people and planet Sustained economic growth has been the main policy compatible? priority under the prevailing liberal international economic order that gained ascendancy in the early twentieth Figure 11: Competitiveness and extreme poverty century.16 But too narrow a focus on growth has blinded many governments to adverse distribution effects and Poverty incidence (%) negative externalities as technological change and 80 globalization have gathered force. Slow progress in living Mean standards and widening inequality, exacerbated by the Great Recession that began in 2007, have contributed 60 to political polarization and erosion of social cohesion in many advanced and emerging economies. There is now a worldwide consensus on the need 20 India for a more holistic model of economic progress—a model that acknowledges growth as necessary but recognizes South Africa the need for additional measures to achieve higher living standards for all, while ensuring environmental Mean sustainability and the interests of future generations.17
0 There are, inevitably, some tensions and trade-offs among the various dimensions of economic progress. 30 50 70 90 But there is also potential for virtuous cycles. For example, as growth raises the income of individuals, GCI 4.0 2018 score (0100 scale) it increases their ability to pay for services and goods that improve their health, education and welfare. This Source: Sources: World Economic Forum analysis; World Bank World opens up new opportunities to improve their economic Development Indicators (WDI) database, retrieved 28 August 2018. prospects, while increasing their overall well-being. Similarly, growth broadens a country’s tax base, Notes: N=121. Poverty headcount ratio at PPP$ 1.90 a day (2011 constant generating resources that the government can spend on prices) in percentage of population (latest year available). public services, such as security, infrastructure, health, education and income redistribution—expenditures that can, over time, improve economic prospects.18
Performance results on the GCI 4.0 add to ample empirical evidence that more competitive economies on average do in fact perform better on various measures of economic progress—including poverty, inequality and well-being; however, the evidence is more mixed in the case of environmental sustainability.
Competitiveness and poverty The incidence of extreme poverty is an important measure of broad-based economic progress, and low productivity is its proximate cause: the poor produce too little to earn a wage to subsist let alone to invest in healthcare and education.19 That’s why higher competitiveness scores are typically associated with lower poverty (Figure 11). In fact, only two countries in the top half of the GCI rankings— South Africa and India—demonstrate what is considered an extreme poverty incidence, in which the poverty rate exceeds 10% of the total population.
Median household income is perhaps the most visible signifier of the breadth of progress in living standards.20 Here, too, there is a close relationship with competitiveness. Figure 12 suggests the relationship between median household income and competitiveness is non-linear: a unit increase in the GCI 4.0 score is associated with an exponential increase in median income. Moreover, the relationship is
The Global Competitiveness Report 2018 | 15
Figure 12: Competitiveness and median income all the income). As shown in Figure 13, there appears to be a relationship between the income Gini coefficient Monthly median income, US$ thousands (latest year available) and competitiveness. Yet it’s an extremely weak one. In 2.5 fact, the most equal and unequal countries, Azerbaijan and South Africa, respectively, earned a similar overall 2.0 GCI score (60.0 and 60.8), whereas the most and least Luxembourg competitive countries, United States and Chad, have a similar Gini coefficient (42 and 43). Thus, it would be 1.5 inaccurate to conclude that more competitive countries Belgium are reliably more inclusive.
1.0 Results of the GCI 4.0 are consistent with the general Israel consensus emerging from empirical studies that there is no consistent relationship between equality and growth.22 0.5 This also implies that, contrary to widespread belief, Malaysia inequality is not caused by growth. There is no inherent trade-off between equality and growth: it is possible to be 0.0 50 70 90 pro-growth and pro-equity. The Netherlands, Sweden and 30 Denmark feature in the top 10 of the GCI and are among the world’s most equal countries. Governments need to GCI 4.0 2018 score (0100 scale) rebalance policy priorities to respond to both stagnating growth and rising inequality, which, together, fuel Sources: World Economic Forum analysis; World Bank PovcalNet. frustrations and erode trust in institutions, technological Note: R2= 0.82. progress and globalization.
Figure 13: Competitiveness and inequality Competitiveness and well-being An individual’s overall well-being is arguably the ultimate Gini coefficient (0100 scale, 100=perfect inequality, 0=perfect equality), measure of human welfare. Figure 14 shows that GCI 4.0 latest year available scores explain over two-thirds of differences in so-called 100 life satisfaction', as measured on Cantril's Ladder of Life Scale, which ranges from 0 (the worst possible life’) 80 to 10 (the best possible life'), for the 135 countries for which data exists. This is remarkable, considering the 60 South Africa many cultural, historical and political idiosyncrasies that Chad Brazil can influence answers to the question: How satisfied are you with your life as a whole these days?’ 40 United States Leisure time is another determinant of well-being.23 20 Viet Nam Netherlands Contrary to popular belief, higher competitiveness is Denmark Sweden typically associated with less working time and Azerbaijan therefore more leisure time: workers in the GCI 4.0’s 10 most competitive economies work, on average, 361 0 fewer hours per year—or eight fewer hours per week— than in the 10 lowest-ranked economies for which 30 50 70 90 working time data exists.24 When excluding the United States and Singapore, the weekly average decreases GCI 4.0 2018 score (0100 scale) by two additional hours. In Germany, the third-most competitive economy, workers average just 1,371 Sources: World Economic Forum analysis; World Bank World Development hours per year or 29 hours per week—10 fewer than Indicators (WDI) database. the average across the 66 countries for which working time exists. This suggests productivity is increased not Note: N=128. through more working hours, but by using working hours more efficiently. remarkably close: performance on the GCI 4.0 explains 82% of the variation in median income across countries.21 Competitiveness and environmental sustainability Yet the correlation between the two is not exact. For The relationship between competitiveness and the example, although Malaysia and Belgium have a similar environment is multi-faceted and complex. In the GCI score, Belgium’s median income is three times higher long term, economic activity must respect planetary than Malaysia’s.
Competitiveness and inequality Income Gini coefficient is the standard measure of inequality used by most institutions and organizations around the world. Values range from 0 (perfect equality', in which every individual receives the same income) to 100 (perfect inequality’, when one individual receives
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Figure 14: Competitiveness and life satisfaction Figure 15: Competitiveness and ecological footprint
Life satisfaction (0=worst possible life, 10=best possible life), 20152017 Ecological footprint of consumption (gha), 2014 10 18
Finland Qatar
8 Denmark Norway
12 Luxembourg
6
4 United States 6 2
Chad
0 0
30 50 70 90 30 50 70 90
GCI 4.0 2018 score (0100 scale) GCI 4.0 2018 score (0100 scale)
Sources: World Economic Forum analysis; Helliwell et al., 2018. Sources: World Economic Forum analysis; Global Footprint Network. Note: N=123, R2= 0.68. Note: N=135; gha = global hectare. The consumption footprint includes the area needed to produce the materials consumed and the area needed to absorb carbon dioxide emissions.
boundaries. Environmental damage in the form of Figure 16: Competitiveness and ecological footprint per pollution, climate change, resource scarcity, ecosystem unit of output destruction and biodiversity loss may undermine future growth, and, ultimately, put humanity at risk. For Ecological footprint of production (sq. meters/US$ of GDP) example, the Global Footprint Network’s estimates that 25 humanity uses the equivalent of 1.7 Earths to provide the resources we use and absorb our waste.25 Figure 15 20 shows that there is a clear tension between economic progress and environmental sustainability: more 15 competitive countries have a much bigger ecological footprint. If everyone lived like the average resident of the 10 United States, the world’s most competitive economy, it would take 4.9 planets to support humanity’s footprint. 5 The world’s heaviest footprint is Qatar, an economy in the top 30 of the GCT and where 9.3 Earths is required. 0
Yet the tension can be eased: `green growth’— 30 50 70 90 facilitating economic growth while taking into account environmental concerns—is possible, particularly with GCI 4.0 2018 score (0100 scale) new technologies.26 Policies that create incentives for greater efficiency in the use of natural resources, Sources: World Economic Forum analysis; Global Footprint Network; IMF, reducing waste and energy consumption, unlocking 2018. opportunities for innovation and value creation, and allocating resources to the highest-value use can Note: N=135, R2= 0.63. simultaneously reduce environmental impact and increase productivity and growth. With greater wealth, carbon intensity, and are expecting downward trends more competitive economies tend to have the in carbon usage.29 resources and the measures in place to use natural resources more efficiently.27 As a result, even though These are positive developments, but overall efforts they have the largest ecological footprint per capita, to maintain efficient use of natural resources remain the most competitive economies have the smallest insufficient. The hope of seeing (modest) international ecological footprint per unit of output (Figure 16). Further, commitments and targets designed to curb greenhouse data suggests that between 2004 and 2014, this ratio gas emissions is fading, and with it the probability—now has actually decreased globally.28 In addition, other estimated at less than 5%—to keep global warming within studies show that most countries have reached peak 2ºC by 2100.30 In keeping with the long-term thinking espoused by the GCI 4.0, it is critical that countries commit to green growth, which indicates a promising avenue for leveraging new technologies to foster both sustainability and a strong growth and jobs agenda.
The Global Competitiveness Report 2018 | 17 Chapter 1: Global Findings The accelerated pace and intensity of trade liberalization, openness and integration over recent decades has been In Depth: a win-win' between countries but at times a win-lose’ Should countries within countries. While increasing prosperity overall, pursue openness? free trade may bear partial responsibility for raising inequality by reducing the income of relatively small and concentrated social groups.
However, attempting to address inequality by reversing globalization is counterproductive and disastrous for sustained economic growth. GCI 4.0 results show that more open economies are more innovative and tend to be characterized by more competitive markets. Policies should, therefore, focus on improving the conditions of those specifically impacted by globalization rather than favouring protectionism. Combining GCI data with other sources suggests that redistributive policies, safety nets, investments in human capital, and more progressive taxation could help reduce inequality without compromising a country’s level of competitiveness.
Globalization has contributed to reducing both global poverty and between-countries inequality. Trade has contributed to generating prosperity across all countries in the past few decades.31 The benefits of trade openness have been particularly remarkable in South-East Asia and China, where export-led economic growth has quickly raised the living standards of a sizable portion of the population. In China, for example, between 1996 and 2014 the number of people living on less than US$3.20 per day collapsed from 890 million to 129 million.32 In Viet Nam, evidence suggests that the
Figure 17: Innovation performance Figure 18: Domestic competition performance By openness level By openess level
Innovation capability score, 0100 scale Domestic competition score, 0100 scale
80 n High openness n Low openness 80 n High openness n Low openness
70 Low openness Low openness 70 High openness
60 60High openness
50 50 40 40
30 30 20 20
10 10
0 Emerging market 0 Emerging market Advanced economies and developing economies Advanced economies and developing economies
Source: World Economic Forum analysis. Source: World Economic Forum analysis. Note: See Figure 17 for country classifications and definition of openness. Note: Country groupings are based on IMF classification. Openness is defined by the average of six indicators: Non-tariff measures; Tariffs; Service trade restrictiveness index; Ease of hiring foreign labour; International co-inventions; and Customs clearance (all values expressed in scores). Innovation capability corresponds to the score of GCI pillar 12. Domestic competition corresponds to the score of GCI Sub-pillar 7A.
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2001 US-Viet Nam bilateral trade agreement reduced Figure 19: Openness, inequality and redistributionMean poverty by increasing wage premiums in export sectors, reallocating labour from agriculture to manufacturing and Gini coefficient (0100 scale) stimulating enterprise job growth. 60
Economies that participate the most in the global ZAF economy are also the most competitive. The GCI highlights the centrality of international openness for 50 productivity. It enables greater and faster diffusion of ideas and technology, which boosts innovation MEX (Figure 17). Open countries also tend to have more competitive markets, which compels domestic 40 CHN companies to innovate and procure the latest technologies to compete with the best international firms USA SGP (Figure 18). Mean Since 1980, within-country income inequalities have increased in most economies. Over the past three GBR decades, the Gini coefficient increased in 17 out of the 22 OECD countries for which long-term data is available. 30 DEU In the United States, where the increase is among the FRA highest, the share of income accruing to the richest 1% of the population has more than doubled to about 20% DNK NLD over the past 30 years, while the share attributed to the middle class has fallen.33 20
Many emerging economies have also experienced an 20 40 60 80 100 increase in inequality. While distributional effects are often Openness attributed to declining manufacturing workforces, they are also evident in many countries that have experienced Less redistribution More redistribution sustained economic growth and decreasing poverty. In China, for example, between 1995 and 2015 the Gini Sources: Standardized World Income Inequality Database (SWIID) and World coefficient increased from 36.3 to 40.2,34 and the share Economic Forum analysis. of income accruing to the top 10% of the population increased from 33% to 41%. Note: N=45. The color of each data point reflects the level of redistribution. The redistribution level corresponds to the SWIID’s relative redistribution Openness to international trade bears part of estimate (market-income inequality minus net-income inequality, divided the blame for rising inequality, but there are other by market-income inequality). See Figure 11 for a definition of openness. important factors. Evidence supports the idea The following economies are referenced in the figure: SGP=Singapore; that international trade can drive down wages and DEU=Germany; NLD=The Netherlands; USA=United States; employment in the manufacturing sectors most exposed DNK=Denmark; GBR=United Kingdom; FRA=France; MEX=Mexico; to foreign competition.35 However, the expansion ZAF=South Africa; and CHN=China. of automation, the rise of the digital economy and generalized reduction in taxation progressivity have also in most advanced economies have helped to attenuate had a significant impact.36 inequality37 and protect vulnerable households from adverse economic shocks. Figure 19 shows that To reverse economic integration in an attempt to economies that redistribute the most can attain lower curb income inequalities would be highly ineffective and inequality levels while at the same time continuing to counterproductive. Protectionist policies will not address maintain policies of openness. Although safety nets the continuing impacts of factors such as automation are more common in advanced economies, some and digitization on the structure of economies and emerging economies, too, have recently started to distributional outcomes. They will, however, harm the successfully reduce inequality through public policies transfer of technologies, the innovation process and and programs.38 economic growth. In the short term, protectionism could also negatively affect workers engaged in global value Policies promoting more equal access to chains. Redistribution of economic gains would be better human and financial capital are crucial in narrowing achieved through well-designed international agreements inequalities. Measures such as income transfers and national policies. may mitigate some cyclical causes of inequality, but to address structural inequalities requires Countries have succeeded in lowering inequality complementary measures aiming to level the playing by making greater efforts to redistribute income. There field for disadvantaged households. These can include is evidence showing that the tax-benefit systems found broadening access to quality education and healthcare, greater financial inclusion, more progressive taxation and efforts to curb tax evasion.
Active labour market policies also play a central role. While safety nets are useful to smooth transitions across jobs, structural changes in the labour market can make it difficult for workers who lose their job to find another at a comparable wage level in the short time. With the current speed of technological disruption, workers in the middle of their careers may see a significant
The Global Competitiveness Report 2018 | 19 Chapter 1: Global Findings 15 It must be noted that the countries covered by the GCI present a level of security and stability sufficient for data to be collected. contraction of demand for their current skills.39 A recent In war-torn countries and failed states, it would be pointless and study suggests that over the next decade, in a set impossible to carry out an assessment of competitiveness. of companies representing 15 million workers in total today, 1 million jobs will disappear but 1.7 million new 16 Kundnani, 2017. jobs requiring new skills will be created.40 Further, by 2022 at least half of all current employees will require 17 In 2017, the World Economic Forum launched the Inclusive significant reskilling and upskilling.41 Policies to address Development Index (IDI) to evaluate countries’ success against this this tremendous challenge are clearly needed—as is broader notion of economic progress. The assessment is based investment in infrastructure, which has been shown to on 15 criteria: income; labour productivity; employment; healthy sustain real income growth among the lower-skilled life expectancy; median household income; poverty incidence; and foster employment and re-qualification in de- wealth Gini; income Gini; adjusted net savings; dependency ratio; industrialized areas. public debt; and carbon Intensity. See World Economic Forum, 2017 and 2018b for details and results. Market forces alone cannot be relied on to address inequality. Policies that redistribute gains and 18 See Bannister and Mourmouras 2017. They find that on average opportunities from winners to losers are required to a higher level of income is associated with higher life expectancy ensure that trade is inclusive. While a growth agenda is and lower inequality. central to achieving national prosperity, there is a need for complementary policies—both passive (income 19 Rodrik, 2012. transfers) and active (e.g targeting education and reskilling). Workers vulnerable to international trade need 20 Median household income for a country is the amount that divides to be resilient to income shocks—but should also be the income distribution into two equal groups. encouraged to acquire the skills necessary to benefit from the changing economic landscape. 21 R2 value based on a polynomial regression of degree two of median income on GCI 4.0 score. 22 DfID, 2008. 1 Education deficits, for instance, have long been a cause of slow development, and will have disastrous consequences in the 4IR 23 OECD, 2009, Chapter 2. as the destruction of low-skilled jobs, through automation and efficiency accelerates. 24 Authors’ calculations based on Penn World Tables data (Feenstra et al., 2015). Working time corresponds to the average annual 2 Schwab, 2015. hours worked by persons engaged. Working time data is available for 66 of the 140 economies covered by the GCI 4.0. The 10 3 The term was coined by author Evgeny Morozov. lowest-ranked economies in the GCI for which working time data is available are: Trinidad and Tobago (75th, 1,583 hours), Viet 4 See Juma, 2017, for a critique of leapfrogging. Nam (76th, 2,340 hours), Jamaica (77th, 1,868 hours), Argentina (79th, 1,777 hours), Sri Lanka (84th, 2,075 hours), Ecuador (85th, 5 Authors’ calculations based on ITU, 2018. 2,086 hours), Bangladesh (102th, 2,372 hours), Pakistan (107th, 2,283 hours), Cambodia (110th, 2,510 hours), and Venezuela 6 World Economic Forum, 2015. (127th, 1,795 hours). Annual hours worked were divided by 48 to approximate working time per week. 7 See Appendix C for details on the GCI structure. 25 GFN, 2018. See also WWF, 2016. 8 Parizat and Strubenhoff, 2018. 26 For more on the concept of green growth and its implementation, 9 Wu, 2017, and CB Insights, 2017. see OECD, 2011.
10 Cerera and Sabetti, 2016. 27 Yale and Columbia Universities, 2018.
11 Brinded, 2015. 28 World Economic Forum’s calculations based on GFN, 2018.
12 “Commerce and manufactures can seldom flourish long in any 29 Raftery et al., 2017. state which does not enjoy a regular administration of justice, in which the people do not feel themselves secure in the possession 30 Ibid. of their property, in which the faith of contracts is not supported by law, and in which the authority of the state is not supposed to 31 Frankel and Romer,1999. be regularly employed in enforcing the payment of debts from all those who are able to pay. Commerce and manufactures, in short, 32 The World Bank, Poverty & Equity Data Portal, China, http:// can seldom flourish in any state in which there is not a certain povertydata.worldbank.org/poverty/country/CHN. degree of confidence in the justice of government”, Wealth of Nations, 1776. 33 World Inequality Lab, 2018, https://wir2018.wid.world.
13 See Acemoglu, 2009, for an exhaustive discussion on institutions 34 Solt, Standardized World Income Inequality Database. and the fundamental causes of economic growth. 35 Autor et al., 2013. 14 For example, North and Thomas, 1973, discuss a system of property rights as the key to growth. Hall and Jones, 1998, find 36 For studies on the effect of technology and trade on inequality that differences in capital accumulation and labour productivity see, for instance, Good, et al., 2014, Karabounis et al., 2013, are driven by differences in institutions and government policies. and Autor, et al., 2018. The decline in progressivity of taxation is Acemoglu, et al, 2001, show that institutions are robustly related to documented by World Inequality Lab, 2018. present-day differences in per-capita incomes. Rodrik, et al, 2002, find that property rights are more important than either geography 37 Ravallion, 2018. or trade in determining income levels around the world. 38 Ibid.
39 Mckinsey Global Instiitute, 2017.
40 World Economic Forum, 2018a.
41 Ibid.
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REFERENCES Ravallion, Martin, “Inequality and Globalization: A Review Essay”, Journal of Economic Literature, vol. 56, no. 2, 2018, pp. 620642. Acemoglu, Daron, Introduction to Modern Economic Growth, Princeton University Press, 2009. Rodrik, Dani, One Economics, Many Recipes: Globalization, Institutions, and Economic Growth, Princeton University Press, 2008. Autor, David and Anna Salomons, Is Automation Labor-Displacing? Productivity Growth, Employment, and the Labor Share, NBER ------, “Global Poverty Amid Global Plenty: Getting Globalization Right”, Working Paper No. 24871, National Bureau of Economic Americas Quarterly, Spring, 2012. Research, 2018. Schwab, Klaus, “The Fourth Industrial Revolution”, Foreign Affairs, Autor, David H., David Dorn, and Gordon H. Hanson, “The China December, 2015. Syndrome: Local Labor Market Effects of Import Competition in the United States” American Economic Review, vol. 103, no. 6, Sen, Amartya, Development as Freedom, Oxford, Oxford University 2013, pp. 2122168. Press,1999.
Bannister, Geoffrey J. and Alex Mourmouras, Welfare vs. Income Solt, Frederick, The Standardized World Income Inequality Database, Convergence and Environmental Externalities, IMF working paper: 2009, https://hdl.handle.net/1902.1/11992, Harvard Dataverse, WP/17/271, International Monetary Fund, 2017. V20.
Brinded, Liana, The 9 Countries with the Most Entrepreneurs, United Nations Conference on Trade and Development, Regional trade World Economic Forum, 2015, https://www.weforum.org/ agreements, integration and development, UNCTAD Research agenda/2015/06/the-9-countries-with-the-most-entrepreneurs/. Paper no. 1, 207.
CB Insights, Research Briefs: Unicorns Abroad: The Creation Of Billion- World Bank, World Development Indicators Database, retrieved July Dollar Startups Is Shifting Out Of The US, 2017. September 2018.
Cirera, Xavier and Leonard Sabetti, The Effects of Innovation on World Economic Forum, The Global Competitiveness Report 2015 Employment in Developing Countries: Evidence from Enterprise 2016, 2015. Surveys, Policy Research Working Paper No. 7775, World Bank, 2016. ------, The Future of Jobs Report 2018, 2018.
Department for International Development (DfID), Growth - Building Jobs ------, The Inclusive Growth and Development Report 2017, 2017. and Prosperity in Developing Countries, DfiD working paper, 2008. ------, Inclusive Development Index 2018: Summary and Data Highlights, Feenstra, Robert C., Robert Inklaar and Marcel Timmer, “The Next 2018. Generation of the Penn World Table”, American Economic Review, vol. 105, no. 10, 2015, pp. 3150-3182, dataset available for World Inequality Lab, Paris School of Economics, World Inequality download at www.ggdc.net/pwt. Report 2018, 2018.
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Juma, Calestous, “Leapfrogging Progress: The Misplaced Promise of Africa’s Mobile Revolution”, The Breakthrough Journal, summer/ issue 7, 2017.
Karabarbounis, Loukas and Brent Naiman, The Global Decline of the Labor Share, NBER Working paper #19136, National Bureau of Economic Research, 2013.
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The Global Competitiveness Report 2018 | 21 CHAPTER 2 This chapter highlights global trends, regional highlights and selected country results from the inaugural edition of Regional and the Global Competitiveness Index 4.0. Country Analysis The results demonstrate a strong correlation between competitiveness and income level.1 High- income economies make up the entire top 20 (see Table 1 on page 25). Conversely, only three non-high- income economies feature in the top 40: Malaysia (25th), China (28th), and Thailand (38th). While the GCI 4.0 is not a proxy for current income, the index assesses the ability of economies to sustain growth over time. It therefore holds some predictive power. In Figure 1, economies that land relatively far above the trend line may have difficulty sustaining their current level of income without improving their competitiveness. Most of these outlying countries are mineral resource-rich. Qatar, Brunei Darussalam, Kuwait, Trinidad and Tobago, and Venezuela are the most striking examples. For example, despite having a similar level of income as Chile, Venezuela’s GCI score is almost 30 points lower. Similarly, the lowest- ranked high-income country, Argentina, lags almost 20 points behind Malaysia and China. As for economies relatively far below the trend line—including Malaysia, Mexico, Indonesia and India—the results suggest their competitiveness performance, if maintained, will promote higher and sustained levels of income in the future.
Looking at regional patterns, the top 20 of the GCI 4.0 rankings is composed almost exclusively of economies from Western Europe (10 economies), North America (2), and East Asia and the Pacific (7). In fact, East Asia and the Pacific achieves the highest median score (72.6) among all regions, slightly higher than 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. Yet the disparities within each region are profound (Figure 2). Mauritius (63.7, 49th), sub-Saharan Africa’s best performer, is nearly 30 points and over 90 places ahead of Chad (35.5, 140th). Across the seven regions, the average score gap between the best and worst performer is almost 30 points. Contrasts are often stark within sub-regions. In the EU, Germany’s overall competitiveness score (82.8, 3rd) is 20 points higher than Greece (62.1, 57th). In South-East Asia, Singapore (2nd, 83.5) is 34 points closer to the frontier than Lao PDR (49.3, 112th). In some cases, the score differential between two neighboring countries is large: approximately 20 points between the Dominican Republic (57.4) and Haiti (36.5), between Colombia (61.6) and Venezuela (43.2), and between Thailand (67.5) and Cambodia (50.2).
Finally, the breadth of the GCI 4.0 and its 12 pillars captures the extent and complexity of the competitiveness ecosystem. The results suggest that
The Global Competitiveness Report 2018 | 23
Figure 1: Competitiveness and income the quality of the overall ecosystem is as good as the quality of its weakest component, which represents a GCI 4.0 2018 score (0100 scale) binding constraint: the lowest score among the 12 pillars 12 explains as much as 88% of the variation in the overall GCI 4.0 score. It is therefore not surprising that the Qatar most competitive economies tend to perform well on all pillars, whereas the least competitive economies tend Brunei Darussalam Kuwait to struggle in all areas. The lowest average pillar score of the top 10 economies is 72.2 (Product market pillar), Trinidad and Tobago while the highest average pillar score of the 10 least 10 competitive economies is 54.4 (Macroeconomic stability pillar). These results reflect the need for holistic strategic Venezuela Argentina Chile planning among policy-makers and their partners. In Malaysia order to increase competitiveness, no area can be neglected, because there is very limited compensability Angola Mexico among them, although progress in one area is likely to 8 Thailand have positive spillovers into other areas.
Indonesia As Table 1 shows, the most competitive regions (Europe and North America and East Asia and the India Pacific) attain the highest score across all pillars, while Sub-Saharan Africa attains the lowest scores in 10 of 6 the 12 pillars.
4
30 40 50 60 70 80 90
GNI per capita (log scale, US$, 2017)
l High income l Lower-middle income l Upper-middle income l Low income
Sources: World Economic Forum analysis; World Bank 2018; national sources.
Note: GNI = gross national income (Atlas method), natural log transformation. 2014 data is presented for Venezuela, and 2016 data is presented for Taiwan (China). N=140, R2= 0.82.
Figure 2: Competitiveness gap within regions
Best, median and worst GCI 4.0 2018 scores (0100), by region
Singapore United States Israel 80 Russian Federation Chile Mauritius 60 Haiti India Bosnia and Nepal Best performer Lao PDR Herzegovina Median 40 Worst performer
20 Tajikistan
Yemen Chad
0
East Asia Europe and Eurasia Middle East Latin America South Asia Sub-Saharan and the Pacific North America Africa and North Africa and the Caribbean
Note: See the At a Glance section on page xi for regional classification. Regions are arranged according to median scores.
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Table 1: Regional performance, by pillar Human capital Markets Innovation Average score (0100) ecosystem
Enabling environment
Region Institutions` Infastructure ICT adoption Macroeconomic Health Skills Product market Labour market Financial system Market size Business dynamism Innovation capability
East Asia and the Pacific 61.6 74.3 67.3 88.9 84.3 66.9 62.2 65.9 72.8 67.2 65.7 52.9 57.1 71.7 73.4 65.6 57.1 61.6 50.8 49.8 60.1 34.8 Eurasia 53.0 66.3 68.0 91.8 90.7 74.2 62.0 66.2 69.5 59.6 68.3 58.1 46.4 74.0 82.7 57.5 53.9 55.3 59.5 52.5 52.4 33.8 Europe and North America 64.5 78.7 54.1 79.6 80.0 61.4 54.7 52.3 61.8 60.3 56.7 39.9 33.0 74.1 68.4 49.7 47.3 51.7 59.0 66.9 56.5 36.4 Latin America and the Caribbean 47.8 61.1 29.6 66.9 48.0 43.4 50.4 53.8 50.4 38.8 51.1 28.4
Middle East and North Africa 54.3 69.0
South Asia 50.1 59.6
Sub-Saharan Africa 47.5 46.3
Note: See the At a Glance section on page xi for regional classification. Darker shades indicate better performance.
REGIONAL ANALYSIS In 2017, the EAP was the fastest-growing region in the world and accounted for about one-third of global The following sections provide an overview of growth, due primarily to China’s significant contribution. the performance of each of the following regions The region’s developing economies grew at 6.6%, (organized in alphabetical order): East Asia and owing to a favourable global economic context that the Pacific; Eurasia; Europe; Latin America and the encouraged a rise in exports, strong consumption and Caribbean; Middle East and North Africa; North high investment.2 Nine of the region’s 10 developing America, South Asia; and Sub-Saharan Africa. economies covered in the GCI 4.0 achieved at least 3% Each section features a brief commentary about the growth in 2017, and in five—Cambodia, China, Lao PDR, performance of selected economies, namely the region’s the Philippines, and Viet Nam—growth exceeded 6%. best performer and members of the top 10 and G20 The region’s seven advanced economies averaged a if any. Economies are in order of their GCI 4.0 rank healthy 2.9% growth. (see the At a Glance section on page xi for regional classifications). Scores cited in the following sections The results of the GCI 4.0 paint a mostly positive are on a 0100 scale, unless mentioned otherwise. picture of the region’s competitive landscape, confirming Ranks are out of 140 economies, unless mentioned the widely shared view that overall growth momentum is otherwise. Any comparison to the past is against the set to last. Yet some of the region’s economies continue 2017 `backcast’ edition, which was calculated using the to suffer major competitiveness deficits. The region’s GCI 4.0 methodology (See Appendix C for details). seven advanced economies all feature in the top 20 of the GCI 4.0 rankings and three of the world’s seven most East Asia and the Pacific competitive economies—Singapore (83.5, 2nd), Japan Home to some 2.3 billion people, the East Asia and (82.5, 5th) and Hong Kong SAR (82.3, 7th)—stem from the Pacific (EAP) region is characterized by profound the region. Most boast world-class physical and digital diversity with respect to size, development level, infrastructure and connectivity, macroeconomic stability, political and economic system, geography, culture and strong human capital and well-developed financial history. One feature common across most economies systems. However, performance on the innovation in the region has been economic dynamism, which ecosystem is uneven. There is, for example, a 17-point has contributed to rapid industrialization, a rise in living score gap between Republic of Korea (78.2, 8th) and standards and a drastic reduction in extreme poverty, New Zealand (61.4, 27th) on the Innovation capability which fell from 30% to less than 10% over just a decade. pillar. Still, the region’s innovation hubs—Japan, Korea,
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and Taiwan (China)—could improve on the so-called notch. It notably ranks first on air transport infrastructure softer' drivers of innovation to attain the level of "super (92.5), while 93% of the adult population uses the innovators" such as Germany, the United States and internet on a regular basis. Japan boasts the world's Switzerland (see the In Depth section on innovation in third-largest penetration rate of fiber-to-the-home internet Chapter 1). connections (23 per 100 population), a remarkable feat given the size of the country. Japan's two weakest pillars Among the region's emerging markets, the picture is are Institutions (71.1, 20th)--where its performance is more diverse, with three distinct groups. Malaysia (74.4, undermined by low levels of social capital (47.8, 95th) 25th) and China (72.6, 28th) are less than 30 points to and relatively weak corporate governance (65.8, 40th)-- the competitiveness frontier (the highest score on the and Skills (73.6, 26th), where it receives average marks GCI) and on par with many advanced economies. The for the quality of the current (63.0, 26th) and future (73.2, largest ASEAN economies--Indonesia, the Philippines, 55th) workforces. Japan is already an innovation hub Viet Nam and Thailand--as well as Brunei Darussalam (77.5, 6th), but it needs to nurture the softer’ drivers of are 40 points or less to the frontier. Finally, Mongolia the innovation ecosystem in order to become a `super (52.7, 99th), Cambodia (50.2, 110th) and Lao PDR innovator’. For example, Japan scores low on several (49.3, 112th) are only halfway to the frontier, reflecting measures of entrepreneurial culture, including risk major weaknesses that threaten sustained growth. This aversion (53.6, 47th) and creativity, as well as critical makes them vulnerable to a sudden shock, such as a thinking (39.0, 70th). faster-than-expected rise in interest rates in advanced economies and escalating trade tensions, or, as in the Hong Kong SAR ranks 7th overall (score of 82.3) specific case of Mongolia, lower commodity prices. and third in Asia. Its competitiveness landscape is similar The strengths of the region’s advanced economies are to that of Singapore, although it does slightly less well in often weaknesses for most of the developing ones: terms of innovation and labour market efficiency. Hong infrastructure (average score on the Infrastructure pillar Kong features in the top 10 of seven of the 12 pillars of of 65.4 compared with 87.0 for advanced economies), the GCI 4.0. Remarkably, it ranks second in four pillars: ICT adoption (average pillar 3 score of 56.8 vs 82.4), Infrastructure (94.0), where it ranks first in terms of sea education and skills (average score on the Skills pillar port infrastructure and connectivity; ICT adoption (87.9); of 59.6 vs 77.2), financial system development (average Financial system (90.1), where it ranks first for stock pillar 9 score of 64.1 vs 85.3), and innovation capability market capitalization and second for stability (97.0); and (average pillar 12 score of 72.3 vs 39.3). Product market (79.0), where it ranks second in terms of trade openness (84.5). The main challenge for Hong Singapore ranks second (score of 83.5) on the Kong is to develop its Innovation capability (pillar 12), the overall rankings behind the United States as a result of weakest aspect of its performance (61.9, 26th). a very strong performance across the board. Singapore features in the top 10 of seven pillars and in the top 20 Australia ranks 14th overall (78.9), up one spot of a further four. Openness is the defining feature of this from the 2017 backcast edition, and places fifth in the global trading hub and one of the main drivers of its region, four places ahead of New Zealand. The country economic success. Singapore leads the Infrastructure appears in the top 10 of three pillars. Notably, it shares pillar with a near-perfect score of 95.7. In particular, it the top spot of the Macroeconomic stability pillar (100.0). boasts world-class transport infrastructure, services It achieves a near perfect mark on the Health pillar and connectivity. It also tops the Product market pillar (98.5, 8th) and a very high score for the breadth, depth (81.2), where it leads the trade openness component. and stability of its financial system (85.6, 13th). Outside Singapore also punches well above its weight in terms these areas, Australia’s performance shows room for of market size, when taking into account imports (71.0, improvement. The functioning of its labour market 27th globally). Singapore also achieves a perfect mark in (68.5, 22nd) is notably affected by its rigidity: Australia’s the Health pillar, thanks to a healthy life expectancy of 74 innovation capacity (69.8, 18th) is ranked 20 points lower years, ahead of Japan. Singapore is a regional innovation than the best performers in this category. The country house, but in order to become a global powerhouse, it does well when it comes to research and development will need to improve its ecosystem further: Skills (76.0, (78.8) but struggles on the softer dimensions of the 20th), Business dynamism (74.7, 16th) and Innovation innovation ecosystem, including on the Interaction capability (75.0, 14th) are the three pillars—besides and diversity (60.8) and Entrepreneurial culture (61.6) Market size—where Singapore scores below 80. sub-pillars.
Japan ranks 5th overall (score of 82.5), and second The Republic of Korea ranks 15th overall (78.8), in the region. It is the most improved of the top 10 up two ranks compared with the 2017 backcast edition, economies, rising three places compared with the 2017 and sixth in the East Asia and the Pacific region. The backcast edition. Japan appears in the top 10 of seven country leads the ICT adoption pillar, boasting some pillars. It ranks first in the Health pillar, and Japan’s digital of the world’s highest penetration rates of ICTs. A (87.4, 3rd) and physical infrastructures (91.5, 5th) are top global innovation powerhouse, Korea ranks 8th on
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the Innovation pillar. Notably, it spends the equivalent (37.1, 68th). In particular, research and development of 4.2% of GDP on R&D spending, second only to activities remain extremely limited, with R&D spending Israel (4.3%). But like some of its regional peers, Korea amounting to less than 0.1% of GDP (112th). Within the struggles on the less tangible drivers of innovation: other pillars of the index, performance is uneven. One critical thinking (35.5, 90th), interaction and diversity area of specific concern is public health. A newborn (54.5, 80th) and entrepreneurial and corporate cultures in Indonesia can expect to live only 62 years in good (51.3, 50th). Within this last component, Korea ranks 77th health, one of the lowest figures outside sub-Saharan for entrepreneurial risk-taking and 88th for employee Africa. empowerment. Korea’s two weakest pillars are Product market (56.2, 67th), mostly due to the lack of domestic Eurasia competition, and Labour market (62.4, 48th), due to its Eurasia is growing at a moderate pace (slightly above rigidity and sub-optimal utilization of human capital. 2%) and is expected to continue on this trend for the next few years. Data indicates that the region is China ranks 28th overall (score of 72.6), leading firmly out of the 2015 recession and can look to the the BRICS economies ahead of the Russian Federation future with more optimism compared to the recent (65.6, 43rd), India (62.0, 58th), South Africa (60.8, 67th), past. The Russian Federation, the largest economy in and Brazil (59.5, 72nd). As the world’s second largest the region, is expected to grow at 1.7% in 2018, and economy, the largest when taking trade into account, China is strengthening its position as a key commercial China is now at a critical juncture as it transitions to partner for the region. The positive outlook in these a new phase of its economic development—referred two countries provides an anchor to the economic to as the “new normal” by President Xi Jinping—in development of the region for the next few years. which its economy is driven less by investments and In addition, oil prices continuing to remain above exports and more by consumption and services. In this US$60 per barrel since the fourth quarter of 2017 context, the country has been increasingly betting on have contributed to the growth of two other large innovation. It has become a prominent player in some economies in the region (Azerbaijan and Kazakhstan). specific areas, like artificial intelligence. With a score These developments have backed the improvement of 64.4 (24th) it already stands above many advanced in macroeconomic stability of most oil-exporting economies, but still trails leaders like Germany, the countries and provided additional space in public United States and Switzerland by some 20 points. In budgets. However, the region should consider some order to catch up with these `super innovators’, China looming risks. Among them, the gradual normalization of would need to improve performance on softer drivers monetary policy in Europe and the United States is likely of innovation, such as diversity, collaboration and to increase interest rates and tighten credit conditions. various aspects of openness. Other relative strengths In addition, the potential increase in protectionism include the Infrastructure (78.1, 29th) and ICT adoption worldwide may indirectly reduce the growth prospects (71.5, 26th) pillars, two remarkable achievements given of the region and increase uncertainty on commodity the sheer size of the country. On a less positive note, prices.3 China’s institutional framework (54.6, 65th) needs further improvement. Policy-makers should also offer a more In this context, Eurasia has attained a moderate level-playing field for companies by promoting domestic competitiveness performance (58.4 out of 100). Most and foreign competition (57.4, 55th), and addressing countries in the region achieve a GCI score between 52 various inefficiencies and rigidities in the labour market and 65, and all share strong performances on health (59.3, 69th). (pillar 5, 73.4), education and skills (pillar 6, 65.6) and infrastructure (pillar 1, 66.3). Yet, to secure a stronger Indonesia ranks 45th overall (64.9), a gain of competitiveness position, Eurasian countries should two places and 1.4 points compared with the 2017 diversify their economies and work to build upon these backcast edition. South-East Asia’s largest economy, strengths to increase their presence in higher segments Indonesia ranks 4th in the region behind Singapore of the value chain. This will require improving their (2nd), Malaysia (25th), and Thailand (38th). Indonesia financial systems and upgrading their capabilities for benefits from the very large size of its market (81.6, 8th). innovation, the two main common areas of weakness It is also one of the world’s most connected emerging in the region. In some countries (Armenia, Azerbaijan, economies (61.1, 50th), on par with many richer and Georgia and Kazakhstan, for example) reforms in the much smaller economies, such as Chile and Georgia. labour market can also contribute to improving the Indonesia’s score in that category is 20 points higher allocation and retention of skilled talent, which is pivotal than the average score of the lower-middle income for absorbing new technologies and increasing value group to which it belongs. This factor, combined with added and productivity across industries. In addition, a quite vibrant entrepreneurial culture (61.1, 24th) and no country in the region achieves a score above 61 overall business dynamism (69.0, 30th) bodes well for on the Institutions pillar. More specifically, all countries the future. However, innovation capability remains limited
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except Georgia score below 35 in terms of transparency. area, the very low level of transparency (29.0, 113th) is of More concerted efforts should be made to reinforce this particular concern and severely undermines the quality dimension across the region. of the business environment.
Despite sharing similar strengths and development Europe challenges, countries in Eurasia present significant When it comes to competitiveness, Europe is a competitiveness disparities. The regional leader, story of contrasts, with four distinct groups: a very Russian Federation (43rd overall) ranks 59 places competitive north-west, including Switzerland; a relatively ahead of Tajikistan (102nd), achieving a significantly competitive south-west, led by France; a rising north- better performance on nine out of the 12 GCI pillars. east region, led by Poland, Czech Republic and the In particular, the country’s score on the ICT adoption Baltic countries, which rank on par with or higher than pillar is 39.2 points better than that of Tajikistan, which several Western European economies on several aspects translates into 83 places higher on the pillar ranking. of competitiveness; and the south-eastern region—in particular, the Balkan countries—which lags behind the In fact, ICT adoption is, by far, the component of other groups. the index that reveals the greatest differences across the region. The performances of the region’s top three Real GDP growth was up for the majority of countries (Russian Federation, Kazakhstan and Georgia) European countries in 2017, with current growth are approximately 20 points higher than those of the forecasts for the subset of euro area countries above least ICT-ready countries (Kyrgyz Republic, Tajikistan 2% for 2018. While this looks like a continuation of the and Ukraine). The GCI 4.0 also registers noteworthy recovery, the situation remains fragile, as uncertainty inequalities across the region in terms of macroeconomic over international cooperation and trade is dampening stability and infrastructure. With regard to the former, 2018’s growth outlook. As a result of both trade tensions Ukraine and Azerbaijan perform considerably lower than with the United States and rising energy prices, the the regional average, due to double-digit inflation and European Central Bank has recently downgraded growth increasing or high public debt. As for infrastructure, the forecasts for the euro area for 2018 from 2.3% in May to score of the most advanced countries in the region are 2.0% (vs growth of 2.4% in 2017).4 at least 15 points higher than those with less developed infrastructures. The consequences of the 2007-2010 financial crisis still linger in the form of broken trust between a large The best performer in Eurasia, the Russian part of the European electorate and the continent’s Federation ranks 43rd overall with a score of 65.6 political elites—and more concretely in the form of out of 100. This is a slight increase from 2017. Its continued overleveraged government balance sheets. competitiveness performance reflects better growth Added fragility comes from continuing shifts in political prospects; the country is growing at 1.7% in 2018, alignment and ideology, with the appearance of a the highest in over five years. The stabilization of its growing voter base for populist parties across Europe. In macroeconomic context has played a central role addition, Brexit remains unresolved. However, a recent in this process. Following 20142016, during which positive milestone is Greece’s successful exit from the inflation was in double digits and the economy was in IMF loan programmes. a recession, inflation is now slightly above 5.4%, while government debt is low (17.7%). Relying on a more While recent political shifts do give much reason for stable macroeconomic environment (87.5, 55th), Russia concern, the continent still has basic competitiveness can better leverage its large market size (84.0, 6th), its factors firmly in place: Europe’s public health indicators high level of ICT adoption (72.1, 25th) and its human are strong across the board, including Spain at the capital (66.3, 85th). As stated by its Strategy 2030, the global frontier. Education and skills outcomes are also country plans to focus on structural change and work solid. Finland tops this category globally, although these to improve its export capacity and develop a stronger outcomes differ across the region as a whole. financial system. The limited depth of the financial system (35.0, 73rd) is one of the factors constraining the Technology-related headlines coming out of Europe investments necessary to achieve greater breadth and in the past year have mostly been related to efforts by sophistication of value chains. In addition, the skills of the competition authorities to come to terms with new the current workforce (54.0, 53rd) should be upgraded forms of market power exerted by platform companies and modernized. This will certainly benefit the country’s and about the lack of local “unicorns”. The greatest innovation ecosystem, which is currently penalized by disparities across the continent lie in national innovation a weak entrepreneurial culture (49.5, 64th) and limited ecosystems, with countries in Eastern Europe and the interaction and diversity (43.2). The second weakest Balkans lacking basic innovation infrastructure while aspect of Russia’s performance after innovation is the countries such as Germany define the global frontier on Institutions pillar (52.7, 72nd), in which Russia is only innovation ecosystems (Germany tops the innovation halfway to the frontier. Among the many issues in this rankings in this year’s GCI). This divide extends to factors as varied as a country’s diversity of interaction
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(including cluster development, workforce diversity, ranks first for the soundness of its active labour market patent applications and multistakeholder collaboration), policies and the quality of industrial relations, and research outcomes and commercialization opportunities. second for flexibility. Switzerland’s performance is The distribution of outcomes on technology readiness adversely affected, however, by its poor showing in is also relatively dispersed, and Europe is undeniably the trade openness category (60.5, 76th and worst behind the global leader Korea. On a positive note, among advanced economies), owing to the complexity European economies on average fare relatively well on of its tariff regime, for which it ranks last among the technology adoption. 140 economies studied. In terms of ICT adoption, Switzerland lags far behind the best (77.0, 15 points On other factors of competitiveness, Europe is behind global leader Republic of Korea). relatively far behind the global frontier when it comes to product market competition (where Singapore tops the The Netherlands is the third-most competitive global ranking) as well as business dynamism, where European economy and the sixth-best globally (82.4). the United States ranks highest. The size of its market The Netherlands performs particularly well on institutions on the other hand represents a strong competitiveness (77.9, 4th), especially when it comes to checks and advantage for Europe, especially in an age where balances (including judicial independence, freedom of economies of scale and network efficiencies are the press and government openness), protection of becoming ever more important. property rights, and ethics and transparency.
Germany emerges as the strongest European Its economy is particularly strong on openness, performer in this year’s competitiveness rankings and the which manifests itself in many dimensions. The country’s third-strongest globally (overall score: 82.8). The country open innovation environment is marked by forgiving stands out in particular for its innovation ecosystem. cultural attitudes towards entrepreneurial failure, a great It ranks first globally on the Innovation capability pillar willingness to delegate authority, entrepreneurs who are (87.5). This result is driven by a strong performance on willing to embrace disruptive ideas, and fast-growing patents (5th, 100) and research publications (3rd, 100), innovative companies (71.5, 6th). In the Netherlands, by top-ranked research institutions (4th, 100), and by businesses are as easy to set up as they are to unravel. a very high degree of buyer sophistication (66.1, 5th), leading to firms constantly being challenged by their Capitalizing on its high population density, the customers to innovate. Netherlands is very well-connected internally through high-quality roads, railroads and waterways, as well Innovators benefit from a vibrant business sector as externally through digital technologies and physical to bring innovations to market (81.6, 2nd). Germany’s infrastructure such as seaports and airports (92.4, 4th strong overall competitiveness performance is further on the Infrastructure pillar). All of these factors support explained by very solid fundamentals, such as a stable highly competitive product markets. A final contributing macroeconomic environment and a healthy, well- factor to the country’s openness comes in terms of educated and highly-skilled population. the mindset fostered among students. The quality of education offered is very high (84.5, 6th) and, evidently, However, the country lags behind when it comes encourages critical thinking, where the Netherlands to ICT adoption, ranking only 31st globally with a score ranks 7th globally (70.9). of 69.3. The gap is particularly marked on mobile broadband subscriptions (53rd) and on the provision of The United Kingdom is the fourth-most competitive the latest ICT infrastructure in particular in terms of fiber economy in Europe and eighth-strongest globally (82.0). connectivity to the home (66th). The performance is largely explained by its traditional strengths: very well-functioning markets (78.7, 4th), Switzerland ranks 4th (score of 82.6) globally a top innovation ecosystem (79.2, 7th) and vibrant and second in Europe, behind Germany. It features business dynamism (79.0, 7th). Notably, the country’s in the top 5 of seven pillars. Switzerland is one of the performance is equally strong across product, labour world’s `super innovators’ (82.1, 3rd, behind Germany and financial markets. Independent of other effects of and the United States). The country is home to large Brexit, the event will, by definition, weaken the United multinationals that are often leaders in their sector, as Kingdom’s markets component as integration with the well as a dense network of SMEs with a reputation EU is rolled back. Other factors will need to compensate. for quality and innovation. In addition to research While the UK has a strong innovation ecosystem and a excellence, intense collaboration between the academic vibrant business sector, it currently looks less prepared and business worlds yields innovative products with than some of its peers to leverage ongoing rapid commercial applications. An array of factors supports technological change. ICT adoption is also one of the the innovation process, including a conducive weakest pillars compared to the other eleven drivers, with institutional framework (77.1, 5th), top-notch transport the UK ranking only 28th globally (71.1). It also lags in and utility infrastructure (3rd), a sophisticated and stable terms of its provision of fiber to the home (75th), mobile financial system (89.4, 4th), and a well-functioning labour broadband market (80.4, 2nd). In this last category, Switzerland
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subscriptions (40th) as well as the digital skills of the notably the national railway operator) and making the population (65.5, 32nd). country more attractive as a destination for high-tech investment. Sweden ranks ninth globally in this year’s index and fifth within Europe (81.7). Its performance is even across As a host to world-class research institutions (3rd), the twelve drivers of competitiveness, with high scores the country performs very well on innovation capability and high rankings across all 12 pillars. Among its high- (76.1, 11th), and ranks among the top countries in performing European peers, Sweden seems best the world in terms of the number and quality of its prepared to leverage the opportunities brought by the research publications (5th). There is scope to boost accelerating technological change. The country ranks this performance further by adapting the system to extremely high on ICT adoption (85.2, 5th), scoring highly the digital age. This would entail focusing on `soft’ both on levels of internet use (89.7, 14th) as well as the innovation factors, such as encouraging critical thinking quality of its connectivity: 12th on mobile broadband in students (44.9, 48th), embracing disruptive ideas (46.7, connections, 13th on fixed broadband connection and 45th) and developing its entrepreneurial culture. In fact, 5th for fiber connectivity to the home. Remarkably, France ranks a low 84th (46.2) on the GCI in terms of its it ranks top globally in terms of the digital skills of its tolerance for entrepreneurial failure. Currently, France’s population (80.6). These high levels of tech readiness— performance on the Interaction and diversity sub-pillar is combined with a strong performance on human also weaker than its peers. capital, including education and skills (84.2, 7th) and public health (96.5, 17th)—provide a very good basis to In order to leverage this innovation strength, capitalize on Sweden’s strong innovation capacity (79.8, further bottlenecks need to be addressed in the area 5th). of market functioning. While labour market rigidities are being addressed, there is still a long way to go as Denmark, one of the smallest markets in Europe, the economy currently ranks 53rd on this dimension ranks tenth globally (80.6). It stands out in the region for (61.5). Furthermore, product market functioning can be its very well-functioning labour markets (5th, 78.0), which improved by reducing non-tariff barriers (53.2, 90th) form the basis of a strong social contract. A pioneer of and reducing services trade restrictiveness (73.6, 55th). flexicurity, the country manages to reconcile an effective The country’s regulatory burden is perceived to be very market economy with strong worker protection and high by the business sector, with France ranking 107th a welfare state, notably through active labor market on this indicator (31.8). The country’s performance on policies (71.4, 7th). The country provides high levels of ICT adoption is mixed (71.1, 29th), with a high level of stability both for its citizens and the business sector. It fixed broadband subscriptions, yet lagging on mobile scores high on the strength of its institutions (10th, 75.9), broadband and fiber to the home. its infrastructure (86.3, 14th) as well as it’s the stability of its macroeconomic environment (joint 1st with multiple Italy ranks 31st overall and 17th in Europe. The economies). According to the perception of Denmark’s country’s GDP is growing at 1.5%, the fastest rate business executives, the country also has one of the since the 2008’s financial crisis. Yet Italy remains highest levels of social capital in the world (64.3, 4th). the advanced economy that is growing the least. To Further, the labour force is extremely well educated improve its prosperity, Italy should indeed prioritize (84.9, 5th), with the educational system scoring high on its competitiveness and growth agenda, building on the quality of vocational as well as graduate education. its strength and addressing its weaknesses. Among Digital skills among the population are strong, and both Italy’s strengths, the GCI highlights excellent health the level and quality of connectivity are high, placing conditions (99.2, 6th), large market size (79.1, 12th), a the country among the top 10 tech-ready economies top-tier innovation capability (65.8, 22nd), and good globally (82.3, 8th). infrastructure (83.1, 21st). To further maximize its innovation potential Italy could further expand its ICT Denmark’s business sector is one of the most adoption (60.3), while the private sector should be more dynamic in the world, thanks to very little red tape (the open to new business models and disruptive ideas administrative burden of setting up and closing down (36.6) and assume a more positive risk-taking attitude a business is minimal) and a business culture marked (49.6). On the other hand, the improvement of Italy’s by trust and collaboration as well as a willingness competitiveness depends primarily on the modernization to embrace new ideas. Furthermore, its innovation of its financial system (64.3, 49th) and public-sector outcomes in terms of the number of patents and administration (39.9, 107th). Low performance in these trademarks are remarkable given the small size of the pillars translates, respectively, into insufficient resources countr y. to finance innovative investments and a high degree of red-tape that stifles business activity. In addition, France secures a place among the top twenty macroeconomic stability (85.0, 58th) will, no doubt, be economies globally (78.0, 17th), having recently taken a key area of focus for policy-makers going forward. on an ambitious reform program that encompassed Although public finance appears to be under control, overhauling labour laws, reforming public services (most
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overall, high public debt and uncertainties on the future Venezuela (139th) and Honduras (136th). With eight management of fiscal policy may further increase the countries in the region holding presidential elections cost of access to capital for the public sector and for between November 2017 and December 2018, it is private companies. unclear whether this electoral cycle will lead to new opportunities or greater challenges for the coming years. Turkey ranks 61st on the overall GCI 4.0, with relative strengths on infrastructure (72.6), public Other notable competitiveness gaps in the health (86.2) and the innovation ecosystem (50.6). region are in ICT adoption and innovation. Though Grappling with near double-digit inflation and negative several outliers stand out in each pillar, Uruguay is the debt dynamics, Turkey’s macroeconomic woes are country with the highest level by far of ICT adoption compounded by trade sanctions established by the in the region, topping advanced economies such as United States, which has triggered even higher inflation Taiwan (China) and Switzerland. Interestingly, however, and a currency crisis. Turkey is ranked 116th on the Uruguay’s performance on ICT has not translated to Macroeconomic stability pillar, with a score of 67.4. more innovation, further reinforcing the argument that innovation should be tackled with a multidimensional While its innovation performance is good, with perspective. strong research institutions (34.7, 19th) and a good publication record, ideas generated by Turkey’s research For most countries, the current favourable community face many bottlenecks further down the macroeconomic conditions coupled with relatively value chain in terms of barriers to entrepreneurship positive economic growth may provide a window of and market functioning. Starting a business is relatively opportunity to narrow performance gaps in other costly (93.6, 87th) and the business sector is cautious pillars—especially those requiring additional investments to embrace disruptive ideas (41.0, 74th). Further, the and popular support for competitiveness enhancing labour market is hindered by rigidities in terms of worker- policies. employer relations (47.9, 113th), contracting (ranking 122st, with a score of 46.3 on the Redundancy costs Chile ranks 33rd overall with a score of 70.3. The indicator) and meritocracy (50.5, 116th). In particular, country is the most competitive in Latin America, ranking women’s participation in the labour market is very low. 1st among its peers in six out of 12 pillars. Chile’s For every 100 men, only 39 women are represented in overall performance is driven by stable macroeconomic the labour market. conditions (ranking 1st with a score of 100) and a relatively well-developed infrastructure (75.2, 41st). Latin America and the Caribbean Economic growth in Latin America picked up modestly Chile is among the top performers on the Product in 2017. Commodity-exporting countries such as Brazil, market pillar (68.2, 13th), primarily as a result of lower Argentina and Chile have benefited from high commodity prevalence of non-tariff barriers and relatively low prices and high global demand. Inflation has been measures of tariff complexity. The country is relatively kept in check in most countries, with the exceptions of weaker on ICT adoption (61.3, 49th), but nonetheless Argentina and, to a much larger extent, Venezuela. performs above the regional average. Like many of its neighbors, Chile also lags behind on innovation capability The region’s economic recovery remains fragile (41.3, 53rd) as a result of low performance on both as multiple economic and geopolitical factors could research and development and research collaboration jeopardize growth. Some of these risks include a rise of metrics. trade protectionism in the United States; a spillover of Venezuela’s economic and humanitarian crisis; policy Mexico ranks 46th globally, with a score of 64.6, uncertainty emerging from elections in the region’s and is the second most competitive Latin American largest economies, Brazil and Mexico; and disruptions economy behind Chile. The country’s competitiveness is from natural disasters threatening Caribbean economies largely driven by a stable macroeconomic environment still recovering from the devastating impacts of the fall (pillar 4 score of 99.4), and a large market size (80.6, 2017 hurricanes. 11th). There are other reasons to be optimistic about Mexico’s growth trajectory: it outshines other Latin Strengthening institutions across the region must American countries in terms of business dynamism be a priority, as it can have far-reaching effects on (65.5, 41st) due, in part, to the relatively favourable the performance of other pillars (see Chapter 1). The administrative environment for businesses (82.0, 33rd). region’s average performance on the Institutions pillar is approximately the same as that of Sub-Saharan Africa. Weaknesses in the labour market, where it ranks In many countries, high levels of perceived corruption 100th (54.4)—in particular its rigidity (54.4, 91st) and the reveal an important factor undermining the strength of difficulty in attracting and retaining a talented workforce institutions. Security also poses a significant challenge (54.8, 107th)—weigh on Mexico’s performance. The for the region, which includes countries that rank country also gets low marks on the Institutions pillar among the least secure in the world: El Salvador (140th), (47.7, 105th, 20 points lower than the OECD average), partly driven by a deteriorating security situation (46.0, 127th), which is characterized by violence, a high
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homicide rate and low trust in law enforcement officials. particularly for the youth. Some countries also faced a Recent corruption scandals have also contributed to the large influx of refugees and displaced people who left very weak performance on the Transparency sub-pillar areas of conflict and instability. (29.0, 113th). After a slowdown in 2017, growth in the MENA Brazil ranks 72nd overall, down three places from region is expected to bounce back this year. After facing its 2017 score. As South America’s largest economy, its the peak of financial turmoil, oil-exporting countries are score is driven by its relatively large market size (80.9, continuing to reduce fiscal imbalances—but at a slower 10th) and performance on the Health pillar (79.6, 73rd). pace. Some of them are already benefitting from reforms Brazil leads the region on the Innovation capability pillar introduced to structurally reduce expenses (especially (ranked 40th overall) yet remains below its potential. The subsidies) and increase revenues (i.e. the introduction poor integration of policies and the lack of coordination of VAT in some countries). This is expected to improve between the public and private sectors are among the domestic demand and economic activity in non-oil institutional factors inhibiting its performance. industries, while future trends for the oil sector remain unsure due to uncertainty on both prices and production Conversely, Brazil ranks 9th in the region and levels. The rest of the region is currently benefitting from 108th overall on the Business dynamism pillar with an increase in foreign demand (in terms of both export a score of 52.4. By promoting the inclusion of more and tourism) particularly from Europe, where growth has businesses and firms in the innovation ecosystem, Brazil gained momentum in 2017. could further capitalize on its innovation potential and stimulate productivity growth. The country also fares In order to ensure the sustainability of fiscal budgets poorly on the Product market pillar (48.9, 117th) as a and reduce distortions in the economy, most countries result of a lack of market competition, the presence have decreased subsidies on electricity, natural gas and of distortive policies (subsidies), and Brazil’s poor petroleum products. Yet, these remain significant and integration to global markets—reflected in very high could represent a sizeable share of public spending in import tariffs (12.5% on average, 125th) and high case of an increase in international prices for energy prevalence of NTBs (136th). Labour market performance products. Other reform efforts include the introduction of also remains one of the biggest challenges for Brazil, VAT in the Gulf Cooperation Council members, improved and performance has declined over the last year. The bankruptcy laws in the United Arab Emirates, and more pillar 8 score fell from 52.8 (99th) in 2017 to 51.0 (114th) in flexible visa regimes for foreign workers (such as the 2018, indicating that the reforms passed in 2017 aiming Flexi-Permit introduced in Bahrain) or tourists (such as to enhance labour market flexibility have yet to produce the visa exemption scheme implemented in Qatar). their desired effects. Today, the region remains quite diverse in terms of Argentina ranks 81st with an overall competitiveness performance across all components of competitiveness score of 57.5, and ranks 11th among the index. Israel and the United Arab Emirates are pulling Latin American and Caribbean economies. Argentina’s ahead, and on many dimensions outperform most of overall score is mainly driven by its human capital factors the OECD countries. The region can generally count on the Health (85.1, 53rd) and Skills (68.4, 51st) pillars. on good transport infrastructure, but improvements Argentina also scores its highest marks on the Market are necessary, especially in terms of intra-region size pillar (10) on which it ranks 34th overall, and 3rd in connectivity. With a few exceptions, macroeconomic the region with a score of 68.8. A high inflation rate in conditions are stable in most countries, which facilitates 2017 (ranking 137th) has had a negative effect on the good financing conditions for the private sector, although Macroeconomic stability pillar (44.9, 136th). Increased these are mostly funneled to larger and well-established stress on the peso in 2018 is adding pressure on inflation companies. This, together with limited technological and and public debt, which may undermine the government’s ICT readiness, hinders the region’s capacity to innovate, recent efforts to boost Argentina’s competitiveness. currently its weakest spot on the GCI 4.0.
Middle East and North Africa In spite of recent reforms, gaps remain also in terms In recent years the pace of economic reforms in the of business dynamism and labour market efficiency. Middle East and North Africa (MENA) has accelerated, Weak insolvency frameworks are among the most after a combination of economic, social and political urgent areas of reform for the region, as they inhibit factors increased the urgency to diversify the economy businesses from entering the market, making appropriate and broaden the benefits of growth. A prolonged period investment decisions and thriving through business of low oil prices forced resource-rich countries to take cycles. As a result, only five out of 15 MENA countries more concrete action to re-balance their economies. appear in the top half of the rankings of the Business Social tensions and persistently high unemployment dynamism sub-pillar: Israel (5th), United Arab Emirates rates throughout the region turned the attention of (33rd), Qatar (40th), Oman (52nd) and Bahrain (54th). governments towards the creation of private sector jobs, The segmentation of the labour market into different groups of workers, with little mobility among them, adds
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to the rigidity of the economy in most countries in the Saudi Arabia ranks 39th overall with a score of region and reduces the utilization of available talent. Only 67.5 and can rely on a conducive macroeconomic four countries appear in the top half of the rankings of environment (1st) that has weathered well the turmoil the Labour market pillar: Israel (15th), the United Arab of the recent years, which have been characterized by Emirates (42nd), Bahrain (46th) and Qatar (54th). The low oil prices. It boasts a modern infrastructure (75.5, participation of women in the workforce remains low 40th) and a large market size, MENA’s largest and the throughout most of the region, in spite of improvements 17th globally. The ambitious set of reforms included in education levels, and youth unemployment is in its Vision 2030, once implemented, will increase untenably high, particularly in North Africa, with levels in private sector dynamism and innovation capability in both Egypt and Tunisia well above 30%. the country, currently among its relative weaknesses. In particular, insolvency frameworks are currently Israel leads the Middle East and North Africa with penalizing business dynamism (51.2, 114th), while a score of 76.6 (20th globally). The country has grown research institutions and formal education will both to become one of the world’s innovation hubs thanks need to improve in order to spur the country’s level of to a very strong innovation ecosystem (10th best in the innovation. In past years, the country has significantly world). Israel spends the most of any country in the index increased participation in the education system and, with on R&D (4.3% of GDP), and is where entrepreneurial a school-life-expectancy of 16.9 years (18th), its future failure is most accepted and innovative companies grow workforce is set to be one of the most educated globally. the fastest. It can also rely on an extremely educated However, it will be equally important for Saudi Arabia to workforce, with an average of 13 years of schooling improve the quality of its education programs and their (8th globally) and where people acquire the appropriate correspondence to the needs of the economy to ensure skills that employers are looking for (2nd globally). This that graduates have the right set of skills. Finally, labour pool of talent is well integrated into the job market market efficiency (102nd) is impaired by a number of thanks to the low level of taxes on labour (5.9% of constraints and regulations that segment the market companies’ profits), near-equal participation of women and decrease the overall level of efficiency and talent (6th globally) and reliance on professional management utilization. (19th). A well-developed financial sector (22nd), with the second-best availability of venture capital in the world, North America also supports a flourishing and innovative private sector. The region is home to the United States, the GCI 4.0’s However, the dynamism of domestic markets could be top performer, and Canada, ranked 12th. hindered by the presence of large groups (51st globally With a score of 85.6 out of 100, the United States tops in terms of dominance of few large companies), although the 2018 rankings of the GCI 4.0, confirming its status of competition within the service sector, particularly in most competitive economy in the world (it also ranks first professional services, remains vibrant (31st). in the 2017 backcast edition), although with a notable gap to the frontier. The United States appears in the top Ranked 27th globally with a score of 73.4, the 3 of seven pillars. It leads the Business dynamism pillar, United Arab Emirates is next in the region in terms of with a score of 94.1, thanks to its vibrant entrepreneurial competitiveness. The economy’s main strength lies in culture. It also ranks first on the Labour market (81.9) and the quality of its enabling environment, as companies Financial system (92.1) pillars, due to its depth, breadth can operate under stable macroeconomic conditions and relative stability, and achieves a near pefect score (1st), make use of good infrastructure (15th) and one of on the Market size pillar (99.2, second behind China). the highest levels of ICT adoption in the world (6th). In all All these factors contribute to the country’s vibrant of these areas, the UAE is either at the global frontier or innovation ecosystem, making it a `super innovator’ less than 20 points away from it. Sizeable investments (86.5, 2nd behind Germany). Although the country’s in technological readiness have yet to fully turn into institutional framework remains very conducive (74.6, increased innovation capability (pillar 12), where the 13th), there are indications of a weakening social fabric country lags further behind, ranking 35th globally and (63.3, down from 65.5) and worsening security situation at only half the theoretical global frontier. The quality of (79.1, 56th)—the United States has a homicide rate the country’s human capital remains a key constraining five times the average for advanced economies—as factor, with the current workforce having on average less well as relatively low checks and balances (76.3, 40th), than 10 years of schooling and the labour market still judicial independence (79.0, 15th), and transparency characterized by inefficient use of the available pool of (75.0, 16th). Aspects of corporate governance (70.0, talent (61st). To fully unlock the innovative potential of its 22nd) could also be improved. The country also lags economy, the UAE should consider continuing the path behind most advanced economies on the Health of reforms to spur business dynamism and increase pillar—a consequence of the country’s unequal access the efficiency of product markets, particularly in the to healthcare and broader socio-economic disparities. service sector. Recent improvements of the insolvency framework represent a positive step in this direction.
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Healthy life expectancy is 67.7 years (46th), slightly component of the GCI 4.0, while South Asian economies fewer than Sri Lanka and China, three years below the apply an average tariff rate of 15% to imports from the average of advanced economies, and six years less than rest of the world. Investment flows and integration into Singapore and Japan. Finally, ICT adoption is relatively global value chains have also, so far, been rather limited. low compared to other advanced economies. With a score of 71.2, the United States trails Korea by a full While some countries in the region have managed 20 points. Only 76% of the adult population uses the to localize segments of global industries—in terms of internet on a regular basis, 7% below the OECD average. both services and manufactured goods—all will need to increase their innovation capacity and technological Canada ranks 12th overall with a score of 79.9, readiness in order to move towards higher value-added behind three Scandinavian countries: Sweden (9th), processes and productions. ICT adoption Denmark (10th) and Finland (11th). Canada’s performance and innovation capability are the two areas where the across the 12 pillars is generally strong. Canada features region lags even further behind the rest of the world, in the top 10 of only two pillars: Macroeconomic stability, with the region’s median performance at only one-third where the country has a perfect mark of 100, along with of the global theoretical frontier. Ranked 31st, India others, and Labour market (77.0, 6th). Canada’s labour punches significantly above its weight in terms market is characterized by high flexibility, combined of innovation capability, and is an outlier in the region, with very strong workers’ protections and gender with the second-best country, Pakistan, following parity for labour force participation. The country is far behind at 75th. Interestingly, these two countries fairly innovative (75.0, 13th), but not yet an innovation demonstrate the region’s lowest levels of technological powerhouse. It trails its neighbor and other leaders, readiness, confirming the challenge for large emerging Germany, Switzerland and Taiwan (China) by 10 points. economies to fully integrate their entire population— Among the causes is the relatively low spending on R&D especially those living in the most remote areas—into (1.6% of GDP, below the OECD average of 2%, and less modernization processes. than half the share of the biggest spenders). As for the softer drivers of innovation and competitiveness, Canada India leads the region in all other areas of ranks first in terms of diversity (81.7). Yet its level of ICT competitiveness except for health, education and adoption is very low (68.6, 34th) and represents the skills, where Sri Lanka boasts the highest healthy life weakest aspect of Canada’s performance. The cost of expectancy (67.8 years) and the workforce with the mobile data and services is one of the highest among highest amount of schooling (9.8 years). These two advanced economies, which hinders adoption. countries are also the ones that can rely on the most efficient infrastructure system. India has invested more South Asia heavily on transport infrastructure and services, while Sri South Asia continues to show strong economic growth Lanka has the most modern utility infrastructure. and an improved macroeconomic outlook on the back of reforms in some of the world’s largest countries. India ranks 58th (62.0) and has demonstrated GDP growth is expected to pick up in 2018, reaching sizeable improvements over the past year. Compared an average of 7.1%, confirming the region as one of the with the 2017 backcast edition, India is up five places, world’s fastest-growing. India remains the region’s main the largest gain among G20 economies. India is a driving force, but the acceleration is widespread and remarkable example of a country that has been able encompasses all the countries in the region, with the to accelerate on the pathway to innovation (where it exception of Nepal where a slowdown is expected after now ranks 31st, with a score of 53.8), due, particularly, the fast recovery of 2017 when the country rebounded to the quality of its research institutions. In spite of a from the aftermath of the 2015 earthquake. On average, high degree of entrepreneurship (61.1, 23rd), business the region is burdened by both higher levels of public dynamism is hampered by administrative hurdles. While debt than other emerging economies, and—in some Indian companies can access the 3rd largest market countries—large current account deficits. However, in the world (which translates into a perfect mark of lower commodity prices have contributed to keep 100.0 on the Market size pillar), the country would inflation low and international accounts more balanced benefit from increased trade openness (136th) to drive in recent years. productivity growth. More investments will be necessary to spur innovation beyond hubs of excellence and In spite of growing international flows, South Asia diffuse economic growth more broadly. This includes remains the region with the lowest trade penetration in continuing to widen the adoption of ICT technologies the world, with imports and exports of both services and (28.0, 117th) and improving the quality and conditions merchandise goods amounting to approximately 39% of human capital across the country, taking advantage of regional GDP in 2017. It is not surprising, then, that of an extremely young population. India currently ranks the country in the region that is most open to foreign 108th on the Health pillar and 96th on the Skills pillar of competition—Bangladesh—ranks only 125th on this the index.
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Sub-Saharan Africa of private investments and the availability of public The economic prospects of Sub-Saharan Africa are at capital necessary to develop infrastructure, improve the crossing point. The average GDP growth of the region education system and provide social services. has fallen below 5% since 2015 and is expected to grow at 3.4% in 2018. After having benefitted from a Within Sub-Saharan Africa, Southern African period of fast growth driven by strong foreign demand countries have achieved a relatively higher and high commodity prices, economies in the region competitiveness performance (48.0) compared to East need to strengthen their fundamentals to become more Africa (46.8) and West Africa (44.5). Regional differences resilient to commodity price shocks and to compete are greater when looking at ICT adoption, Skills and successfully in the technology-driven global economy. Financial System pillar scores, where Southern Africa To date, Sub-Saharan Africa, with an average score of performs, on average, 8.3, 8.9 and 8.7 points higher 46.2, has the lowest GCI score among all regions and than West Africa. These differences are even more demonstrates the weakest average regional performance prominent at country level. The score attained by the on 10 out of the 12 pillars. In only five pillars does the regional leaders (Mauritius, 63.7, and South Africa, 60.8) average score exceed 50, including in Labour market are almost twice as large as those of the two least (53.8), Product market (50.4) and Business dynamism competitive economies. Some economies have emerged (51.1). These factors herald the possibility to leapfrog, by as regional leaders on specific domains. Kenya, the more adeptly tapping into digital business models and most competitive economy in East Africa, is developing private sector development. However, to be able to do into one of the region’s strongest innovation hubs (36.5 so and to digitally-transform their economies, countries on the Innovation capability pillar), comparable to South in this region need to improve quickly on ICT adoption Africa and Mauritius. Rwanda, with a score of 64.4, (29.6) and human capital. For example, less than half leads Africa in terms of institutional quality, followed by of the adult population has access to the internet, and Mauritius (62.8), Namibia (57.2) and Ghana (55.7), the subscriptions to broadband telecommunication services most competitive economy in West Africa. are extremely low in most of the region’s economies. On the human capital side, the region still has the weakest Mauritius ranks 49th globally. With a score of 63.7 health conditions in the World (46.4 on the Health pillar) out of 100 it achieves the best performance in Sub- while the skills of the population (43.4 on the Skills pillar) Saharan Africa, in line with 2017. Mauritius’s leading need to be updated to transform into a better-trained position in the region is reflected in a GDP growth workforce. After successfully increasing participation in consistently above 3% since 2006, and above 4% over education, the next challenge for the region’s economies the past three years. The competitiveness performance will be to improve the quality of teaching and provide of Mauritius is relatively strong in eight of 12 GCI pillars, young people with the digital and cognitive skills required where it ranks 67th or higher. Among these eight pillars by the economy of the future. Mauritius has achieved its best score on the Product market pillar (65.6, 19th), thanks to a high degree of In addition, the issue of unsustainable levels of openness (6th) and a non-distortive fiscal policy (62.6, public debt is returning as a source of concern following 16th). In addition, Mauritius is characterized by strong the period 20042014 when public debt seemed to be business dynamism (66.5, 35th) and sustained by lean shrinking. After the end of the commodity super-cycle administrative requirements (83.2) that enable companies in 2015, public revenues have decreased, but public to open and close with relative ease. Finally, Mauritius spending did not follow suit. On average, the public has achieved a strong performance on the Institutions debt-to-GDP ratio in Sub-Saharan Africa shot up from pillar (38th, 62.9), second only to Rwanda in the region. 32.4% in 2014 to 45.9% in 2018.5 For some countries This is a considerable competitive advantage in Sub- this trend has been particularly remarkable. For example, Saharan Africa, where 65% of economies score below public debt in Zambia doubled between 2014 and 2015 50. On the other hand, the pillars where Mauritius and is currently at 65.5% of GDP. Similarly, public debt delivers a weaker performance are those related to in Angola increased from 32.9% in 2013 to 79.8% in human capital: the Labour market (58.3, 74th), Skills 2016, and in Mozambique it rose from 53.1% to 118.7%. (61.0, 74th) and Health (77.7, 83rd) pillars. In particular, Some countries have managed to maintain control on Mauritius is penalized by high redundancy costs (73.6 their public finance, showing that an alternative path weeks of salary, 136th) and limited participation in the is possible. Notably, Botswana, with a public debt of various levels of the educational system (6.8 mean years just 15.6% and inflation at just 3%, has maintained a of schooling, 106th). very stable macroeconomic environment over the past decade. Nonetheless, the difficulty of most economies in South Africa ranks 67th globally—with a score the region to adjust to lower revenues and manage fiscal of 60.8—and attains the second spot in Sub-Saharan policy raises questions about the sustainability of public Africa. Among its strengths, South Africa is home to a debt, with impending consequences for the attraction large market size (68.4), good infrastructure (68.6) and a well-developed financial system (82.1, 18th). More specifically, South Africa’s financial sector offers a
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relatively balanced access to various sources of finance, including credit (100.0, 11th), venture capital (33.0, 63rd), equity (100.0, 2nd) and insurance (100.0, 3rd). In addition, South Africa’s innovation capability is relatively advanced (44.3, 46th), although limited by insufficient research and development (37.5).
Among its weaknesses, South Africa’s performances on the Health pillar (43.2, 125th) and Security (43.7, 132nd) sub-pillar are among the worst in the world. Driven by high incidence of communicable diseases and high rate of homicides (34 per hundred population, 135th), these factors are major challenges for the economic and human development of the country.
Low ICT adoption (46.1, 85th) is another important restraint on South Africa’s competitiveness. Only 54% of the adult population has access to the internet, and only 70 out of 100 people have subscribed to mobile-broadband services (66th). Similarly, the digital skills (116th) and critical thinking skills (78th) of the current workforce are inadequate for the progress of a successful economy in the Fourth Industrial Revolution.
1 Income level corresponds to gross national income (GNI) per capita, as established by the World Bank for the period 2018 2019.
2 World Bank, 2018. 3 IMF, 2018b. 4 See European Central Bank. 5 IMF, 2018b.
European Central Bank, Eurosystem/ECB staff macroeconomic projections for the euro area, available at https://www.ecb.europa. eu/pub/projections/html/index.en.html.
International Monetary Fund, IMF Regional Economic Outlook: Caucasus and Central Asia, May 2018, 2018.
------, World Economic Outlook 2018, Cyclical Upswing, Structural Change, 2018.
World Bank, World Bank East Asia and Pacific Economic Update, October 2018: Navigating Uncertainty, 2018.
36 | The Global Competitiveness Report 2018 CHAPTER 3 This chapter presents the new Global Competitiveness Index 4.0 methodology. Building on the original idea of Benchmarking Professor Klaus Schwab and the guidance of Professor Competitiveness Xavier Sala-i-Martin of Columbia University, the GCI in the Fourth 4.0 is the culmination of a rigorous process initiated Industrial Revolution: in 2015 involving extensive review of the empirical Introducing the Global literature and numerous workshops and consultations. Competitiveness Dozens of experts and practitioners from academia, Index 4.0 international organizations, NGOs, think tanks, central banks and governments provided input and feedback on conceptual and technical aspects to incorporate the newest theories and indicators into the index.1
The need to update the competitiveness index was made clear by the combination of the ongoing effects of the 2008’s Great Recession and the gathering pace of the Fourth Industrial Revolution (4IR). The Great Recession has taught us that financial crises can have long-lasting effects on productivity. Prolonged periods of under-investment caused by a financial meltdown can lower the long-run growth trajectory, setting the economic system on to a less prosperous path, even after the financial sector eventually rebounds.2 At the same time, the advent of the 4IR is producing, among other effects, an acceleration of the innovation cycle and causing business models to become obsolete at a faster rate. This process of constant creative destruction generates opportunities for new entrants and reduces the barriers to transfer technology or innovate, but also requires managing frequent industry disruptions. To respond to these challenges prosperous economies need to put in place appropriate mechanisms to reduce the risk of new financial crises and to govern the socio-economic effects of innovation. In other words, successful economies in the 4IR era need to:
- Be resilient, building buffers and economic
mechanisms to prevent financial crises or mass unemployment and to respond to external shocks.
- Be agile, embracing change rather than resisting
it. Companies, public policy-makers and workers should be able to quickly adapt how they operate and to take advantage of the opportunities to produce goods or provide services in new ways.
- Build an innovation ecosystem where innovation
is incentivized at all levels and all stakeholders contribute to create the best conditions for new ideas to emerge, to be financed and commercialized as new products and services.
- Adopt a human-centric approach to economic
development. This means recognizing that human capital is essential for generating prosperity and that any policy that adversely affects human factors’ potential will reduce economic growth in the long run. As a consequence, policy-making will
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Box 1: Navigating the GCI 4.0 in light of the Fourth Industrial Revolution’s (4IR) key concepts
The development of the GCI 4.0 has been guided by the when legal formalities are not taxing. Labour market flexibility emergence of new fundamental changes in the functioning (another sub-pillar) implies agility through easier re-allocation of national economies with the advent of the Fourth Industrial of talent across sectors and firms. Revolution (4IR). These concepts span across multiple factors captured by the GCI (see Figure 1). While organizing the index The innovation ecosystem encompasses all pillars. methodology across 12 pillars provides a clear structure Although business dynamism and innovation cabability are for the computation of the index, and for actionable policy the factors impacting innovation more directly, these need indications, it is also informative to look at the 12 pillars to be complemented by high levels of human capital (health, through the lens of the four meta-concepts described in education and skills); optimal allocation of skills (labour this chapter: resilience, agility, innovative ecosystems and market functioning); and availability of venture capital and a human-centric approach. Looking at the GCI from this ad-hoc financial products (financial system development). perspective enables interpreting the pillars as 4IR-readiness A strong innovation ecosystem also presumes sound measures. infrastructure, ICT readiness and institutions that allow ideas to flow and protect property rights, and a large market size The concept of resilience is reflected in the Financial that incentivizes the generation of new ideas. system pillar (pillar 9), which includes measures to minimize the risk of a financial meltdown and resources to adjust to The human-centric approach to development is external shocks. By the same token, the Macroeconomic embodied by the Health (pillar 5) and Skills (pillar 6) pillars, stability pillar (pillar 4) captures the extent to which a country’s which together account for one-sixth of the total GCI score public sector can provide appropriate counter-cyclical and take a broad approach to human capital: health is measures and invest in projects that the private sector cannot thought of as a state of complete physical, mental and social finance. Similarly, the Skills pillar (pillar 6) captures workers’ well-being, not merely the absence of disease or disabilities;2 capacity to learn and adapt to changing circumstances. education measures the skills humans need to thrive in the 4IR. The Labour market pillar (pillar 8) includes measures The concept of agility is present in the Domestic market of talent reward and respect of workers’ rights, while the competition and Entrepreneurial culture sub-pillars of the Innovation capability pillar (pillar 12) includes measures that index1 because they imply greater capacity for “creative capture human collaboration, interaction and creativity. destruction”, allowing innovative companies to emerge against incumbents and rewarding a risk-taking attitude. Notes In addition, the concept is present in the Public-sector performance sub-pillar: low levels of bureaucracy make it 1 See the detailed structure in Appendix A. easier for businesses to re-organize and re-invent themselves 2 This definition is based on the preamble to the World Health Organization’s Constitution. See WHO, 1946.
have to ensure that the speed of change and the The Global Competitiveness Index 4.0 evaluates the introduction of new technologies ultimately translate factors that collectively determine the level of a country’s into better living conditions. productivity—the most important driver of long-term improvements in living standards.4 Box 1 shows how to interpret the GCI 4.0 in light of these concepts. The factors are organized into 12 pillars, and for presentation purposes they are grouped into four THE GCI 4.0 FRAMEWORK categories (Enabling environment, Human capital, Markets and Innovation ecosystem), as shown in The review process not only updated concepts and Figure 1. While maintaining its predecessor’s objective, statistics, but also offered an opportunity to reflect the GCI 4.0 has re-considered what determines on the scope of the GCI. The GCI 4.0 is focused on productivity and its measurement: Of the 98 indicators, the institutions, policies and other factors that drive 34 have been retained from the previous methodology productivity.3 For, as explored in Chapter 1, productivity while the other 64 indicators are new. Appendix C ultimately determines long-term economic growth, and, presents the detailed structure of the index and the although there can be trade-offs between economic definition of each variable. The new methodology prosperity and environmental or social goals, raising captures all the factors identified by the literature productivity is a necessary pre-condition towards greater and by experts as important for productivity in the era human development. of the 4IR.
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Figure 1: The Global Competitiveness Index 4.0 2018
Enabling Environment Markets
Pillar 1 Pillar 7 Institutions Product market
Pillar 2 Pillar 8 Infrastructure Labour market
Pillar 3 Pillar 9 ICT adoption Financial system
Pillar 4 Pillar 10 Macroeconomic stability Market size
Human Capital Innovation Ecosystem
Pillar 5 Pillar 11 Health Business dynamism
Pillar 6 Pillar 12 Skills Innovation capability
Pillar 1: Institutions Pillar 3: ICT adoption What does it capture? Security, property rights, social What does it capture? The degree of diffusion of specific capital, checks and balances, transparency and ethics, information and communication technologies (ICTs). public-sector performance and corporate governance. Why does it matter? ICTs reduce transaction costs and Why does it matter? By establishing constraints, both speed up information and idea exchange, improving legal (laws and enforcement mechanisms) and informal efficiency and sparking innovation. As ICTs are general (norms of behaviors), institutions determine the context purpose technologies increasingly embedded in the in which individuals organize themselves and their structure of the economy, they are becoming as necessary economic activity. Institutions impact productivity, mainly as power and transport infrastructure for all economies. through providing incentives and reducing uncertainties.5 Pillar 4: Macroeconomic stability Pillar 2: Infrastructure What does it capture? The level of inflation and the What does it capture? The quality and extension of sustainability of fiscal policy (see Box 2 for further transport infrastructure (road, rail, water and air) and explanation). utility infrastructure. Why does it matter? Moderate and predictable inflation Why does it matter? Better-connected geographic areas and sustainable public budgets reduce uncertainties, have generally been more prosperous. Well-developed set returns expectations for investments and increase infrastructure lowers transportation and transaction costs, business confidence—all of which boost productivity. and facilitates the movement of goods and people and Also, in an increasingly interconnected world where the transfer of information within a country and across capital can move quickly, loss of confidence in borders. It also ensures access to power and water—both macroeconomic stability can trigger capital flight, with necessary conditions for modern economic activity. destabilizing economic effects.
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Box 2: Debt dynamics in the Macroeconomic stability pillar1
The Macroeconomic stability pillar (pillar 4) aims to measure · Country credit ratings, to capture qualitative and the main factors impacting countries’ competitiveness via the confidence aspects (Sources: Fitch, S&P, Moody’s)5 investment decision channel. It is based on two indicators: Inflation (4.01) and Debt dynamics (4.02). The importance of · A country’s development status, based on whether the inflation for economic stability is well grounded in literature IMF categorizes it as either “Advanced” or “Emerging/ and policy—inflation is an explicit target of monetary Developing” authorities who aim at keeping it within a certain range (the target of European Central Bank, US Federal Reserve, Each country is assigned into a bracket, based on Bank of Japan and Bank of England is 2%). Debt dynamics its credit rating, debt level and development status. The aims to approximate the sustainability of public finance. Its Debt dynamics indicator is computed by applying different computation is relatively complex and requires adopting normalization thresholds according to the bracket to which a goalposts that are not fully established in the literature. This country is assigned. Table 2.1 below summarizes the details box explains its conceptual idea and its implementation in the of the methodology. Within each bracket, the exact score context of the GCI. depends on the absolute change in debt level. If there is no change or debt is decreasing, the score is the upper-bound Over the past three decades, economists have been value. If the increase is of 20 percentage points or more, the debating whether high public debt matters for economic score is the lower-bound value. Between the extreme values, development. There is consensus that countries cannot the score is obtained by interpolation: sustain unlimited amounts of debt—it would clearly be unsustainable if, for instance, interest payments were to debt change exceed GDP—but there is no consensus on the level of score upper (upper lower) 20 debt at which countries’ economies begins to suffer. Some economists believe that negative effects on long-term For example, consider a developing country whose growth kick in when debt reaches around 100% of GDP.2 rating is defined as “speculative”, the debt-to-GDP ratio Others have found no causal relationship between debt and is below 50% and the debt change is 20. Based on the economic growth,3 making it hard to define a particular level methodology detailed in Table 2.1, this country will receive a of debt at which a country’s growth would start to decline. score of 50. Had the same developing country registered a debt change of 10 its score would have been 55. The lack of consensus around the level beyond which public debt becomes too large suggests the need for taking This methodology has the merit of incorporating all into account other factors. The new indicator draws on the relevant information in one indicator. However, we debt dynamic literature4 and assesses a country’s debt acknowledge some limitations that depend on lack of data6 change based on four elements: and definition of thresholds. In particular, because of lack of sufficient data availability, this indicator does not take into
- Debt-to-GDP levels, to control for the initial level of debt account the size and liquidity of public assets. Everything
(Source: IMF’s World Economic Outlook) else being equal, the debt of countries with larger and more liquid public assets, should be more sustainable.7 Although
- Projected change in debt, to control for how much this information is partially reflected in credit ratings, using
the debt of a country is growing (Source: IMF’s World “net debt” (gross debt minus public assets) would be Economic Outlook) beneficial. Also, the debt dynamics indicator should consider
Table 2.1: Cases for computing Debt dynamics (indicator 4.02) score
Case Lower and upper bounds used to normalize debt change Credit rating “Default” 0 < Score < 30 Credit rating “n/a”—High debt 30 < Score < 40 Credit rating “n/a”—Low debt 40 < Score < 50 Credit rating “Speculative”—Developing country—High debt ( >60%) 30 < Score < 40 Credit rating “Speculative”—Developing country—Low debt (< 60%) 40 < Score < 50 Credit rating “Speculative”—Advanced country—High debt (>110%) 40 < Score < 50 Credit rating “Speculative”—Advanced country—Low debt ( <110%) 50 < Score < 60 Credit rating “Investment 2”—High debt ( >110%) 60 < Score < 70 Credit rating “Investment 2”—Low debt ( <110%) 70 < Score < 80 Credit rating “Investment 1”—High debt ( >110%) 80 < Score < 90 Credit rating “Investment 1”—Low debt ( <110%) Credit rating “Investment 1”—Very low debt ( <60%) 90 < Score < 100
40 | The Global Competitiveness Report 2018
Box 2: Debt dynamics in the Macroeconomic stability pillar1 (cont’d.)
the proportion of the debt denominated in foreign currency— 2 See, among others, Reinhart and Rogoff, 2010; Kumar and Woo, which raises the risk of an exchange rate depreciation 2010; Cecchetti, Mohanty and Zampolli, 2011. increasing the country’s interest’s bill, a particular concern for many developing countries8 and the proportion of the 3 See, for example, Panizza and Presbitero, 2012, or Égert, 2015. debt owed to foreigners, which is riskier because governments cannot tax non-citizens.9 With respect to 4 For a formal definition refer to Escolano 2010. the definition of thresholds, the empirical evidence on the impact of different levels of debt on its sustainability is 5 The general credit rating for each country is computed as the inconclusive. As a consequence we base our definition on average of Fitch, Standards and Poor’s (S&P) and Moody’s credit the statistical distribution of the current cross-country ratings. A country’s rating is considered “investment grade 1” for distribution of debt-to-GDP ratio. Given the large confidence S&P’s grades AAA to A, Moody’s grades Aaa to A1, and Fitch’s intervals in determining thresholds, we have been grades AAA to A. A country’s rating is considered “investment conservative in calibration, with most countries attaining a grade 2” for S&P’s grades A- to BBB-, Moody’s grades Baa3 to score of 30 or higher. As new data and new empirical Baa1, and Fitch’s grades A- to BBB+. A country’s rating is con- evidence become available, the methodology will be revised sidered “speculative” for S&P’s grades BB+ to CCC+, Moody’s accordingly. grades Ba3 to Caa2, and Fitch’s grades BBB- to B-. A country credit rating is considered “default” for S&P’s grade SD, Moody’s Despite these limitations this indicator provides a grades Caa1 and C, and Fitch’s grades CC and RD. practical way to assess a country’s fiscal situation more accurately than just its current debt-to-GDP ratio, or a 6 IMF, World Economic Outlook provides information on net debt combination of public debt level and budget balance. for 84 countries, and World Bank’s Quarterly Public Sector Debt database provides information on public debt in foreign currency Notes for 41 economies.
1 We would like to thank Ugo Panizza, Professor, International 7 Notably, the government of Singapore issues bonds that are Economics, Pictet Chair in Finance and Development, Graduate entirely invested in other assets. Singapore`s bonds are issued to Institute of International and Development Studies, Geneva, for his develop the domestic debt market rather than to finance the bud- comments and suggestions. get deficit.
8 Eichengreen, Hausmann and Panizza, 2002.
9 Gros, Daniel, 2011.
Pillar 5: Health Pillar 7: Product market What does it capture? Health-adjusted life expectancy What does it capture? The extent to which a country (HALE)—the average number of years a newborn can provides an even playing field for companies to expect to live in good health. participate in its markets. It is measured in terms of extent of market power, openness to foreign firms and Why does it matter? Healthier individuals have more the degree of market distortions.6 physical and mental capabilities, are more productive and creative, and tend to invest more in education as life Why does it matter? Competition supports productivity expectancy increases. Healthier children develop into gains by incentivizing companies to innovate; update adults with stronger cognitive abilities. their products, services and organization; and supply the best possible products at the fairest price. Pillar 6: Skills What does it capture? The general level of skills of the Pillar 8: Labour market workforce and the quantity and quality of education. What does it capture? It encompasses “flexibility”, While the concept of educational quality is constantly namely, the extent to which human resources can be re- evolving, important quality factors today include: organized and “talent management”, namely, the extent developing digital literacy, interpersonal skills, and the to which human resources are leveraged. ability to think critically and creatively. Why does it matter? Well-functioning labour markets Why does it matter? Education embeds foster productivity by matching workers with the most skills and competencies in the labour force. Highly- suitable jobs for their skillset and developing talent to educated populations are more productive because they reach their full potential. By combining flexibility with possess greater collective ability to perform tasks and protection of workers’ basic rights, well-functioning transfer knowledge quickly, and create new knowledge labour markets allow countries to be more resilient and applications. to shocks and re-allocate production to emerging segments; incentivize workers to take risks; attract and retain talent; and motivate workers.
The Global Competitiveness Report 2018 | 41
Pillar 9: Financial system Why does it matter? Countries that can generate What does it capture? The depth, namely the availability greater knowledge accumulation and that offer better of credit, equity, debt, insurance and other financial collaborative or interdisciplinary opportunities tend to products, and the stability, namely, the mitigation of have more capacity to generate innovative ideas and excessive risk-taking and opportunistic behavior of the new business models, which are widely considered the financial system. engines of economic growth.
Why does it matter? A developed financial COMPUTATION OF THE GCI 4.0 sector fosters productivity in mainly three ways: pooling savings into productive investments; improving the Of the 98 indicators composing the GCI 4.0 allocation of capital to the most promising investments methodology, 44 are sourced from the Forum’s through monitoring borrowers, reducing information Executive Opinion Survey (see Appendix C), and 54 asymmetries; and providing an efficient payment system. are based on statistics provided by reliable external At the same time, appropriate regulation of financial sources suppliers. The indicators were selected based institutions is needed to avoid financial crises that on four principles. First, they need to adequately capture may cause long-lasting negative effects on investments the concept identified by the review. Second, external and productivity. statistics have to come from trusted organizations that collect data according to high-quality standards. Pillar 10: Market size Third, it must be expected that the data will be updated What does it capture? The size of the domestic and periodically in the future. Fourth, data must have foreign markets to which a country’s firms have access. extensive geographical coverage and be available for at It is proxied by the sum of the value of consumption, least 75% of the economies covered by the GCI. investment and exports. As well as redefining concepts and measures, the Why does it matter? Larger markets lift productivity GCI 4.0 review updated the computation methodology, through economies of scale: the unit cost of production including how indicators are aggregated, scores are tends to decrease with the amount of output produced. normalized and missing data is treated. Large markets also incentivize innovation. As ideas are non-rival, more potential users means greater potential Aggregation and weights returns on a new idea. Moreover, large markets create The GCI 4.0 computation is based on successive positive externalities as accumulation of human capital and aggregations of normalized scores from indicators (the transmission of knowledge increase the returns to scale most disaggregated level) all the way up to the overall embedded in the creation of technology or knowledge. GCI score. Pillar and GCI scores are expressed on a 0 to 100 scale and are interpreted as “progress scores”, Pillar 11: Business dynamism indicating how close a country is to the ideal state. What does it capture? The private sector’s capacity to generate and adopt new technologies and new ways to The overall GCI score is the simple average of the organize work, through a culture that embraces change, 12 pillars, so each pillar’s implicit weight is 8.3% (1/12). risk, new business models, and administrative rules that The four components presented in Figure 1 (Enabling allow firms to enter and exit the market easily. Environment, Human Capital, Markets and Innovation Ecosystem) are used only for presentation purposes Why does it matter? An agile and dynamic private sector and do not enter into the calculation. The “stage increases productivity by taking business risks, testing of development”7 weighting scheme from previous new ideas and creating innovative products and services. versions of the GCI is no longer used. Instead, the In an environment characterized by frequent disruption same aggregation methodology is now applied to all and redefinition of businesses and sectors, successful countries. The rationale is that as the 4IR proceeds, all economic systems are resilient to technological shocks competitiveness factors will have a similar bearing on and are able to constantly re-invent themselves. countries’ competitiveness, regardless of their income levels. Automation will possibly reduce the feasibility Pillar 12: Innovation capability of developing a country relying on low labour costs What does it capture? The quantity and quality of in manufacturing. Rodrik (2015), for example, showed formal research and development; the extent to which that growth in many developing countries is led by a country’s environment encourages collaboration, services, while newly industrializing countries start to connectivity, creativity, diversity and confrontation across de-industrialize much earlier than has been the case different visions and angles; and the capacity to turn for Western countries. At the same time, ICTs are ideas into new goods and services. reducing information barriers and enabling rapid transfer of ideas, technologies and intangible products across
42 | The Global Competitiveness Report 2018
Box 3: Is the GCI 4.0 a valid measure of productivity? A formal statistical test
We define competitiveness as the set of institutions, policies and factors that determine a country’s level of productivity. If the GCI 4.0 is a good measure of competitiveness, then it should be strongly correlated with productivity levels. This analysis provides evidence that it is indeed the case.
If we knew the level of productivity for each country, the test would be simple: we would regress the GCI 4.0 on that measure of productivity and verify that its coefficient is positive and statistically significant. Lacking good measures of productivity levels, economists revert to use productivity growth. Following Solow (1957) they define total factor productivity (TFP) as the portion of GDP growth not explained by inputs of labour and capital, and compute TFP as the difference between GDP growth, the growth rate of capital (times the capital share), and the growth rate of human capital (times the human capital share). However, as we are interested in productivity level rather than in productivity growth we cannot follow this approach.
Hall and Jones (1999) tried to measure the level of productivity in a large cross-section of countries by subtracting the level of capital and the level of human capital from the level of GDP. That is, assume that the production function takes a Cobb-Douglas form: Yit = AitKiatL i1ta where Yit is GDP for country i at time t, Kit is the capital stock for country i at time t, Lit is the level of human capital for country i at time t, and a is the capital share (so 1 a is the labour share). Then we can take logarithms of both sides and get ln(Yit) = ln(Ait) + aln(Kit) + (1 a)ln(Lit). We could find a measure of ln(Ait) by subtracting aln(Kit) + (1 a)ln(Lit) from both sides to get ln(Ait) = ln(Yit) aln(Kit) + (1 a)ln(Lit).
However, data limitations prevent us from using this methodology. We have good data on GDP, so the first term can be easily estimated for many countries, but we would also need good measures of each economy’s aggregate capital stock and aggregate human capital. This is an almost impossible task, especially because we would need to measure not only the quantity of capital (both physical and human) but also its quality. Some studies have attempted to estimate these measures for a small sample of countries, but the estimates depend on a number of unrealistic assumptions and are not reliable.
The economic growth literature offers a simple alternative that requires only data on GDP: the conditional convergence regression developed by Mankiw, Romer and Weil (1992) and Barro and Sala-i-Martin (1992, 2004). The level of productivity determines the rate of return of an economy, and hence its growth rate; in other words, most growth theories—including the neo-classical growth theories of Solow-Swan or Ramsey-Cass-Koopmans—predict that the productivity level not only determines the level of income (as shown in the production function displayed above) but also its growth rate.1
Proceeding in three steps, then, we can derive a statistical theory that will tell us exactly what needs to be tested. First, we start from the fundamental equation of the Solow-Swan theory of growth.2 According to this theory, the growth of capital stock per person (k) is a function of the saving rate (s), GDP per capita (y), population growth (n) and capital depreciation (). Using the Solow -Swan formulation, and recalling that y = f(k), this is:
k·it = si f (Aitkit) (ni + i) (1)
Second, taking a log-linear transformation of equation (1), and using Taylor approximation,3 we can find that economic growth (GDP growth) is a negative function of the initial level of per capita income (GDP) of a country and its steady-state4 level of income per capita. This is:
it,t+T = b0 b1ln(yit) + b2ln(yi*) + it (2)
where it,t+T is the average annual growth rate of GDP per person for country i between times t and t+T, yit is the per capita GDP for country i at time t and yi* is the steady-state level of per capita GDP for country i and it is an error term. Equation (2) is a conditional convergence regression. It posits that the growth rate of capital per person is a function of the difference
between the initial level of income (that is, everything else being equal, poor countries should grow faster, a phenomenon
known as the “convergence effect”) and the steady-state level of income (that is, holding everything else constant, countries
that grow towards a higher target should be growing faster).
Third, we identify a proxy for the steady-state level of income per capita (y*). This depends on the theory of growth.
Using a Solow-Swan model with a Cobb-Douglas production function (see note 1), constant savings rate s, a constant rate of
[ ] population growth n and a constant depreciation rate , the steady state capital stock is given by ki* =siAi1/(1).
[ ] Consequently the steady state level of GDP per capita is yi* = Ai1/(1- )si /(1- ) .
Taking logs, we obtain:
ln(yi*) = 1 ln(Ai) + 1 ln( si ) (3) 1 +ni
Hence, plugging (3) into (2) and replacing A with GCI we have:
it,t+T = 0 1 ln(yit) + ~2 ln(Ai) + ~2 1 ln( si ) + it (4)
The Global Competitiveness Report 2018 | 43
Box 3: Is the GCI 4.0 a valid measure of productivity? A formal statistical test (cont’d.)
Where: ~ = 2 1 1
Equation (4) says that the growth rate of GDP per capita is a (negative) function of the initial level of per capita GDP
and a positive function of the level of productivity. It is also a positive function of the savings rate and a negative function of
the depreciation rate and the rate of population growth. Ignoring any of these terms would bias our estimates if the ignored
terms are correlated with the right hand side variables. However, the consumption literature shows that the savings rate is
uncorrelated with income. The population growth rate is slightly negatively related to income (population growth is the sum of
fertility minus mortality, or births minus deaths, and net migration; rich countries haveylio* w=eAri fertility but also lower mortality,
or larger life expectancy, and larger migration rates). Hence we believe that omitting 2 1 ln( si ) and putting it in the error term should not bias our estimates of b1 and b~2, and estimate the equation: +ni
it,t+T = 0 1 ln(yit) + ~2 ln(Ai) + wit (5)
Equation 5 says that the growth rate of GDP per capita between time t and time t+T is a negative function of the initial level of
GDP per capita and a positive function of productivity. Notice that to estimate this growth equation we need to hold constant
both ln(yit) and ln(Ai). If we omit ln(Ai) and this term turns out to be correlated with ln(yit), then our estimates of b1 will be biased towards zero. Similarly, if we regress growth on ln(Ai), ignoring ln(yit), we will also tend to find that b2 is biased towards zero. The correct equation is, therefore, a bivariate regression where both ln(Ai) and ln(yit) are held constant.
If, as we claim, the GCI estimate for country i is a good proxy for Ai, when we substitute the GCI for Ai in equation (5), we get:
it,t+T = 0 1 ln(yit) + ~2 ln(GCIi) + wit (6)
Hence, if the GCI is a good proxy for the level of productivity, then when we regress the growth rate of GDP per capita between t and t+T on the level of GDP per capita at time t and the GCI, we should get a negative coefficient on the initial level of GDP and a positive one on the GCI.
We apply this test for the period 1998 to 20185 by running the following regression:
log (GDPpc)i,19982018 = 0 1 logGDPpci,1998 + ~2 logGCIi,2018 + i,t (7)
Where log (GDPpc)i,19982018 is the annual growth rate in each country i6 computed as the difference in log GDP per capita
(PPP terms) between 1988 and 2018, logGCI is the log in the index score for the year 2018, and logGDPpc is GDP per capita
in PPP terms in 1988. If we are correct, we should find b~2 to be positive and b1 to be negative. Table 3.1 reports the results of the estimation of equation (7) with the ordinary least squares. We find that the coefficient
on the log of GCI is 0.0969 with a standard error of .015 and a t-statistic of 6.42, while the coefficient on the log of the initial
(i.e. 1988) level of income is 0.37 with a standard error of 0.002 and the t-statistic is 9.04. Both achieve a significance level
of 99%. This validates our hypothesis: the GCI is indeed highly correlated to productivity.
Table 3.1: GCI and productivity test result
Dependent variable Annual GDP growth between 1998 and 2018 Log (GCI 4.0, 2018) 0.0969*** (0.015) Log (GDP per capital, 1998) 0.0186*** (0.002) Constant 0.205*** (0.046) Observations 137 R-squared 0.489
Note: Cross-section OLS (Ordinary Least Square) regression estimated with robust standards of error. Observations correspond to the countries covered by the GCI. In addition, *** denotes p-value < 0.01. Standards of error are in parentheses.
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Box 3: Is the GCI 4.0 a valid measure of productivity? A formal statistical test (cont’d.)
To visualize these results in a graph, we can plot the partial correlation between the net growth7 and the GCI, which is the growth rate netted out of the convergence factor. Figure 3.1 shows that there is a strong correlation between the GCI and the net growth rate, providing a visual demonstration of the statistical test provided above.
Figure 3.1. Correlation between GCI 4.0 and net growth rate
Net growth rate
0.4
0.3
0.2
3.50 3.75 4.00 4.25 4.50 Log GCI 4.0
Note: Adjusted R2 = 0.70.
1 In both Solow-Swan and Ramsey growth models the growth rate depends on A. In fact, with Cobb-Douglass production function, y = Aka, and y· = (1a)gak· where g is the growth rate of A, a is the capital share and is k·it = sAitkiat (n ).
2 We could also use the Ramsey-Cass-Koopmans theory as a guide. As shown by Barro and Sala-i-Martin (1992) and Barro and Sala-i- Martin (2004) Chapter 2 and Chapter 12, the end result is identical although the derivation is a bit more complicated.
3 For a derivation refer to Barro and Sala-I-Martin, 1992; and Barro-Sala-i-Martin, Economic Growth, second edition, MIT Press, 2004, p. 57.
4 The steady state is a situation in which the growth of capital per unit of effect labor is 0(k·) and exogenous variables grow at a constant rate. The steady-state level of per capita GDP is, in a way, the target towards which the economy is going.
5 For 2017 and 2018 data we use IMF estimates.
6 i corresponds to 137 country observations available for the GCI 2018; GDP per capita data is obtained from IMF Word Economic Outlook 2018, April edition.
7 Technically the net growth rate is computed as: net growth = log (GDPpc)i,19982018 1logGDPpci,1998b^, where b^ is the
estimated parameter obtained from regression (5). 20
the globe, opening new opportunities for developing Normalization of scores economies. Drawing from these learnings the GCI 4.0 is less prescriptive about the path to prosperity, rewarding The normalization of all 98 individual indicators in the GCI countries that leapfrog, and penalizing those that neglect any aspect of competitiveness, regardless of their stage 4.0 is based on a min-max approach. Each indicator’s of development. value is converted into a unit-less “progress score”
ranging from 0 to 100. These normalized scores are then
combined to produce pillar and index scores. Formally,
we have:
score i,c value i,c wpi 100, frontieri wpi
The Global Competitiveness Report 2018 | 45
where valuei,c is the raw value of country c for indicator i; NOTES wpi (worst performance) is the value at, or below which the score is 0; and frontieri is the value corresponding 1 See World Economic Forum, 2017, pages 359360. to the ideal value at or above which the score is 100. Depending on the indicator, this may be a policy target 2 This idea incorporated the concept of hysteresis (see for instance or aspiration, the maximum possible value, or a number Dixit, 1992). derived from statistical analysis of the distribution (90th or 95th percentile). If a value is below the worst 3 This definition can be considered an extension of Hall and Jones’s performance, its score is 0; if a value is above the frontier idea of social infrastructure: “Our hypothesis is that differences in value, its score is capped at 100. capital accumulation, productivity, and therefore output per worker are fundamentally related to differences in social infrastructure In the case of indicators where a higher value across countries. By social infrastructure we mean the corresponds to a worse outcome (e.g. Terrorism institutions and government policies that determine the economic incidence to power losses), the normalized score environment within which individuals accumulate skills, and firms becomes 100 , so 100 always corresponds to the accumulate capital and produce output”. ideal outcome. 4 Economic literature recognizes productivity (total factor The “progress score” shows the level attained by productivity) as the main factor explaining income differences a country in any given year with respect to the frontier across countries and growth perspectives. See Mankiw, Romer set in the 2018 edition, and it informs on how a country and Weil, 1992; Hall and Jones, 1999; Barro, 1996; and OECD, moves towards or away from the frontier over time. 2016. Table 2 in Appendix C reports the wpi and frontieri scores. 5 For a detailed and comprehensive literature review of the empirical literature underpinning the selection of indicators for the GCI 4.0, Imputation refer to World Economic Forum, 2015. In the GCI 4.0 methodology, the missing data points are imputed.8 Approximate estimates are preferred 6 We focus on the distortionary effect of taxes on productivity rather to missing values because, in arithmetic means, the than their redistribution effect. number of indicators included implicitly defines the weight of each indicator. Consequently, imputation 7 The previous GCI methodology applied different weights to avoids assigning greater weight to available indicators in different factors to countries according to income per capita and a category that contains missing values. It is also hoped mineral exports. For more details refer to Global Competitiveness that this approach will encourage the production of Report, 20172018, pp. 320322. reliable statistics. 8 Missing values in the “Railroad density” and “Liner shipping The imputation method for each indicator is based connectivity index” indicators are not imputed when a country has either on econometric models or on the performance strategically decided not to develop a railroad network or is land- of peer countries.9 Imputation estimates based on locked, respectively. regression methods correspond to the predicted value of a cross-country ordinary least-squared regression 9 Peer groups of countries are defined in terms of the combination using an indicator-specific set of regressors. These of their region and income level. The income levels are low income, are selected based on their correlation with the non- upper-middle income, lower-middle income, and high income, and missing values of the dependent variable. Peer country are based on World Bank’s classification. Regions are: South Asia, imputation consists of using the average score of a peer Europe, Middle East & North Africa, Sub-Saharan Africa, Latin group to fill in missing values of countries in that group America & Caribbean, Eurasia, East Asia & the Pacific, and North for a specific indicator. Imputed values are used for the America, and are based on the IMF’s classification. purpose of the computation but are not ranked and not reported in the ranking tables. Imputed values and REFERENCES description of the imputation method for each indicator are provided in Table 1 of Appendix C. Abdih, Yasser and Stephan Danninger, Understanding U.S. Wage Dynamics, IMF Working Paper 18/138, International Monetary As a result of these conceptual, statistical and Fund, 2018. methodological updates, the GCI 4.0 is an improved measure of countries’ productivity levels. Statistical Baharumshah, Ahmad Zubaidi, Siew-Voon Soon and Evan Lau, “Fiscal evidence of the soundness of the GCI as a productivity sustainability in an emerging market economy: When does public measure is provided in Box 3. debt turn bad?,” Journal of Policy Modeling, vol. 39, no. 1, 2017, pp. 99113.
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WHO (World Health Organization), Preamble to the Constitution of the World Health Organization as adopted by the International Health Conference, New York, 1922 June, 1946; signed on 22 July 1946 by the representatives of 61 States (Official Records of the World Health Organization, no. 2, p. 100) and entered into force on 7 April 1948. Available at http://www.who.int/about/definition/en/ print.html.
World Economic Forum, The Global Competitiveness Report 2014-2015, 2014.
------, The Global Competitiveness Report 2015-2016, 2015. ------, The Global Competitiveness Report 2017-2018, 2017.
The Global Competitiveness Report 2018 | 47 Economy Profiles How to Read the Economy Profiles
The Economy Profiles section presents a three-page profile for each of the 140 economies covered in The Global Competitiveness Report 2018.
PAGE 1 Albania 76th / 140
Performance overview Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 80th/135 This section details the economy’s performance on Europe and North America average the main components of the Global Competitiveness Performance Key Previous edition Upper middle income group average Index 4.0 (GCI). The chart in this section presents an Overview 2018 economy’s score on the overall GCI and on each of its 12 pillars. The economy’s rank (out of 140 economies) on Overall Enabling Human Markets Innovation each category is reported at the bottom of the chart. At Score Environment Capital Ecosystem the top of the chart, the three-letter code (ISO-3) of the best performer is reported (note that there are 31 best Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU performers on the Macroeconomic stability pillar and four best performers on the Health pillar). To the right 100 of each bar the performance of relevant benchmarks is reported: the economy’s score in the 2017 backcast 90 87 edition (diamond); the average score of the economy’s income group, based on the World Bank’s classification 80 (triangle); and the average score of the region to which the economy belongs (square). See the At a Glance 70 70 69 65 section on page xi for regional classification.
60 58 54 57 57 50 52
40 39
0
Rank /140 76th 68th 100th 74th 97th 45th 47th 58th 34th 105th 108th 48th 91st Overall Institutions Infrastructure Health Skills ICT Macro- Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 2.9 GDP (PPP) % world GDP 0.03 GDP per capita US$ 4,582.9 Unemployment rate % 13.9 3.0 5-year average FDI inward flow % GDP 8.6
Social and environmental performance 2.1 Global Gender Gap Index 0-1 (gender parity) 0.7 Environmental footprint gha/capita 4.1 Income Gini 0 (perfect equality) -1 (perfect inequality) 29.0
Contextual indicators year available, source: United Nations Conference This section presents a selection of contextual indicators, on Trade and Development, FDI/MNE database); as well as selected indicators of social and environmental Environmental footprint network (global hectares, 2014 performance, to complement the GCI. These indicators or most recent year available, source: Global Footprint are: Population (millions, 2017 or most recent year Network, National Footprint Accounts dataset); Inclusive available, source: International Monetary Fund, World Development Index (score/rank, 2018 or most recent Economic Outlook Database, April 2018); GDP per year available, source: World Economic Forum, Inclusive capita (US$, 2017 or most recent year available, source: Development Report 2018); Global Gender Gap Index International Monetary Fund, World Economic Outlook (score/rank, 2017 or most recent year available, source: Database, April 2018); 10-year average annual GDP World Economic Forum, The Global Gender Gap growth (% real terms, 2017 or most recent year available, Report 2017); Income Gini coefficient (0100, 2015 source: International Monetary Fund, World Economic or most recent year available, source: World Bank, Outlook Database, April 2018); Share of GDP in World Development Research Group, via the World Bank’s total (%, 2017 or most recent year available, source: World Development Indicators). International Monetary Fund, World Economic Outlook Database, April 2018); Unemployment rate (%, 2017 or most recent year available, source: International Labour Organization, ILOSTAT database, via the World Bank’s World Development Indicators database); 5-year average annual FDI inward flow (% of GDP, 2017 or most recent
The Global Competitiveness Report 2018 | 51 Economy Profiles Albania 76th /140
PAGES 23 Index Component Value Score * Rank/140 Best Performer Pillar 1: Institutions 0-100 (best) The Global Competitiveness Index in detail 1.01 Organized crime 1-7 (best) - 53.9 68 New Zealand These pages detail the country’s performance on each 1.02 Homicide rate /100,000 pop. 4.1 Finland of the 98 indicators that compose the GCI 4.0. Indicators 1.03 Terrorism incidence 1 (very high) - 7 (no incidence) 2.7 51.7 108 are organized by pillar. Refer to Appendix C for the 1.04 Reliability of police services 1-7 (best) 99.9 Multiple (9) detailed structure of the GCI, the definition of each 1.05 Social capital 0-100 (high) 5.0 92.5 70 Multiple (24) indicator, and computation methodology. 1.06 Budget transparency 0-100 (best) 45.1 1.07 Judicial independence 1-7 (best) 65.4 99.9 61 Finland For each indicator, the following information is 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.4 Australia reported: 1.09 Freedom of the press 0-100 (worst) 2.6 67.1 46 Multiple (2) 1.10 Burden of government regulation 1-7 (best) 29.5 Number, title and the units of measurement 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 4.9 45.1 109 Finland 1.12 E-Participation Index 0-1 (best) 3.0 Finland Indicator value for the economy under review 1.13 Future orientation of government 1-7 (best) 0.76 65.4 = 42 Norway 1.14 Incidence of corruption 0-100 (best) 3.9 Singapore Economy’s progress score on a 0 to 100 1.15 Property rights 1-7 (best) 38.0 22.9 126 Singapore scale following normalization (see Appendix C 1.16 Intellectual property protection 1-7 (best) 3.8 Multiple (3) for details) 1.17 Quality of land administration 0-30 (best) 3.5 27.3 114 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) 15.5 New Zealand Arrow indicating the direction of the change in 1.19 Conflict of interest regulation 0-10 (best) 4.5 70.5 62 Finland score since the previous edition, or the ”=” sign 1.20 Shareholder governance 0-10 (best) 7.7 Finland if the score has remained the same Pillar 2: Infrastructure 0-100 (best) 6.7 64.6 6 Singapore 2.01 Road connectivity index 0-100 (best) Finland Economy’s rank (out of 140) 2.02 Quality of roads 1-7 (best) - 33.8 102 Multiple (2) 2.03 Railroad density km of roads/square km 39.4 Kazakhstan Name of the best performer; that is, the economy 2.04 Efficiency of train services 1-7 (best) 75.84 58 attaining the best performance 2.05 Airport connectivity index (United States=100) 4.3 Singapore 2.06 Efficiency of air transport services 1-7 (best) 14.7 47.8 56 United States Albania 2.07 Liner Shipping Connectivity Index 0157.1 (best) 2.08 Efficiency of seaport services 1-7 (best) 1.3 38.0 77 Singapore Index Component 2.09 Electrification rate % pop. 8,289.1 Multiple (20) 2.10 Electric power transmission and distribution losses % output 46.3 111 Switzerland Pillar 1: Institutions 0-100 (best) 2.11 Exposure to unsafe drinking water % pop. 3.9 2.12 Reliability of water supply 1-7 (best) 7.2 41.8 106 Multiple (8) 1.01 Organized crime 1-7 (best) Pillar 3: ICT adoption 0-100 (best) 4.3 Singapore 1.02 Homicide rate /100,000 pop. 3.01 Mobile-cellular telephone subscriptions /100 pop. 100.0 51.7 = 70 Multiple (4) 1.03 Terrorism incidence 1 (very high) - 7 (no incidence) 3.02 Mobile-broadband subscriptions /100 pop. 17.1 Singapore 1.04 Reliability of police services 1-7 (best) 3.03 Fixed-broadband Internet subscriptions /100 pop. 13.1 58.7 78 Multiple (66) 1.05 Social capital 0-100 (high) 3.04 Fibre Internet subscriptions /100 pop. 3.7 Multiple (9) 1.06 Budget transparency 0-100 (best) 3.05 Internet users % pop. 77.0 = 16 Multiple (23) 1.07 Judicial independence 1-7 (best) Pillar 4: Macroeconomic stability 0-100 (best) - Switzerland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.01 Inflation annual % change 119.4 67.0 = 32 1.09 Freedom of the press 0-100 (worst) 4.02 Debt dynamics 0-100 (best) 69.3 Korea, Rep. 1.10 Burden of government regulation 1-7 (best) Pillar 5: Health 0-100 (best) 10.0 57.3 100 Multiple (68) 5.01 Healthy life expectancy years United Arab Emirates ON1L.11INEfEficieRncEySofOlegUalRfraCmEewSork in settling disputes 1-7 (best) Pillar 6: Skills 0-100 (best) 1.0 39.4 = 115 Switzerland Inte1.r1a2 cEt-PivaerticpipraotiofinleInsdeax n0d-1 (bseost)rtable rankings with detailed 6.01 Mean years of schooling Years 66.4 Korea, Rep. me1t.a13 iFnuftourremoraietnitoatnio,n oafsgowveernlml eanst 1d-7o(bwest)nloadable datasets, are 6.02 Extent of staff training 1-7 (best) 54.3 59 6.03 Quality of vocational training 1-7 (best) - Iceland 1.14 Incidence of corruption 0-100 (best) 6.04 Skillset of graduates 1-7 (best) 1.6 36.8 = 48 6.05 Digital skills among population 1-7 (best) 40.0 Multiple (31) ava1i.l1a5 bPlreopeartty hrigthtpts:1/-/7g(bcesrt.)weforum.org. 6.06 Ease of finding skilled employees 1-7 (best) 5.1 136 Multiple (74) 6.07 School life expectancy Years - Multiple (36) 1.16 Intellectual property protection 1-7 (best) 6.08 Critical thinking in teaching 1-7 (best) 67.8 30.1 102 1.17 Quality of land administration 0-30 (best) 6.09 Pupil-to-teacher ratio in primary education Ratio Multiple (4) 1.18 Strength of auditing and reporting standards 1-7 (best) - 48.8 96 Multiple (4) 1.19 Conflict of interest regulation 0-10 (best) 10.2 1.20 Shareholder governance 0-10 (best) 7.2 100 Finland 4.0 Finland Pillar 2: Infrastructure 0-100 (best) 3.9 54.7 59 Switzerland 4.2 Switzerland 2.01 Road connectivity index 0-100 (best) 4.7 100.0 = 1 Switzerland 2.02 Quality of roads 1-7 (best) 4.0 Sweden 2.03 Railroad density km of roads/square km 15.4 86.3 104 United States 2.04 Efficiency of train services 1-7 (best) 4.5 Multiple (9) 2.05 Airport connectivity index (United States=100) 18.2 88.6 76 United States 2.06 Efficiency of air transport services 1-7 (best) Multiple (6) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 45.5 111 2.08 Efficiency of seaport services 1-7 (best) 2.09 Electrification rate % pop. 52.3 74 2.10 Electric power transmission and distribution losses % output 2.11 Exposure to unsafe drinking water % pop. 99.5 70 2.12 Reliability of water supply 1-7 (best) Pillar 3: ICT adoption 0-100 (best) 3.01 Mobile-cellular telephone subscriptions /100 pop. 3.02 Mobile-broadband subscriptions /100 pop. n/a 59 3.03 Fixed-broadband Internet subscriptions /100 pop. 3.04 Fibre Internet subscriptions /100 pop. 66.4 59 52 3|.05ThIneteGrnloetbuasleCrsom% ppoept.itiveness Report 2018 Pillar 4: Macroeconomic stability 0-100 (best)
Value Score * Rank/140 Best Performer
- 53.9 68 New Zealand
4.1 Finland 2.7 51.7 108 99.9 Multiple (9) 5.0 92.5 70 Multiple (24) 45.1 65.4 99.9 61 Finland 2.4 Australia 2.6 67.1 46 Multiple (2) 29.5 4.9 45.1 109 Finland 3.0 Finland 0.76 65.4 = 42 Norway 3.9 Singapore 38.0 22.9 126 Singapore 3.8 Multiple (3) 3.5 27.3 114 Singapore 15.5 New Zealand 4.5 70.5 62 Finland 7.7 Finland 6.7 64.6 6 Singapore Finland
- 33.8 102 Multiple (2)
39.4 Kazakhstan 75.84 58 4.3 Singapore 14.7 47.8 56 United States
1.3 38.0 77 Singapore 8,289.1 Multiple (20) 46.3 111 Switzerland 7.2 41.8 106 Multiple (8) 4.3 Singapore 100.0 51.7 = 70 Multiple (4) 17.1 Singapore 13.1 58.7 78 Multiple (66) 3.7 Multiple (9) 77.0 = 16 Multiple (23)
- Switzerland
119.4 67.0 = 32 69.3 Korea, Rep. 10.0 57.3 100 Multiple (68) 1.0 39.4 = 115 Switzerland 66.4 Korea, Rep. 54.3 59
- Iceland
36.8 = 48 5.1 136
30.1 102
48.8 96
7.2 100
54.7 59
100.0 = 1
86.3 104
88.6 76
45.5 111
52.3 74
99.5 70
n/a 68
20.0 73
n/a 59
66.4 59
70.0 = 97 Index of Economy Profiles
Economy Page Economy Page Economy Page
Albania 55 Ghana 243 Nicaragua 431 Angola 59 Greece 247 Nigeria 435 Argentina 63 Guatemala Armenia 251 Norway 439 Austria 67 Guinea 255 Oman 443 Bahrain 71 Haiti 259 Pakistan 447 Bangladesh 75 Honduras Belgium 79 Hong Kong SAR 263 Panama 451 Benin 83 Hungary Bolivia 87 Iceland 267 Paraguay 455 Bosnia and Herzegovina 91 India Botswana 95 Indonesia 271 Peru 459 Brazil 99 Iran, Islamic Rep. Brunei Darussalam 275 Philippines 463 Burkina Faso 279 Poland 467 Cambodia 283 Portugal 471 Canada 287 Qatar 475 Chad 103 Ireland 291 Romania 479 China 107 Israel 295 Russian Federation 483 Colombia 111 Italy Congo, Democratic Rep. 115 Jamaica 299 Rwanda 487 Costa Rica 119 Japan Côte d’Ivoire 123 Jordan 303 Saudi Arabia 491 Croatia 127 Kazakhstan Cyprus 131 Kenya 307 Senegal 495 Czech Republic 135 Korea, Rep. Denmark 311 Serbia 499 Ecuador 315 Seychelles 503 El Salvador 319 Sierra Leone 507 Eswatini 323 Singapore 511 Finland 139 Kuwait 327 Slovak Republic 515 Gambia, The 143 Kyrgyz Republic 331 Slovenia 519 Georgia 147 Lao PDR Germany 151 Latvia 335 South Africa 523 155 Lebanon 159 Lesotho 339 Spain 527 163 Liberia 167 Lithuania 343 Sri Lanka 531 171 Luxembourg 347 Sweden 535
351 Switzerland 539
355 Taiwan, China 543
359 Tajikistan 547
175 Macedonia, FYR 363 Tanzania 551
179 Malawi 367 Thailand 555 183 Malaysia 187 Mali 371 Trinidad and Tobago 559 191 Malta 195 Mauritania 375 Tunisia 563 199 Mauritius 203 Mexico 379 Turkey 567 207 Moldova 211 Mongolia 383 Uganda 571
387 Ukraine 575
391 United Arab Emirates 579
395 United Kingdom 583
399 United States 587
215 Montenegro 403 Uruguay 591
219 Morocco 407 Venezuela 595 223 Mozambique 227 Namibia 411 Viet Nam 599 231 Nepal 235 Netherlands 415 Yemen 603 239 New Zealand 419 Zambia 607
423 Zimbabwe 611
427
The Global Competitiveness Report 2018 | 53 Albania Economy Profiles
76th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 80th/135
Performance Key Previous edition Upper middle income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 70 69 65
60 58 57 57 54 52
40 39
0
Rank /140 76th 68th 100th 74th 97th 45th 47th 58th 34th 105th 108th 48th 91st
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 2.9 GDP (PPP) % world GDP 0.03 GDP per capita US$ 4,582.9 Unemployment rate % 13.9 3.0 5-year average FDI inward flow % GDP 8.6
Social and environmental performance 2.1 Global Gender Gap Index 0-1 (gender parity) 0.7 4.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 29.0
The Global Competitiveness Report 2018 | 55 Economy Profiles 76th /140
Albania Value Score * Rank/140 Best Performer
Index Component - 53.9 68 New Zealand Pillar 1: Institutions 0-100 (best) 2.7 51.7 108 1.01 Organized crime 1-7 (best) 5.0 92.5 70 Multiple (24) 1.02 Homicide rate /100,000 pop. 45.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 65.4 99.9 61 Finland 1.04 Reliability of police services 1-7 (best) 2.4 Australia 1.05 Social capital 0-100 (high) 2.6 67.1 46 Multiple (2) 1.06 Budget transparency 0-100 (best) 29.5 1.07 Judicial independence 1-7 (best) 4.9 45.1 109 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.76 65.4 = 42 Norway 1.10 Burden of government regulation 1-7 (best) 3.9 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 38.0 22.9 126 Singapore 1.12 E-Participation Index 0-1 (best) 3.8 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.5 27.3 114 Singapore 1.14 Incidence of corruption 0-100 (best) 15.5 New Zealand 1.15 Property rights 1-7 (best) 4.5 70.5 62 Finland 1.16 Intellectual property protection 1-7 (best) 7.7 Finland 1.17 Quality of land administration 0-30 (best) 6.7 64.6 6 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 33.8 102 Multiple (2) 1.20 Shareholder governance 0-10 (best) 39.4 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.3 Singapore 14.7 47.8 56 United States 2.02 Quality of roads 1-7 (best) 1.3 38.0 77 Singapore 2.03 Railroad density km of roads/square km 8,289.1 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 46.3 111 Switzerland 2.05 Airport connectivity score 3.9 2.06 Efficiency of air transport services 1-7 (best) 7.2 41.8 106 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 4.3 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 51.7 = 70 Multiple (4) 2.09 Electrification rate % pop. 17.1 Singapore 2.10 Electric power transmission and distribution losses % output 13.1 58.7 78 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 3.7 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 77.0 = 16 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 119.4 67.0 = 32 69.3 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 10.0 57.3 100 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 1.0 39.4 = 115 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 66.4 Korea, Rep. 3.05 Internet users % pop. 54.3 59 Pillar 4: Macroeconomic stability 0-100 (best) 1.6 36.8 = 48 40.0 Multiple (31) 4.01 Inflation annual % change 5.1 136 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 67.8 30.1 102 Pillar 5: Health 0-100 (best) Multiple (4)
- 48.8 96 Multiple (4)
5.01 Healthy life expectancy years 10.2 7.2 100 Finland Pillar 6: Skills 0-100 (best) 4.0 Finland 3.9 54.7 59 Switzerland 6.01 Mean years of schooling Years 4.2 Switzerland 6.02 Extent of staff training 1-7 (best) 4.7 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.0 Sweden 6.04 Skillset of graduates 1-7 (best) 15.4 86.3 104 United States 6.05 Digital skills among population 1-7 (best) 4.5 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 18.2 88.6 76 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 45.5 111 57 | The Global Competitiveness Report 2018 99.5 70
66.4 59
Albania Economy Profiles
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 57.0 58 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.0 39.3 101 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.9 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.9 32.8 125 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 2.20 Hong Kong SAR 7.05 Trade tariffs % duty 5.6 65.6 67 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.3 Germany 7.07 Efficiency of the clearance process 15 (best) 19.4 64.4 28 7.08 Services trade openness 0-100 (worst) Ecuador
- 85.3 41
Pillar 8: Labour market 0-100 (best) 20.8 United States 76.7 72 Multiple (8) 8.01 Redundancy costs weeks of salary 4.2 8.02 Hiring and firing practices 1-7 (best) 4.9 33.7 111 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.7 80.6 = 36 8.05 Active Labour policies 1-7 (best) 80.4 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 5.8 64.8 34 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.7 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.2 64.9 = 93 Albania 8.09 Reliance on professional management 1-7 (best) 4.5 Guinea 8.10 Pay and productivity 1-7 (best) 0.79 53.3 39 Finland 8.11 Female participation in Labour force ratio 18.8 8.12 Labour tax rate % 64.2 34 United States Pillar 9: Financial system 0-100 (best) 36.0 65.6 65 9.01 Domestic credit to private sector % GDP 3.8 28.1 101 9.02 Financing of SMEs 1-7 (best) 2.7 United States 9.03 Venture capital availability 1-7 (best) 0.0 80.4 37 Multiple (29) 9.04 Market capitalization % GDP 0.8 9.05 Insurance premium % GDP 5.4 80.0 1 United States 9.06 Soundness of banks 1-7 (best) 18.2 United States 9.07 Non-performing loans % loan portfolio value -9.1 61.0 52 9.08 Credit gap percentage points 16.8 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 52.9 71 Multiple (16) - Pillar 10: Market size 0-100 (best) 33 57.7 38 Finland 54.6 Multiple (2) 10.01 Gross domestic product PPP $ billions 73.9 54 Multiple (97) 10.02 Imports % GDP - Multiple (72) 12.0 85.0 = 86 Pillar 11: Business dynamism 0-100 (best) China 5.0 51.3 105 China 11.01 Cost of starting a business % GNI per capita 41.6 Hong Kong SAR 11.02 Time to start a business days 14.0 37.9 89 11.03 Insolvency recovery rate cents/$ United States 11.04 Insolvency regulatory framework 0-16 (best) 4.1 46.2 67 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.0 11.06 Willingness to delegate authority 1-7 (best) 4.1 28.4 88 New Zealand 11.07 Growth of innovative companies 1-7 (best) 3.2 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 0.0 121 Pillar 12: Innovation capability 0-100 (best) 5.0 12.7 = 103 Israel 12.01 Diversity of workforce 1-7 (best) 0.13 72.9 47 Denmark 12.02 State of cluster development 1-7 (best) 3.6 Israel 12.03 International co-inventions applications/million pop. 54.3 64.2 127 12.04 Multi-stakeholder collaboration 1-7 (best) 0.24 United States 12.05 Scientific publications H Index 0.2 100.0 = 20 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 3.2 99.6 = 60 Canada 12.08 Quality of research institutions index 336.46 12.09 Buyer sophistication 1-7 (best) 39.2 108 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 47 Multiple (7) 64.1 48 Multiple (7)
44.8 54
52.0 55
50.5 91
36.7 101
31.7 91
67.3 24
34.3 122
3.7 78
43.5 67
59.4 124
4.0 85
5.1 = 97
37.3 83
62.6 81
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 57 59 | The Global Competitiveness Report 2018 Algeria Economy Profiles
92nd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 92nd/135
Performance Key Previous edition Upper middle income group average Middle East and North Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 69 66
61 57
60 51
50 47 45 48
44 44
30 30
0
Rank /140 92nd 120th 88th 83rd 111th 66th 88th 128th 134th 122nd 38th 113rd 106th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 41.5 GDP (PPP) % world GDP 0.50 GDP per capita US$ 4,292.3 Unemployment rate % 10.1 2.9 5-year average FDI inward flow % GDP 0.6
Social and environmental performance 2.5 Global Gender Gap Index 0-1 (gender parity) 0.6 4.2 Income Gini 0 (perfect equality) -100 (perfect inequality) 27.6
The Global Competitiveness Report 2018 | 59 Economy Profiles 92nd /140
Algeria Value Score * Rank/140 Best Performer
Index Component - 44.4 120 New Zealand Pillar 1: Institutions 0-100 (best) 1.4 68.5 54 98.2 Multiple (9) 1.01 Organized crime 1-7 (best) 4.6 97.1 = 44 Multiple (24) 1.02 Homicide rate /100,000 pop. 42.9 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 34.6 98.2 101 Finland 1.04 Reliability of police services 1-7 (best) 3.6 Australia 1.05 Social capital 0-100 (high) 3.2 60.7 58 Multiple (2) 1.06 Budget transparency 0-100 (best) 43.1 1.07 Judicial independence 1-7 (best) 3.2 42.9 120 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.20 34.6 = 116 Norway 1.10 Burden of government regulation 1-7 (best) 3.2 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 33.0 43.4 80 Singapore 1.12 E-Participation Index 0-1 (best) 3.9 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.8 36.2 77 Singapore 1.14 Incidence of corruption 0-100 (best) 7.0 New Zealand 1.15 Property rights 1-7 (best) 3.4 56.9 110 Finland 1.16 Intellectual property protection 1-7 (best) 3.3 Finland 1.17 Quality of land administration 0-30 (best) 3.3 37.1 86 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 50.0 54 Multiple (2) 1.20 Shareholder governance 0-10 (best) 80.4 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.6 Singapore 1.6 37.1 100 United States 2.01 Road connectivity index 0-100 (best) 3.6 2.02 Quality of roads 1-7 (best) 46,594.5 33.0 96 Singapore 2.03 Railroad density km of roads/square km 3.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 7.3 49.1 99 Switzerland 2.05 Airport connectivity score 3.5 2.06 Efficiency of air transport services 1-7 (best) 100.0 46.3 92 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 16.3 Singapore 2.08 Efficiency of seaport services 1-7 (best) 11.9 23.3 = 122 Multiple (4) 2.09 Electrification rate % pop. 4.3 Singapore 2.10 Electric power transmission and distribution losses % output 39.7 131 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 120.7 33.0 = 131 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 83.9 33.0 = 124 7.7 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 61.2 88 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 42.9 80.4 = 30 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 42.8 86 6.0 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 42.5 4.0 = 88 4.01 Inflation annual % change - 42.9 57 Multiple (74) 4.02 Debt dynamics 0-100 (best) 66.1 Multiple (36) 50.9 67 Pillar 5: Health 0-100 (best) - Multiple (4) 8.7 44.6 112 Multiple (4) 5.01 Healthy life expectancy years 3.4 3.6 7.3 99 Finland Pillar 6: Skills 0-100 (best) 3.4 Finland 3.8 41.4 91 Switzerland 6.01 Mean years of schooling Years 3.8 Switzerland 6.02 Extent of staff training 1-7 (best) 14.3 100.0 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 2.9 Sweden 6.04 Skillset of graduates 1-7 (best) 24.2 87.2 99 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 89.9 72 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 55.6 89 47.2 83 61 | The Global Competitiveness Report 2018 100.0 66
15.3 80
n/a 113
42.9 91
68.5 111
94.5 109
42.5 112
81.5 66
81.5 65
57.4 88
58.0 = 79
43.3 102
40.8 118
46.8 90
47.4 94
79.6 = 65
32.5 105
64.4 90 Algeria Economy Profiles
92nd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 45.4 128 Singapore 3.2 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.8 36.0 112 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.1 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.7 46.4 55 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 14.51 Hong Kong SAR 7.05 Trade tariffs % duty 6.6 51.0 129 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.1 Germany 7.07 Efficiency of the clearance process 15 (best) 38.3 45.8 128 7.08 Services trade openness 0-100 (worst) Ecuador
- 3.3 132
Pillar 8: Labour market 0-100 (best) 17.3 United States 92.7 30 Multiple (8) 8.01 Redundancy costs weeks of salary 3.6 8.02 Hiring and firing practices 1-7 (best) 4.0 28.3 126 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.9 61.7 = 77 8.05 Active Labour policies 1-7 (best) 58.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.2 44.0 134 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.0 72.2 = 74 Albania 8.09 Reliance on professional management 1-7 (best) 3.4 Guinea 8.10 Pay and productivity 1-7 (best) 0.21 43.8 91 Finland 8.11 Female participation in Labour force ratio 30.6 8.12 Labour tax rate % 50.8 101 United States Pillar 9: Financial system 0-100 (best) 21.0 61.4 92 9.01 Domestic credit to private sector % GDP 3.5 32.3 83 9.02 Financing of SMEs 1-7 (best) 3.0 United States 9.03 Venture capital availability 1-7 (best) 0.2 58.8 108 Multiple (29) 9.04 Market capitalization % GDP 0.7 9.05 Insurance premium % GDP 3.7 36.8 127 United States 9.06 Soundness of banks 1-7 (best) 11.4 United States 9.07 Non-performing loans % loan portfolio value 2.5 60.5 57 9.08 Credit gap percentage points 18.2 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 32.5 134 Multiple (16) - Pillar 10: Market size 0-100 (best) 576 40.7 109 Finland 32.1 Multiple (2) 10.01 Gross domestic product PPP $ billions 1.7 135 Multiple (97) 10.02 Imports % GDP - Multiple (72) 11.1 68.6 = 124 Pillar 11: Business dynamism 0-100 (best) 20.0 China 50.8 47.8 122 China 11.01 Cost of starting a business % GNI per capita 7.0 Hong Kong SAR 11.02 Time to start a business days 3.0 22.1 120 11.03 Insolvency recovery rate cents/$ 3.1 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.2 42.1 98 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 2.9 11.06 Willingness to delegate authority 1-7 (best) 33.7 62 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.0 0.2 117 3.4 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 0.03 11.6 = 108 Israel 12.01 Diversity of workforce 1-7 (best) 129.0 44.3 116 Denmark 12.02 State of cluster development 1-7 (best) 0.05 Israel 12.03 International co-inventions applications/million pop. 0.1 77.9 109 12.04 Multi-stakeholder collaboration 1-7 (best) 0.03 United States 12.05 Scientific publications H Index 3.2 98.6 107 12.06 Patent applications applications/million pop. 117.87 Germany 12.07 R&D expenditures % GDP 100.0 = 39 Canada 12.09 Buyer sophistication 1-7 (best) 66.4 38 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 100 Multiple (7) 51.3 113 Multiple (7) 94.5 = 82 80.4 = 102 Multiple (7)
54.7 39
33.1 135
34.6 135
37.4 126
32.2 129
29.9 106
50.3 102
40.6 98
0.8 106
33.8 121
72.1 81
4.7 = 98
8.4 48
36.1 92
51.4 102
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 61 63 | The Global Competitiveness Report 2018 Angola Economy Profiles
137th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: n/a
Performance Overview Key Previous edition Lower middle income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
51 54
41 38 43 40
40 37 37
31 31 34
30 27
20 17
0
Rank /140 137th 134th 127th 119th 139th 118th 138th 140th 135th 137th 66th 137th 140th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 28.2 GDP (PPP) % world GDP 0.15 GDP per capita US$ 4,407.7 Unemployment rate % 8.2 10-year average annual GDP growth % 0.2
Social and environmental performance 1.6 Income Gini 0 (perfect equality) -100 (perfect inequality) 42.7
The Global Competitiveness Report 2018 | 63 Economy Profiles 137th /140
Angola Value Score * Rank/140 Best Performer
Index Component - 37.2 134 New Zealand Pillar 1: Institutions 0-100 (best) 4.8 57.0 94 95.3 Multiple (9) 1.01 Organized crime 1-7 (best) 3.0 85.3 = 88 Multiple (24) 1.02 Homicide rate /100,000 pop. 41.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 46.2 95.3 115 Finland 1.04 Reliability of police services 1-7 (best) 1.9 Australia 1.05 Social capital 0-100 (high) 1.8 33.6 124 Multiple (2) 1.06 Budget transparency 0-100 (best) 38.4 1.07 Judicial independence 1-7 (best) 2.4 41.1 124 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.43 46.2 = 90 Norway 1.10 Burden of government regulation 1-7 (best) 2.5 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 19.0 14.4 137 Singapore 1.12 E-Participation Index 0-1 (best) 3.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 2.6 13.4 138 Singapore 1.14 Incidence of corruption 0-100 (best) 7.0 New Zealand 1.15 Property rights 1-7 (best) 2.2 61.7 97 Finland 1.16 Intellectual property protection 1-7 (best) 5.3 Finland 1.17 Quality of land administration 0-30 (best) 5.7 24.0 130 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 19.9 132 Multiple (2) 1.20 Shareholder governance 0-10 (best) 56.2 Kazakhstan 43.3 109 Pillar 2: Infrastructure 0-100 (best) 2.1 Singapore n/a 24.6 130 United States 2.01 Road connectivity index 0-100 (best) 2.0 2.02 Quality of roads 1-7 (best) 5,973.8 19.0 138 Singapore 2.03 Railroad density km of roads/square km 3.3 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 24.6 33.0 134 Switzerland 2.05 Airport connectivity score 2.6 2.06 Efficiency of air transport services 1-7 (best) 34.7 26.6 136 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 11.3 Singapore 2.08 Efficiency of seaport services 1-7 (best) 43.5 23.3 = 122 Multiple (4) 2.09 Electrification rate % pop. 1.9 Singapore 2.10 Electric power transmission and distribution losses % output 19.7 140 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 44.7 53.0 = 84 Multiple (23) 14.6 Switzerland Pillar 3: ICT adoption 0-100 (best) 57.0 = 69 0.3 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.1 40.7 127 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 13.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 56.2 = 83 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 32.0 17.9 138 Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 56.3 17.1 117 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 26.9 112
Pillar 5: Health 0-100 (best) 5.0 Multiple (4) 2.6 37.5 124 Multiple (4) 5.01 Healthy life expectancy years 2.3 2.2 24.6 62 Finland Pillar 6: Skills 0-100 (best) 2.2 Finland 2.1 26.7 121 Switzerland 6.01 Mean years of schooling Years 9.5 Switzerland 6.02 Extent of staff training 1-7 (best) 1.9 34.7 122 Switzerland 6.03 Quality of vocational training 1-7 (best) 42.5 Sweden 6.04 Skillset of graduates 1-7 (best) 92.4 = 73 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 57.6 133 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 14.5 138 27.4 119 65 | The Global Competitiveness Report 2018 37.3 136
n/a 131
0.7 119
n/a 84
31.1 139
22.1 139
40.0 = 113
50.9 117
31.1 138
33.3 = 122
27.4 137
21.8 140
20.0 140
20.1 139
18.1 140
53.0 = 125
14.6 140
18.6 = 125 Angola Economy Profiles
137th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 37.5 140 Singapore 2.6 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 2.1 26.7 134 Switzerland 7.02 Extent of market dominance 1-7 (best) 3.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.0 17.7 139 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.09 Hong Kong SAR 7.05 Trade tariffs % duty 5.7 36.2 139 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 1.6 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 49.3 111 7.08 Services trade openness 0-100 (worst) Ecuador
- 32.7 100
Pillar 8: Labour market 0-100 (best) 17.9 United States 78.2 = 69 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 3.5 14.3 137 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.3 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 1.5 66.5 n/a 8.05 Active Labour policies 1-7 (best) 70.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.4 43.5 135 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 1.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 2.3 71.1 = 79 Albania 8.09 Reliance on professional management 1-7 (best) 2.3 Guinea 8.10 Pay and productivity 1-7 (best) 0.38 44.0 88 Finland 8.11 Female participation in Labour force ratio 9.0 8.12 Labour tax rate % 41.6 132 United States Pillar 9: Financial system 0-100 (best) 23.7 72.1 37 9.01 Domestic credit to private sector % GDP 2.1 9.0 140 9.02 Financing of SMEs 1-7 (best) 1.4 United States 9.03 Venture capital availability 1-7 (best) 0.0 70.1 71 Multiple (29) 9.05 Insurance premium % GDP 2.3 40.5 123 United States 9.06 Soundness of banks 1-7 (best) 10.6 United States 9.07 Non-performing loans % loan portfolio value -5.6 14.6 140 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 22.2 137 Multiple (16) - Pillar 10: Market size 0-100 (best) 173 22.4 138 Finland 26.8 Multiple (2) 10.01 Gross domestic product PPP $ billions 23.1 112 Multiple (97) 10.02 Imports % GDP - Multiple (72) 17.4 98.6 = 28 Pillar 11: Business dynamism 0-100 (best) 36.0 China 40.1 137 China 11.01 Cost of starting a business % GNI per capita 0.0 Hong Kong SAR 11.02 Time to start a business days 0.0 25.0 110 11.03 Insolvency recovery rate cents/$ 3.4 United States 11.04 Insolvency regulatory framework 0-16 (best) 2.7 18.2 140 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 2.9 11.06 Willingness to delegate authority 1-7 (best) 2.2 6.8 140 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 0.0 121 Pillar 12: Innovation capability 0-100 (best) 2.3 8.7 = 121 Israel 12.01 Diversity of workforce 1-7 (best) 2.0 22.2 138 Denmark 12.02 State of cluster development 1-7 (best) 39.7 Israel 12.03 International co-inventions applications/million pop. 0.00 79.6 106 12.04 Multi-stakeholder collaboration 1-7 (best) 0.0 United States 12.05 Scientific publications H Index 0.00 100.0 = 34 12.06 Patent applications applications/million pop. 2.6 Germany 12.07 R&D expenditures % GDP 0.00 100.0 = n/a Canada 12.09 Buyer sophistication 1-7 (best) 53.9 66 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 115 Multiple (7) 34.5 137 Multiple (7) 91.3 101 64.3 = 123 Multiple (7)
39.7 120
29.0 139
31.7 135
19.9 140
16.8 140
46.8 119
21.3 140
17.4 140
54.9 133
0.1 126
0.0 120
27.3 121
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 65 67 | The Global Competitiveness Report 2018 Argentina Economy Profiles
81st / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 79th/135
Performance Key Previous edition High income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 68 68 69
60 57 56 55 45 40 52 48 51 53
0
Rank /140 81st 77th 68th 65th 136th 53rd 51st 120th 116th 97th 34th 84th 54th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 44.1 GDP (PPP) % world GDP 0.72 GDP per capita US$ 14,466.6 Unemployment rate % 8.5 10-year average annual GDP growth % 1.6
Social and environmental performance 3.7 Global Gender Gap Index 0-1 (gender parity) 0.7 4.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 42.4
The Global Competitiveness Report 2018 | 67 Economy Profiles 81st /140
Argentina Value Score * Rank/140 Best Performer
Index Component - 51.5 77 New Zealand Pillar 1: Institutions 0-100 (best) 5.9 52.0 106 1.01 Organized crime 1-7 (best) 3.4 81.6 95 Multiple (24) 1.02 Homicide rate /100,000 pop. 50.4 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 96.2 99.8 71 Finland 1.04 Reliability of police services 1-7 (best) 3.1 Australia 1.05 Social capital 0-100 (high) 2.8 40.0 115 Multiple (2) 1.06 Budget transparency 0-100 (best) 26.1 1.07 Judicial independence 1-7 (best) 2.5 50.4 68 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.62 96.2 = 3 Norway 1.10 Burden of government regulation 1-7 (best) 3.5 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 39.0 34.7 101 Singapore 1.12 E-Participation Index 0-1 (best) 3.7 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.7 30.4 101 Singapore 1.14 Incidence of corruption 0-100 (best) 13.5 New Zealand 1.15 Property rights 1-7 (best) 4.1 74.0 44 Finland 1.16 Intellectual property protection 1-7 (best) 5.0 Finland 1.17 Quality of land administration 0-30 (best) 7.7 25.6 126 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 29.1 119 Multiple (2) 1.20 Shareholder governance 0-10 (best) 92.6 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.4 Singapore 10.3 41.2 83 United States 2.02 Quality of roads 1-7 (best) 2.5 39.0 73 Singapore 2.03 Railroad density km of roads/square km 80,596.6 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 44.8 114 Switzerland 2.05 Airport connectivity score 4.3 2.06 Efficiency of air transport services 1-7 (best) 32.9 45.8 95 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 3.7 45.0 83 Multiple (4) 2.09 Electrification rate % pop. 99.6 Singapore 2.10 Electric power transmission and distribution losses % output 13.2 51.4 104 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. Multiple (9) 2.12 Reliability of water supply 1-7 (best) 5.1 50.0 = 95 Multiple (23) 4.9 Switzerland Pillar 3: ICT adoption 0-100 (best) 77.0 = 10 3.01 Mobile-cellular telephone subscriptions /100 pop. 139.8 67.6 68 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 78.1 92.6 = 11 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 17.8 Korea, Rep. 3.05 Internet users % pop. 40.5 93 0.4 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 71.0 25.7 = 55 4.01 Inflation annual % change - 25.7 95 Multiple (74) 4.02 Debt dynamics 0-100 (best) 25.7 Multiple (36) 50.0 59.1 48 Pillar 5: Health 0-100 (best) Multiple (4)
- 55.5 83 Multiple (4)
5.01 Healthy life expectancy years 67.2 32.9 51 Finland Pillar 6: Skills 0-100 (best) - Finland 10.1 45.8 81 Switzerland 6.01 Mean years of schooling Years Switzerland 6.02 Extent of staff training 1-7 (best) 3.7 99.6 73 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.5 Sweden 6.04 Skillset of graduates 1-7 (best) 4.0 90.5 86 United States 6.05 Digital skills among population 1-7 (best) 4.0 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 4.1 96.8 32 United States 6.07 School life expectancy Years 17.4 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 3.1 65.1 67 6.09 Pupil-to-teacher ratio in primary education Ratio 17.2 56.2 65 69 | The Global Competitiveness Report 2018 100.0 = 26
35.6 54
44.9 = 136
39.8 = 137
85.1 53
85.1 52
68.4 51
67.3 = 57
44.8 88
58.2 42
50.0 71
49.2 78
51.7 69
96.8 = 13
35.6 89
81.9 = 57 Argentina Economy Profiles
81st /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 48.3 120 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.4 28.8 130 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.9 39.6 104 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 12.70 Hong Kong SAR 7.05 Trade tariffs % duty 6.6 56.3 118 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) 17.0 47.9 121 7.08 Services trade openness 0-100 (worst) Ecuador
- 15.3 126
Pillar 8: Labour market 0-100 (best) 30.3 United States 93.2 27 Multiple (8) 8.01 Redundancy costs weeks of salary 2.3 8.02 Hiring and firing practices 1-7 (best) 3.7 35.4 100 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 2.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.8 83.0 = 24 8.05 Active Labour policies 1-7 (best) 70.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.7 50.7 116 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.4 45.1 = 123 Albania 8.09 Reliance on professional management 1-7 (best) 3.3 Guinea 8.10 Pay and productivity 1-7 (best) 0.71 22.2 137 Finland 8.11 Female participation in Labour force ratio 29.3 8.12 Labour tax rate % 44.6 122 United States Pillar 9: Financial system 0-100 (best) 14.2 31.7 137 9.01 Domestic credit to private sector % GDP 2.8 29.7 100 9.02 Financing of SMEs 1-7 (best) 2.4 United States 9.03 Venture capital availability 1-7 (best) 10.9 70.1 71 Multiple (29) 9.04 Market capitalization % GDP 2.5 9.05 Insurance premium % GDP 4.7 62.4 17 United States 9.06 Soundness of banks 1-7 (best) 1.8 United States 9.07 Non-performing loans % loan portfolio value -1.3 46.0 123 9.08 Credit gap percentage points 13.9 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 56.6 59 Multiple (16) - Pillar 10: Market size 0-100 (best) 838 38.9 117 Finland 14.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 64.1 72 Multiple (97) 10.02 Imports % GDP - Multiple (72) 10.4 70.4 = 123 Pillar 11: Business dynamism 0-100 (best) 24.0 China 21.5 52.5 97 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 9.5 14.9 135 11.03 Insolvency recovery rate cents/$ 3.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.2 30.1 129 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.9 11.06 Willingness to delegate authority 1-7 (best) 3.3 24.1 104 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 10.9 91 Pillar 12: Innovation capability 0-100 (best) 3.3 41.1 = 48 Israel 0.27 12.01 Diversity of workforce 1-7 (best) 3.4 61.0 81 Denmark 12.02 State of cluster development 1-7 (best) 346.0 Israel 12.03 International co-inventions applications/million pop. 1.48 97.3 32 12.04 Multi-stakeholder collaboration 1-7 (best) 0.6 United States 12.05 Scientific publications H Index 0.07 100.0 = 57 12.06 Patent applications applications/million pop. 3.3 Germany 12.07 R&D expenditures % GDP 1,293.51 93.4 = 103 Canada 12.09 Buyer sophistication 1-7 (best) 68.6 34 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 138 Multiple (7) 55.4 84 Multiple (7) 94.8 79 76.4 = 109 Multiple (7)
23.1 111
48.4 75
53.3 74
48.8 69
39.1 87
40.5 54
62.7 42
39.1 102
7.3 67
39.7 89
86.6 37
16.7 60
19.6 = 58
17.8 28
37.9 81
77.1 48
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 69 71 | The Global Competitiveness Report 2018 Armenia Economy Profiles
70th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 72nd/135
Performance Overview 2018 Key Previous edition Upper middle income group average Eurasia average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 72 68
66 61 65
60 60 59 60
54 54
40 37 39
0
Rank /140 70th 67th 74th 56th 89th 61st 55th 39th 33rd 87th 118th 62nd 60th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 3.0 GDP (PPP) % world GDP 0.02 GDP per capita US$ 3,861.0 Unemployment rate % 18.2 2.3 5-year average FDI inward flow % GDP 3.1
Social and environmental performance 2.0 Global Gender Gap Index 0-1 (gender parity) 0.7 3.7 Income Gini 0 (perfect equality) -100 (perfect inequality) 32.5
The Global Competitiveness Report 2018 | 71 Economy Profiles 70th /140
Armenia Value Score * Rank/140 Best Performer
Index Component - 54.0 67 New Zealand Pillar 1: Institutions 0-100 (best) 3.0 69.6 47 1.01 Organized crime 1-7 (best) 4.6 91.6 71 Multiple (24) 1.02 Homicide rate /100,000 pop. 42.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 61.5 99.9 62 Finland 1.04 Reliability of police services 1-7 (best) 3.5 Australia 1.05 Social capital 0-100 (high) 3.4 59.8 65 Multiple (2) 1.06 Budget transparency 0-100 (best) 30.0 1.07 Judicial independence 1-7 (best) 3.8 42.1 122 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.57 61.5 = 49 Norway 1.10 Burden of government regulation 1-7 (best) 3.8 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 35.0 41.9 85 Singapore 1.12 E-Participation Index 0-1 (best) 4.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.1 40.5 61 Singapore 1.14 Incidence of corruption 0-100 (best) 21.5 New Zealand 1.15 Property rights 1-7 (best) 4.3 70.0 65 Finland 1.16 Intellectual property protection 1-7 (best) 6.3 Finland 1.17 Quality of land administration 0-30 (best) 5.3 47.0 41 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 45.1 68 Multiple (2) 1.20 Shareholder governance 0-10 (best) 41.8 Kazakhstan 56.7 97 Pillar 2: Infrastructure 0-100 (best) 3.6 Singapore 22.8 47.3 61 United States 2.02 Quality of roads 1-7 (best) 3.1 35.0 91 Singapore 2.03 Railroad density km of roads/square km 11,238.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 59.1 55 Switzerland 2.05 Airport connectivity score 4.4 2.06 Efficiency of air transport services 1-7 (best) n/a 52.2 66 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 2.6 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 71.7 39 Multiple (4) 2.09 Electrification rate % pop. 12.4 Singapore 2.10 Electric power transmission and distribution losses % output 6.5 55.4 87 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 4.9 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 63.0 = 45 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 119.0 53.0 = 76 66.8 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 10.8 66.3 74 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 4.7 41.8 = 112 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 64.3 Korea, Rep. 3.05 Internet users % pop. 43.7 85 Pillar 4: Macroeconomic stability 0-100 (best) -0.2 57.1 = 34 46.9 Multiple (31) 4.01 Inflation annual % change 34.4 76 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 66.5 33.2 93 Pillar 5: Health 0-100 (best) Multiple (4)
- 56.6 78 Multiple (4)
5.01 Healthy life expectancy years 11.7 3.6 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.8 Finland 3.8 27.1 119 Switzerland 6.01 Mean years of schooling Years 4.4 Switzerland 6.02 Extent of staff training 1-7 (best) 3.9 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 13.0 Sweden 6.04 Skillset of graduates 1-7 (best) 3.6 91.3 82 United States 6.05 Digital skills among population 1-7 (best) 9.5 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 95.4 40 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 65.6 66 59.2 56 73 | The Global Competitiveness Report 2018 99.2 71
21.5 71
64.3 61
72.4 89
97.9 94
46.9 101
82.7 61
67.6 55
77.8 = 32
43.7 97
47.0 85
47.1 89
57.0 58
47.8 90
72.0 = 84
43.9 54
Armenia Economy Profiles
70th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 61.2 39 Singapore 4.1 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.7 51.2 47 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.3 61.8 19 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 3.49 Hong Kong SAR 7.05 Trade tariffs % duty 3.8 70.5 41 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) 11.4 54.5 78 7.08 Services trade openness 0-100 (worst) Ecuador
- 76.7 50
Pillar 8: Labour market 0-100 (best) 13.0 United States 46.8 106 Multiple (8) 8.01 Redundancy costs weeks of salary 4.4 8.02 Hiring and firing practices 1-7 (best) 4.7 39.3 81 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.1 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.2 88.6 = 5 8.05 Active Labour policies 1-7 (best) n/a Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 5.0 65.0 33 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.3 81.3 = 47 Albania 8.09 Reliance on professional management 1-7 (best) 4.1 Guinea 8.10 Pay and productivity 1-7 (best) 0.75 57.1 27 Finland 8.11 Female participation in Labour force ratio 0.0 8.12 Labour tax rate % 62.3 40 United States Pillar 9: Financial system 0-100 (best) 47.8 68.1 57 9.01 Domestic credit to private sector % GDP 3.7 36.3 70 9.02 Financing of SMEs 1-7 (best) 2.9 United States 9.03 Venture capital availability 1-7 (best) 2.6 69.8 n/a Multiple (29) 9.04 Market capitalization % GDP n/a 9.05 Insurance premium % GDP 4.8 67.1 8 United States 9.06 Soundness of banks 1-7 (best) 6.7 United States 9.07 Non-performing loans % loan portfolio value -0.9 48.8 110 9.08 Credit gap percentage points 15.8 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 54.4 64 Multiple (16) - Pillar 10: Market size 0-100 (best) 26 51.9 57 Finland 52.9 Multiple (2) 10.01 Gross domestic product PPP $ billions 68.4 65 Multiple (97) 10.02 Imports % GDP - Multiple (72) 0.9 100.0 = 1 Pillar 11: Business dynamism 0-100 (best) 4.5 China 36.4 54.2 87 China 11.01 Cost of starting a business % GNI per capita 7.5 Hong Kong SAR 11.02 Time to start a business days 4.3 50.3 77 11.03 Insolvency recovery rate cents/$ 4.1 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.9 44.8 81 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.8 11.06 Willingness to delegate authority 1-7 (best) 31.3 72 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.1 2.6 110 3.8 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 0.80 10.5 = n/a Israel 12.01 Diversity of workforce 1-7 (best) 153.3 63.4 75 Denmark 12.02 State of cluster development 1-7 (best) 3.15 Israel 12.03 International co-inventions applications/million pop. 0.3 87.4 83 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 4.0 100.0 = 62 12.06 Patent applications applications/million pop. 611.20 Germany 12.07 R&D expenditures % GDP 97.6 = 76 Canada 12.09 Buyer sophistication 1-7 (best) 36.7 118 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 118 n/a 53 Multiple (7) 60.2 62 Multiple (7)
39.2 71
54.3 45
51.3 86
48.2 77
46.3 47
38.8 60
51.8 96
46.0 72
18.1 49
42.8 71
26.1 51
8.4 86
1.3 78
50.3 35
69.0 64
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 73 75 | The Global Competitiveness Report 2018 Australia Economy Profiles
14th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 15th/135
Performance Overview 2018 Key Previous edition High income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 100 99
90 86
80 79 78 81
74 73 70 72 75 70
70 69
0
Rank /140 14th 15th 31st 22nd 1st 8th 12th 8th 22nd 13th 25th 15th 18th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 24.8 GDP (PPP) % world GDP 0.98 GDP per capita US$ 55,707.3 Unemployment rate % 5.6 10-year average annual GDP growth % 3.2 2.5 5-year average FDI inward flow % GDP
Social and environmental performance 6.9 Global Gender Gap Index 0-1 (gender parity) 0.7 5.4 Income Gini 0 (perfect equality) -100 (perfect inequality) 34.7
The Global Competitiveness Report 2018 | 75 Economy Profiles 14th /140
Australia Value Score * Rank/140 Best Performer
Index Component - 73.6 15 New Zealand Pillar 1: Institutions 0-100 (best) 0.9 75.2 27 99.2 Multiple (9) 1.01 Organized crime 1-7 (best) 6.1 98.5 29 Multiple (24) 1.02 Homicide rate /100,000 pop. 66.2 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 76.9 99.2 88 Finland 1.04 Reliability of police services 1-7 (best) 6.2 Australia 1.05 Social capital 0-100 (high) 4.2 85.2 12 Multiple (2) 1.06 Budget transparency 0-100 (best) 15.5 1.07 Judicial independence 1-7 (best) 3.3 66.2 1 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.98 76.9 = 21 Norway 1.10 Burden of government regulation 1-7 (best) 4.2 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 77.0 86.0 7 Singapore 1.12 E-Participation Index 0-1 (best) 6.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.8 53.2 28 Singapore 1.14 Incidence of corruption 0-100 (best) 20.0 New Zealand 1.15 Property rights 1-7 (best) 6.0 84.5 19 Finland 1.16 Intellectual property protection 1-7 (best) 6.0 Finland 1.17 Quality of land administration 0-30 (best) 6.0 38.3 77 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 62.1 25 Multiple (2) 1.20 Shareholder governance 0-10 (best) 90.0 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.8 Singapore 1.2 53.0 35 United States 2.01 Road connectivity index 0-100 (best) 4.3 2.02 Quality of roads 1-7 (best) 628,786.0 77.0 13 Singapore 2.03 Railroad density km of roads/square km 5.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 28.4 83.2 11 Switzerland 2.05 Airport connectivity score 4.7 2.06 Efficiency of air transport services 1-7 (best) 100.0 80.2 14 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 5.7 Singapore 2.08 Efficiency of seaport services 1-7 (best) 2.2 66.7 = 47 Multiple (4) 2.09 Electrification rate % pop. 6.4 Singapore 2.10 Electric power transmission and distribution losses % output 83.5 11 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 112.7 60.0 = 54 Multiple (23) 134.9 Switzerland Pillar 3: ICT adoption 0-100 (best) 32.4 60.0 = 56 3.01 Mobile-cellular telephone subscriptions /100 pop. 5.9 77.9 31 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 88.2 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 90.0 = 16 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 1.6 62.8 35 Pillar 4: Macroeconomic stability 0-100 (best) 3.1 = 93 4.01 Inflation annual % change 71.5 54.3 36 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 97.5 10
Pillar 5: Health 0-100 (best) 12.2 Multiple (4) 73.0 32 Multiple (4) 5.01 Healthy life expectancy years 5.0 4.9 28.4 60 Finland Pillar 6: Skills 0-100 (best) 5.0 Finland 5.1 61.9 34 Switzerland 6.01 Mean years of schooling Years 4.8 Switzerland 6.02 Extent of staff training 1-7 (best) 22.9 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.9 Sweden 6.04 Skillset of graduates 1-7 (best) 15.1 98.3 23 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 99.8 24 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 89.8 22 73.5 22 77 | The Global Competitiveness Report 2018 93.9 81
88.2 18
98.5 8
98.5 7
81.0 12
81.4 = 26
67.2 15
66.9 18
69.1 23
63.5 26
65.3 13
87.3 = 46 Australia Economy Profiles
14th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 70.2 8 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.3 56.2 31 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.1 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.1 54.2 33 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 2.09 Hong Kong SAR 7.05 Trade tariffs % duty 6.8 69.0 54 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.9 Germany 7.07 Efficiency of the clearance process 15 (best) 20.2 69.1 14 7.08 Services trade openness 0-100 (worst) Ecuador
- 86.1 40
Pillar 8: Labour market 0-100 (best) 12.0 United States 96.7 4 Multiple (8) 8.01 Redundancy costs weeks of salary 3.3 8.02 Hiring and firing practices 1-7 (best) 4.4 71.7 7 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.5 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.8 79.8 = 37 8.05 Active Labour policies 1-7 (best) 75.3 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 2.8 68.5 22 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 6.0 83.3 = 44 Albania 8.09 Reliance on professional management 1-7 (best) 4.6 Guinea 8.10 Pay and productivity 1-7 (best) 0.94 37.8 110 Finland 8.11 Female participation in Labour force ratio 21.1 8.12 Labour tax rate % 56.3 66 United States Pillar 9: Financial system 0-100 (best) 136.4 58.6 105 9.01 Domestic credit to private sector % GDP 4.7 63.0 17 9.02 Financing of SMEs 1-7 (best) 3.6 United States 9.03 Venture capital availability 1-7 (best) 93.9 75.3 50 Multiple (29) 9.04 Market capitalization % GDP 5.8 9.05 Insurance premium % GDP 6.4 30.3 138 United States 9.06 Soundness of banks 1-7 (best) 1.0 United States 9.07 Non-performing loans % loan portfolio value 3.1 55.9 81 9.08 Credit gap percentage points 12.7 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 84.0 5 Multiple (16) - Pillar 10: Market size 0-100 (best) 1,135 59.8 30 Finland 10.01 Gross domestic product PPP $ billions 21.4 92.3 18 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 81.8 = 96
Pillar 11: Business dynamism 0-100 (best) 0.7 China 2.5 85.6 13 China 11.01 Cost of starting a business % GNI per capita 82.5 Hong Kong SAR 11.02 Time to start a business days 11.0 100.0 = 15 11.03 Insolvency recovery rate cents/$ 4.4 United States 11.04 Insolvency regulatory framework 0-16 (best) 5.7 61.9 18 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.6 11.06 Willingness to delegate authority 1-7 (best) 4.1 42.5 35 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 93.9 16 5.6 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 4.2 96.2 = 18 Israel 5.65 12.01 Diversity of workforce 1-7 (best) 4.3 89.4 4 Denmark 12.02 State of cluster development 1-7 (best) 812.7 Israel 12.03 International co-inventions applications/million pop. 57.06 99.0 10 12.04 Multi-stakeholder collaboration 1-7 (best) 2.2 United States 12.05 Scientific publications H Index 0.27 97.2 110 12.06 Patent applications applications/million pop. 4.0 Germany 12.07 R&D expenditures % GDP 3,981.82 90.5 = 112 Canada 12.09 Buyer sophistication 1-7 (best) 72.3 25 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 127 Multiple (7) 75.2 15 Multiple (7) 98.0 = 5 Multiple (7)
88.8 16
56.0 36
78.1 8
60.7 27
51.6 29
69.8 18
53.8 41
58.1 23
54.7 32
74.6 24
73.4 = 16
67.9 13
50.6 32
89.2 25
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 77 79 | The Global Competitiveness Report 2018 Austria Economy Profiles
22nd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 21st/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 88
80 76 78
73 73 70 74
70 65 67 67
0
Rank /140 22nd 18th 12th 46th 1st 15th 17th 17th 26th 28th 43rd 26th 15th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 8.8 GDP (PPP) % world GDP 0.35 GDP per capita US$ 47,290.0 Unemployment rate % 5.5 10-year average annual GDP growth % 0.6
Social and environmental performance 5.9 Global Gender Gap Index 0-1 (gender parity) 0.7 5.4 Income Gini 0 (perfect equality) -100 (perfect inequality) 30.5
The Global Competitiveness Report 2018 | 79 Economy Profiles 22nd /140
Austria Value Score * Rank/140 Best Performer
Index Component - 72.7 18 New Zealand Pillar 1: Institutions 0-100 (best) 0.7 77.7 23 1.01 Organized crime 1-7 (best) 6.1 99.5 18 Multiple (24) 1.02 Homicide rate /100,000 pop. 61.3 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 57.7 99.9 66 Finland 1.04 Reliability of police services 1-7 (best) 5.6 Australia 1.05 Social capital 0-100 (high) 3.9 84.2 14 Multiple (2) 1.06 Budget transparency 0-100 (best) 14.0 1.07 Judicial independence 1-7 (best) 3.5 61.3 15 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.8 Finland 1.09 Freedom of the press 0-100 (worst) 0.83 57.7 = 61 Norway 1.10 Burden of government regulation 1-7 (best) 4.2 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 75.0 77.1 20 Singapore 1.12 E-Participation Index 0-1 (best) 6.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.9 48.8 41 Singapore 1.14 Incidence of corruption 0-100 (best) 23.0 New Zealand 1.15 Property rights 1-7 (best) 6.1 86.0 11 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 8.0 42.0 63 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 64.1 22 Multiple (2) 1.20 Shareholder governance 0-10 (best) 81.0 Kazakhstan 82.6 44 Pillar 2: Infrastructure 0-100 (best) 5.9 Singapore 58.6 54.0 34 United States 2.02 Quality of roads 1-7 (best) 5.3 75.0 = 16 Singapore 2.03 Railroad density km of roads/square km 118,724.5 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 82.7 12 Switzerland 2.05 Airport connectivity score 5.1 2.06 Efficiency of air transport services 1-7 (best) n/a 81.2 12 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 3.6 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 76.7 = 29 Multiple (4) 2.09 Electrification rate % pop. 4.4 Singapore 2.10 Electric power transmission and distribution losses % output 0.8 85.2 8 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 6.8 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 57.0 = 65 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 170.8 80.0 = 5 3.01 Mobile-cellular telephone subscriptions /100 pop. 86.2 88.3 12 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 28.7 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 81.0 = 26 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 0.5 Korea, Rep. 3.05 Internet users % pop. 84.3 81.4 10 Pillar 4: Macroeconomic stability 0-100 (best) - 100.0 = 13 1.6 Multiple (31) 4.01 Inflation annual % change 100.0 71.3 12 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 65.3 37
Pillar 5: Health 0-100 (best) 70.9 Multiple (4) 67.7 45 Multiple (4) 5.01 Healthy life expectancy years - 12.3 n/a n/a Finland Pillar 6: Skills 0-100 (best) Finland 5.0 42.9 87 Switzerland 6.01 Mean years of schooling Years 5.5 Switzerland 6.02 Extent of staff training 1-7 (best) 5.1 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.8 Sweden 6.04 Skillset of graduates 1-7 (best) 4.7 99.6 14 United States 6.05 Digital skills among population 1-7 (best) 16.1 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 4.1 100.0 = 19 United States 6.07 School life expectancy Years 10.3 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 95.9 10 64.7 46 81 | The Global Competitiveness Report 2018
57.5 30
84.3 25
96.7 15
96.7 14
78.4 17
67.0 17
75.6 4
68.4 13
63.8 36
60.9 36
89.3 34
50.9 35
Austria Economy Profiles
22nd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 66.5 17 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.9 53.7 38 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.9 64.9 11 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 76.0 11 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.7 Germany 7.07 Efficiency of the clearance process 15 (best) 17.8 64.9 26 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 30
Pillar 8: Labour market 0-100 (best) 2.0 United States 3.3 33.7 112 Multiple (8) 8.01 Redundancy costs weeks of salary 5.5 8.02 Hiring and firing practices 1-7 (best) 2.4 67.9 12 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 100.0 82.2 = 30 8.05 Active Labour policies 1-7 (best) 3.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.7 67.3 26 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.5 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.6 100.0 = 4 Albania 8.09 Reliance on professional management 1-7 (best) 0.90 Guinea 8.10 Pay and productivity 1-7 (best) 34.2 37.6 112 Finland 8.12 Labour tax rate % - 74.8 11 United States 85.9 Multiple (4) Pillar 9: Financial system 0-100 (best) 23.3 139 4.5 Multiple (26) 9.01 Domestic credit to private sector % GDP 3.3 77.5 3 9.02 Financing of SMEs 1-7 (best) 26.0 United States 9.03 Venture capital availability 1-7 (best) 4.3 100.0 = 1 Multiple (29) 9.04 Market capitalization % GDP 5.6 9.05 Insurance premium % GDP 2.7 47.0 96 United States 9.06 Soundness of banks 1-7 (best) -5.9 United States 9.07 Non-performing loans % loan portfolio value 16.9 44.8 126 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 74.7 21 Multiple (16) 400 Pillar 10: Market size 0-100 (best) 55.3 59.9 29 Finland 10.01 Gross domestic product PPP $ billions - 87.9 26 Multiple (97) 10.02 Imports % GDP 5.1 Multiple (72) 21.0 63.6 = 127 Pillar 11: Business dynamism 0-100 (best) 80.0 China 11.0 72.9 28 China 11.01 Cost of starting a business % GNI per capita 3.7 Hong Kong SAR 11.02 Time to start a business days 5.3 90.4 36 11.03 Insolvency recovery rate cents/$ 4.7 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.9 57.9 30 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 38.7 44 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.5 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.0 26.0 64 34.66 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 4.8 72.3 = 28 Israel 552.3 12.01 Diversity of workforce 1-7 (best) 231.45 75.9 37 Denmark 12.02 State of cluster development 1-7 (best) 3.1 Israel 12.03 International co-inventions applications/million pop. 0.05 95.6 44 12.04 Multi-stakeholder collaboration 1-7 (best) 3.7 United States 12.05 Scientific publications H Index 11,366.91 100.0 = 31 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 99.8 = 56 Canada 12.09 Buyer sophistication 1-7 (best) 64.3 43 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 44 n/a 44 Multiple (7) 69.9 26 Multiple (7) 97.5 59 79.4 = 103 Multiple (7)
86.1 21
45.5 91
71.9 19
47.5 41
74.3 15
59.0 57
66.7 15
63.4 16
93.5 17
14.9 33
45.2 48
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 81 83 | The Global Competitiveness Report 2018 Azerbaijan Economy Profiles
69th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 65th/135
Performance Overview 2018 Key Previous edition Upper middle income group average Eurasia average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
74 73 69
70 68
60 60 61 64 56 54
53 54
40 36
0
Rank /140 69th 58th 46th 69th 126th 91st 54th 37th 40th 96th 65th 31st 71st
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 9.8 GDP (PPP) % world GDP 0.14 GDP per capita US$ 4,140.7 Unemployment rate % 5.0 10-year average annual GDP growth % 6.5
Social and environmental performance 2.2 Global Gender Gap Index 0-1 (gender parity) 0.7 4.7 Income Gini 0 (perfect equality) -100 (perfect inequality) 16.6
The Global Competitiveness Report 2018 | 83 Economy Profiles 69th /140
Azerbaijan Value Score * Rank/140 Best Performer
Index Component - 55.8 58 New Zealand Pillar 1: Institutions 0-100 (best) 2.1 71.7 = 39 1.01 Organized crime 1-7 (best) 4.7 94.4 63 Multiple (24) 1.02 Homicide rate /100,000 pop. 41.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 34.6 99.7 78 Finland 1.04 Reliability of police services 1-7 (best) 4.4 Australia 1.05 Social capital 0-100 (high) 4.4 61.7 = 53 Multiple (2) 1.06 Budget transparency 0-100 (best) 59.7 1.07 Judicial independence 1-7 (best) 4.6 41.1 123 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.6 Finland 1.09 Freedom of the press 0-100 (worst) 0.68 34.6 = 116 Norway 1.10 Burden of government regulation 1-7 (best) 4.7 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 31.0 56.8 = 49 Singapore 1.12 E-Participation Index 0-1 (best) 4.8 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.8 56.7 = 22 Singapore 1.14 Incidence of corruption 0-100 (best) 14.5 New Zealand 1.15 Property rights 1-7 (best) 4.3 40.3 133 Finland 1.16 Intellectual property protection 1-7 (best) 7.7 Finland 1.17 Quality of land administration 0-30 (best) 7.3 60.7 = 12 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 60.5 = 28 Multiple (2) 1.20 Shareholder governance 0-10 (best) 50.8 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.8 Singapore 23.9 62.1 = 20 United States 2.02 Quality of roads 1-7 (best) 4.8 31.0 102 Singapore 2.03 Railroad density km of roads/square km 23,795.6 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 63.2 = 46 Switzerland 2.05 Airport connectivity score 5.8 2.06 Efficiency of air transport services 1-7 (best) n/a 63.0 = 36 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 4.9 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 48.3 74 Multiple (4) 2.09 Electrification rate % pop. 11.7 Singapore 2.10 Electric power transmission and distribution losses % output 9.6 55.0 = 88 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 4.9 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 77.0 = 16 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 103.0 73.0 15 3.01 Mobile-cellular telephone subscriptions /100 pop. 56.8 73.6 46 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 18.4 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 50.8 = 89 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 1.3 Korea, Rep. 3.05 Internet users % pop. 78.2 63.0 = 34 Pillar 4: Macroeconomic stability 0-100 (best) - 59.9 = 32 12.8 Multiple (31) 4.01 Inflation annual % change 44.0 63.2 = 17 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 41.9 79
Pillar 5: Health 0-100 (best) 63.4 Multiple (4) 80.0 = 12 Multiple (4) 5.01 Healthy life expectancy years - 10.5 n/a n/a Finland Pillar 6: Skills 0-100 (best) Finland 4.2 64.4 = 29 Switzerland 6.01 Mean years of schooling Years 4.4 Switzerland 6.02 Extent of staff training 1-7 (best) 4.7 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 5.2 Sweden 6.04 Skillset of graduates 1-7 (best) 4.7 92.0 77 United States 6.05 Digital skills among population 1-7 (best) 12.7 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 4.2 92.3 63 United States 6.07 School life expectancy Years 15.5 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 65.7 = 65 54.0 69 85 | The Global Competitiveness Report 2018 85.9 97
36.7 53
78.2 36
59.8 126
75.6 128
44.0 111
73.1 91
73.1 90
67.8 54
69.8 = 50
52.5 = 56
56.6 = 49
61.8 = 32
70.7 = 15
62.0 = 31
54.2 = 27
86.3 48 Azerbaijan Economy Profiles
69th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 61.4 37 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.2 60.4 = 20 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.0 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.6 53.2 = 37 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 7.91 Hong Kong SAR 7.05 Trade tariffs % duty 6.1 66.7 = 63 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 59.6 = 46 7.08 Services trade openness 0-100 (worst) Ecuador
- 47.3 90
Pillar 8: Labour market 0-100 (best) 21.7 United States 85.1 62 Multiple (8) 8.01 Redundancy costs weeks of salary 4.7 8.02 Hiring and firing practices 1-7 (best) 4.9 39.3 82 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.3 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.2 82.2 n/a 8.05 Active Labour policies 1-7 (best) n/a Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.7 63.6 40 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.6 63.2 = 96 Albania 8.09 Reliance on professional management 1-7 (best) 4.8 Guinea 8.10 Pay and productivity 1-7 (best) 0.70 61.4 = 12 Finland 8.12 Labour tax rate % 65.1 = 32 United States Pillar 9: Financial system 0-100 (best) 31.9 72.4 = 36 9.01 Domestic credit to private sector % GDP 4.1 53.2 = 37 9.02 Financing of SMEs 1-7 (best) 3.9 United States 9.03 Venture capital availability 1-7 (best) 0.0 55.3 n/a Multiple (29) 9.04 Market capitalization % GDP 0.6 9.05 Insurance premium % GDP 4.5 62.0 = 21 United States 9.06 Soundness of banks 1-7 (best) 13.8 United States 9.07 Non-performing loans % loan portfolio value -4.2 60.5 = 56 9.08 Credit gap percentage points 18.5 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 59.7 = 45 Multiple (16) - Pillar 10: Market size 0-100 (best) 156 63.4 = 15 Finland 40.8 Multiple (2) 10.01 Gross domestic product PPP $ billions 62.3 74 Multiple (97) 10.02 Imports % GDP - Multiple (72) 1.8 76.7 = 106 Pillar 11: Business dynamism 0-100 (best) 4.5 China 40.2 52.6 96 China 11.01 Cost of starting a business % GNI per capita 13.0 Hong Kong SAR 11.02 Time to start a business days 4.7 33.6 99 11.03 Insolvency recovery rate cents/$ 4.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.5 52.1 = 40 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.2 11.06 Willingness to delegate authority 1-7 (best) 47.8 = 23 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.9 0.0 119 Pillar 12: Innovation capability 0-100 (best) 0.03 9.3 = 119 Israel 4.4 12.01 Diversity of workforce 1-7 (best) 79.7 57.8 = 92 Denmark 12.02 State of cluster development 1-7 (best) 0.21 Israel 12.03 International co-inventions applications/million pop. 0.2 73.1 118 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 4.2 100.0 41 12.06 Patent applications applications/million pop. 128.58 Germany 12.07 R&D expenditures % GDP 100.0 = 37 Canada 12.09 Buyer sophistication 1-7 (best) 54.0 65 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 76 Multiple (7) 68.8 31 Multiple (7)
81.3 17
61.4 = 21
57.7 = 56
58.2 = 35
53.5 = 25
36.0 71
64.3 = 36
55.7 = 34
1.0 99
56.8 = 30
3.5 87
7.4 90
0.8 86
52.7 = 27
52.3 101
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 85 87 | The Global Competitiveness Report 2018 Bahrain Economy Profiles
50th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 46th/135
Performance Overview Key Previous edition High income group average Middle East and North Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 78 79
74 70
70 67 65
64 61 63 63 62
50 46
40 36
0
Rank /140 50th 42nd 30th 38th 119th 74th 28th 28th 46th 33rd 90th 54th 72nd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 1.5 GDP (PPP) % world GDP 0.06 GDP per capita US$ 24,028.7 Unemployment rate % 1.2 10-year average annual GDP growth % 3.9
Environmental footprint gha/capita 8.7 Global Gender Gap Index 0-1 (gender parity) 0.6
The Global Competitiveness Report 2018 | 87 Economy Profiles 50th /140
Bahrain Value Score * Rank/140 Best Performer
Index Component - 60.9 42 New Zealand 5.8 Finland Pillar 1: Institutions 0-100 (best) 0.5 80.3 = 15 98.1 Multiple (9) 1.01 Organized crime 1-7 (best) 5.7 99.9 = 11 Multiple (24) 1.02 Homicide rate /100,000 pop. 52.0 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 53.8 98.1 103 Finland 1.04 Reliability of police services 1-7 (best) 5.1 Australia 1.05 Social capital 0-100 (high) 4.7 77.6 = 26 Multiple (2) 1.06 Budget transparency 0-100 (best) 60.9 1.07 Judicial independence 1-7 (best) 4.7 52.0 57 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.8 Finland 1.09 Freedom of the press 0-100 (worst) 0.80 53.8 = 67 Norway 1.10 Burden of government regulation 1-7 (best) 5.3 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 36.0 68.2 = 31 Singapore 1.12 E-Participation Index 0-1 (best) 5.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.0 61.7 = 14 Singapore 1.14 Incidence of corruption 0-100 (best) 17.5 New Zealand 1.15 Property rights 1-7 (best) 5.4 39.2 135 Finland 1.16 Intellectual property protection 1-7 (best) 5.3 Finland 1.17 Quality of land administration 0-30 (best) 4.7 60.8 = 9 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 63.0 = 23 Multiple (2) 1.20 Shareholder governance 0-10 (best) n/a Kazakhstan 5.1 79.8 52 Pillar 2: Infrastructure 0-100 (best) n/a Singapore 2.7 72.0 = 6 United States 2.01 Road connectivity index 0-100 (best) 54,997.0 2.02 Quality of roads 1-7 (best) 5.3 36.0 87 Singapore 2.03 Railroad density km of roads/square km 41.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 4.8 74.4 = 27 Switzerland 2.05 Airport connectivity score 99.9 2.06 Efficiency of air transport services 1-7 (best) 2.4 67.3 = 30 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 10.9 Singapore 2.08 Efficiency of seaport services 1-7 (best) 6.3 58.3 = 56 Multiple (4) 2.09 Electrification rate % pop. Singapore 2.10 Electric power transmission and distribution losses % output - 73.9 = 29 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 158.4 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 147.3 53.0 = 84 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 14.3 47.0 = 90 0.9 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 78.0 30 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 98.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. n/a n/a Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 2.1 69.1 = 27 30.6 Iceland Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 65.4 28.8 = 88 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 53.3 60
Pillar 5: Health 0-100 (best) 10.0 Multiple (4) 70.9 = 36 Multiple (4) 5.01 Healthy life expectancy years 4.7 4.7 41.0 40 Finland Pillar 6: Skills 0-100 (best) 4.7 Finland n/a 64.0 = 30 Switzerland 6.01 Mean years of schooling Years 4.7 Switzerland 6.02 Extent of staff training 1-7 (best) 16.3 99.9 69 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.3 Sweden 6.04 Skillset of graduates 1-7 (best) 12.1 100.0 = 4 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 90.9 70 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 87.9 = 24 66.7 38 89 | The Global Competitiveness Report 2018 100.0 = 10
28.6 60
98.0 3
65.3 119
30.6 136
79.2 73
73.6 28
66.7 = 59
61.9 = 28
61.3 = 30
61.9 = 31
61.6 = 33
90.8 26
55.4 = 26
94.9 26 Bahrain Economy Profiles
50th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 63.0 28 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.2 63.1 = 13 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.0 53.3 = 36 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 5.06 Hong Kong SAR 7.05 Trade tariffs % duty 6.4 73.0 = 24 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.7 Germany 7.07 Efficiency of the clearance process 15 (best) 50.8 67.1 = 22 7.08 Services trade openness 0-100 (worst) Ecuador
- 66.3 66
Pillar 8: Labour market 0-100 (best) 13.6 United States 89.8 42 Multiple (8) 8.01 Redundancy costs weeks of salary 4.4 8.02 Hiring and firing practices 1-7 (best) 5.2 41.7 62 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.6 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.4 49.2 = 91 8.05 Active Labour policies 1-7 (best) 60.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.9 63.0 46 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.8 80.1 = 55 Albania 8.09 Reliance on professional management 1-7 (best) 4.7 Guinea 8.10 Pay and productivity 1-7 (best) 0.44 56.9 = 28 Finland 8.11 Female participation in Labour force ratio 13.5 8.12 Labour tax rate % 70.0 = 18 United States Pillar 9: Financial system 0-100 (best) 69.1 77.0 = 15 9.01 Domestic credit to private sector % GDP 4.5 56.3 = 34 9.02 Financing of SMEs 1-7 (best) 3.8 United States 9.03 Venture capital availability 1-7 (best) 62.7 60.8 101 Multiple (29) 9.04 Market capitalization % GDP 1.8 9.05 Insurance premium % GDP 5.4 65.8 = 12 United States 9.06 Soundness of banks 1-7 (best) 5.9 United States 9.07 Non-performing loans % loan portfolio value -1.1 47.1 = 119 9.08 Credit gap percentage points 18.5 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 63.2 = 38 Multiple (16) - Pillar 10: Market size 0-100 (best) 64 61.9 = 19 Finland 51.7 Multiple (2) 10.01 Gross domestic product PPP $ billions 30.0 109 Multiple (97) 10.02 Imports % GDP - Multiple (72) 1.0 92.4 = 56 Pillar 11: Business dynamism 0-100 (best) 9.3 China 41.9 70.3 33 China 11.01 Cost of starting a business % GNI per capita 7.0 Hong Kong SAR 11.02 Time to start a business days 4.5 72.7 = 43 11.03 Insolvency recovery rate cents/$ 4.7 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.2 58.1 = 28 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.6 11.06 Willingness to delegate authority 1-7 (best) 47.2 = 24 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) n/a 62.7 33 Pillar 12: Innovation capability 0-100 (best) 0.54 29.3 = 69 Israel 12.01 Diversity of workforce 1-7 (best) 63.3 73.2 = 46 Denmark 12.02 State of cluster development 1-7 (best) 1.81 Israel 12.03 International co-inventions applications/million pop. 0.1 89.1 77 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 3.8 100.0 = 58 12.06 Patent applications applications/million pop. 577.27 Germany 12.07 R&D expenditures % GDP 100.0 = 35 Canada 12.09 Buyer sophistication 1-7 (best) 45.8 90 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 54 Multiple (7) 61.9 54 Multiple (7) 91.2 = 59 Multiple (7)
45.1 52
58.4 = 27
61.2 = 41
52.7 = 54
43.2 = 60
35.9 72
60.3 = 27
13.3 55
50.1 = 42
19.0 56
3.4 = 109
46.9 = 42
68.4 66
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 89 91 | The Global Competitiveness Report 2018 Bangladesh Economy Profiles
103rd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 102nd/135
Performance Overview 2018 Key Previous edition Lower middle income group average South Asia average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
73 71
70 67
52 53 48 51 52 50 50 46
40 44
0
Rank /140 103rd 108th 109th 102nd 88th 96th 116th 123rd 115th 103rd 36th 120th 102nd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 163.2 GDP (PPP) % world GDP 0.54 GDP per capita US$ 1,601.7 Unemployment rate % 4.4 10-year average annual GDP growth % 0.9 6.1 5-year average FDI inward flow % GDP
Social and environmental performance 0.8 Global Gender Gap Index 0-1 (gender parity) 0.7 4.0 Income Gini 0 (perfect equality) -100 (perfect inequality) 32.4
The Global Competitiveness Report 2018 | 91 Economy Profiles 103rd /140
Bangladesh Value Score * Rank/140 Best Performer
Index Component - 46.5 108 New Zealand Pillar 1: Institutions 0-100 (best) 2.5 55.5 97 85.9 Multiple (9) 1.01 Organized crime 1-7 (best) 3.4 93.2 = 66 Multiple (24) 1.02 Homicide rate /100,000 pop. 43.4 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 65.4 85.9 126 Finland 1.04 Reliability of police services 1-7 (best) 3.3 Australia 1.05 Social capital 0-100 (high) 3.0 40.5 113 Multiple (2) 1.06 Budget transparency 0-100 (best) 48.6 1.07 Judicial independence 1-7 (best) 3.4 43.4 119 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.80 65.4 = 42 Norway 1.10 Burden of government regulation 1-7 (best) 3.7 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 28.0 38.0 93 Singapore 1.12 E-Participation Index 0-1 (best) 4.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.4 33.4 84 Singapore 1.14 Incidence of corruption 0-100 (best) 4.5 New Zealand 1.15 Property rights 1-7 (best) 3.6 51.4 119 Finland 1.16 Intellectual property protection 1-7 (best) 6.3 Finland 1.17 Quality of land administration 0-30 (best) 5.0 40.6 69 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 36.4 93 Multiple (2) 1.20 Shareholder governance 0-10 (best) 34.3 Kazakhstan 80.3 50 Pillar 2: Infrastructure 0-100 (best) 3.1 Singapore 19.2 44.8 71 United States 2.02 Quality of roads 1-7 (best) 3.2 28.0 120 Singapore 2.03 Railroad density km of roads/square km 48,504.1 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 51.0 89 Switzerland 2.05 Airport connectivity score 3.7 2.06 Efficiency of air transport services 1-7 (best) 10.8 39.2 119 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 3.5 15.0 = 135 Multiple (4) 2.09 Electrification rate % pop. 75.0 Singapore 2.10 Electric power transmission and distribution losses % output 11.0 44.0 124 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 41.0 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 63.0 = 45 Multiple (23) 3.9 Switzerland Pillar 3: ICT adoption 0-100 (best) 50.0 = 81 3.01 Mobile-cellular telephone subscriptions /100 pop. 88.1 53.4 109 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 30.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 34.3 = 121 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 4.4 Korea, Rep. 3.05 Internet users % pop. 2.4 35.2 111 18.2 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 48.0 = 40 4.01 Inflation annual % change 5.7 36.3 68 Multiple (74) 4.02 Debt dynamics 0-100 (best) 49.9 Multiple (36) 51.4 63 Pillar 5: Health 0-100 (best) - Multiple (4) 62.8 45.5 109 Multiple (4)
- 10.8 81 Finland
Pillar 6: Skills 0-100 (best) 5.2 Finland 3.3 40.9 93 Switzerland 6.01 Mean years of schooling Years 3.4 Switzerland 6.02 Extent of staff training 1-7 (best) 3.4 75.0 108 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.3 Sweden 6.04 Skillset of graduates 1-7 (best) 3.7 92.7 71 United States 6.05 Digital skills among population 1-7 (best) 11.7 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 2.9 60.2 126 United States 6.07 School life expectancy Years 33.9 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 48.0 106 39.8 102 93 | The Global Competitiveness Report 2018 73.4 110
8.9 90
18.2 122
72.6 88
95.3 105
49.9 80
71.2 96
71.2 95
44.0 116
34.7 = 119
38.2 126
39.5 122
40.1 121
38.9 120
44.4 105
65.0 = 105
31.9 107
40.2 114 Bangladesh Economy Profiles
103rd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 47.8 123 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.1 41.3 86 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.5 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.7 35.2 115 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 13.21 Hong Kong SAR 7.05 Trade tariffs % duty 6.5 57.9 110 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.3 Germany 7.07 Efficiency of the clearance process 15 (best) 44.2 62.1 36 7.08 Services trade openness 0-100 (worst) Ecuador
- 11.9 128
Pillar 8: Labour market 0-100 (best) 31.0 United States 92.0 33 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 4.2 32.5 115 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.6 55.8 = 85 8.05 Active Labour policies 1-7 (best) 62.9 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.1 50.9 115 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.3 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.9 43.8 = 125 Albania 8.09 Reliance on professional management 1-7 (best) 3.8 Guinea 8.10 Pay and productivity 1-7 (best) 0.26 50.6 50 Finland 8.11 Female participation in Labour force ratio 0.0 8.12 Labour tax rate % 53.7 87 United States Pillar 9: Financial system 0-100 (best) 44.5 63.2 81 9.01 Domestic credit to private sector % GDP 3.7 26.8 107 9.02 Financing of SMEs 1-7 (best) 2.6 United States 9.03 Venture capital availability 1-7 (best) 25.0 62.9 92 Multiple (29) 9.04 Market capitalization % GDP 0.7 9.05 Insurance premium % GDP 3.5 51.8 67 United States 9.06 Soundness of banks 1-7 (best) 8.4 United States 9.07 Non-performing loans % loan portfolio value -1.7 54.9 87 9.08 Credit gap percentage points 10.8 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 48.5 90 Multiple (16) - Pillar 10: Market size 0-100 (best) 626 46.8 78 Finland 23.7 Multiple (2) 10.01 Gross domestic product PPP $ billions 7.9 128 Multiple (97) 10.02 Imports % GDP - Multiple (72) 22.3 100.0 = 1 Pillar 11: Business dynamism 0-100 (best) 19.5 China 28.3 51.8 103 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 4.0 46.8 79 11.03 Insolvency recovery rate cents/$ 3.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.8 44.7 82 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.7 11.06 Willingness to delegate authority 1-7 (best) 3.1 26.3 98 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 25.0 = 69 Pillar 12: Innovation capability 0-100 (best) 3.8 12.3 = 104 Israel 12.01 Diversity of workforce 1-7 (best) 3.0 41.6 124 Denmark 12.02 State of cluster development 1-7 (best) 158.3 Israel 12.03 International co-inventions applications/million pop. 0.04 84.0 = 92 12.04 Multi-stakeholder collaboration 1-7 (best) 0.4 United States 12.05 Scientific publications H Index 0.01 100.0 = 53 12.06 Patent applications applications/million pop. 3.3 Germany 12.07 R&D expenditures % GDP 55.15 85.3 = 116 Canada 12.09 Buyer sophistication 1-7 (best) 66.5 36 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 120 Multiple (7) 50.0 120 Multiple (7) 88.9 107 80.9 = 101 Multiple (7)
30.5 93
46.7 82
46.8 113
45.3 97
35.8 108
30.6 102
50.9 99
46.8 63
32.7 125
0.7 106
13.3 = 72
3.5 58
39.1 77
43.3 111
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 93 95 | The Global Competitiveness Report 2018 Belgium Economy Profiles
21st / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 19th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 86
80 77 80 78
70 69 74 73
64 64
0
Rank /140 21st 21st 13th 40th 1st 28th 16th 22nd 37th 24th 33rd 18th 17th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 11.4 GDP (PPP) % world GDP 0.42 GDP per capita US$ 43,582.2 Unemployment rate % 7.1 10-year average annual GDP growth % 2.6
Social and environmental performance 6.7 Global Gender Gap Index 0-1 (gender parity) 0.7 5.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 27.7
The Global Competitiveness Report 2018 | 95 Economy Profiles 21st /140
Belgium Value Score * Rank/140 Best Performer
Index Component - 69.8 21 New Zealand Pillar 1: Institutions 0-100 (best) 1.9 78.4 19 98.0 Multiple (9) 1.01 Organized crime 1-7 (best) 5.6 95.1 = 60 Multiple (24) 1.02 Homicide rate /100,000 pop. 57.7 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 61.5 98.0 104 Finland 1.04 Reliability of police services 1-7 (best) 5.7 Australia 1.05 Social capital 0-100 (high) 4.2 76.0 30 Multiple (2) 1.06 Budget transparency 0-100 (best) 13.2 1.07 Judicial independence 1-7 (best) 3.1 57.7 25 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.76 61.5 = 49 Norway 1.10 Burden of government regulation 1-7 (best) 3.8 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 75.0 79.0 16 Singapore 1.12 E-Participation Index 0-1 (best) 5.7 Multiple (3) 1.13 Future orientation of government 1-7 (best) 6.0 53.2 27 Singapore 1.14 Incidence of corruption 0-100 (best) 22.5 New Zealand 1.15 Property rights 1-7 (best) 5.8 86.8 7 Finland 1.16 Intellectual property protection 1-7 (best) 7.0 Finland 1.17 Quality of land administration 0-30 (best) 5.0 35.0 92 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 53.2 41 Multiple (2) 1.20 Shareholder governance 0-10 (best) 86.6 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.4 Singapore 118.0 47.2 62 United States 2.02 Quality of roads 1-7 (best) 4.1 75.0 16 Singapore 2.03 Railroad density km of roads/square km 97,023.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 78.6 19 Switzerland 2.05 Airport connectivity score 5.6 2.06 Efficiency of air transport services 1-7 (best) 83.1 83.5 7 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 5.6 75.0 = 31 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 80.6 15 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 4.2 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 0.6 70.0 = 23 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 50.0 = 81 3.01 Mobile-cellular telephone subscriptions /100 pop. 104.7 86.5 13 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 75.1 86.6 = 19 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 38.3 Korea, Rep. 3.05 Internet users % pop. 56.4 52 0.1 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 86.5 100.0 = 2 4.01 Inflation annual % change - 51.5 41 Multiple (74) 4.02 Debt dynamics 0-100 (best) 2.0 Multiple (36) 100.0 62.0 42 Pillar 5: Health 0-100 (best) Multiple (4)
- 76.7 17 Multiple (4)
5.01 Healthy life expectancy years 70.1 83.1 9 Finland Pillar 6: Skills 0-100 (best) - Finland 11.9 76.0 10 Switzerland 6.01 Mean years of schooling Years 5.0 Switzerland 6.02 Extent of staff training 1-7 (best) 5.1 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 5.0 Sweden 6.04 Skillset of graduates 1-7 (best) 4.8 99.8 11 United States 6.05 Digital skills among population 1-7 (best) 4.7 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 19.8 100.0 = 12 United States 6.07 School life expectancy Years 4.0 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 11.2 95.9 9 66.1 40 97 | The Global Competitiveness Report 2018 87.2 93
76.6 11
n/a 87
86.5 22
94.1 28
94.1 27
79.5 16
79.5 = 30
66.6 18
67.8 15
67.5 15
63.8 35
62.1 30
49.3 39
96.9 = 16 Belgium Economy Profiles
21st /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 64.3 22 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.9 51.4 46 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.4 65.7 10 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 72.9 26 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.7 Germany 7.07 Efficiency of the clearance process 15 (best) 22.5 56.4 69 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 12
Pillar 8: Labour market 0-100 (best) 19.7 United States 8.01 Redundancy costs weeks of salary 3.2 8.02 Hiring and firing practices 1-7 (best) 4.6 66.6 14 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.5 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.6 77.5 = 45 8.05 Active Labour policies 1-7 (best) 94.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.7 64.4 37 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.0 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.7 67.4 = 86 Albania 8.09 Reliance on professional management 1-7 (best) 4.4 Guinea 8.10 Pay and productivity 1-7 (best) 0.91 37.5 115 Finland 8.11 Female participation in Labour force ratio 46.2 8.12 Labour tax rate % 60.5 47 United States Pillar 9: Financial system 0-100 (best) 61.4 58.5 106 9.01 Domestic credit to private sector % GDP 4.5 59.2 25 9.02 Financing of SMEs 1-7 (best) 3.8 United States 9.03 Venture capital availability 1-7 (best) 81.1 94.8 9 Multiple (29) 9.04 Market capitalization % GDP 6.2 9.05 Insurance premium % GDP 5.3 61.1 23 United States 9.06 Soundness of banks 1-7 (best) 3.4 United States 9.07 Non-performing loans % loan portfolio value 6.1 50.0 107 9.08 Credit gap percentage points 18.3 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 78.4 14 Multiple (16) - Pillar 10: Market size 0-100 (best) 481 56.8 45 Finland 105.0 Multiple (2) 10.01 Gross domestic product PPP $ billions 88.9 24 Multiple (97) 10.02 Imports % GDP - Multiple (72) 5.6 46.9 138 Pillar 11: Business dynamism 0-100 (best) 4.0 China 84.6 78.4 24 China 11.01 Cost of starting a business % GNI per capita 11.5 Hong Kong SAR 11.02 Time to start a business days 3.8 64.7 53 11.03 Insolvency recovery rate cents/$ 5.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.5 58.4 27 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.2 11.06 Willingness to delegate authority 1-7 (best) 46.8 27 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.8 81.1 25 Pillar 12: Innovation capability 0-100 (best) 24.76 100.0 = 16 Israel 12.01 Diversity of workforce 1-7 (best) 674.7 71.3 52 Denmark 12.02 State of cluster development 1-7 (best) 113.10 Israel 12.03 International co-inventions applications/million pop. 2.5 94.1 55 12.04 Multi-stakeholder collaboration 1-7 (best) 0.09 United States 12.05 Scientific publications H Index 4.4 89.2 120 12.06 Patent applications applications/million pop. 7,687.03 Germany 12.07 R&D expenditures % GDP 100.0 = 38 Canada 12.09 Buyer sophistication 1-7 (best) 68.9 33 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 6 Multiple (7) 73.8 18 Multiple (7)
91.1 13
46.1 85
75.7 13
59.2 32
53.0 26
73.4 17
62.7 43
63.3 17
96.5 13
87.0 17
81.9 12
24.5 24
57.0 20
96.3 15
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 97 99 | The Global Competitiveness Report 2018 Benin Economy Profiles
123rd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 122nd/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
50 54 51 53
44 41 42 44
40 35
30 27
20 20
0
Rank /140 123rd 114th 126th 133rd 94th 121st 119th 86th 118th 132nd 125th 105th 126th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 11.1 GDP (PPP) % world GDP 0.02 GDP per capita US$ 830.4 Unemployment rate % 2.5 10-year average annual GDP growth % 2.8 4.1 5-year average FDI inward flow % GDP
Social and environmental performance 1.4 Income Gini 0 (perfect equality) -100 (perfect inequality) 47.8
The Global Competitiveness Report 2018 | 99 Economy Profiles 123rd /140
Benin Value Score * Rank/140 Best Performer
Index Component - 45.1 114 New Zealand Pillar 1: Institutions 0-100 (best) 6.2 57.0 93 1.01 Organized crime 1-7 (best) 4.7 80.7 = 97 Multiple (24) 1.02 Homicide rate /100,000 pop. 39.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 19.2 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 3.1 Australia 1.05 Social capital 0-100 (high) 3.3 61.1 54 Multiple (2) 1.06 Budget transparency 0-100 (best) 30.2 1.07 Judicial independence 1-7 (best) 3.3 39.1 130 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.9 Finland 1.09 Freedom of the press 0-100 (worst) 0.37 19.2 = 132 Norway 1.10 Burden of government regulation 1-7 (best) 3.6 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 39.0 34.9 98 Singapore 1.12 E-Participation Index 0-1 (best) 3.9 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.7 38.4 68 Singapore 1.14 Incidence of corruption 0-100 (best) 6.5 New Zealand 1.15 Property rights 1-7 (best) 3.8 69.8 68 Finland 1.16 Intellectual property protection 1-7 (best) 4.3 Finland 1.17 Quality of land administration 0-30 (best) 3.7 38.5 75 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 47.8 57 Multiple (2) 1.20 Shareholder governance 0-10 (best) 74.3 Kazakhstan 37.1 119 Pillar 2: Infrastructure 0-100 (best) 2.9 Singapore 6.6 42.7 79 United States 2.01 Road connectivity index 0-100 (best) 1.5 2.02 Quality of roads 1-7 (best) 864.6 39.0 73 Singapore 2.03 Railroad density km of roads/square km 3.5 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 18.4 48.9 100 Switzerland 2.05 Airport connectivity score 3.0 2.06 Efficiency of air transport services 1-7 (best) 31.9 44.6 98 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 18.9 Singapore 2.08 Efficiency of seaport services 1-7 (best) 41.7 21.7 128 Multiple (4) 2.09 Electrification rate % pop. 3.0 Singapore 2.10 Electric power transmission and distribution losses % output 47.2 116 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 78.5 43.0 = 112 Multiple (23) 12.0 Switzerland Pillar 3: ICT adoption 0-100 (best) 37.0 = 112 0.3 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 41.0 126 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 12.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 74.3 = 48 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. -0.3 31.0 116 45.6 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 16.5 = 62 4.01 Inflation annual % change 55.9 8.8 131 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 12.7 132
Pillar 5: Health 0-100 (best) 3.4 Multiple (4) 3.2 41.4 116 Multiple (4) 5.01 Healthy life expectancy years 4.3 3.9 18.4 65 Finland Pillar 6: Skills 0-100 (best) 3.4 Finland 4.8 34.0 107 Switzerland 6.01 Mean years of schooling Years 12.8 Switzerland 6.02 Extent of staff training 1-7 (best) 3.5 31.9 128 Switzerland 6.03 Quality of vocational training 1-7 (best) 45.0 Sweden 6.04 Skillset of graduates 1-7 (best) 84.4 112 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 59.5 128 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 33.8 120 20.0 133 101 | The Global Competitiveness Report 2018 65.4 122
0.5 122
12.0 132
71.6 94
97.7 97
45.6 107
49.8 121
49.8 120
42.5 119
22.7 = 130
55.4 52
48.6 78
39.8 117
63.7 25
71.1 = 86
41.9 63
12.4 = 129 Benin Economy Profiles
123rd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 54.0 86 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.8 46.2 64 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.5 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.1 46.3 57 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.14 Hong Kong SAR 7.05 Trade tariffs % duty 6.7 59.0 109 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 51.9 100 7.08 Services trade openness 0-100 (worst) Ecuador
- 32.4 104
Pillar 8: Labour market 0-100 (best) 11.6 United States 4.3 94.7 10 Multiple (8) 8.01 Redundancy costs weeks of salary 4.6 8.02 Hiring and firing practices 1-7 (best) 5.5 39.1 83 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 1.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 62.9 69.8 n/a 8.05 Active Labour policies 1-7 (best) 4.7 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 5.5 50.6 118 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.5 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 2.9 84.1 = 41 Albania 8.09 Reliance on professional management 1-7 (best) 0.29 Guinea 8.10 Pay and productivity 1-7 (best) 26.4 54.6 35 Finland 8.12 Labour tax rate % - 59.3 53 United States 21.4 Multiple (4) Pillar 9: Financial system 0-100 (best) 75.0 23 9.01 Domestic credit to private sector % GDP 1.8 15.8 130 9.02 Financing of SMEs 1-7 (best) 4.3 United States 9.03 Venture capital availability 1-7 (best) 0.7 62.9 92 Multiple (29) 9.04 Market capitalization % GDP 3.9 9.05 Insurance premium % GDP 20.3 62.0 20 United States 9.06 Soundness of banks 1-7 (best) -2.1 United States 9.07 Non-performing loans % loan portfolio value n/a 74.9 3 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 42.2 111 Multiple (16) Pillar 10: Market size 0-100 (best) 42.0 32.2 130 Finland 10.01 Gross domestic product PPP $ billions - 11.6 122 Multiple (97) 10.02 Imports % GDP 3.6 Multiple (72) 8.5 74.4 = 115 Pillar 11: Business dynamism 0-100 (best) 22.9 China 9.0 43.8 132 China 11.01 Cost of starting a business % GNI per capita 3.2 Hong Kong SAR 11.02 Time to start a business days 3.5 22.6 114 11.03 Insolvency recovery rate cents/$ 3.3 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.0 33.6 124 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 13.4 136 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.3 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.0 4.3 = 105 0.00 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 3.3 12.3 = 105 Israel 76.0 12.01 Diversity of workforce 1-7 (best) 0.03 48.0 111 Denmark 12.02 State of cluster development 1-7 (best) n/a Israel 12.03 International co-inventions applications/million pop. 0.00 60.0 = 129 12.04 Multi-stakeholder collaboration 1-7 (best) 2.0 United States 12.05 Scientific publications H Index 173.75 100.0 = 52 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 100.0 = n/a Canada 12.09 Buyer sophistication 1-7 (best) 34.9 125 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 73 Multiple (7) 52.7 105 Multiple (7) 98.2 52
24.7 107
42.5 124
38.3 121
33.4 125
26.7 126
54.4 83
33.4 124
37.8 100
64.3 111
4.2 n/a
16.3 139
55.5 96
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 101 103 | The Global Competitiveness Report 2018 Bolivia Economy Profiles
105th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: n/a
Performance Key Previous edition Lower middle income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 75
60 56 57 55
50 51 46 48 48 46
41 45
30 27
0
Rank /140 105th 129th 102nd 87th 84th 87th 93rd 119th 126th 85th 87th 130th 122nd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 11.1 GDP (PPP) % world GDP 0.07 GDP per capita US$ 3,353.2 Unemployment rate % 3.2 10-year average annual GDP growth % 2.7
Social and environmental performance 3.1 Global Gender Gap Index 0-1 (gender parity) 0.8 3.8 Income Gini 0 (perfect equality) -100 (perfect inequality) 44.6
The Global Competitiveness Report 2018 | 103 Economy Profiles 105th /140
Bolivia Value Score * Rank/140 Best Performer
Index Component - 41.2 129 New Zealand 5.0 Finland Pillar 1: Institutions 0-100 (best) 6.3 66.3 62 1.01 Organized crime 1-7 (best) 2.7 80.3 98 Multiple (24) 1.02 Homicide rate /100,000 pop. 50.0 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 73.1 100.0 1 Finland 1.04 Reliability of police services 1-7 (best) 1.1 Australia 1.05 Social capital 0-100 (high) 1.5 28.1 134 Multiple (2) 1.06 Budget transparency 0-100 (best) 32.5 1.07 Judicial independence 1-7 (best) 2.1 50.0 72 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.1 Finland 1.09 Freedom of the press 0-100 (worst) 0.58 73.1 = 27 Norway 1.10 Burden of government regulation 1-7 (best) 2.3 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 33.0 2.4 140 Singapore 1.12 E-Participation Index 0-1 (best) 2.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 2.3 8.7 139 Singapore 1.14 Incidence of corruption 0-100 (best) 7.0 New Zealand 1.15 Property rights 1-7 (best) 4.5 67.6 90 Finland 1.16 Intellectual property protection 1-7 (best) 4.0 Finland 1.17 Quality of land administration 0-30 (best) 4.0 18.3 137 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 17.7 138 Multiple (2) 1.20 Shareholder governance 0-10 (best) 39.8 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.4 Singapore 2.6 20.9 134 United States 2.01 Road connectivity index 0-100 (best) 2.3 2.02 Quality of roads 1-7 (best) 8,226.7 33.0 = 96 Singapore 2.03 Railroad density km of roads/square km 3.3 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 25.8 138 Switzerland 2.05 Airport connectivity score 1.9 2.06 Efficiency of air transport services 1-7 (best) 91.5 22.3 138 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 9.6 Singapore 2.08 Efficiency of seaport services 1-7 (best) 8.6 23.3 = 122 Multiple (4) 2.09 Electrification rate % pop. 4.2 Singapore 2.10 Electric power transmission and distribution losses % output 59.1 76 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 99.2 40.0 = 121 Multiple (23) 76.5 Switzerland Pillar 3: ICT adoption 0-100 (best) 40.0 = 106 3.2 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.4 56.2 102 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 39.7 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 39.8 = 114 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 3.2 39.2 98 46.1 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 6.5 = 81 4.01 Inflation annual % change 64.0 21.9 103 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 30.0 105
Pillar 5: Health 0-100 (best) 8.6 Multiple (4) 3.1 38.6 118 Multiple (4) 5.01 Healthy life expectancy years 3.6 3.6 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.3 Finland 3.5 15.6 135 Switzerland 6.01 Mean years of schooling Years 13.8 Switzerland 6.02 Extent of staff training 1-7 (best) 2.5 91.5 96 Switzerland 6.03 Quality of vocational training 1-7 (best) 18.4 Sweden 6.04 Skillset of graduates 1-7 (best) 94.2 58 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 93.3 55 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 53.4 98 105 | The Global Competitiveness Report 2018 82.7 102
6.5 95
39.7 94
73.1 84
46.1 104
75.0 87
75.0 86
56.6 93
57.3 = 84
35.2 130
43.3 103
43.3 105
37.9 122
41.8 115
76.7 = 72
25.5 126
79.1 68 Bolivia Economy Profiles
105th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 48.5 119 Singapore 2.0 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.5 17.3 139 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.9 41.3 92 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 9.66 Hong Kong SAR 7.05 Trade tariffs % duty 6.0 60.1 98 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.3 Germany 7.07 Efficiency of the clearance process 15 (best) 13.8 47.8 122 7.08 Services trade openness 0-100 (worst) Ecuador
- 35.6 97
Pillar 8: Labour market 0-100 (best) N/Appl. United States 84.1 64 Multiple (8) 8.01 Redundancy costs weeks of salary 2.2 8.02 Hiring and firing practices 1-7 (best) 3.5 33.0 113 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.0 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 1.8 86.2 = 13 8.05 Active Labour policies 1-7 (best) 71.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.7 47.5 126 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.3 0.0 138 Albania 8.09 Reliance on professional management 1-7 (best) 2.8 Guinea 8.10 Pay and productivity 1-7 (best) 0.76 20.2 139 Finland 8.11 Female participation in Labour force ratio 18.8 8.12 Labour tax rate % 42.3 130 United States Pillar 9: Financial system 0-100 (best) 57.5 50.6 125 9.01 Domestic credit to private sector % GDP 3.9 13.8 134 9.02 Financing of SMEs 1-7 (best) 2.2 United States 9.03 Venture capital availability 1-7 (best) 20.6 71.1 60 Multiple (29) 9.04 Market capitalization % GDP 1.1 9.05 Insurance premium % GDP 5.2 44.8 105 United States 9.06 Soundness of banks 1-7 (best) 1.6 United States 9.07 Non-performing loans % loan portfolio value 13.7 73.4 7 9.08 Credit gap percentage points 12.6 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 37.7 127 Multiple (16) - Pillar 10: Market size 0-100 (best) 76 29.7 132 Finland 33.0 Multiple (2) 10.01 Gross domestic product PPP $ billions 69.7 62 Multiple (97) 10.02 Imports % GDP - Multiple (72) 54.0 85.0 = 86 Pillar 11: Business dynamism 0-100 (best) 45.0 China 40.9 54.8 85 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 6.5 60.6 58 11.03 Insolvency recovery rate cents/$ 3.6 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.6 47.8 57 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.0 11.06 Willingness to delegate authority 1-7 (best) 2.6 19.2 123 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 20.6 76 Pillar 12: Innovation capability 0-100 (best) 2.9 18.6 = 94 Israel 12.01 Diversity of workforce 1-7 (best) 2.8 69.5 60 Denmark 12.02 State of cluster development 1-7 (best) 105.3 Israel 12.03 International co-inventions applications/million pop. 0.06 97.8 21 12.04 Multi-stakeholder collaboration 1-7 (best) 0.2 United States 12.05 Scientific publications H Index 0.00 69.2 136 12.06 Patent applications applications/million pop. 2.5 Germany 12.07 R&D expenditures % GDP 265.62 90.2 = 114 Canada 12.09 Buyer sophistication 1-7 (best) 46.2 87 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 85 n/a 95 Multiple (7) 45.0 130 Multiple (7) 73.0 130 55.3 = 128 Multiple (7)
44.0 55
40.6 = 108
43.7 99
42.6 123
33.3 133
27.1 139
26.9 122
48.4 114
31.1 128
30.2 136
69.1 93
1.1 102
5.2 = 95
24.2 131
60.1 87
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 105 107 | The Global Competitiveness Report 2018 Bosnia and Herzegovina Economy Profiles
91st / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 90th/135
Performance Key Previous edition Upper middle income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
61 58 55 53
60 52 51
50 46 46
40 42
30 28
0
Rank /140 91st 111th 89th 86th 73rd 52nd 87th 106th 112nd 83rd 99th 106th 114th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 3.5 GDP (PPP) % world GDP 0.04 GDP per capita US$ 5,149.0 Unemployment rate % 25.6 1.8 5-year average FDI inward flow % GDP 2.2
Social and environmental performance 3.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 32.7
The Global Competitiveness Report 2018 | 107 Economy Profiles 91st /140
Bosnia and Herzegovina Value Score * Rank/140 Best Performer
Index Component - 45.6 111 New Zealand 4.2 Finland Pillar 1: Institutions 0-100 (best) 1.3 53.1 103 1.01 Organized crime 1-7 (best) 3.5 97.4 42 Multiple (24) 1.02 Homicide rate /100,000 pop. n/a 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 50.0 99.9 64 Finland 1.04 Reliability of police services 1-7 (best) 2.4 Australia 1.05 Social capital 0-100 (high) 1.8 41.3 109 Multiple (2) 1.06 Budget transparency 0-100 (best) 27.4 1.07 Judicial independence 1-7 (best) 2.2 53.0 n/a Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.43 50.0 = 77 Norway 1.10 Burden of government regulation 1-7 (best) 2.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 38.0 23.5 124 Singapore 1.12 E-Participation Index 0-1 (best) 3.3 Multiple (3) 1.13 Future orientation of government 1-7 (best) 2.9 13.8 137 Singapore 1.14 Incidence of corruption 0-100 (best) 12.5 New Zealand 1.15 Property rights 1-7 (best) 3.4 72.6 50 Finland 1.16 Intellectual property protection 1-7 (best) 4.7 Finland 1.17 Quality of land administration 0-30 (best) 7.0 19.8 135 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 19.6 134 Multiple (2) 1.20 Shareholder governance 0-10 (best) 49.2 Kazakhstan 43.3 109 Pillar 2: Infrastructure 0-100 (best) 2.8 Singapore 19.9 18.7 137 United States 2.02 Quality of roads 1-7 (best) 2.1 38.0 77 Singapore 2.03 Railroad density km of roads/square km 8,944.1 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 37.9 130 Switzerland 2.05 Airport connectivity score 3.3 2.06 Efficiency of air transport services 1-7 (best) n/a 32.3 135 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 2.0 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 41.7 = 89 Multiple (4) 2.09 Electrification rate % pop. 10.3 Singapore 2.10 Electric power transmission and distribution losses % output 7.8 40.4 129 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 4.2 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 47.0 = 106 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 98.1 70.0 = 24 43.4 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 18.9 60.7 89 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 0.0 49.2 = 93 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 60.3 Korea, Rep. 3.05 Internet users % pop. 30.2 117 Pillar 4: Macroeconomic stability 0-100 (best) 0.1 49.7 = 39 50.0 Multiple (31) 4.01 Inflation annual % change 18.6 113 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 67.3 30.9 98 Pillar 5: Health 0-100 (best) Multiple (4)
- 37.7 122 Multiple (4)
5.01 Healthy life expectancy years 9.0 3.0 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.1 Finland 3.2 16.2 134 Switzerland 6.01 Mean years of schooling Years 3.8 Switzerland 6.02 Extent of staff training 1-7 (best) 3.3 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 14.2 Sweden 6.04 Skillset of graduates 1-7 (best) 2.5 93.4 66 United States 6.05 Digital skills among population 1-7 (best) 17.3 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 94.1 49 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 54.1 96 45.8 86 109 | The Global Competitiveness Report 2018 81.7 103
37.8 50
60.3 66
74.4 73
98.8 80
85.3 52
85.3 51
57.5 87
60.0 = 74
33.8 133
36.0 133
38.1 130
78.9 = 68
24.5 130
81.8 58 Bosnia and Herzegovina Economy Profiles
91st /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 51.6 106 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.2 33.7 122 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.4 36.2 113 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 5.18 Hong Kong SAR 7.05 Trade tariffs % duty 4.6 56.5 117 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 56.9 64 7.08 Services trade openness 0-100 (worst) Ecuador
- 65.4 70
Pillar 8: Labour market 0-100 (best) 9.2 United States 3.0 60.0 97 Multiple (8) 8.01 Redundancy costs weeks of salary 3.5 8.02 Hiring and firing practices 1-7 (best) 5.4 40.8 69 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 2.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 72.2 81.8 n/a 8.05 Active Labour policies 1-7 (best) 3.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.3 51.2 112 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.1 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.0 89.1 = 25 Albania 8.09 Reliance on professional management 1-7 (best) 0.47 Guinea 8.10 Pay and productivity 1-7 (best) 13.5 34.2 123 Finland 8.12 Labour tax rate % - 42.5 127 United States 53.8 Multiple (4) Pillar 9: Financial system 0-100 (best) 72.7 34 2.9 Multiple (26) 9.01 Domestic credit to private sector % GDP 2.3 28.0 102 9.02 Financing of SMEs 1-7 (best) 23.8 United States 9.03 Venture capital availability 1-7 (best) 1.8 72.2 58 Multiple (29) 9.04 Market capitalization % GDP 4.3 9.05 Insurance premium % GDP 11.8 35.3 132 United States 9.06 Soundness of banks 1-7 (best) -5.4 United States 9.07 Non-performing loans % loan portfolio value 16.3 55.8 82 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 35.4 131 Multiple (16) Pillar 10: Market size 0-100 (best) 60.1 33.7 129 Finland 10.01 Gross domestic product PPP $ billions - 33.1 104 Multiple (97) 10.02 Imports % GDP 7.7 Multiple (72) 65.0 92.4 = 56 Pillar 11: Business dynamism 0-100 (best) 37.9 China 15.0 55.1 83 China 11.01 Cost of starting a business % GNI per capita 3.6 Hong Kong SAR 11.02 Time to start a business days 3.4 56.7 67 11.03 Insolvency recovery rate cents/$ 3.2 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.1 32.3 126 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 21.1 117 New Zealand 11.07 Growth of innovative companies 1-7 (best) 3.9 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.2 23.8 70 0.22 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 2.9 30.8 = 66 Israel 73.7 12.01 Diversity of workforce 1-7 (best) 0.50 55.2 97 Denmark 12.02 State of cluster development 1-7 (best) 0.2 Israel 12.03 International co-inventions applications/million pop. 0.00 77.2 111 12.04 Multi-stakeholder collaboration 1-7 (best) 2.3 United States 12.05 Scientific publications H Index 208.12 100.0 = 36 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 98.7 = 67 Canada 12.09 Buyer sophistication 1-7 (best) 41.8 99 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 35 Multiple (7) 52.7 106 Multiple (7) 35.2 = 134 Multiple (7)
40.8 66
43.2 103
39.9 128
37.1 128
28.2 114
48.0 115
37.4 105
6.2 71
63.9 112
7.5 73
7.3 91
0.8 85
21.7 132
57.5 91
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 109 111 | The Global Competitiveness Report 2018 Botswana Economy Profiles
90th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 85th/135
Performance Overview Key Previous edition Upper middle income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 55 55 57 60 59
54 52 53 53
42 39
0
Rank /140 90th 62nd 108th 98th 1st 115th 92nd 95th 57th 69th 111th 103rd 101st
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 2.2 GDP (PPP) % world GDP 0.03 GDP per capita US$ 7,877.0 Unemployment rate % 17.4 3.6 5-year average FDI inward flow % GDP 2.8
Social and environmental performance 2.5 Income Gini 0 (perfect equality) -100 (perfect inequality) 60.5
The Global Competitiveness Report 2018 | 111 Economy Profiles 90th /140
Botswana Value Score * Rank/140 Best Performer
Index Component - 54.7 62 New Zealand 5.0 Finland Pillar 1: Institutions 0-100 (best) 15.0 67.3 61 1.01 Organized crime 1-7 (best) 4.6 50.7 = 126 Multiple (24) 1.02 Homicide rate /100,000 pop. 47.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 34.6 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 4.3 Australia 1.05 Social capital 0-100 (high) 3.8 60.7 57 Multiple (2) 1.06 Budget transparency 0-100 (best) 25.3 1.07 Judicial independence 1-7 (best) 3.5 47.8 94 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.4 Finland 1.09 Freedom of the press 0-100 (worst) 0.20 34.6 = 116 Norway 1.10 Burden of government regulation 1-7 (best) 4.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 61.0 55.5 52 Singapore 1.12 E-Participation Index 0-1 (best) 5.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.1 47.3 43 Singapore 1.14 Incidence of corruption 0-100 (best) 10.0 New Zealand 1.15 Property rights 1-7 (best) 4.6 74.7 42 Finland 1.16 Intellectual property protection 1-7 (best) 6.0 Finland 1.17 Quality of land administration 0-30 (best) 5.3 41.4 66 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 56.8 34 Multiple (2) 1.20 Shareholder governance 0-10 (best) 91.0 Kazakhstan 19.7 130 Pillar 2: Infrastructure 0-100 (best) 3.6 Singapore 1.5 52.2 38 United States 2.01 Road connectivity index 0-100 (best) 3.5 2.02 Quality of roads 1-7 (best) 1,455.5 61.0 31 Singapore 2.03 Railroad density km of roads/square km 3.8 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 68.0 36 Switzerland 2.05 Airport connectivity score 3.0 2.06 Efficiency of air transport services 1-7 (best) 54.8 52.1 67 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 12.1 Singapore 2.08 Efficiency of seaport services 1-7 (best) 27.3 33.3 = 102 Multiple (4) 2.09 Electrification rate % pop. 3.9 Singapore 2.10 Electric power transmission and distribution losses % output 60.3 72 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 141.4 60.0 = 54 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 66.9 53.0 = 76 2.1 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.1 53.9 108 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 39.4 91.0 = 13 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 44.0 84 3.1 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 100.0 3.8 = 91 4.01 Inflation annual % change - 41.7 59 Multiple (74) 4.02 Debt dynamics 0-100 (best) 56.6 Multiple (36) 15.8 127 Pillar 5: Health 0-100 (best) - Multiple (4) 8.9 46.1 106 Multiple (4) 5.01 Healthy life expectancy years 3.9 3.8 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.4 Finland 3.7 34.0 106 Switzerland 6.01 Mean years of schooling Years 3.9 Switzerland 6.02 Extent of staff training 1-7 (best) 12.6 54.8 117 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.2 Sweden 6.04 Skillset of graduates 1-7 (best) 22.6 91.6 80 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 74.2 102 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 49.1 104 42.0 98 113 | The Global Competitiveness Report 2018 100.0 = 24
4.3 105
39.4 95
51.9 115
51.9 114
56.7 92
59.1 = 76
48.5 67
47.2 84
40.4 119
44.5 100
47.5 92
35.9 88
68.5 = 84 Botswana Economy Profiles
90th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 53.1 95 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.0 52.9 40 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.3 33.2 122 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 6.44 Hong Kong SAR 7.05 Trade tariffs % duty 4.9 59.4 105 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.0 Germany 7.07 Efficiency of the clearance process 15 (best) 38.3 54.4 79 7.08 Services trade openness 0-100 (worst) Ecuador
- 57.1 80
Pillar 8: Labour market 0-100 (best) 20.6 United States 64.3 90 Multiple (8) 8.01 Redundancy costs weeks of salary 3.9 8.02 Hiring and firing practices 1-7 (best) 4.3 51.2 = 38 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.9 61.7 = 77 8.05 Active Labour policies 1-7 (best) 70.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.0 60.5 57 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.5 65.5 = 90 Albania 8.09 Reliance on professional management 1-7 (best) 3.5 Guinea 8.10 Pay and productivity 1-7 (best) 0.79 47.9 67 Finland 8.11 Female participation in Labour force ratio 0.0 8.12 Labour tax rate % 54.4 80 United States Pillar 9: Financial system 0-100 (best) 32.2 62.1 86 9.01 Domestic credit to private sector % GDP 3.7 31.3 89 9.02 Financing of SMEs 1-7 (best) 2.5 United States 9.03 Venture capital availability 1-7 (best) 25.0 70.1 71 Multiple (29) 9.04 Market capitalization % GDP 3.0 9.05 Insurance premium % GDP 4.9 33.6 134 United States 9.06 Soundness of banks 1-7 (best) 4.9 United States 9.07 Non-performing loans % loan portfolio value -2.2 52.9 97 9.08 Credit gap percentage points 19.4 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 59.0 47 Multiple (16) - Pillar 10: Market size 0-100 (best) 35 41.8 100 Finland 33.8 Multiple (2) 10.01 Gross domestic product PPP $ billions 73.8 55 Multiple (97) 10.02 Imports % GDP - Multiple (72) 0.7 100.0 = 1 Pillar 11: Business dynamism 0-100 (best) 48.0 China 65.5 59.5 69 China 11.01 Cost of starting a business % GNI per capita 4.0 Hong Kong SAR 11.02 Time to start a business days 3.6 33.9 98 11.03 Insolvency recovery rate cents/$ 4.4 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.4 44.2 88 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.1 11.06 Willingness to delegate authority 1-7 (best) 25.5 101 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.5 25.0 68 Pillar 12: Innovation capability 0-100 (best) 0.02 50.1 = 40 Israel 12.01 Diversity of workforce 1-7 (best) 90.7 65.3 70 Denmark 12.02 State of cluster development 1-7 (best) 0.02 Israel 12.03 International co-inventions applications/million pop. 0.5 91.2 70 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 2.9 100.0 = 51 12.06 Patent applications applications/million pop. 224.99 Germany 12.07 R&D expenditures % GDP 100.0 = 26 Canada 12.09 Buyer sophistication 1-7 (best) 38.6 111 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 106 n/a 90 Multiple (7) 53.0 103 Multiple (7) 99.7 15 52.3 = 130 Multiple (7)
70.5 31
43.3 102
56.5 62
40.8 115
35.8 109
30.6 101
58.4 63
36.4 107
18.1 = 62
32.4 104
58.3 88
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 113 115 | The Global Competitiveness Report 2018 Brazil Economy Profiles
72nd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 69th/135
Performance Key Previous edition Upper middle income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 80 81
70 65
60 64 63
60 56 56
50 50 49 51 52
0
Rank /140 72nd 93rd 81st 66th 122nd 73rd 94th 117th 114th 57th 10th 108th 40th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 207.7 GDP (PPP) % world GDP 2.55 GDP per capita US$ 9,894.9 Unemployment rate % 13.3 1.5 5-year average FDI inward flow % GDP 3.0
Social and environmental performance 3.1 Global Gender Gap Index 0-1 (gender parity) 0.7 3.9 Income Gini 0 (perfect equality) -100 (perfect inequality) 51.3
The Global Competitiveness Report 2018 | 115 Economy Profiles 72nd /140
Brazil Value Score * Rank/140 Best Performer
Index Component - 49.7 93 New Zealand 3.5 Finland Pillar 1: Institutions 0-100 (best) 29.5 41.0 124 1.01 Organized crime 1-7 (best) 3.4 1.6 133 Multiple (24) 1.02 Homicide rate /100,000 pop. 53.6 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 100.0 99.8 74 Finland 1.04 Reliability of police services 1-7 (best) 3.6 Australia 1.05 Social capital 0-100 (high) 2.6 40.8 111 Multiple (2) 1.06 Budget transparency 0-100 (best) 31.2 1.07 Judicial independence 1-7 (best) 1.6 53.6 51 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.97 100.0 = 1 Norway 1.10 Burden of government regulation 1-7 (best) 2.5 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 37.0 43.6 79 Singapore 1.12 E-Participation Index 0-1 (best) 4.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.0 27.5 113 Singapore 1.14 Incidence of corruption 0-100 (best) 13.8 New Zealand 1.15 Property rights 1-7 (best) 4.7 68.8 83 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 7.0 9.9 140 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 27.5 124 Multiple (2) 1.20 Shareholder governance 0-10 (best) 63.7 Kazakhstan 97.2 12 Pillar 2: Infrastructure 0-100 (best) 3.0 Singapore 3.5 24.9 129 United States 2.01 Road connectivity index 0-100 (best) 2.5 2.02 Quality of roads 1-7 (best) 437,475.0 37.0 80 Singapore 2.03 Railroad density km of roads/square km 4.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 35.6 50.7 92 Switzerland 2.05 Airport connectivity score 3.1 2.06 Efficiency of air transport services 1-7 (best) 99.6 49.4 77 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 15.1 Singapore 2.08 Efficiency of seaport services 1-7 (best) 9.0 46.0 = 82 Multiple (4) 2.09 Electrification rate % pop. 4.6 Singapore 2.10 Electric power transmission and distribution losses % output 61.5 65 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 113.0 57.0 = 65 Multiple (23) 90.2 Switzerland Pillar 3: ICT adoption 0-100 (best) 13.7 70.0 = 24 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.8 64.3 81 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 60.9 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 63.7 = 74 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 6.1 33.8 112 34.9 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 8.8 = 79 4.01 Inflation annual % change 65.5 24.7 97 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 89.7 17
Pillar 5: Health 0-100 (best) 7.4 Multiple (4) 3.8 57.3 73 Multiple (4) 5.01 Healthy life expectancy years 3.4 3.4 35.6 47 Finland Pillar 6: Skills 0-100 (best) 3.2 Finland 3.3 34.3 105 Switzerland 6.01 Mean years of schooling Years 15.4 Switzerland 6.02 Extent of staff training 1-7 (best) 2.5 99.6 73 Switzerland 6.03 Quality of vocational training 1-7 (best) 21.5 Sweden 6.04 Skillset of graduates 1-7 (best) 88.4 96 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 92.9 57 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 59.8 78 117 | The Global Competitiveness Report 2018 94.2 80
27.4 63
60.9 65
64.6 122
94.2 110
79.6 73
79.6 72
56.0 94
49.6 = 100
46.5 75
39.7 121
39.7 124
37.1 125
38.6 127
85.5 = 45
25.7 125
71.2 = 79 Brazil Economy Profiles
72nd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 48.9 117 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.8 27.9 132 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.7 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.4 46.4 56 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 12.45 Hong Kong SAR 7.05 Trade tariffs % duty 6.6 61.1 95 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) 22.5 40.5 136 7.08 Services trade openness 0-100 (worst) Ecuador
- 17.0 125
Pillar 8: Labour market 0-100 (best) 15.4 United States 93.7 21 Multiple (8) 8.01 Redundancy costs weeks of salary 2.2 8.02 Hiring and firing practices 1-7 (best) 3.8 35.2 103 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.1 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.7 77.5 = 45 8.05 Active Labour policies 1-7 (best) 66.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.4 51.0 114 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 2.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.4 76.2 = 66 Albania 8.09 Reliance on professional management 1-7 (best) 3.4 Guinea 8.10 Pay and productivity 1-7 (best) 0.82 20.8 138 Finland 8.11 Female participation in Labour force ratio 40.2 8.12 Labour tax rate % 46.6 117 United States Pillar 9: Financial system 0-100 (best) 65.0 51.9 124 9.01 Domestic credit to private sector % GDP 3.3 27.6 105 9.02 Financing of SMEs 1-7 (best) 2.5 United States 9.03 Venture capital availability 1-7 (best) 34.6 66.0 88 Multiple (29) 9.04 Market capitalization % GDP 1.9 9.05 Insurance premium % GDP 5.7 40.6 122 United States 9.06 Soundness of banks 1-7 (best) 3.9 United States 9.07 Non-performing loans % loan portfolio value -6.8 29.2 138 9.08 Credit gap percentage points 16.4 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 56.7 58 Multiple (16) - Pillar 10: Market size 0-100 (best) 2,951 39.5 113 Finland 10.01 Gross domestic product PPP $ billions 10.9 77.3 49 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 55.3 = 137
Pillar 11: Business dynamism 0-100 (best) 5.0 China 79.5 63.2 57 China 11.01 Cost of starting a business % GNI per capita 12.7 Hong Kong SAR 11.02 Time to start a business days 13.0 68.4 49 11.03 Insolvency recovery rate cents/$ 4.1 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.4 38.4 110 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.1 11.06 Willingness to delegate authority 1-7 (best) 3.8 24.3 103 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 34.6 54 Pillar 12: Innovation capability 0-100 (best) 4.0 31.9 = 60 Israel 0.30 12.01 Diversity of workforce 1-7 (best) 3.7 78.8 22 Denmark 12.02 State of cluster development 1-7 (best) 470.3 Israel 12.03 International co-inventions applications/million pop. 1.94 93.1 61 12.04 Multi-stakeholder collaboration 1-7 (best) 1.2 United States 12.05 Scientific publications H Index 0.23 100.0 = 28 12.06 Patent applications applications/million pop. 3.4 Germany 12.07 R&D expenditures % GDP 699.00 98.8 = 64 Canada 12.09 Buyer sophistication 1-7 (best) 80.9 10 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 139 Multiple (7) 52.4 108 Multiple (7) 97.5 58 20.6 = 137 Multiple (7)
13.7 126
51.6 56
56.6 61
51.5 60
46.8 44
58.7 60
49.7 52
8.2 61
44.2 62
91.2 23
19.8 54
38.9 = 33
57.3 14
39.9 68
70.5 56
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 117 119 | The Global Competitiveness Report 2018 Brunei Darussalam Economy Profiles
62nd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 64th/135
Performance Overview 2018 Key Previous edition High income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 76
71 74
70 66
61 61 64 59
40 37
0
Rank /140 62nd 45th 54th 17th 81st 50th 58th 44th 38th 107th 115th 68th 79th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 0.4 GDP (PPP) % world GDP 0.03 GDP per capita US$ 29,711.9 Unemployment rate % 7.1 10-year average annual GDP growth % 2.0 -0.4 5-year average FDI inward flow % GDP
Environmental footprint gha/capita 5.6 Global Gender Gap Index 0-1 (gender parity) 0.7
The Global Competitiveness Report 2018 | 119 Economy Profiles 62nd /140
Brunei Darussalam Value Score * Rank/140 Best Performer
Index Component - 58.3 45 New Zealand 6.1 Finland Pillar 1: Institutions 0-100 (best) 0.5 84.4 6 1.01 Organized crime 1-7 (best) 5.1 100.0 = 8 Multiple (24) 1.02 Homicide rate /100,000 pop. n/a 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 7.7 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 3.9 Australia 1.05 Social capital 0-100 (high) 2.2 68.5 43 Multiple (2) 1.06 Budget transparency 0-100 (best) 51.5 1.07 Judicial independence 1-7 (best) 3.2 n/a n/a Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.9 Finland 1.09 Freedom of the press 0-100 (worst) 0.61 7.7 = 135 Norway 1.10 Burden of government regulation 1-7 (best) 4.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 62.0 48.7 64 Singapore 1.12 E-Participation Index 0-1 (best) 4.3 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.4 19.4 131 Singapore 1.14 Incidence of corruption 0-100 (best) 18.0 New Zealand 1.15 Property rights 1-7 (best) 4.4 48.5 126 Finland 1.16 Intellectual property protection 1-7 (best) 6.7 Finland 1.17 Quality of land administration 0-30 (best) 6.3 37.1 85 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 47.8 58 Multiple (2) 1.20 Shareholder governance 0-10 (best) 78.1 Kazakhstan 60.7 92 Pillar 2: Infrastructure 0-100 (best) 4.9 Singapore n/a 51.6 42 United States 2.01 Road connectivity index 0-100 (best) 3.6 2.02 Quality of roads 1-7 (best) 11,871.6 62.0 29 Singapore 2.03 Railroad density km of roads/square km 4.6 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 6.6 54.3 73 Switzerland 2.05 Airport connectivity score 4.1 2.06 Efficiency of air transport services 1-7 (best) 100.0 56.4 57 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 6.4 Singapore 2.08 Efficiency of seaport services 1-7 (best) 2.4 60.0 52 Multiple (4) 2.09 Electrification rate % pop. 5.6 Singapore 2.10 Electric power transmission and distribution losses % output 56.7 82 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 127.1 67.0 = 32 Multiple (23) 126.6 Switzerland Pillar 3: ICT adoption 0-100 (best) 63.0 45 9.6 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 6.2 71.3 54 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 90.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 78.1 = 36 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. -0.4 65.5 32 Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 67.5 43.0 56 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 33.8 91
Pillar 5: Health 0-100 (best) 8.8 Multiple (4) 4.0 60.0 66 Multiple (4) 5.01 Healthy life expectancy years 4.3 4.3 6.6 102 Finland Pillar 6: Skills 0-100 (best) 4.7 Finland 3.6 51.7 67 Switzerland 6.01 Mean years of schooling Years 14.5 Switzerland 6.02 Extent of staff training 1-7 (best) 3.7 100.0 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 10.2 Sweden 6.04 Skillset of graduates 1-7 (best) 97.5 34 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 99.6 28 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 76.2 48 76.2 17 121 | The Global Competitiveness Report 2018 100.0 = 45
19.2 75
90.0 13
73.7 81
97.4 98
85.9 50
85.9 49
66.0 58
58.5 = 78
50.0 61
55.0 54
55.6 49
61.0 46
43.7 108
80.4 64
44.4 52
99.5 9 Brunei Darussalam Economy Profiles
62nd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 60.9 44 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.3 56.5 28 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.3 38.3 107 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 0.37 Hong Kong SAR 7.05 Trade tariffs % duty 6.4 56.7 115 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 54.2 82 7.08 Services trade openness 0-100 (worst) Ecuador
- 97.6 3
Pillar 8: Labour market 0-100 (best) 3.0 United States 3.8 90.0 40 Multiple (8) 8.01 Redundancy costs weeks of salary 4.9 8.02 Hiring and firing practices 1-7 (best) 5.5 40.6 72 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 3.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) n/a 74.5 n/a 8.05 Active Labour policies 1-7 (best) 3.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.3 64.2 38 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.1 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.8 100.0 = 5 Albania 8.09 Reliance on professional management 1-7 (best) 0.79 Guinea 8.10 Pay and productivity 1-7 (best) 7.9 46.8 71 Finland 8.12 Labour tax rate % - 64.8 33 United States 39.6 Multiple (4) Pillar 9: Financial system 0-100 (best) 75.3 20 9.01 Domestic credit to private sector % GDP 2.7 47.2 50 9.02 Financing of SMEs 1-7 (best) 0.0 United States 9.03 Venture capital availability 1-7 (best) 0.7 62.0 n/a Multiple (29) 9.04 Market capitalization % GDP 5.0 9.05 Insurance premium % GDP 4.6 33.4 135 United States 9.06 Soundness of banks 1-7 (best) 11.1 United States 9.07 Non-performing loans % loan portfolio value 21.2 54.3 90 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 51.4 79 Multiple (16) Pillar 10: Market size 0-100 (best) 32.1 46.8 77 Finland 10.01 Gross domestic product PPP $ billions - 73.4 56 Multiple (97) 10.02 Imports % GDP 1.1 Multiple (72) 12.5 100.0 = 25 Pillar 11: Business dynamism 0-100 (best) 47.2 China 9.5 51.2 107 China 11.01 Cost of starting a business % GNI per capita 3.6 Hong Kong SAR 11.02 Time to start a business days 4.5 41.7 85 11.03 Insolvency recovery rate cents/$ 3.1 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.1 45.8 71 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 29.1 82 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.7 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.5 0.0 121 0.70 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 3.3 10.9 = 112 Israel 58.7 12.01 Diversity of workforce 1-7 (best) 0.70 65.9 69 Denmark 12.02 State of cluster development 1-7 (best) n/a Israel 12.03 International co-inventions applications/million pop. 0.00 91.7 69 12.04 Multi-stakeholder collaboration 1-7 (best) 2.9 United States 12.05 Scientific publications H Index 482.01 76.1 134 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 100.0 = 18 Canada 12.09 Buyer sophistication 1-7 (best) 37.0 115 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 101 Multiple (7) 58.5 68 Multiple (7) 87.9 77 Multiple (7)
50.8 44
58.1 54
34.9 132
34.8 115
33.9 79
60.9 51
41.5 93
16.3 52
37.9 98
60.6 121
9.8 71
13.5 n/a
31.9 108
66.5 70
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 121 123 | The Global Competitiveness Report 2018 Bulgaria Economy Profiles
51st / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 51st/135
Performance Key Previous edition Upper middle income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 89
80 80
70 70 70 65
64 62 60
60 57 58 55
0
Rank /140 51st 70th 58th 30th 52nd 70th 60th 62nd 50th 71st 64th 61st 48th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 7.1 GDP (PPP) % world GDP 0.12 GDP per capita US$ 8,064.0 Unemployment rate % 6.2 10-year average annual GDP growth % 3.1 1.9 5-year average FDI inward flow % GDP
Social and environmental performance 3.2 Global Gender Gap Index 0-1 (gender parity) 0.8 4.4 Income Gini 0 (perfect equality) -100 (perfect inequality) 37.4
The Global Competitiveness Report 2018 | 123 Economy Profiles 51st /140
Bulgaria Value Score * Rank/140 Best Performer
Index Component - 53.6 70 New Zealand Pillar 1: Institutions 0-100 (best) 1.1 47.1 116 1.01 Organized crime 1-7 (best) 3.7 97.8 37 Multiple (24) 1.02 Homicide rate /100,000 pop. 46.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 53.8 99.9 50 Finland 1.04 Reliability of police services 1-7 (best) 3.2 Australia 1.05 Social capital 0-100 (high) 3.0 45.2 99 Multiple (2) 1.06 Budget transparency 0-100 (best) 35.2 1.07 Judicial independence 1-7 (best) 3.4 46.1 102 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.87 53.8 = 67 Norway 1.10 Burden of government regulation 1-7 (best) 3.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 43.0 36.5 95 Singapore 1.12 E-Participation Index 0-1 (best) 3.6 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.4 33.9 83 Singapore 1.14 Incidence of corruption 0-100 (best) 19.0 New Zealand 1.15 Property rights 1-7 (best) 4.7 64.8 91 Finland 1.16 Intellectual property protection 1-7 (best) 6.7 Finland 1.17 Quality of land administration 0-30 (best) 7.3 40.1 72 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 34.1 99 Multiple (2) 1.20 Shareholder governance 0-10 (best) 65.5 Kazakhstan 87.1 34 Pillar 2: Infrastructure 0-100 (best) 3.5 Singapore 36.3 40.3 88 United States 2.02 Quality of roads 1-7 (best) 3.3 43.0 61 Singapore 2.03 Railroad density km of roads/square km 40,732.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 43.2 118 Switzerland 2.05 Airport connectivity score 4.4 2.06 Efficiency of air transport services 1-7 (best) 9.1 39.3 118 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 4.2 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 63.3 = 50 Multiple (4) 2.09 Electrification rate % pop. 9.8 Singapore 2.10 Electric power transmission and distribution losses % output 7.0 61.2 66 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 5.1 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 67.0 = 32 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 120.4 73.0 = 15 3.01 Mobile-cellular telephone subscriptions /100 pop. 91.6 69.9 58 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 24.9 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 12.0 65.5 = 69 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 59.8 Korea, Rep. 3.05 Internet users % pop. 42.0 90 Pillar 4: Macroeconomic stability 0-100 (best) -0.1 90.7 = 22 80.0 Multiple (31) 4.01 Inflation annual % change 38.6 64 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 65.6 49.0 70 Pillar 5: Health 0-100 (best) Multiple (4)
- 57.1 75 Multiple (4)
5.01 Healthy life expectancy years 11.0 3.4 9.1 88 Finland Pillar 6: Skills 0-100 (best) 3.6 Finland 3.6 53.9 63 Switzerland 6.01 Mean years of schooling Years 4.2 Switzerland 6.02 Extent of staff training 1-7 (best) 3.3 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 14.8 Sweden 6.04 Skillset of graduates 1-7 (best) 3.2 94.0 61 United States 6.05 Digital skills among population 1-7 (best) 17.6 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 94.9 46 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 67.7 58 69.6 30 125 | The Global Competitiveness Report 2018 100.0 = 68
49.8 40
59.8 68
89.2 52
98.4 90
80.0 69
64.7 60
44.1 99
43.8 101
54.0 66
39.1 122
82.3 58
37.0 80
81.0 63 Bulgaria Economy Profiles
51st /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 56.7 62 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.7 38.1 107 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 45.0 71 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 69.5 50 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.9 Germany 7.07 Efficiency of the clearance process 15 (best) 15.5 53.6 89 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 24
Pillar 8: Labour market 0-100 (best) 8.6 United States 3.8 33.7 112 Multiple (8) 8.01 Redundancy costs weeks of salary 3.8 8.02 Hiring and firing practices 1-7 (best) 5.2 48.4 43 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 3.4 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 79.4 84.5 = 17 8.05 Active Labour policies 1-7 (best) 3.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.7 62.0 50 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.5 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.7 90.4 = 18 Albania 8.09 Reliance on professional management 1-7 (best) 0.88 Guinea 8.10 Pay and productivity 1-7 (best) 20.2 46.9 69 Finland 8.12 Labour tax rate % - 46.3 118 United States 55.9 Multiple (4) Pillar 9: Financial system 0-100 (best) 70.2 44 9.01 Domestic credit to private sector % GDP 3.2 40.6 65 9.02 Financing of SMEs 1-7 (best) 14.4 United States 9.03 Venture capital availability 1-7 (best) 2.1 79.4 39 Multiple (29) 9.04 Market capitalization % GDP 4.5 9.05 Insurance premium % GDP 13.2 46.4 100 United States 9.06 Soundness of banks 1-7 (best) -17.0 United States 9.07 Non-performing loans % loan portfolio value 20.4 61.3 50 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 42.1 112 Multiple (16) 139 Pillar 10: Market size 0-100 (best) 69.0 45.6 81 Finland 10.01 Gross domestic product PPP $ billions - 84.5 36 Multiple (97) 10.02 Imports % GDP 1.2 Multiple (72) 23.0 83.1 = 93 Pillar 11: Business dynamism 0-100 (best) 36.0 China 13.0 58.2 71 China 11.01 Cost of starting a business % GNI per capita 3.7 Hong Kong SAR 11.02 Time to start a business days 3.9 58.9 62 11.03 Insolvency recovery rate cents/$ 3.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.6 45.3 77 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 37.1 50 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.2 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.8 14.4 = 86 1.11 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 3.6 34.4 = 57 Israel 209.0 12.01 Diversity of workforce 1-7 (best) 4.54 59.1 88 Denmark 12.02 State of cluster development 1-7 (best) 1.0 Israel 12.03 International co-inventions applications/million pop. 0.01 74.4 114 12.04 Multi-stakeholder collaboration 1-7 (best) 3.3 United States 12.05 Scientific publications H Index 3,786.14 100.0 = 9 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 100.0 = 22 Canada 12.09 Buyer sophistication 1-7 (best) 54.6 64 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 24 Multiple (7) 60.3 61 Multiple (7) 99.4 31 77.4 = 107 Multiple (7)
45.4 92
48.8 99
48.5 71
43.2 61
43.9 48
53.4 87
46.8 64
22.9 43
43.3 68
79.2 51
31.4 45
31.9 41
2.6 62
39.1 76
88.6 26
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 125 127 | The Global Competitiveness Report 2018 Burkina Faso Economy Profiles
124th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: n/a
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
51 52 52 48 52
50 40
40 38 38
30 32
26 25
0
Rank /140 124th 86th 128th 124th 80th 129th 137th 101st 109th 124th 112nd 112nd 130th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 18.9 GDP (PPP) % world GDP 0.03 GDP per capita US$ 663.8 Unemployment rate % 6.3 10-year average annual GDP growth % 3.2
Social and environmental performance 1.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 35.3
The Global Competitiveness Report 2018 | 127 Economy Profiles 124th /140
Burkina Faso Value Score * Rank/140 Best Performer
Index Component - 50.6 86 New Zealand 3.5 Finland Pillar 1: Institutions 0-100 (best) 0.4 41.3 123 96.2 Multiple (9) 1.01 Organized crime 1-7 (best) 4.6 100.0 = 4 Multiple (24) 1.02 Homicide rate /100,000 pop. 48.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 42.3 96.2 113 Finland 1.04 Reliability of police services 1-7 (best) 3.6 Australia 1.05 Social capital 0-100 (high) 3.2 59.8 62 Multiple (2) 1.06 Budget transparency 0-100 (best) 23.3 1.07 Judicial independence 1-7 (best) 3.2 48.8 83 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.62 42.3 = 103 Norway 1.10 Burden of government regulation 1-7 (best) 3.7 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 42.0 43.3 81 Singapore 1.12 E-Participation Index 0-1 (best) 4.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.1 37.1 73 Singapore 1.14 Incidence of corruption 0-100 (best) 11.5 New Zealand 1.15 Property rights 1-7 (best) 3.8 76.7 36 Finland 1.16 Intellectual property protection 1-7 (best) 4.3 Finland 1.17 Quality of land administration 0-30 (best) 3.7 36.8 88 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 55.2 38 Multiple (2) 1.20 Shareholder governance 0-10 (best) 65.8 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 2.7 Singapore 2.3 45.4 69 United States 2.01 Road connectivity index 0-100 (best) 2.7 2.02 Quality of roads 1-7 (best) 1,251.7 42.0 = 63 Singapore 2.03 Railroad density km of roads/square km 3.2 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 50.8 90 Switzerland 2.05 Airport connectivity score 2.8 2.06 Efficiency of air transport services 1-7 (best) 20.3 51.6 70 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) n/a Singapore 2.08 Efficiency of seaport services 1-7 (best) 43.5 38.3 = 93 Multiple (4) 2.09 Electrification rate % pop. 2.5 Singapore 2.10 Electric power transmission and distribution losses % output 47.2 115 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 93.5 43.0 = 112 Multiple (23) 28.8 Switzerland Pillar 3: ICT adoption 0-100 (best) 37.0 = 112 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 37.9 128 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 14.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 65.8 = 67 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 0.1 27.8 125 48.7 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 5.7 = 83 4.01 Inflation annual % change 52.9 29.1 86 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 14.9 128
Pillar 5: Health 0-100 (best) 1.4 Multiple (4) 3.1 37.0 126 Multiple (4) 5.01 Healthy life expectancy years 4.0 3.8 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.2 Finland 4.1 29.6 113 Switzerland 6.01 Mean years of schooling Years 8.5 Switzerland 6.02 Extent of staff training 1-7 (best) 2.8 20.3 132 Switzerland 6.03 Quality of vocational training 1-7 (best) 41.5 Sweden 6.04 Skillset of graduates 1-7 (best) 80.2 n/a United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 57.7 132 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 24.8 131 129 | The Global Competitiveness Report 2018 77.9 105
0.1 132
14.0 128
73.8 80
98.8 81
48.7 91
40.4 129
40.4 128
31.7 137
9.2 = 140
50.5 71
36.8 126
52.3 68
47.4 135
30.3 115
21.1 122 Burkina Faso Economy Profiles
124th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 52.3 101 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.7 40.7 90 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.5 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 44.6 74 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.14 Hong Kong SAR 7.05 Trade tariffs % duty 6.7 57.6 111 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 52.7 97 7.08 Services trade openness 0-100 (worst) Ecuador
- 32.4 107
Pillar 8: Labour market 0-100 (best) 10.5 United States 8.02 Hiring and firing practices 1-7 (best) 4.0 35.3 102 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 1.9 69.4 n/a 8.05 Active Labour policies 1-7 (best) 76.3 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.6 51.6 109 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.0 86.5 = 36 Albania 8.09 Reliance on professional management 1-7 (best) 2.8 Guinea 8.10 Pay and productivity 1-7 (best) 0.49 44.6 84 Finland 8.11 Female participation in Labour force ratio 21.4 8.12 Labour tax rate % 50.2 103 United States Pillar 9: Financial system 0-100 (best) 27.0 64.1 75 9.01 Domestic credit to private sector % GDP 3.2 14.7 131 9.02 Financing of SMEs 1-7 (best) 1.7 United States 9.03 Venture capital availability 1-7 (best) 3.0 76.3 47 Multiple (29) 9.05 Insurance premium % GDP 4.2 60.2 27 United States 9.06 Soundness of banks 1-7 (best) 8.4 United States 9.07 Non-performing loans % loan portfolio value 1.8 69.4 14 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 32.6 133 Multiple (16) - Pillar 10: Market size 0-100 (best) 33 29.6 133 Finland 41.1 Multiple (2) 10.01 Gross domestic product PPP $ billions 36.6 98 Multiple (97) 10.02 Imports % GDP - Multiple (72) 42.6 81.4 = 97 Pillar 11: Business dynamism 0-100 (best) 13.0 China 23.3 47.6 124 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 9.0 28.4 107 11.03 Insolvency recovery rate cents/$ 3.6 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.3 36.5 117 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) 3.2 11.5 137 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 3.0 = 109 Pillar 12: Innovation capability 0-100 (best) 3.0 10.8 = 113 Israel 12.01 Diversity of workforce 1-7 (best) 3.2 54.0 101 Denmark 12.02 State of cluster development 1-7 (best) 93.3 Israel 12.03 International co-inventions applications/million pop. 0.00 84.0 = 93 12.04 Multi-stakeholder collaboration 1-7 (best) 0.2 United States 12.05 Scientific publications H Index 0.00 100.0 96 12.06 Patent applications applications/million pop. 2.0 Germany 12.07 R&D expenditures % GDP 58.78 100.0 = n/a Canada 12.09 Buyer sophistication 1-7 (best) 38.3 112 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 75 Multiple (7) 51.6 112 Multiple (7) 78.7 125
25.1 106
42.6 106
47.5 86
24.9 130
44.6 124
33.3 125
36.9 103
67.3 97
6.7 = 92
15.9 140
44.0 110
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 129 131 | The Global Competitiveness Report 2018 Burundi Economy Profiles
136th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 132nd/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 56
50 46 49
42 44 42
40 38 36 37
23 24
20 18
0
Rank /140 136th 135th 132nd 134th 129th 127th 134th 127th 133rd 135th 136th 123rd 131st
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 10.9 GDP (PPP) % world GDP 0.01 GDP per capita US$ 312.5 Unemployment rate % 1.6 10-year average annual GDP growth % 0.4 2.7 5-year average FDI inward flow % GDP
Social and environmental performance 0.6 Global Gender Gap Index 0-1 (gender parity) 0.8 3.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 38.6
The Global Competitiveness Report 2018 | 131 Economy Profiles 136th /140
Burundi Value Score * Rank/140 Best Performer
Index Component - 36.3 135 New Zealand Pillar 1: Institutions 0-100 (best) 6.0 46.3 = 119 91.3 Multiple (9) 1.01 Organized crime 1-7 (best) 3.0 81.3 96 Multiple (24) 1.02 Homicide rate /100,000 pop. 35.2 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 19.2 91.3 121 Finland 1.04 Reliability of police services 1-7 (best) 2.3 Australia 1.05 Social capital 0-100 (high) 2.6 33.6 = 125 Multiple (2) 1.06 Budget transparency 0-100 (best) 55.3 1.07 Judicial independence 1-7 (best) 3.1 35.2 132 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.31 19.2 = 132 Norway 1.10 Burden of government regulation 1-7 (best) 3.2 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 22.0 20.9 = 131 Singapore 1.12 E-Participation Index 0-1 (best) 3.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.2 27.0 = 116 Singapore 1.14 Incidence of corruption 0-100 (best) 4.5 New Zealand 1.15 Property rights 1-7 (best) 3.7 44.7 131 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 3.0 34.3 = 98 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 32.8 = 107 Multiple (2) 1.20 Shareholder governance 0-10 (best) 40.2 Kazakhstan 30.9 124 Pillar 2: Infrastructure 0-100 (best) 3.0 Singapore n/a 36.1 = 104 United States 2.02 Quality of roads 1-7 (best) 205.6 22.0 131 Singapore 2.03 Railroad density km of roads/square km 2.9 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 33.8 = 133 Switzerland 2.05 Airport connectivity score 2.6 2.06 Efficiency of air transport services 1-7 (best) 10.0 36.0 = 128 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) n/a Singapore 2.08 Efficiency of seaport services 1-7 (best) 45.1 15.0 = 135 Multiple (4) 2.09 Electrification rate % pop. 3.3 Singapore 2.10 Electric power transmission and distribution losses % output 45.4 = 121 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 54.5 57.0 = 65 Multiple (23) 17.2 Switzerland Pillar 3: ICT adoption 0-100 (best) 30.0 = 131 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 36.6 132 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 5.2 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 40.2 = 113 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 11.1 32.7 = 114 32.7 Iceland Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 53.5 18.6 = 114 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 6.2 136
Pillar 5: Health 0-100 (best) 1.9 Multiple (4) 3.3 31.3 = 132 Multiple (4) 5.01 Healthy life expectancy years 2.9 3.9 n/a n/a Finland Pillar 6: Skills 0-100 (best) 2.8 Finland 3.6 27.2 = 118 Switzerland 6.01 Mean years of schooling Years 11.7 Switzerland 6.02 Extent of staff training 1-7 (best) 2.8 10.0 138 Switzerland 6.03 Quality of vocational training 1-7 (best) 49.7 Sweden 6.04 Skillset of graduates 1-7 (best) 77.0 n/a United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 56.1 136 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 38.9 = 118 18.4 134 133 | The Global Competitiveness Report 2018 45.4 134
n/a 128
0.1 137
5.2 139
56.5 129
80.3 125
32.7 134
42.2 127
42.2 126
32.9 134
12.9 = 137
38.2 = 125
31.7 = 138
47.7 = 82
30.7 = 135
43.8 = 107
64.9 = 106
29.6 = 117
0.8 133 Burundi Economy Profiles
136th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 45.6 127 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.4 39.4 = 99 Switzerland 7.02 Extent of market dominance 1-7 (best) 3.9 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.2 40.4 = 103 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 11.68 Hong Kong SAR 7.05 Trade tariffs % duty 6.3 47.6 = 134 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 1.7 Germany 7.07 Efficiency of the clearance process 15 (best) 20.2 36.7 = 137 7.08 Services trade openness 0-100 (worst) Ecuador
- 22.1 120
Pillar 8: Labour market 0-100 (best) 15.9 United States 87.6 55 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 4.1 17.2 136 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.4 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.4 79.8 = 37 8.05 Active Labour policies 1-7 (best) 0.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.5 44.5 133 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.5 75.2 = 69 Albania 8.09 Reliance on professional management 1-7 (best) 3.0 Guinea 8.10 Pay and productivity 1-7 (best) 0.28 36.6 = 117 Finland 8.11 Female participation in Labour force ratio 10.2 8.12 Labour tax rate % 51.0 = 98 United States Pillar 9: Financial system 0-100 (best) 16.6 74.1 = 30 9.01 Domestic credit to private sector % GDP 3.0 23.1 = 113 9.02 Financing of SMEs 1-7 (best) 2.6 United States 9.03 Venture capital availability 1-7 (best) 0.0 0.0 116 Multiple (29) 9.05 Insurance premium % GDP 3.2 42.2 = 111 United States 9.06 Soundness of banks 1-7 (best) 21.1 United States 9.07 Non-performing loans % loan portfolio value -0.3 46.3 = 122 9.08 Credit gap percentage points 19.2 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 41.0 = 116 Multiple (16) - Pillar 10: Market size 0-100 (best) 7 34.0 = 128 Finland 31.4 Multiple (2) 10.01 Gross domestic product PPP $ billions 9.7 127 Multiple (97) 10.02 Imports % GDP - Multiple (72) 33.9 96.9 = 31 Pillar 11: Business dynamism 0-100 (best) China 4.0 42.2 135 China 11.01 Cost of starting a business % GNI per capita 7.7 Hong Kong SAR 11.02 Time to start a business days 8.5 17.5 128 11.03 Insolvency recovery rate cents/$ 3.2 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.9 33.5 = 125 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 2.8 11.06 Willingness to delegate authority 1-7 (best) 3.1 26.2 = 100 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 0.0 121 Pillar 12: Innovation capability 0-100 (best) 3.1 7.9 = 125 Israel 12.01 Diversity of workforce 1-7 (best) 3.3 36.1 = 130 Denmark 12.02 State of cluster development 1-7 (best) 36.0 Israel 12.03 International co-inventions applications/million pop. 0.00 58.5 131 12.04 Multi-stakeholder collaboration 1-7 (best) 0.1 United States 12.05 Scientific publications H Index 0.00 100.0 = 71 12.06 Patent applications applications/million pop. 2.1 Germany 12.07 R&D expenditures % GDP n/a 100.0 = 27 Canada 12.09 Buyer sophistication 1-7 (best) 22.6 136 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 103 Multiple (7) 48.8 123 Multiple (7) 83.1 117
8.3 131
36.4 = 132
47.9 = 106
30.4 = 138
34.8 = 117
23.8 131
44.0 = 126
35.1 = 116
38.4 = 95
53.5 136
4.0 = 103
18.3 = 137
45.0 n/a
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 133 135 | The Global Competitiveness Report 2018 Cambodia Economy Profiles
110th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 109th/135
Performance Overview Key Previous edition Lower middle income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
63 60
50 52 50 54 50 46 45
42 44
0
Rank /140 110th 126th 112nd 92nd 74th 104th 121st 114th 65th 92nd 88th 128th 96th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 16.0 GDP (PPP) % world GDP 0.05 GDP per capita US$ 1,389.6 Unemployment rate % 0.2 6.1 5-year average FDI inward flow % GDP 12.3
Environmental footprint gha/capita 1.3 Global Gender Gap Index 0-1 (gender parity) 0.7
The Global Competitiveness Report 2018 | 135 Economy Profiles 110th /140
Cambodia Value Score * Rank/140 Best Performer
Index Component - 41.9 126 New Zealand 4.2 Finland Pillar 1: Institutions 0-100 (best) 1.8 53.8 101 1.01 Organized crime 1-7 (best) 3.2 95.4 = 59 Multiple (24) 1.02 Homicide rate /100,000 pop. 44.9 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 34.6 100.0 25 Finland 1.04 Reliability of police services 1-7 (best) 2.5 Australia 1.05 Social capital 0-100 (high) 2.8 37.1 118 Multiple (2) 1.06 Budget transparency 0-100 (best) 45.9 1.07 Judicial independence 1-7 (best) 3.6 44.9 111 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.17 34.6 = 116 Norway 1.10 Burden of government regulation 1-7 (best) 3.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 21.0 25.1 121 Singapore 1.12 E-Participation Index 0-1 (best) 4.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.3 30.7 100 Singapore 1.14 Incidence of corruption 0-100 (best) 7.5 New Zealand 1.15 Property rights 1-7 (best) 3.7 54.1 116 Finland 1.16 Intellectual property protection 1-7 (best) 6.7 Finland 1.17 Quality of land administration 0-30 (best) 3.3 42.5 61 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 33.9 101 Multiple (2) 1.20 Shareholder governance 0-10 (best) 47.2 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.3 Singapore 3.5 40.7 87 United States 2.01 Road connectivity index 0-100 (best) 2.2 2.02 Quality of roads 1-7 (best) 57,534.6 21.0 = 134 Singapore 2.03 Railroad density km of roads/square km 3.6 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 8.0 50.6 93 Switzerland 2.05 Airport connectivity score 3.6 2.06 Efficiency of air transport services 1-7 (best) 59.7 38.5 123 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 13.7 Singapore 2.08 Efficiency of seaport services 1-7 (best) 24.1 25.0 = 118 Multiple (4) 2.09 Electrification rate % pop. 4.3 Singapore 2.10 Electric power transmission and distribution losses % output 44.4 123 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 116.0 67.0 = 32 Multiple (23) 66.9 Switzerland Pillar 3: ICT adoption 0-100 (best) 33.0 = 124 0.8 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.2 51.7 112 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 32.4 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 47.2 = 100 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 3.0 38.8 100 48.8 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 8.9 = 78 4.01 Inflation annual % change 60.1 19.2 109 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 53.9 58
Pillar 5: Health 0-100 (best) 4.6 Multiple (4) 3.8 42.7 114 Multiple (4) 5.01 Healthy life expectancy years 3.4 3.5 8.0 93 Finland Pillar 6: Skills 0-100 (best) 3.6 Finland 3.4 43.3 86 Switzerland 6.01 Mean years of schooling Years 10.9 Switzerland 6.02 Extent of staff training 1-7 (best) 3.5 59.7 115 Switzerland 6.03 Quality of vocational training 1-7 (best) 42.5 Sweden 6.04 Skillset of graduates 1-7 (best) 89.9 88 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 77.5 = 99 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 55.2 92 44.4 92 137 | The Global Competitiveness Report 2018 96.7 75
1.6 110
32.4 99
74.4 74
48.8 89
62.9 104
62.9 103
41.0 121
30.7 = 125
46.8 72
41.8 111
43.5 107
39.5 121
60.6 = 114
42.1 62
18.7 124 Cambodia Economy Profiles
110th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 50.0 114 Singapore 3.2 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.4 36.8 111 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 40.8 100 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 9.72 Hong Kong SAR 7.05 Trade tariffs % duty 5.5 57.4 113 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) 23.7 54.1 84 7.08 Services trade openness 0-100 (worst) Ecuador
- 35.2 98
Pillar 8: Labour market 0-100 (best) 19.4 United States 75.6 = 74 Multiple (8) 8.01 Redundancy costs weeks of salary 4.1 8.02 Hiring and firing practices 1-7 (best) 4.4 34.2 109 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.4 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.9 76.3 = 50 8.05 Active Labour policies 1-7 (best) 56.7 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.1 59.7 65 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.0 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.8 68.0 = 85 Albania 8.09 Reliance on professional management 1-7 (best) 4.1 Guinea 8.10 Pay and productivity 1-7 (best) 0.74 51.9 45 Finland 8.11 Female participation in Labour force ratio 0.5 8.12 Labour tax rate % 57.0 60 United States Pillar 9: Financial system 0-100 (best) 62.3 57.1 109 9.01 Domestic credit to private sector % GDP 3.8 31.2 90 9.02 Financing of SMEs 1-7 (best) 2.9 United States 9.03 Venture capital availability 1-7 (best) 0.4 56.7 = 112 Multiple (29) 9.04 Market capitalization % GDP 0.3 9.05 Insurance premium % GDP 4.5 52.1 66 United States 9.06 Soundness of banks 1-7 (best) 2.1 United States 9.07 Non-performing loans % loan portfolio value 9.9 50.0 108 9.08 Credit gap percentage points 21.7 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 46.5 97 Multiple (16) - Pillar 10: Market size 0-100 (best) 59 52.1 55 Finland 72.9 Multiple (2) 10.01 Gross domestic product PPP $ billions 66.9 66 Multiple (97) 10.02 Imports % GDP - Multiple (72) 51.3 100.0 = 7 Pillar 11: Business dynamism 0-100 (best) 99.0 China 14.2 53.6 92 China 11.01 Cost of starting a business % GNI per capita 13.0 Hong Kong SAR 11.02 Time to start a business days 65.6 52 11.03 Insolvency recovery rate cents/$ 3.7 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.9 45.9 70 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.2 11.06 Willingness to delegate authority 1-7 (best) 3.7 31.2 73 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 0.4 = 115 Pillar 12: Innovation capability 0-100 (best) 4.1 5.6 = 129 Israel 12.01 Diversity of workforce 1-7 (best) 3.6 57.9 91 Denmark 12.02 State of cluster development 1-7 (best) 87.7 Israel 12.03 International co-inventions applications/million pop. 0.02 96.7 35 12.04 Multi-stakeholder collaboration 1-7 (best) 0.1 United States 12.05 Scientific publications H Index 0.00 79.3 133 12.06 Patent applications applications/million pop. 3.7 Germany 12.07 R&D expenditures % GDP 83.05 100.0 = 14 Canada 12.09 Buyer sophistication 1-7 (best) 46.2 88 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 21 Multiple (7) 45.3 128 Multiple (7) 74.4 129 1.0 = 139 Multiple (7)
15.3 125
44.2 96
48.5 101
53.5 51
44.3 54
31.2 96
52.2 93
52.2 45
43.1 69
66.4 101
0.4 113
3.9 105
45.3 47
47.7 107
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 137 139 | The Global Competitiveness Report 2018 Cameroon Economy Profiles
121st / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 118th/135
Performance Overview Key Previous edition Lower middle income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
50 47 51 52 50
45 43 42 45 46
40 39
30 29
0
Rank /140 121st 125th 125th 131st 76th 132nd 111th 109th 106th 130th 89th 117th 109th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 24.3 GDP (PPP) % world GDP 0.07 GDP per capita US$ 1,400.7 Unemployment rate % 4.2 10-year average annual GDP growth % 2.1 4.1 5-year average FDI inward flow % GDP
Social and environmental performance 1.3 Global Gender Gap Index 0-1 (gender parity) 0.7 3.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 46.6
The Global Competitiveness Report 2018 | 139 Economy Profiles 121st /140
Cameroon Value Score * Rank/140 Best Performer
Index Component - 43.0 125 New Zealand Pillar 1: Institutions 0-100 (best) 4.2 51.2 110 79.9 Multiple (9) 1.01 Organized crime 1-7 (best) 4.1 87.5 = 82 Multiple (24) 1.02 Homicide rate /100,000 pop. 46.0 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 7.7 79.9 129 Finland 1.04 Reliability of police services 1-7 (best) 3.0 Australia 1.05 Social capital 0-100 (high) 3.1 52.3 86 Multiple (2) 1.06 Budget transparency 0-100 (best) 40.9 1.07 Judicial independence 1-7 (best) 3.5 46.0 103 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.6 Finland 1.09 Freedom of the press 0-100 (worst) 0.33 7.7 = 135 Norway 1.10 Burden of government regulation 1-7 (best) 3.6 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 25.0 33.0 106 Singapore 1.12 E-Participation Index 0-1 (best) 4.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.3 34.9 81 Singapore 1.14 Incidence of corruption 0-100 (best) 8.0 New Zealand 1.15 Property rights 1-7 (best) 3.8 59.1 105 Finland 1.16 Intellectual property protection 1-7 (best) 4.7 Finland 1.17 Quality of land administration 0-30 (best) 3.7 41.4 65 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 43.3 74 Multiple (2) 1.20 Shareholder governance 0-10 (best) 43.3 Kazakhstan 32.6 122 Pillar 2: Infrastructure 0-100 (best) 2.8 Singapore 2.1 43.9 74 United States 2.01 Road connectivity index 0-100 (best) 2.8 2.02 Quality of roads 1-7 (best) 3,643.4 25.0 129 Singapore 2.03 Railroad density km of roads/square km 3.2 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 14.2 52.1 82 Switzerland 2.05 Airport connectivity score 3.1 2.06 Efficiency of air transport services 1-7 (best) 63.3 54.6 62 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 28.4 Singapore 2.08 Efficiency of seaport services 1-7 (best) 40.8 26.7 = 113 Multiple (4) 2.09 Electrification rate % pop. 2.7 Singapore 2.10 Electric power transmission and distribution losses % output 47.0 117 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 81.9 47.0 = 106 Multiple (23) 10.5 Switzerland Pillar 3: ICT adoption 0-100 (best) 37.0 = 112 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 42.1 125 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 25.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 43.3 = 109 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 0.8 30.1 120 48.6 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 5.1 = 85 4.01 Inflation annual % change 52.5 30.8 84 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 22.6 121
Pillar 5: Health 0-100 (best) 6.4 Multiple (4) 3.6 37.1 125 Multiple (4) 5.01 Healthy life expectancy years 4.0 3.9 14.2 73 Finland Pillar 6: Skills 0-100 (best) 3.8 Finland 4.4 35.6 102 Switzerland 6.01 Mean years of schooling Years 12.5 Switzerland 6.02 Extent of staff training 1-7 (best) 3.3 63.3 112 Switzerland 6.03 Quality of vocational training 1-7 (best) 42.7 Sweden 6.04 Skillset of graduates 1-7 (best) 74.6 122 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 60.4 125 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 28.8 123 22.0 131 141 | The Global Competitiveness Report 2018 68.3 118
0.4 128
25.0 111
74.3 76
48.6 93
39.0 132
39.0 131
47.4 111
42.7 = 110
42.7 102
50.5 72
48.7 77
46.5 92
56.1 55
69.5 = 94
38.8 71
18.2 127 Cameroon Economy Profiles
121st /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 51.1 109 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.7 46.8 60 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 44.9 73 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 15.76 Hong Kong SAR 7.05 Trade tariffs % duty 6.6 60.8 96 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.5 Germany 7.07 Efficiency of the clearance process 15 (best) 26.4 53.8 88 7.08 Services trade openness 0-100 (worst) Ecuador
- 0.0 136
Pillar 8: Labour market 0-100 (best) 19.9 United States 93.2 = 25 Multiple (8) 8.01 Redundancy costs weeks of salary 4.0 8.02 Hiring and firing practices 1-7 (best) 3.9 36.5 92 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.0 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.6 73.6 = 55 8.05 Active Labour policies 1-7 (best) 67.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.3 51.9 106 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.5 67.0 = 87 Albania 8.09 Reliance on professional management 1-7 (best) 3.3 Guinea 8.10 Pay and productivity 1-7 (best) 0.41 49.8 53 Finland 8.11 Female participation in Labour force ratio 18.3 8.12 Labour tax rate % 49.1 107 United States Pillar 9: Financial system 0-100 (best) 15.0 67.3 59 9.01 Domestic credit to private sector % GDP 3.2 25.8 108 9.02 Financing of SMEs 1-7 (best) 2.4 United States 9.03 Venture capital availability 1-7 (best) 1.1 67.0 84 Multiple (29) 9.04 Market capitalization % GDP 0.8 9.05 Insurance premium % GDP 4.1 55.6 46 United States 9.06 Soundness of banks 1-7 (best) 10.7 United States 9.07 Non-performing loans % loan portfolio value 0.6 65.5 26 9.08 Credit gap percentage points 9.5 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 41.5 114 Multiple (16) - Pillar 10: Market size 0-100 (best) 81 37.7 122 Finland 23.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 26.7 110 Multiple (97) 10.02 Imports % GDP - Multiple (72) 35.8 85.7 = 80 Pillar 11: Business dynamism 0-100 (best) 16.5 China 16.0 45.0 130 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 9.0 15.8 131 11.03 Insolvency recovery rate cents/$ 3.7 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.6 36.7 116 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.3 11.06 Willingness to delegate authority 1-7 (best) 3.2 24.0 105 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 1.1 = 113 Pillar 12: Innovation capability 0-100 (best) 3.1 14.2 = 102 Israel 12.01 Diversity of workforce 1-7 (best) 3.4 51.9 105 Denmark 12.02 State of cluster development 1-7 (best) 108.3 Israel 12.03 International co-inventions applications/million pop. 0.02 79.5 108 12.04 Multi-stakeholder collaboration 1-7 (best) n/a United States 12.05 Scientific publications H Index 0.01 100.0 = 83 12.06 Patent applications applications/million pop. 2.8 Germany 12.07 R&D expenditures % GDP 216.91 81.5 = 118 Canada 12.09 Buyer sophistication 1-7 (best) 46.0 89 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 121 Multiple (7) 50.3 117 Multiple (7) 82.1 119
17.2 122
44.7 94
43.8 119
38.3 122
36.4 105
29.1 109
46.1 122
35.3 114
0.5 113
40.2 87
69.5 90
0.3 118
1.7 73
30.0 110
57.9 90
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 141 143 | The Global Competitiveness Report 2018 Canada Economy Profiles
12th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 10th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 86
80 80 81 81 77 77 76
75 75
70 69 65
0
Rank /140 12th 11th 25th 34th 1st 12th 11th 20th 6th 11th 15th 13th 13th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 36.7 GDP (PPP) % world GDP 1.39 GDP per capita US$ 45,077.4 Unemployment rate % 6.3 10-year average annual GDP growth % 2.7
Social and environmental performance 8.1 Global Gender Gap Index 0-1 (gender parity) 0.8 5.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 34.0
The Global Competitiveness Report 2018 | 143 Economy Profiles 12th /140
Canada Value Score * Rank/140 Best Performer
Index Component - 75.5 11 New Zealand Pillar 1: Institutions 0-100 (best) 1.7 72.9 36 98.8 Multiple (9) 1.01 Organized crime 1-7 (best) 6.2 96.0 54 Multiple (24) 1.02 Homicide rate /100,000 pop. 64.0 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 57.7 98.8 94 Finland 1.04 Reliability of police services 1-7 (best) 6.2 Australia 1.05 Social capital 0-100 (high) 4.3 87.1 7 Multiple (2) 1.06 Budget transparency 0-100 (best) 15.3 1.07 Judicial independence 1-7 (best) 3.7 64.0 6 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.91 57.7 = 61 Norway 1.10 Burden of government regulation 1-7 (best) 4.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 82.0 87.0 6 Singapore 1.12 E-Participation Index 0-1 (best) 6.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.6 54.7 25 Singapore 1.14 Incidence of corruption 0-100 (best) 21.5 New Zealand 1.15 Property rights 1-7 (best) 6.2 84.7 18 Finland 1.16 Intellectual property protection 1-7 (best) 8.7 Finland 1.17 Quality of land administration 0-30 (best) 7.0 44.3 53 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 62.4 24 Multiple (2) 1.20 Shareholder governance 0-10 (best) 93.4 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 5.2 Singapore 5.2 56.8 29 United States 2.01 Road connectivity index 0-100 (best) 4.3 2.02 Quality of roads 1-7 (best) 594,683.5 82.0 = 8 Singapore 2.03 Railroad density km of roads/square km 5.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 45.4 84.2 8 Switzerland 2.05 Airport connectivity score 5.1 2.06 Efficiency of air transport services 1-7 (best) 100.0 77.3 18 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 10.9 Singapore 2.08 Efficiency of seaport services 1-7 (best) 0.7 71.7 = 39 Multiple (4) 2.09 Electrification rate % pop. 6.7 Singapore 2.10 Electric power transmission and distribution losses % output 87.1 6 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 85.9 87.0 = 4 Multiple (23) 72.5 Switzerland Pillar 3: ICT adoption 0-100 (best) 38.0 70.0 = 24 3.01 Mobile-cellular telephone subscriptions /100 pop. 3.7 80.6 25 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 91.2 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 93.4 = 8 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 1.5 70.2 25 Pillar 4: Macroeconomic stability 0-100 (best) 13.1 = 66 4.01 Inflation annual % change 71.2 54.2 38 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 96.3 12
Pillar 5: Health 0-100 (best) 13.8 Multiple (4) 73.8 30 Multiple (4) 5.01 Healthy life expectancy years 4.9 5.2 45.4 33 Finland Pillar 6: Skills 0-100 (best) 5.0 Finland 5.2 68.4 24 Switzerland 6.01 Mean years of schooling Years 5.0 Switzerland 6.02 Extent of staff training 1-7 (best) 16.3 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.9 Sweden 6.04 Skillset of graduates 1-7 (best) 17.0 92.8 69 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 100.0 = 16 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 95.1 13 68.6 34 145 | The Global Competitiveness Report 2018 71.6 114
76.0 12
91.2 10
97.5 12
97.5 11
81.0 11
92.0 = 3
69.7 11
70.1 18
66.4 16
90.6 = 28
65.6 12
82.5 = 56 Canada Economy Profiles
12th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 64.9 20 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.5 52.4 44 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.5 58.2 25 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 2.65 Hong Kong SAR 7.05 Trade tariffs % duty 4.8 70.3 44 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.6 Germany 7.07 Efficiency of the clearance process 15 (best) 21.6 58.7 55 7.08 Services trade openness 0-100 (worst) Ecuador
- 82.3 43
Pillar 8: Labour market 0-100 (best) 10.0 United States 62.6 96 Multiple (8) 8.01 Redundancy costs weeks of salary 4.5 8.02 Hiring and firing practices 1-7 (best) 5.2 65.1 18 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.4 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.7 78.4 = 43 8.05 Active Labour policies 1-7 (best) 90.7 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.0 77.0 6 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.9 87.5 = 30 Albania 8.09 Reliance on professional management 1-7 (best) 5.0 Guinea 8.10 Pay and productivity 1-7 (best) 0.97 59.1 18 Finland 8.11 Female participation in Labour force ratio 12.9 8.12 Labour tax rate % 70.0 17 United States Pillar 9: Financial system 0-100 (best) 189.3 73.7 31 9.01 Domestic credit to private sector % GDP 4.6 61.9 22 9.02 Financing of SMEs 1-7 (best) 3.7 United States 9.03 Venture capital availability 1-7 (best) 116.1 90.7 14 Multiple (29) 9.04 Market capitalization % GDP 5.6 9.05 Insurance premium % GDP 6.5 49.6 81 United States 9.06 Soundness of banks 1-7 (best) 0.6 United States 9.07 Non-performing loans % loan portfolio value 5.1 65.4 29 9.08 Credit gap percentage points 14.3 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 81.8 10 Multiple (16) - Pillar 10: Market size 0-100 (best) 1,612 66.4 8 Finland 10.01 Gross domestic product PPP $ billions 33.1 96.0 10 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 93.2 50
Pillar 11: Business dynamism 0-100 (best) 0.4 China 1.5 86.1 11 China 11.01 Cost of starting a business % GNI per capita 87.5 Hong Kong SAR 11.02 Time to start a business days 11.0 100.0 = 4 11.03 Insolvency recovery rate cents/$ 4.4 United States 11.04 Insolvency regulatory framework 0-16 (best) 5.6 59.7 21 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.7 11.06 Willingness to delegate authority 1-7 (best) 4.1 44.8 31 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 100.0 = 11 5.9 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 4.7 92.8 = 19 Israel 15.93 12.01 Diversity of workforce 1-7 (best) 4.6 92.0 2 Denmark 12.02 State of cluster development 1-7 (best) 986.3 Israel 12.03 International co-inventions applications/million pop. 108.45 99.8 4 12.04 Multi-stakeholder collaboration 1-7 (best) 1.6 United States 12.05 Scientific publications H Index 0.34 91.9 117 12.06 Patent applications applications/million pop. 4.4 Germany 12.07 R&D expenditures % GDP 1,904.45 94.3 = 99 Canada 12.09 Buyer sophistication 1-7 (best) 76.7 15 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 94 Multiple (7) 76.0 13 Multiple (7) 99.8 = 9 99.0 = 2 Multiple (7)
94.2 8
56.7 31
76.9 10
60.9 25
51.7 28
75.0 13
81.7 1
86.8 14
60.5 24
86.3 18
53.8 = 23
81.1 10
56.7 21
81.2 39
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 145 147 | The Global Competitiveness Report 2018 Cape Verde Economy Profiles
111th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 105th/135
Performance Overview Key Previous edition Lower middle income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 76
60 55 58 57
50 51 48 53 53
20 17 21
0
Rank /140 111th 79th 106th 79th 107th 86th 98th 96th 84th 75th 138th 131st 137th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 0.5 GDP (PPP) % world GDP 0.00 GDP per capita US$ 3,237.6 Unemployment rate % 10.3 2.2 5-year average FDI inward flow % GDP 6.9
Social and environmental performance 1.6 Income Gini 0 (perfect equality) -100 (perfect inequality) 47.2
The Global Competitiveness Report 2018 | 147 Economy Profiles 111th /140
Cape Verde Value Score * Rank/140 Best Performer
Index Component - 51.5 79 New Zealand Pillar 1: Institutions 0-100 (best) 11.5 62.7 75 1.01 Organized crime 1-7 (best) 4.2 62.8 120 Multiple (24) 1.02 Homicide rate /100,000 pop. n/a 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 53.8 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 4.1 Australia 1.05 Social capital 0-100 (high) 3.1 54.1 78 Multiple (2) 1.06 Budget transparency 0-100 (best) 20.4 1.07 Judicial independence 1-7 (best) 3.8 n/a n/a Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.5 Finland 1.09 Freedom of the press 0-100 (worst) 0.43 53.8 = 67 Norway 1.10 Burden of government regulation 1-7 (best) 3.9 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 55.0 52.2 58 Singapore 1.12 E-Participation Index 0-1 (best) 4.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.8 35.3 80 Singapore 1.14 Incidence of corruption 0-100 (best) 10.0 New Zealand 1.15 Property rights 1-7 (best) 3.9 79.6 26 Finland 1.16 Intellectual property protection 1-7 (best) 4.0 Finland 1.17 Quality of land administration 0-30 (best) 3.3 46.5 43 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 41.0 82 Multiple (2) 1.20 Shareholder governance 0-10 (best) 30.3 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.8 Singapore n/a 48.2 52 United States 2.01 Road connectivity index 0-100 (best) 2.4 2.02 Quality of roads 1-7 (best) 4,882.6 55.0 43 Singapore 2.03 Railroad density km of roads/square km 3.2 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 16.4 51.3 86 Switzerland 2.05 Airport connectivity score 3.0 2.06 Efficiency of air transport services 1-7 (best) 96.6 47.1 86 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) n/a Singapore 2.08 Efficiency of seaport services 1-7 (best) 22.2 33.3 = 102 Multiple (4) 2.09 Electrification rate % pop. 3.4 Singapore 2.10 Electric power transmission and distribution losses % output 47.9 112 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 112.1 40.0 = 121 Multiple (23) 69.9 Switzerland Pillar 3: ICT adoption 0-100 (best) 33.0 = 124 2.7 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 54.7 106 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 50.3 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 30.3 = 124 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. -0.3 47.2 76 Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 64.2 23.3 101 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 25.1 116
Pillar 5: Health 0-100 (best) 6.1 Multiple (4) 3.5 36.3 127 Multiple (4) 5.01 Healthy life expectancy years 4.0 3.8 16.4 68 Finland Pillar 6: Skills 0-100 (best) 4.1 Finland 4.1 32.5 110 Switzerland 6.01 Mean years of schooling Years 12.0 Switzerland 6.02 Extent of staff training 1-7 (best) 3.7 96.6 91 Switzerland 6.03 Quality of vocational training 1-7 (best) 21.5 Sweden 6.04 Skillset of graduates 1-7 (best) 96.6 n/a United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 79.4 98 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 39.5 117 48.1 79 149 | The Global Competitiveness Report 2018 93.4 83
5.3 101
50.3 85
68.9 107
97.7 96
75.6 86
75.6 85
53.3 98
40.8 = 113
41.2 110
50.1 73
50.9 77
51.5 71
66.5 101
44.2 53
71.3 78 Cape Verde Economy Profiles
111th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 52.8 96 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.5 48.4 55 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.0 42.0 88 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 8.49 Hong Kong SAR 7.05 Trade tariffs % duty 5.8 57.3 114 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) n/a Germany 7.07 Efficiency of the clearance process 15 (best) n/a 49.2 112 7.08 Services trade openness 0-100 (worst) Ecuador
- 43.4 94
Pillar 8: Labour market 0-100 (best) 17.4 United States 79.9 = 68 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 4.2 35.0 n/a Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.0 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.8 74.3 n/a 8.05 Active Labour policies 1-7 (best) n/a Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.5 57.6 84 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.6 72.1 = 77 Albania 8.09 Reliance on professional management 1-7 (best) 3.5 Guinea 8.10 Pay and productivity 1-7 (best) 0.67 46.6 72 Finland 8.11 Female participation in Labour force ratio 17.6 8.12 Labour tax rate % 53.0 91 United States Pillar 9: Financial system 0-100 (best) 63.0 66.9 61 9.01 Domestic credit to private sector % GDP 3.3 30.0 98 9.02 Financing of SMEs 1-7 (best) 2.6 United States 9.03 Venture capital availability 1-7 (best) 41.6 79.7 n/a Multiple (29) 9.04 Market capitalization % GDP 1.3 9.05 Insurance premium % GDP 4.1 58.9 33 United States 9.06 Soundness of banks 1-7 (best) 15.5 United States 9.07 Non-performing loans % loan portfolio value -5.9 53.2 95 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 43.6 105 Multiple (16) - Pillar 10: Market size 0-100 (best) 3 41.4 103 Finland 63.3 Multiple (2) 10.01 Gross domestic product PPP $ billions 59.2 78 Multiple (97) 10.02 Imports % GDP - Multiple (72) 15.4 86.7 = 73 Pillar 11: Business dynamism 0-100 (best) 11.0 China 57.3 75 China 11.01 Cost of starting a business % GNI per capita 0.0 Hong Kong SAR 11.02 Time to start a business days 0.0 66.3 50 11.03 Insolvency recovery rate cents/$ 3.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.8 38.1 113 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) 3.3 27.4 95 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 41.6 = 45 Pillar 12: Innovation capability 0-100 (best) 3.3 21.1 = 87 Israel 12.01 Diversity of workforce 1-7 (best) 3.4 51.4 106 Denmark 12.02 State of cluster development 1-7 (best) 21.0 Israel 12.03 International co-inventions applications/million pop. 0.00 69.7 = 120 12.04 Multi-stakeholder collaboration 1-7 (best) 0.1 United States 12.05 Scientific publications H Index 0.00 100.0 = 32 12.06 Patent applications applications/million pop. 2.9 Germany 12.07 R&D expenditures % GDP 0.00 100.0 = n/a Canada 12.09 Buyer sophistication 1-7 (best) 17.1 138 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 138 n/a 32 Multiple (7) 44.0 131 Multiple (7) 92.3 95
47.5 108
42.7 106
38.7 90
21.4 137
56.7 74
38.2 103
39.2 90
45.8 140
2.4 = 114
32.1 105
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 149 151 | The Global Competitiveness Report 2018 Chad Economy Profiles
140th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 134th/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
40 37 38 42 39 37
36 35 34
30 30 29
20 22
13
0
Rank /140 140th 137th 137th 140th 91st 136th 139th 138th 139th 139th 120th 138th 136th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 12.2 GDP (PPP) % world GDP 0.02 GDP per capita US$ 810.2 Unemployment rate % 5.9 10-year average annual GDP growth % 2.5
Social and environmental performance 1.6 Global Gender Gap Index 0-1 (gender parity) 0.6 3.0 Income Gini 0 (perfect equality) -100 (perfect inequality) 43.3
The Global Competitiveness Report 2018 | 151 Economy Profiles 140th /140
Chad Value Score * Rank/140 Best Performer
Index Component - 34.6 137 New Zealand Pillar 1: Institutions 0-100 (best) 9.0 37.4 128 96.2 Multiple (9) 1.01 Organized crime 1-7 (best) 2.7 71.0 = 110 Multiple (24) 1.02 Homicide rate /100,000 pop. 40.3 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 3.8 96.2 112 Finland 1.04 Reliability of police services 1-7 (best) 2.1 Australia 1.05 Social capital 0-100 (high) 2.3 29.1 132 Multiple (2) 1.06 Budget transparency 0-100 (best) 38.5 1.07 Judicial independence 1-7 (best) 3.0 40.3 127 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.15 3.8 = 138 Norway 1.10 Burden of government regulation 1-7 (best) 2.7 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 20.0 19.0 133 Singapore 1.12 E-Participation Index 0-1 (best) 3.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.1 22.3 126 Singapore 1.14 Incidence of corruption 0-100 (best) 9.0 New Zealand 1.15 Property rights 1-7 (best) 2.9 61.6 99 Finland 1.16 Intellectual property protection 1-7 (best) 4.0 Finland 1.17 Quality of land administration 0-30 (best) 3.7 33.9 101 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 33.5 105 Multiple (2) 1.20 Shareholder governance 0-10 (best) 47.1 Kazakhstan 14.6 135 Pillar 2: Infrastructure 0-100 (best) 2.2 Singapore n/a 28.2 124 United States 2.01 Road connectivity index 0-100 (best) 2.0 2.02 Quality of roads 1-7 (best) 942.8 20.0 = 137 Singapore 2.03 Railroad density km of roads/square km 2.8 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 34.1 132 Switzerland 2.05 Airport connectivity score 2.3 2.06 Efficiency of air transport services 1-7 (best) 8.8 34.8 130 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) n/a Singapore 2.08 Efficiency of seaport services 1-7 (best) 45.9 30.0 = 109 Multiple (4) 2.09 Electrification rate % pop. 2.2 Singapore 2.10 Electric power transmission and distribution losses % output 30.9 135 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 38.6 40.0 = 121 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 9.2 37.0 = 112 0.1 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 34.1 137 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 5.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 47.1 = 101 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. -1.0 20.6 135 48.9 Iceland Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 51.7 16.7 118 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 13.2 130
Pillar 5: Health 0-100 (best) 2.3 Multiple (4) 3.1 30.2 135 Multiple (4) 4.0 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.0 Finland 3.9 21.7 129 Switzerland 6.01 Mean years of schooling Years 8.0 Switzerland 6.02 Extent of staff training 1-7 (best) 3.2 8.8 140 Switzerland 6.03 Quality of vocational training 1-7 (best) 56.9 Sweden 6.04 Skillset of graduates 1-7 (best) 77.4 n/a United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 55.2 138 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 20.6 134 12.8 140 153 | The Global Competitiveness Report 2018 32.2 = 140
n/a 136
0.1 133
5.0 140
72.3 91
95.8 103
48.9 88
36.6 136
36.6 135
29.9 139
15.3 = 135
34.3 132
41.5 112
49.3 73
33.7 133
48.2 89
44.2 = 139
37.2 79
0.0 136 Chad Economy Profiles
140th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 38.4 138 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 2.4 28.3 131 Switzerland 7.02 Extent of market dominance 1-7 (best) 3.3 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.4 22.8 136 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 15.31 Hong Kong SAR 7.05 Trade tariffs % duty 6.6 39.0 138 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.2 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 40.6 135 7.08 Services trade openness 0-100 (worst) Ecuador
- 0.0 135
Pillar 8: Labour market 0-100 (best) 13.0 United States 93.2 = 26 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 3.5 28.8 124 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.2 71.1 n/a 8.05 Active Labour policies 1-7 (best) 71.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.0 42.0 139 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 2.2 81.3 = 47 Albania 8.09 Reliance on professional management 1-7 (best) 2.9 Guinea 8.10 Pay and productivity 1-7 (best) 0.08 43.2 93 Finland 8.11 Female participation in Labour force ratio 28.4 8.12 Labour tax rate % 41.7 131 United States Pillar 9: Financial system 0-100 (best) 8.8 61.5 90 2.6 Multiple (26) 9.01 Domestic credit to private sector % GDP 2.1 19.8 118 9.02 Financing of SMEs 1-7 (best) 0.0 United States 9.03 Venture capital availability 1-7 (best) 0.1 71.1 = 60 Multiple (29) 9.04 Market capitalization % GDP 3.0 9.05 Insurance premium % GDP 20.9 49.6 82 United States 9.06 Soundness of banks 1-7 (best) 2.3 United States 9.07 Non-performing loans % loan portfolio value n/a 56.7 76 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 20.0 139 Multiple (16) 26 Pillar 10: Market size 0-100 (best) 50.4 32.0 131 Finland 10.01 Gross domestic product PPP $ billions - 0.0 139 Multiple (97) 10.02 Imports % GDP 171.3 Multiple (72) 71.7 = 120 Pillar 11: Business dynamism 0-100 (best) 60.0 China 0.0 38.7 139 China 11.01 Cost of starting a business % GNI per capita 9.0 Hong Kong SAR 11.02 Time to start a business days 2.9 9.3 138 11.03 Insolvency recovery rate cents/$ 2.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 2.7 27.0 134 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 2.7 11.06 Willingness to delegate authority 1-7 (best) 18.8 125 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.2 0.0 121 Pillar 12: Innovation capability 0-100 (best) 0.00 2.4 = 134 Israel 12.01 Diversity of workforce 1-7 (best) 37.0 33.1 132 Denmark 12.02 State of cluster development 1-7 (best) 0.00 Israel 12.03 International co-inventions applications/million pop. n/a 58.8 130 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 2.6 99.1 104 12.06 Patent applications applications/million pop. 21.44 Germany 12.07 R&D expenditures % GDP 100.0 = n/a Canada 12.09 Buyer sophistication 1-7 (best) 36.7 120 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 58 Multiple (7) 28.6 138 Multiple (7) 14.3 138 40.2 = 132 Multiple (7)
31.9 138
29.5 137
28.1 139
28.6 135
21.6 136
37.5 135
30.7 129
32.3 129
53.9 135
1.5 n/a
33.5 120
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 153 155 | The Global Competitiveness Report 2018 Chile Economy Profiles
33rd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 34th/135
Performance Key Previous edition High income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 75 80
70 70 70 68
64 61 63 63 64
0
Rank /140 33rd 32nd 41st 49th 1st 30th 42nd 13th 45th 20th 46th 46th 53rd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 18.4 GDP (PPP) % world GDP 0.36 GDP per capita US$ 15,070.4 Unemployment rate % 7.0 10-year average annual GDP growth % 7.1 2.9 5-year average FDI inward flow % GDP
Social and environmental performance 4.0 Global Gender Gap Index 0-1 (gender parity) 0.7 4.4 Income Gini 0 (perfect equality) -100 (perfect inequality) 47.7
The Global Competitiveness Report 2018 | 155 Economy Profiles 33rd /140
Chile Value Score * Rank/140 Best Performer
Index Component - 63.6 32 New Zealand Pillar 1: Institutions 0-100 (best) 3.5 70.7 45 1.01 Organized crime 1-7 (best) 5.7 90.0 80 Multiple (24) 1.02 Homicide rate /100,000 pop. 51.2 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 65.4 99.1 89 Finland 1.04 Reliability of police services 1-7 (best) 4.9 Australia 1.05 Social capital 0-100 (high) 3.6 78.3 24 Multiple (2) 1.06 Budget transparency 0-100 (best) 22.7 1.07 Judicial independence 1-7 (best) 3.3 51.2 64 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.82 65.4 = 42 Norway 1.10 Burden of government regulation 1-7 (best) 3.9 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 67.0 64.8 36 Singapore 1.12 E-Participation Index 0-1 (best) 5.2 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.5 43.6 54 Singapore 1.14 Incidence of corruption 0-100 (best) 15.0 New Zealand 1.15 Property rights 1-7 (best) 5.6 77.3 33 Finland 1.16 Intellectual property protection 1-7 (best) 7.0 Finland 1.17 Quality of land administration 0-30 (best) 5.0 38.3 78 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 50.3 52 Multiple (2) 1.20 Shareholder governance 0-10 (best) 90.7 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 5.2 Singapore 7.3 47.8 55 United States 2.01 Road connectivity index 0-100 (best) 3.0 2.02 Quality of roads 1-7 (best) 74,399.2 67.0 25 Singapore 2.03 Railroad density km of roads/square km 4.9 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 41.4 69.5 32 Switzerland 2.05 Airport connectivity score 4.8 2.06 Efficiency of air transport services 1-7 (best) 100.0 59.0 48 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 4.9 Singapore 2.08 Efficiency of seaport services 1-7 (best) 3.2 50.0 = 72 Multiple (4) 2.09 Electrification rate % pop. 6.0 Singapore 2.10 Electric power transmission and distribution losses % output 77.4 20 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 127.5 70.0 = 23 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 88.2 50.0 = 81 16.9 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 75.2 41 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 1.1 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 83.6 90.7 = 14 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 70.3 24 3.0 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 100.0 18.3 = 56 4.01 Inflation annual % change - 33.4 79 Multiple (74) 4.02 Debt dynamics 0-100 (best) 69.9 Multiple (36) 57.8 51 Pillar 5: Health 0-100 (best) - Multiple (4) 10.6 65.6 51 Multiple (4) 4.2 41.4 38 Finland Pillar 6: Skills 0-100 (best) 4.8 Finland 4.5 63.3 32 Switzerland 6.01 Mean years of schooling Years 4.2 Switzerland 6.02 Extent of staff training 1-7 (best) 4.8 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 16.4 Sweden 6.04 Skillset of graduates 1-7 (best) 3.2 99.0 20 United States 6.05 Digital skills among population 1-7 (best) 18.4 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 98.7 31 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 83.7 29 61.3 49 157 | The Global Competitiveness Report 2018 100.0 = 43
33.9 55
83.6 26
93.4 29
69.6 42
53.6 51
63.2 24
59.0 38
54.0 65
63.9 24
91.1 25
36.9 81
79.1 = 70 Chile Economy Profiles
33rd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 68.2 13 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.5 62.6 15 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.5 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.2 42.0 89 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 3.19 Hong Kong SAR 7.05 Trade tariffs % duty 7.0 75.1 14 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.3 Germany 7.07 Efficiency of the clearance process 15 (best) 23.4 70.7 10 7.08 Services trade openness 0-100 (worst) Ecuador
- 78.7 47
Pillar 8: Labour market 0-100 (best) 27.4 United States 99.8 2 Multiple (8) 8.01 Redundancy costs weeks of salary 3.0 8.02 Hiring and firing practices 1-7 (best) 4.4 56.9 32 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.0 76.6 = 48 8.05 Active Labour policies 1-7 (best) 76.3 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.7 63.2 45 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.0 51.3 = 114 Albania 8.09 Reliance on professional management 1-7 (best) 4.4 Guinea 8.10 Pay and productivity 1-7 (best) 0.69 33.7 124 Finland 8.11 Female participation in Labour force ratio 5.1 8.12 Labour tax rate % 56.3 65 United States Pillar 9: Financial system 0-100 (best) 110.1 82.3 7 9.01 Domestic credit to private sector % GDP 4.1 32.7 82 9.02 Financing of SMEs 1-7 (best) 3.5 United States 9.03 Venture capital availability 1-7 (best) 84.6 76.3 47 Multiple (29) 9.04 Market capitalization % GDP 4.0 9.05 Insurance premium % GDP 6.3 62.4 18 United States 9.06 Soundness of banks 1-7 (best) 1.8 United States 9.07 Non-performing loans % loan portfolio value -2.6 48.6 111 9.08 Credit gap percentage points 13.1 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 66.3 30 Multiple (16) - Pillar 10: Market size 0-100 (best) 411 56.8 43 Finland 28.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 61.1 76 Multiple (97) 10.02 Imports % GDP - Multiple (72) 3.0 100.0 = 16 Pillar 11: Business dynamism 0-100 (best) 5.5 China 40.8 80.3 20 China 11.01 Cost of starting a business % GNI per capita 12.0 Hong Kong SAR 11.02 Time to start a business days 4.2 100.0 = 25 11.03 Insolvency recovery rate cents/$ 4.6 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.0 51.7 41 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.4 11.06 Willingness to delegate authority 1-7 (best) 41.7 36 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.0 84.6 21 Pillar 12: Innovation capability 0-100 (best) 0.28 66.8 = 33 Israel 12.01 Diversity of workforce 1-7 (best) 300.0 88.9 5 Denmark 12.02 State of cluster development 1-7 (best) 3.78 Israel 12.03 International co-inventions applications/million pop. 0.4 97.3 31 12.04 Multi-stakeholder collaboration 1-7 (best) 0.05 United States 12.05 Scientific publications H Index 4.0 100.0 = 49 12.06 Patent applications applications/million pop. 1,631.21 Germany 12.07 R&D expenditures % GDP 91.6 = 107 Canada 12.09 Buyer sophistication 1-7 (best) 62.7 46 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 113 Multiple (7) 64.3 46 Multiple (7) 98.5 49
43.9 56
53.1 51
59.7 43
50.0 65
39.4 82
41.3 53
49.8 104
44.1 81
7.6 66
43.5 66
84.5 38
28.7 48
12.8 73
12.4 36
49.4 38
79.6 42
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 157 159 | The Global Competitiveness Report 2018 China Economy Profiles
28th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 28th/135
Performance Overview Key Previous edition Upper middle income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 98 100
80 78 72
64 59 64
60 55 57
0
Rank /140 28th 65th 29th 26th 39th 44th 63rd 55th 69th 30th 1st 43rd 24th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Selected contextual indicators 1,390.1 GDP (PPP) % world GDP 18.23 8,643.1 Unemployment rate % 4.7 Population millions 1.2 GDP per capita US$ 7.9 5-year average FDI inward flow % GDP
Social and environmental performance 3.7 Global Gender Gap Index 0-1 (gender parity) 0.7 4.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 42.2
The Global Competitiveness Report 2018 | 159 Economy Profiles 28th /140
China Value Score * Rank/140 Best Performer
Index Component - 54.6 65 New Zealand Pillar 1: Institutions 0-100 (best) 0.6 60.7 = 80 96.4 Multiple (9) 1.01 Organized crime 1-7 (best) 4.6 99.6 15 Multiple (24) 1.02 Homicide rate /100,000 pop. 41.0 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 50.0 96.4 111 Finland 1.04 Reliability of police services 1-7 (best) 4.5 Australia 1.05 Social capital 0-100 (high) 4.1 59.8 = 63 Multiple (2) 1.06 Budget transparency 0-100 (best) 78.3 1.07 Judicial independence 1-7 (best) 4.4 41.0 125 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.1 Finland 1.09 Freedom of the press 0-100 (worst) 0.90 50.0 = 77 Norway 1.10 Burden of government regulation 1-7 (best) 4.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 41.0 58.2 = 45 Singapore 1.12 E-Participation Index 0-1 (best) 4.6 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.5 51.5 = 34 Singapore 1.14 Incidence of corruption 0-100 (best) 18.3 New Zealand 1.15 Property rights 1-7 (best) 4.5 21.7 140 Finland 1.16 Intellectual property protection 1-7 (best) 5.0 Finland 1.17 Quality of land administration 0-30 (best) 4.7 56.3 = 18 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 51.9 = 47 Multiple (2) 1.20 Shareholder governance 0-10 (best) 88.4 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.6 Singapore 7.0 56.3 = 32 United States 2.01 Road connectivity index 0-100 (best) 4.5 2.02 Quality of roads 1-7 (best) 4,925,930.8 41.0 66 Singapore 2.03 Railroad density km of roads/square km 4.6 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 158.8 59.6 = 53 Switzerland 2.05 Airport connectivity score 4.5 2.06 Efficiency of air transport services 1-7 (best) 100.0 58.3 = 49 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 5.1 Singapore 2.08 Efficiency of seaport services 1-7 (best) 12.4 61.0 = 51 Multiple (4) 2.09 Electrification rate % pop. 4.9 Singapore 2.10 Electric power transmission and distribution losses % output 59.1 = 75 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 104.6 50.0 = 95 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 83.6 47.0 = 90 26.9 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 18.0 78.1 29 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 53.2 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 88.4 = 17 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 1.8 59.7 = 42 96.6 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 17.5 = 58 4.01 Inflation annual % change 67.9 59.0 = 25 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 100.0 = 2
Pillar 5: Health 0-100 (best) 7.8 Multiple (4) 4.5 60.7 = 63 Multiple (4) 5.01 Healthy life expectancy years 4.5 4.5 100.0 = 1 Finland Pillar 6: Skills 0-100 (best) 4.7 Finland 4.6 58.6 = 48 Switzerland 6.01 Mean years of schooling Years 13.5 Switzerland 6.02 Extent of staff training 1-7 (best) 4.4 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 16.5 Sweden 6.04 Skillset of graduates 1-7 (best) 98.8 21 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 89.4 75 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 64.9 = 68 71.5 26 161 | The Global Competitiveness Report 2018 87.2 94
53.7 36
53.2 82
98.3 39
96.6 39
87.0 44
87.0 43
64.1 63
52.0 = 97
58.3 = 35
58.9 = 40
59.1 = 37
61.0 = 45
59.7 = 44
75.2 = 77
56.1 = 24
83.6 52 China Economy Profiles
28th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 57.4 55 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.5 51.7 = 45 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.7 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.5 58.9 = 24 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 12.19 Hong Kong SAR 7.05 Trade tariffs % duty 6.4 61.9 = 89 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.3 Germany 7.07 Efficiency of the clearance process 15 (best) 36.6 58.1 = 57 7.08 Services trade openness 0-100 (worst) Ecuador
- 18.7 124
Pillar 8: Labour market 0-100 (best) 27.4 United States 89.2 44 Multiple (8) 8.01 Redundancy costs weeks of salary 4.5 8.02 Hiring and firing practices 1-7 (best) 4.6 57.1 31 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.6 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.5 63.4 = 74 8.05 Active Labour policies 1-7 (best) 59.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.5 59.3 69 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.5 51.3 = 114 Albania 8.09 Reliance on professional management 1-7 (best) 4.6 Guinea 8.10 Pay and productivity 1-7 (best) 0.84 57.7 = 23 Finland 8.11 Female participation in Labour force ratio 48.1 8.12 Labour tax rate % 59.6 = 52 United States Pillar 9: Financial system 0-100 (best) 149.8 60.5 = 98 9.01 Domestic credit to private sector % GDP 4.4 58.2 = 28 9.02 Financing of SMEs 1-7 (best) 4.4 United States 9.03 Venture capital availability 1-7 (best) 65.6 59.8 105 Multiple (29) 9.04 Market capitalization % GDP 2.8 9.05 Insurance premium % GDP 4.5 58.0 = 36 United States 9.06 Soundness of banks 1-7 (best) 1.7 United States 9.07 Non-performing loans % loan portfolio value 11.8 57.5 = 72 9.08 Credit gap percentage points 12.7 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 59.0 = 46 Multiple (16) - Pillar 10: Market size 0-100 (best) 21,095 60.5 = 27 Finland 10.01 Gross domestic product PPP $ billions 19.2 79.4 46 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 44.3 139
Pillar 11: Business dynamism 0-100 (best) 0.6 China 22.9 71.9 30 China 11.01 Cost of starting a business % GNI per capita 36.9 Hong Kong SAR 11.02 Time to start a business days 11.5 100.0 = 9 11.03 Insolvency recovery rate cents/$ 4.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.5 57.2 = 31 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.4 11.06 Willingness to delegate authority 1-7 (best) 4.2 57.0 = 10 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 65.6 30 Pillar 12: Innovation capability 0-100 (best) 4.6 47.4 = 43 Israel 0.99 12.01 Diversity of workforce 1-7 (best) 4.4 58.1 = 90 Denmark 12.02 State of cluster development 1-7 (best) 674.0 Israel 12.03 International co-inventions applications/million pop. 12.28 97.5 29 12.04 Multi-stakeholder collaboration 1-7 (best) 2.1 United States 12.05 Scientific publications H Index 2.38 74.2 135 12.06 Patent applications applications/million pop. 4.5 Germany 12.07 R&D expenditures % GDP 1,561.67 90.5 = 113 Canada 12.09 Buyer sophistication 1-7 (best) 100.0 = 1 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 130 Multiple (7) 64.6 43 Multiple (7) 99.7 13 77.5 106 Multiple (7)
39.7 69
58.4 = 28
58.5 = 50
57.2 = 39
53.8 = 24
64.4 24
56.2 = 77
59.6 = 29
21.1 45
57.3 = 29
96.5 14
47.5 32
68.9 18
58.2 = 19
79.1 45
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 161 163 | The Global Competitiveness Report 2018 Colombia Economy Profiles
60th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 57th/135
Performance Key Previous edition Upper middle income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 87 91
70 66
62 63 60 64 64
60 58
50 54
50 47
40 36
0
Rank /140 60th 89th 83rd 84th 56th 35th 80th 85th 80th 53rd 37th 49th 73rd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 49.3 GDP (PPP) % world GDP 0.56 GDP per capita US$ 6,272.8 Unemployment rate % 8.9 10-year average annual GDP growth % 4.4
Social and environmental performance 1.9 Global Gender Gap Index 0-1 (gender parity) 0.7 4.0 Income Gini 0 (perfect equality) -100 (perfect inequality) 50.8
The Global Competitiveness Report 2018 | 163 Economy Profiles 60th /140
Colombia Value Score * Rank/140 Best Performer
Index Component - 50.3 89 New Zealand 3.0 Finland Pillar 1: Institutions 0-100 (best) 25.5 33.3 135 85.6 Multiple (9) 1.01 Organized crime 1-7 (best) 3.4 15.2 131 Multiple (24) 1.02 Homicide rate /100,000 pop. 51.6 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 92.3 85.6 127 Finland 1.04 Reliability of police services 1-7 (best) 2.8 Australia 1.05 Social capital 0-100 (high) 2.6 40.1 114 Multiple (2) 1.06 Budget transparency 0-100 (best) 41.0 1.07 Judicial independence 1-7 (best) 2.6 51.6 61 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.92 92.3 = 4 Norway 1.10 Burden of government regulation 1-7 (best) 3.2 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 37.0 30.2 112 Singapore 1.12 E-Participation Index 0-1 (best) 4.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.9 27.2 115 Singapore 1.14 Incidence of corruption 0-100 (best) 16.5 New Zealand 1.15 Property rights 1-7 (best) 4.8 59.0 106 Finland 1.16 Intellectual property protection 1-7 (best) 8.0 Finland 1.17 Quality of land administration 0-30 (best) 6.7 27.0 123 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 28.8 121 Multiple (2) 1.20 Shareholder governance 0-10 (best) 47.9 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.3 Singapore 1.5 36.3 103 United States 2.01 Road connectivity index 0-100 (best) 1.8 2.02 Quality of roads 1-7 (best) 144,423.4 37.0 = 80 Singapore 2.03 Railroad density km of roads/square km 4.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 45.0 50.3 94 Switzerland 2.05 Airport connectivity score 4.0 2.06 Efficiency of air transport services 1-7 (best) 97.8 49.1 78 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 13.5 Singapore 2.08 Efficiency of seaport services 1-7 (best) 9.7 55.0 = 64 Multiple (4) 2.09 Electrification rate % pop. 4.8 Singapore 2.10 Electric power transmission and distribution losses % output 63.1 57 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 126.8 80.0 = 11 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 48.8 67.0 = 32 12.9 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 63.0 83 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 0.5 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 58.1 47.9 = 97 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 37.9 102 5.9 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 80.0 3.7 = 92 4.01 Inflation annual % change - 12.5 125 Multiple (74) 4.02 Debt dynamics 0-100 (best) 69.1 Multiple (36) 68.7 31 Pillar 5: Health 0-100 (best) - Multiple (4) 8.1 56.4 80 Multiple (4) 5.01 Healthy life expectancy years 3.7 4.4 45.0 34 Finland Pillar 6: Skills 0-100 (best) 4.3 Finland 3.9 49.6 72 Switzerland 6.01 Mean years of schooling Years 4.3 Switzerland 6.02 Extent of staff training 1-7 (best) 14.6 97.8 89 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.6 Sweden 6.04 Skillset of graduates 1-7 (best) 24.2 90.1 87 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 92.1 64 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 63.1 70 46.7 84 165 | The Global Competitiveness Report 2018 100.0 = 46
25.8 65
58.1 74
87.3 56
94.7 108
90.9 35
90.9 34
59.9 80
53.8 = 91
56.7 48
54.4 53
47.6 86
54.5 59
81.0 62
42.7 58
64.4 89 Colombia Economy Profiles
60th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 54.0 85 Singapore 2.9 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.5 31.6 126 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.9 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.9 41.7 90 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 7.92 Hong Kong SAR 7.05 Trade tariffs % duty 6.6 64.9 72 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) 18.3 48.1 118 7.08 Services trade openness 0-100 (worst) Ecuador
- 47.2 91
Pillar 8: Labour market 0-100 (best) 16.7 United States 92.7 29 Multiple (8) 8.01 Redundancy costs weeks of salary 3.3 8.02 Hiring and firing practices 1-7 (best) 4.4 40.3 74 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.8 81.7 = 32 8.05 Active Labour policies 1-7 (best) 57.7 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.1 57.9 80 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.1 73.6 = 71 Albania 8.09 Reliance on professional management 1-7 (best) 3.5 Guinea 8.10 Pay and productivity 1-7 (best) 0.74 38.7 109 Finland 8.11 Female participation in Labour force ratio 18.6 8.12 Labour tax rate % 55.8 69 United States Pillar 9: Financial system 0-100 (best) 49.0 62.5 85 9.01 Domestic credit to private sector % GDP 3.7 30.5 92 9.02 Financing of SMEs 1-7 (best) 2.9 United States 9.03 Venture capital availability 1-7 (best) 35.0 57.7 110 Multiple (29) 9.04 Market capitalization % GDP 2.4 9.05 Insurance premium % GDP 5.6 51.2 71 United States 9.06 Soundness of banks 1-7 (best) 3.1 United States 9.07 Non-performing loans % loan portfolio value -5.7 64.4 33 9.08 Credit gap percentage points 16.9 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 51.6 78 Multiple (16) - Pillar 10: Market size 0-100 (best) 650 42.5 97 Finland 18.7 Multiple (2) 10.01 Gross domestic product PPP $ billions 66.9 67 Multiple (97) 10.02 Imports % GDP - Multiple (72) 14.0 85.3 = 83 Pillar 11: Business dynamism 0-100 (best) 11.0 China 66.2 63.8 53 China 11.01 Cost of starting a business % GNI per capita 11.0 Hong Kong SAR 11.02 Time to start a business days 51.6 76 11.03 Insolvency recovery rate cents/$ 3.7 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.3 44.7 84 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.7 11.06 Willingness to delegate authority 1-7 (best) 3.4 31.4 71 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 35.0 52 Pillar 12: Innovation capability 0-100 (best) 3.7 40.2 = 50 Israel 0.16 12.01 Diversity of workforce 1-7 (best) 3.6 76.3 35 Denmark 12.02 State of cluster development 1-7 (best) 222.3 Israel 12.03 International co-inventions applications/million pop. 0.81 94.7 52 12.04 Multi-stakeholder collaboration 1-7 (best) 0.2 United States 12.05 Scientific publications H Index 0.03 100.0 = 33 12.06 Patent applications applications/million pop. 3.1 Germany 12.07 R&D expenditures % GDP 443.31 99.9 = 55 Canada 12.09 Buyer sophistication 1-7 (best) 66.5 37 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 131 Multiple (7) 63.6 49 Multiple (7) 93.0 91
71.3 30
39.3 85
35.5 73
54.1 84
45.1 78
4.6 75
42.5 75
80.1 47
10.9 69
8.1 89
9.1 46
35.2 95
65.6 73
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 165 167 | The Global Competitiveness Report 2018 Congo, Democratic Rep. Economy Profiles
135th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 127th/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 58
50 46
39 41 43 44 43 40
40 38 36
20 17 19
0
Rank /140 135th 136th 139th 137th 138th 128th 117th 126th 81st 133rd 96th 133rd 139th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 86.7 GDP (PPP) % world GDP 0.05 GDP per capita US$ 478.2 Unemployment rate % 3.7 10-year average annual GDP growth % 5.7 5.9 5-year average FDI inward flow % GDP
Environmental footprint gha/capita 0.8 Income Gini 0 (perfect equality) -100 (perfect inequality) 42.1
The Global Competitiveness Report 2018 | 167 Economy Profiles 135th /140
Congo, Democratic Rep. Value Score * Rank/140 Best Performer
Index Component - 36.0 136 New Zealand 3.9 Finland Pillar 1: Institutions 0-100 (best) 13.5 49.0 112 73.1 Multiple (9) 1.01 Organized crime 1-7 (best) 2.9 55.8 = 125 Multiple (24) 1.02 Homicide rate /100,000 pop. 46.3 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 42.3 73.1 132 Finland 1.04 Reliability of police services 1-7 (best) 2.3 Australia 1.05 Social capital 0-100 (high) 2.7 31.8 127 Multiple (2) 1.06 Budget transparency 0-100 (best) 51.6 1.07 Judicial independence 1-7 (best) 2.9 46.3 100 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.9 Finland 1.09 Freedom of the press 0-100 (worst) 0.12 42.3 = 103 Norway 1.10 Burden of government regulation 1-7 (best) 2.6 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 21.0 22.3 129 Singapore 1.12 E-Participation Index 0-1 (best) 3.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.0 27.6 112 Singapore 1.14 Incidence of corruption 0-100 (best) 11.0 New Zealand 1.15 Property rights 1-7 (best) 3.3 48.4 127 Finland 1.16 Intellectual property protection 1-7 (best) 3.7 Finland 1.17 Quality of land administration 0-30 (best) 3.7 31.0 110 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 31.8 110 Multiple (2) 1.20 Shareholder governance 0-10 (best) 46.6 Kazakhstan 12.4 136 Pillar 2: Infrastructure 0-100 (best) 2.1 Singapore 1.6 26.1 127 United States 2.01 Road connectivity index 0-100 (best) 2.1 2.02 Quality of roads 1-7 (best) 1,699.6 21.0 = 134 Singapore 2.03 Railroad density km of roads/square km 2.9 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 5.2 34.4 131 Switzerland 2.05 Airport connectivity score 2.7 2.06 Efficiency of air transport services 1-7 (best) 15.2 33.2 134 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 14.8 Singapore 2.08 Efficiency of seaport services 1-7 (best) 46.5 36.7 = 96 Multiple (4) 2.09 Electrification rate % pop. 2.3 Singapore 2.10 Electric power transmission and distribution losses % output 37.7 134 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 43.4 37.0 = 129 Multiple (23) 16.2 Switzerland Pillar 3: ICT adoption 0-100 (best) 37.0 = 112 0.0 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 33.1 139 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 6.2 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 46.6 = 102 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 29.9 18.2 137 Pillar 4: Macroeconomic stability 0-100 (best) 3.9 = 90 4.01 Inflation annual % change 53.1 18.0 115 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 16.9 126
Pillar 5: Health 0-100 (best) 6.8 Multiple (4) 3.0 31.0 134 Multiple (4) 5.01 Healthy life expectancy years 3.1 3.3 5.2 107 Finland Pillar 6: Skills 0-100 (best) 3.1 Finland 3.8 27.6 117 Switzerland 6.01 Mean years of schooling Years 9.6 Switzerland 6.02 Extent of staff training 1-7 (best) 2.6 15.2 135 Switzerland 6.03 Quality of vocational training 1-7 (best) 33.2 Sweden 6.04 Skillset of graduates 1-7 (best) 88.8 94 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 54.6 139 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 22.5 133 17.1 137 169 | The Global Competitiveness Report 2018 36.1 137
n/a 129
0.0 = 139
6.2 138
39.1 138
28.2 138
41.0 128
41.0 127
42.7 117
45.1 = 108
32.7 135
35.8 128
38.0 130
34.6 130
47.5 93
53.4 = 124
27.5 122
42.0 = 112 Congo, Democratic Rep. Economy Profiles
135th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 46.3 126 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 2.8 33.6 123 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.0 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.9 30.2 129 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.68 Hong Kong SAR 7.05 Trade tariffs % duty 6.7 49.6 131 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 47.9 119 7.08 Services trade openness 0-100 (worst) Ecuador
- 28.8 112
Pillar 8: Labour market 0-100 (best) 10.3 United States 95.7 = 6 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 3.5 34.2 108 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 1.9 67.5 n/a 8.05 Active Labour policies 1-7 (best) 68.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.9 57.8 81 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.0 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.2 86.9 = 35 Albania 8.09 Reliance on professional management 1-7 (best) 2.4 Guinea 8.10 Pay and productivity 1-7 (best) 0.98 48.6 64 Finland 8.11 Female participation in Labour force ratio 12.6 8.12 Labour tax rate % 41.4 133 United States Pillar 9: Financial system 0-100 (best) 20.4 63.4 78 9.01 Domestic credit to private sector % GDP 2.5 14.2 132 9.02 Financing of SMEs 1-7 (best) 2.3 United States 9.03 Venture capital availability 1-7 (best) 0.0 68.0 82 Multiple (29) 9.05 Insurance premium % GDP 2.9 48.7 85 United States 9.06 Soundness of banks 1-7 (best) 7.2 United States 9.07 Non-performing loans % loan portfolio value 0.4 50.8 105 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 37.1 130 Multiple (16) - Pillar 10: Market size 0-100 (best) 62 23.9 137 Finland 16.4 Multiple (2) 10.01 Gross domestic product PPP $ billions 96.9 9 Multiple (97) 10.02 Imports % GDP - Multiple (72) 28.6 93.6 = 48 Pillar 11: Business dynamism 0-100 (best) China 7.0 43.6 133 China 11.01 Cost of starting a business % GNI per capita 0.0 Hong Kong SAR 11.02 Time to start a business days 0.0 21.5 121 11.03 Insolvency recovery rate cents/$ 3.4 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.4 25.5 135 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 2.9 11.06 Willingness to delegate authority 1-7 (best) 3.1 20.9 119 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 0.0 121 3.4 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 2.8 6.1 = n/a Israel 12.01 Diversity of workforce 1-7 (best) 3.1 31.6 133 Denmark 12.02 State of cluster development 1-7 (best) 51.7 Israel 12.03 International co-inventions applications/million pop. 0.00 86.5 = 87 12.04 Multi-stakeholder collaboration 1-7 (best) 0.1 United States 12.05 Scientific publications H Index 0.00 100.0 = 80 12.06 Patent applications applications/million pop. 2.3 Germany 12.07 R&D expenditures % GDP 0.00 100.0 = n/a Canada 12.09 Buyer sophistication 1-7 (best) 42.8 96 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 135 Multiple (7) 40.5 133 Multiple (7) 85.7 113 93.5 41 Multiple (7)
39.3 122
39.2 131
31.1 137
35.0 114
18.8 139
40.8 131
30.2 132
58.7 130
2.7 = 113
21.3 133
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 169 171 | The Global Competitiveness Report 2018 Costa Rica Economy Profiles
55th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 54th/135
Performance Key Previous edition Upper middle income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 97
73 69
70 62 65 60 60 60 60 59 56
50 46
0
Rank /140 55th 44th 78th 55th 85th 13th 44th 46th 64th 68th 86th 80th 55th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 5.0 GDP (PPP) % world GDP 0.07 GDP per capita US$ 11,685.2 Unemployment rate % 8.1 10-year average annual GDP growth % 5.1 3.4 5-year average FDI inward flow % GDP
Social and environmental performance 2.5 Global Gender Gap Index 0-1 (gender parity) 0.7 4.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 48.7
The Global Competitiveness Report 2018 | 171 Economy Profiles 55th /140
Costa Rica Value Score * Rank/140 Best Performer
Index Component - 59.1 44 New Zealand Pillar 1: Institutions 0-100 (best) 11.9 60.2 81 1.01 Organized crime 1-7 (best) 4.7 61.3 123 Multiple (24) 1.02 Homicide rate /100,000 pop. 55.7 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 53.8 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 4.9 Australia 1.05 Social capital 0-100 (high) 3.7 61.1 55 Multiple (2) 1.06 Budget transparency 0-100 (best) 14.0 1.07 Judicial independence 1-7 (best) 2.6 55.7 35 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.77 53.8 = 67 Norway 1.10 Burden of government regulation 1-7 (best) 3.5 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 59.0 64.7 37 Singapore 1.12 E-Participation Index 0-1 (best) 5.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.8 44.9 49 Singapore 1.14 Incidence of corruption 0-100 (best) 17.5 New Zealand 1.15 Property rights 1-7 (best) 5.2 86.0 10 Finland 1.16 Intellectual property protection 1-7 (best) 6.0 Finland 1.17 Quality of land administration 0-30 (best) 3.7 26.5 124 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 44.3 71 Multiple (2) 1.20 Shareholder governance 0-10 (best) 42.3 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 2.7 Singapore n/a 41.1 84 United States 2.01 Road connectivity index 0-100 (best) 2.2 2.02 Quality of roads 1-7 (best) 26,539.3 59.0 35 Singapore 2.03 Railroad density km of roads/square km 4.5 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 12.8 66.7 37 Switzerland 2.05 Airport connectivity score 3.5 2.06 Efficiency of air transport services 1-7 (best) 99.2 64.0 35 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 10.8 Singapore 2.08 Efficiency of seaport services 1-7 (best) 6.2 58.3 = 56 Multiple (4) 2.09 Electrification rate % pop. 5.8 Singapore 2.10 Electric power transmission and distribution losses % output 69.6 39 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 180.2 60.0 54 Multiple (23) 116.6 Switzerland Pillar 3: ICT adoption 0-100 (best) 37.0 112 15.2 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.2 65.1 78 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 66.0 42.3 = 111 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 28.5 124 Pillar 4: Macroeconomic stability 0-100 (best) 46.0 n/a n/a 4.01 Inflation annual % change - 19.5 108 Multiple (74) 4.02 Debt dynamics 0-100 (best) 71.2 Multiple (36) 43.3 77 Pillar 5: Health 0-100 (best) - Multiple (4) 8.6 59.0 69 Multiple (4) 5.01 Healthy life expectancy years 4.4 5.0 12.8 76 Finland Pillar 6: Skills 0-100 (best) 4.9 Finland 5.0 42.4 89 Switzerland 6.01 Mean years of schooling Years 4.9 Switzerland 6.02 Extent of staff training 1-7 (best) 15.4 99.2 79 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.6 Sweden 6.04 Skillset of graduates 1-7 (best) 12.0 92.9 68 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 95.7 34 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 80.7 40 59.6 55 173 | The Global Competitiveness Report 2018
30.3 57
66.0 60
73.0 85
46.0 105
97.4 13
97.4 12
69.1 44
57.3 = 83
57.0 38
65.1 24
66.9 28
65.6 19
85.4 46
43.7 55
Costa Rica Economy Profiles
55th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 60.4 46 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.1 44.4 70 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.1 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.0 51.9 41 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 3.67 Hong Kong SAR 7.05 Trade tariffs % duty 6.5 69.1 53 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) 29.3 49.9 109 7.08 Services trade openness 0-100 (worst) Ecuador
- 75.5 52
Pillar 8: Labour market 0-100 (best) 18.7 United States 91.6 = 35 Multiple (8) 8.01 Redundancy costs weeks of salary 3.8 8.02 Hiring and firing practices 1-7 (best) 5.1 40.7 70 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.8 70.7 = 65 8.05 Active Labour policies 1-7 (best) 85.6 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.9 59.7 64 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.9 69.4 = 81 Albania 8.09 Reliance on professional management 1-7 (best) 4.2 Guinea 8.10 Pay and productivity 1-7 (best) 0.66 46.3 74 Finland 8.11 Female participation in Labour force ratio 32.7 8.12 Labour tax rate % 68.9 23 United States Pillar 9: Financial system 0-100 (best) 56.8 63.3 79 9.01 Domestic credit to private sector % GDP 3.6 29.9 99 9.02 Financing of SMEs 1-7 (best) 2.6 United States 9.03 Venture capital availability 1-7 (best) 3.8 85.6 25 Multiple (29) 9.04 Market capitalization % GDP 1.9 9.05 Insurance premium % GDP 5.6 48.6 86 United States 9.06 Soundness of banks 1-7 (best) 1.6 United States 9.07 Non-performing loans % loan portfolio value 1.3 60.4 58 9.08 Credit gap percentage points 16.5 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 64.5 34 Multiple (16) - Pillar 10: Market size 0-100 (best) 76 53.7 52 Finland 32.8 Multiple (2) 10.01 Gross domestic product PPP $ billions 57.7 80 Multiple (97) 10.02 Imports % GDP - Multiple (72) 8.5 65.7 = 126 Pillar 11: Business dynamism 0-100 (best) 22.5 China 29.1 59.8 68 China 11.01 Cost of starting a business % GNI per capita 6.0 Hong Kong SAR 11.02 Time to start a business days 4.0 59.8 60 11.03 Insolvency recovery rate cents/$ 4.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.0 43.3 92 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.5 11.06 Willingness to delegate authority 1-7 (best) 26.4 97 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.9 3.8 = 107 Pillar 12: Innovation capability 0-100 (best) 0.39 31.6 = 62 Israel 12.01 Diversity of workforce 1-7 (best) 156.0 76.3 34 Denmark 12.02 State of cluster development 1-7 (best) 0.95 Israel 12.03 International co-inventions applications/million pop. 0.6 97.9 20 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 3.8 100.0 = 91 12.06 Patent applications applications/million pop. 1,433.04 Germany 12.07 R&D expenditures % GDP 99.0 = 62 Canada 12.09 Buyer sophistication 1-7 (best) 46.2 86 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 96 Multiple (7) 55.9 80 Multiple (7) 95.8 77 77.9 = 105 Multiple (7)
31.3 89
49.2 73
63.6 33
49.6 67
42.3 66
40.4 55
65.6 30
49.6 53
10.1 57
47.1 51
74.9 68
12.2 67
19.2 = 60
0.4 92
46.9 41
78.2 46
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 173 175 | The Global Competitiveness Report 2018 Côte d’Ivoire Economy Profiles
114th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: n/a
Performance Overview Key Previous edition Lower middle income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 55
51 54 52 49
50 48 45 48
40 39 38 37
30 28
0
Rank /140 114th 118th 113rd 104th 68th 133rd 130th 90th 105th 115th 83rd 88th 113rd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 25.0 GDP (PPP) % world GDP 0.08 GDP per capita US$ 1,617.0 Unemployment rate % 2.6 10-year average annual GDP growth % 1.4
Social and environmental performance 1.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 41.5
The Global Competitiveness Report 2018 | 175 Economy Profiles 114th /140
Côte d’Ivoire Value Score * Rank/140 Best Performer
Index Component - 44.5 118 New Zealand Pillar 1: Institutions 0-100 (best) 11.6 51.3 109 1.01 Organized crime 1-7 (best) 3.3 62.3 = 122 Multiple (24) 1.02 Homicide rate /100,000 pop. 44.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 46.2 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 2.5 Australia 1.05 Social capital 0-100 (high) 3.2 38.5 117 Multiple (2) 1.06 Budget transparency 0-100 (best) 30.1 1.07 Judicial independence 1-7 (best) 3.2 44.1 116 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.8 Finland 1.09 Freedom of the press 0-100 (worst) 0.17 46.2 = 90 Norway 1.10 Burden of government regulation 1-7 (best) 3.8 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 36.0 24.2 123 Singapore 1.12 E-Participation Index 0-1 (best) 3.9 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.6 36.5 76 Singapore 1.14 Incidence of corruption 0-100 (best) 11.5 New Zealand 1.15 Property rights 1-7 (best) 4.2 69.9 67 Finland 1.16 Intellectual property protection 1-7 (best) 4.3 Finland 1.17 Quality of land administration 0-30 (best) 3.7 36.2 89 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 47.5 59 Multiple (2) 1.20 Shareholder governance 0-10 (best) 73.6 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.3 Singapore 2.0 46.5 65 United States 2.01 Road connectivity index 0-100 (best) 2.6 2.02 Quality of roads 1-7 (best) 5,367.2 36.0 87 Singapore 2.03 Railroad density km of roads/square km 4.5 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 17.8 47.7 106 Switzerland 2.05 Airport connectivity score 3.9 2.06 Efficiency of air transport services 1-7 (best) 62.5 43.7 101 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 22.2 Singapore 2.08 Efficiency of seaport services 1-7 (best) 34.6 38.3 = 93 Multiple (4) 2.09 Electrification rate % pop. 4.1 Singapore 2.10 Electric power transmission and distribution losses % output 52.7 98 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 130.7 43.0 = 112 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 53.9 37.0 = 112 0.6 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 51.2 113 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 41.2 73.6 = 49 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 38.5 101 0.8 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 50.0 5.0 = 86 4.01 Inflation annual % change - 26.5 94 Multiple (74) 4.02 Debt dynamics 0-100 (best) 52.2 Multiple (36) 25.9 114 Pillar 5: Health 0-100 (best) - Multiple (4) 3.3 58.3 71 Multiple (4) 5.01 Healthy life expectancy years 4.1 4.1 17.8 67 Finland Pillar 6: Skills 0-100 (best) 3.7 Finland 3.9 48.6 74 Switzerland 6.01 Mean years of schooling Years 4.6 Switzerland 6.02 Extent of staff training 1-7 (best) 9.0 62.5 113 Switzerland 6.03 Quality of vocational training 1-7 (best) 2.9 Sweden 6.04 Skillset of graduates 1-7 (best) 42.5 81.1 117 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 66.8 113 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 52.1 101 38.9 104 177 | The Global Competitiveness Report 2018 100.0 38
1.2 113
41.2 93
75.0 68
50.0 78
38.0 132
37.3 130
21.8 = 131
51.9 58
51.5 64
44.9 98
48.6 80
60.6 38
50.2 = 129
32.4 106
18.7 123 Côte d’Ivoire Economy Profiles
114th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 53.5 90 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.2 40.6 91 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.7 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.6 36.1 114 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.14 Hong Kong SAR 7.05 Trade tariffs % duty 6.7 61.6 92 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.8 Germany 7.07 Efficiency of the clearance process 15 (best) 26.4 59.6 47 7.08 Services trade openness 0-100 (worst) Ecuador
- 32.4 109
Pillar 8: Labour market 0-100 (best) 13.1 United States 8.01 Redundancy costs weeks of salary 4.1 8.02 Hiring and firing practices 1-7 (best) 4.6 44.5 52 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.5 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.0 73.6 = 55 8.05 Active Labour policies 1-7 (best) 71.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.5 52.1 105 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.0 81.1 = 53 Albania 8.09 Reliance on professional management 1-7 (best) 3.3 Guinea 8.10 Pay and productivity 1-7 (best) 0.29 51.0 47 Finland 8.11 Female participation in Labour force ratio 23.3 8.12 Labour tax rate % 60.6 46 United States Pillar 9: Financial system 0-100 (best) 21.2 74.9 24 9.01 Domestic credit to private sector % GDP 2.3 17.2 129 9.02 Financing of SMEs 1-7 (best) 1.8 United States 9.03 Venture capital availability 1-7 (best) 20.2 71.1 60 Multiple (29) 9.04 Market capitalization % GDP 1.3 9.05 Insurance premium % GDP 4.7 58.8 34 United States 9.06 Soundness of banks 1-7 (best) 10.6 United States 9.07 Non-performing loans % loan portfolio value 1.7 62.8 45 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 50.0 83 Multiple (16) - Pillar 10: Market size 0-100 (best) 88 37.9 120 Finland 34.5 Multiple (2) 10.01 Gross domestic product PPP $ billions 11.5 123 Multiple (97) 10.02 Imports % GDP - Multiple (72) 16.5 78.8 = 102 Pillar 11: Business dynamism 0-100 (best) China 7.0 49.0 115 China 11.01 Cost of starting a business % GNI per capita 36.6 Hong Kong SAR 11.02 Time to start a business days 22.3 115 11.03 Insolvency recovery rate cents/$ 9.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.1 21.2 139 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.8 11.06 Willingness to delegate authority 1-7 (best) 3.6 14.0 135 New Zealand 11.07 Growth of innovative companies 1-7 (best) 3.2 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 20.2 78 Pillar 12: Innovation capability 0-100 (best) 4.2 22.4 = 86 Israel 12.01 Diversity of workforce 1-7 (best) 0.00 61.0 82 Denmark 12.02 State of cluster development 1-7 (best) 3.1 Israel 12.03 International co-inventions applications/million pop. 100.7 79.6 = 106 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index n/a 100.0 95 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 2.6 100.0 = n/a Canada 12.08 Quality of research institutions index 313.80 12.09 Buyer sophistication 1-7 (best) 47.8 83 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 88 Multiple (7) 55.3 88 Multiple (7) 91.8 99
39.4 70
34.3 133
46.7 114
43.3 101
28.3 113
53.0 89
32.5 126
35.3 113
68.4 95
0.1 127
6.0 n/a
26.0 125
61.9 83
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 177 179 | The Global Competitiveness Report 2018 Croatia Economy Profiles
68th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 66th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 77
70 69 60 63 61
60 56 55 56
52 50
40 38
0
Rank /140 68th 74th 36th 53rd 106th 51st 65th 71st 96th 62nd 78th 81st 63rd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 4.2 GDP (PPP) % world GDP 0.08 GDP per capita US$ 13,138.3 Unemployment rate % 11.2 10-year average annual GDP growth % 2.9 -0.2 5-year average FDI inward flow % GDP
Social and environmental performance 3.6 Global Gender Gap Index 0-1 (gender parity) 0.7 4.5 Income Gini 0 (perfect equality) -100 (perfect inequality) 31.1
The Global Competitiveness Report 2018 | 179 Economy Profiles 68th /140
Croatia Value Score * Rank/140 Best Performer
Index Component - 52.0 74 New Zealand Pillar 1: Institutions 0-100 (best) 1.0 64.9 67 1.01 Organized crime 1-7 (best) 4.4 98.2 33 Multiple (24) 1.02 Homicide rate /100,000 pop. 44.6 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 53.8 100.0 27 Finland 1.04 Reliability of police services 1-7 (best) 2.5 Australia 1.05 Social capital 0-100 (high) 2.0 56.7 70 Multiple (2) 1.06 Budget transparency 0-100 (best) 28.9 1.07 Judicial independence 1-7 (best) 1.9 44.6 112 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 1.9 Finland 1.09 Freedom of the press 0-100 (worst) 0.77 53.8 = 67 Norway 1.10 Burden of government regulation 1-7 (best) 2.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 49.0 25.6 120 Singapore 1.12 E-Participation Index 0-1 (best) 3.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.8 16.8 135 Singapore 1.14 Incidence of corruption 0-100 (best) 22.5 New Zealand 1.15 Property rights 1-7 (best) 3.9 71.1 56 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 8.0 14.2 138 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 14.4 139 Multiple (2) 1.20 Shareholder governance 0-10 (best) 72.3 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 5.5 Singapore 46.0 22.8 133 United States 2.02 Quality of roads 1-7 (best) 2.7 49.0 = 50 Singapore 2.03 Railroad density km of roads/square km 62,572.6 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 42.5 122 Switzerland 2.05 Airport connectivity score 4.6 2.06 Efficiency of air transport services 1-7 (best) 35.9 45.8 93 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 4.5 75.0 = 31 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 48.9 109 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 9.9 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 7.0 57.0 = 65 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 80.0 = 5 3.01 Mobile-cellular telephone subscriptions /100 pop. 103.0 76.8 36 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 79.7 72.3 = 52 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 26.2 Korea, Rep. 3.05 Internet users % pop. 74.9 17 1.0 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 72.7 100.0 = 17 4.01 Inflation annual % change - 27.7 90 Multiple (74) 4.02 Debt dynamics 0-100 (best) 0.0 Multiple (36) 40.0 55.2 56 Pillar 5: Health 0-100 (best) Multiple (4)
- 60.0 65 Multiple (4)
5.01 Healthy life expectancy years 67.4 35.9 46 Finland Pillar 6: Skills 0-100 (best) - Finland 11.2 57.8 53 Switzerland 6.01 Mean years of schooling Years 3.1 Switzerland 6.02 Extent of staff training 1-7 (best) 3.5 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.5 Sweden 6.04 Skillset of graduates 1-7 (best) 3.6 93.8 63 United States 6.05 Digital skills among population 1-7 (best) 3.3 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 15.0 94.9 = 44 United States 6.07 School life expectancy Years 2.3 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 13.7 84.1 28 60.2 53 181 | The Global Competitiveness Report 2018 85.8 98
52.3 37
72.7 50
69.3 106
98.6 87
85.7 51
85.7 50
63.4 65
34.7 131
43.5 108
38.7 124
83.1 55
21.4 136
90.7 = 39 Croatia Economy Profiles
68th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 55.7 71 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.0 38.6 105 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.9 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.0 33.8 120 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.05 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 65.0 71 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.0 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 67.4 19 7.08 Services trade openness 0-100 (worst) Ecuador
- 93.0 6
Pillar 8: Labour market 0-100 (best) 15.1 United States 8.01 Redundancy costs weeks of salary 2.6 8.02 Hiring and firing practices 1-7 (best) 3.2 49.5 40 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.1 84.0 n/a 8.05 Active Labour policies 1-7 (best) 82.5 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 2.8 54.8 96 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.4 76.9 = 64 Albania 8.09 Reliance on professional management 1-7 (best) 3.3 Guinea 8.10 Pay and productivity 1-7 (best) 0.86 25.9 135 Finland 8.11 Female participation in Labour force ratio 19.4 8.12 Labour tax rate % 37.4 139 United States Pillar 9: Financial system 0-100 (best) 65.3 64.9 69 9.01 Domestic credit to private sector % GDP 3.4 34.8 75 9.02 Financing of SMEs 1-7 (best) 2.4 United States 9.03 Venture capital availability 1-7 (best) 37.5 82.5 32 Multiple (29) 9.04 Market capitalization % GDP 2.4 9.05 Insurance premium % GDP 4.8 29.4 139 United States 9.06 Soundness of banks 1-7 (best) 13.6 United States 9.07 Non-performing loans % loan portfolio value -11.4 36.6 134 9.08 Credit gap percentage points 21.2 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 39.3 125 Multiple (16) - Pillar 10: Market size 0-100 (best) 92 39.1 114 Finland 53.7 Multiple (2) 10.01 Gross domestic product PPP $ billions 82.0 40 Multiple (97) 10.02 Imports % GDP - Multiple (72) 7.2 84.2 = 88 Pillar 11: Business dynamism 0-100 (best) 7.0 China 32.7 60.6 62 China 11.01 Cost of starting a business % GNI per capita 12.0 Hong Kong SAR 11.02 Time to start a business days 2.9 68.7 47 11.03 Insolvency recovery rate cents/$ 3.6 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.3 39.3 105 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 2.9 11.06 Willingness to delegate authority 1-7 (best) 23.1 110 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.3 37.5 49 Pillar 12: Innovation capability 0-100 (best) 1.15 40.2 = 49 Israel 2.8 12.01 Diversity of workforce 1-7 (best) 226.0 63.0 77 Denmark 12.02 State of cluster development 1-7 (best) 5.01 Israel 12.03 International co-inventions applications/million pop. 0.9 73.5 115 12.04 Multi-stakeholder collaboration 1-7 (best) 0.01 United States 12.05 Scientific publications H Index 2.7 100.0 = 16 12.06 Patent applications applications/million pop. 1,593.72 Germany 12.07 R&D expenditures % GDP 100.0 = 17 Canada 12.09 Buyer sophistication 1-7 (best) 49.5 78 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 51 Multiple (7) 55.7 81 Multiple (7) 96.4 69
35.2 81
32.1 137
42.7 122
38.2 123
37.7 63
38.9 133
30.4 130
23.5 42
30.8 134
80.3 46
32.9 44
28.5 44
3.6 57
28.6 117
79.3 44
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 181 183 | The Global Competitiveness Report 2018 Cyprus Economy Profiles
44th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 43rd/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 79 70 66 67 67
63 63
50 53
40 45 39
0
Rank /140 44th 37th 43rd 33rd 63rd 26th 33rd 26th 28th 95th 110th 34th 45th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 0.9 GDP (PPP) % world GDP 0.03 GDP per capita US$ 24,976.2 Unemployment rate % 11.0 10-year average annual GDP growth % 40.5 0.2 5-year average FDI inward flow % GDP
Social and environmental performance 3.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 34.0
The Global Competitiveness Report 2018 | 183 Economy Profiles 44th /140
Cyprus Value Score * Rank/140 Best Performer
Index Component - 63.0 37 New Zealand Pillar 1: Institutions 0-100 (best) 1.1 69.8 46 1.01 Organized crime 1-7 (best) 4.9 97.9 36 Multiple (24) 1.02 Homicide rate /100,000 pop. 55.6 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 46.2 99.9 58 Finland 1.04 Reliability of police services 1-7 (best) 4.8 Australia 1.05 Social capital 0-100 (high) 4.1 64.6 49 Multiple (2) 1.06 Budget transparency 0-100 (best) 19.9 1.07 Judicial independence 1-7 (best) 3.8 55.6 36 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.6 Finland 1.09 Freedom of the press 0-100 (worst) 0.82 46.2 = 90 Norway 1.10 Burden of government regulation 1-7 (best) 3.8 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 57.0 63.8 39 Singapore 1.12 E-Participation Index 0-1 (best) 4.9 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.7 52.0 32 Singapore 1.14 Incidence of corruption 0-100 (best) 23.0 New Zealand 1.15 Property rights 1-7 (best) 4.6 80.2 23 Finland 1.16 Intellectual property protection 1-7 (best) 6.3 Finland 1.17 Quality of land administration 0-30 (best) 6.3 46.1 45 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 43.9 73 Multiple (2) 1.20 Shareholder governance 0-10 (best) 72.7 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 5.2 Singapore n/a 47.5 60 United States 2.01 Road connectivity index 0-100 (best) 2.0 2.02 Quality of roads 1-7 (best) 46,603.1 57.0 38 Singapore 2.03 Railroad density km of roads/square km 5.1 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 13.0 65.2 41 Switzerland 2.05 Airport connectivity score 4.2 2.06 Efficiency of air transport services 1-7 (best) 100.0 61.3 41 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 4.7 Singapore 2.08 Efficiency of seaport services 1-7 (best) 0.8 76.7 = 29 Multiple (4) 2.09 Electrification rate % pop. 5.8 Singapore 2.10 Electric power transmission and distribution losses % output 60.3 70 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 138.5 63.0 = 45 Multiple (23) 106.4 Switzerland Pillar 3: ICT adoption 0-100 (best) 63.0 = 45 34.8 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 74.9 43 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 75.9 72.7 = 50 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 70.3 23 -0.3 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 60.0 n/a n/a 4.01 Inflation annual % change - 16.7 118 Multiple (74) 4.02 Debt dynamics 0-100 (best) 70.2 Multiple (36) 50.9 66 Pillar 5: Health 0-100 (best) - Multiple (4) 11.9 68.9 42 Multiple (4) 5.01 Healthy life expectancy years 4.2 4.3 13.0 75 Finland Pillar 6: Skills 0-100 (best) 4.9 Finland 4.9 54.0 62 Switzerland 6.01 Mean years of schooling Years 4.8 Switzerland 6.02 Extent of staff training 1-7 (best) 14.6 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.8 Sweden 6.04 Skillset of graduates 1-7 (best) 11.9 99.2 18 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 100.0 = 20 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 79.8 42 68.8 33 185 | The Global Competitiveness Report 2018 100.0 = 28
69.6 16
75.9 42
78.9 63
97.9 95
60.0 = 63
94.4 26
94.4 25
72.8 33
79.2 = 31
55.4 51
65.3 23
65.6 31
63.0 29
80.9 = 63
45.9 44
95.2 = 23 Cyprus Economy Profiles
44th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 63.3 26 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.1 56.2 30 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.5 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.9 51.2 42 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 74.2 17 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.1 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 64.5 27 7.08 Services trade openness 0-100 (worst) Ecuador Pillar 8: Labour market 0-100 (best) 5.7 United States 4.0 33.7 112 Multiple (8) 8.01 Redundancy costs weeks of salary 4.8 8.02 Hiring and firing practices 1-7 (best) 4.7 51.3 37 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.0 Switzerland 8.04 Flexibility of wage determination 1-7 (best) n/a 88.2 n/a 8.05 Active Labour policies 1-7 (best) 4.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.3 66.9 28 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.7 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.8 96.5 = 13 Albania 8.09 Reliance on professional management 1-7 (best) 0.94 Guinea 8.10 Pay and productivity 1-7 (best) 13.4 50.1 52 Finland 8.12 Labour tax rate % - 63.3 36 United States 241.2 Multiple (4) Pillar 9: Financial system 0-100 (best) 61.3 94 3.5 Multiple (26) 9.01 Domestic credit to private sector % GDP 2.5 49.8 45 9.02 Financing of SMEs 1-7 (best) 14.5 United States 9.03 Venture capital availability 1-7 (best) 3.6 86.9 n/a Multiple (29) 9.04 Market capitalization % GDP 3.3 9.05 Insurance premium % GDP 48.7 50.5 78 United States 9.06 Soundness of banks 1-7 (best) -36.6 United States 9.07 Non-performing loans % loan portfolio value 15.3 55.2 83 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 45.6 101 Multiple (16) Pillar 10: Market size 0-100 (best) 72.8 47.3 73 Finland 10.01 Gross domestic product PPP $ billions - 92.8 15 Multiple (97) 10.02 Imports % GDP 12.4 Multiple (72) 92.5 = 53 Pillar 11: Business dynamism 0-100 (best) 6.0 China 73.2 53.3 95 China 11.01 Cost of starting a business % GNI per capita 12.5 Hong Kong SAR 11.02 Time to start a business days 100.0 = 1 11.03 Insolvency recovery rate cents/$ 4.3 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.1 42.2 97 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.6 11.06 Willingness to delegate authority 1-7 (best) 3.4 25.4 102 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 14.5 85 Pillar 12: Innovation capability 0-100 (best) 3.8 59.8 = 36 Israel 1.11 12.01 Diversity of workforce 1-7 (best) 3.5 38.8 126 Denmark 12.02 State of cluster development 1-7 (best) 156.3 Israel 12.03 International co-inventions applications/million pop. 8.49 2.7 138 12.04 Multi-stakeholder collaboration 1-7 (best) 0.5 United States 12.05 Scientific publications H Index 0.01 100.0 = 2 12.06 Patent applications applications/million pop. 4.0 Germany 12.07 R&D expenditures % GDP 23,589.50 96.5 = 86 Canada 12.09 Buyer sophistication 1-7 (best) 39.1 110 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 22 Multiple (7) 66.9 34 Multiple (7) 93.8 86
78.8 25
54.8 40
51.9 82
40.1 78
44.7 45
52.3 92
46.3 70
22.9 44
40.9 82
74.9 67
41.4 39
15.2 68
2.3 67
50.5 34
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 185 187 | The Global Competitiveness Report 2018 Czech Republic Economy Profiles
29th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 29th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
71 74 70
70 66 67 65
60 60 63
60 57
0
Rank /140 29th 43rd 18th 42nd 1st 41st 25th 47th 47th 40th 42nd 25th 29th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 10.6 GDP (PPP) % world GDP 0.30 GDP per capita US$ 20,152.4 Unemployment rate % 2.9 10-year average annual GDP growth % 2.8 1.5 5-year average FDI inward flow % GDP
Social and environmental performance 5.6 Global Gender Gap Index 0-1 (gender parity) 0.7 5.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 25.9
The Global Competitiveness Report 2018 | 187 Economy Profiles 29th /140
Czech Republic Value Score * Rank/140 Best Performer
Index Component - 60.5 43 New Zealand 5.9 Finland Pillar 1: Institutions 0-100 (best) 0.6 81.5 14 1.01 Organized crime 1-7 (best) 4.9 99.6 14 Multiple (24) 1.02 Homicide rate /100,000 pop. 50.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 50.0 99.8 72 Finland 1.04 Reliability of police services 1-7 (best) 4.6 Australia 1.05 Social capital 0-100 (high) 2.9 64.9 48 Multiple (2) 1.06 Budget transparency 0-100 (best) 21.9 1.07 Judicial independence 1-7 (best) 2.8 50.1 69 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.4 Finland 1.09 Freedom of the press 0-100 (worst) 0.62 50.0 = 77 Norway 1.10 Burden of government regulation 1-7 (best) 3.2 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 57.0 59.5 43 Singapore 1.12 E-Participation Index 0-1 (best) 4.7 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.9 31.5 96 Singapore 1.14 Incidence of corruption 0-100 (best) 25.0 New Zealand 1.15 Property rights 1-7 (best) 5.3 78.1 31 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 6.0 29.3 116 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 39.3 84 Multiple (2) 1.20 Shareholder governance 0-10 (best) 86.3 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.9 Singapore 120.0 36.8 101 United States 2.02 Quality of roads 1-7 (best) 4.7 57.0 38 Singapore 2.03 Railroad density km of roads/square km 68,191.9 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 61.5 49 Switzerland 2.05 Airport connectivity score 5.2 2.06 Efficiency of air transport services 1-7 (best) n/a 65.7 33 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 3.5 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 83.3 = 19 Multiple (4) 2.09 Electrification rate % pop. 5.7 Singapore 2.10 Electric power transmission and distribution losses % output 6.2 72.2 34 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 6.5 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 57.0 = 65 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 119.0 60.0 = 56 81.9 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 28.8 83.5 18 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 4.9 86.3 = 20 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 76.5 Korea, Rep. 3.05 Internet users % pop. 49.1 68 Pillar 4: Macroeconomic stability 0-100 (best) 1.6 100.0 = 1 100.0 Multiple (31) 4.01 Inflation annual % change 62.1 18 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 68.1 56.5 54 Pillar 5: Health 0-100 (best) Multiple (4)
- 70.1 38 Multiple (4)
5.01 Healthy life expectancy years 12.8 n/a n/a Finland Pillar 6: Skills 0-100 (best) 4.5 Finland 4.7 42.1 90 Switzerland 6.01 Mean years of schooling Years 4.5 Switzerland 6.02 Extent of staff training 1-7 (best) 5.0 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.3 Sweden 6.04 Skillset of graduates 1-7 (best) 16.9 98.2 24 United States 6.05 Digital skills among population 1-7 (best) 3.4 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 18.9 95.7 = 35 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 91.5 19 65.7 42 189 | The Global Competitiveness Report 2018 99.2 72
57.6 29
76.5 39
87.8 41
87.8 40
73.7 25
85.6 = 10
58.8 34
61.3 31
57.6 41
66.9 27
38.6 125
93.6 = 19
40.0 66
77.7 = 74 Czech Republic Economy Profiles
29th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 60.4 47 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.3 33.3 124 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.3 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.1 55.8 29 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 72.3 32 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.3 Germany 7.07 Efficiency of the clearance process 15 (best) 16.6 68.2 18 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 33
Pillar 8: Labour market 0-100 (best) 20.2 United States 8.01 Redundancy costs weeks of salary 3.4 8.02 Hiring and firing practices 1-7 (best) 4.8 57.2 30 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.8 83.4 = 22 8.05 Active Labour policies 1-7 (best) 89.7 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.3 63.0 47 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 2.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.4 66.2 = 88 Albania 8.09 Reliance on professional management 1-7 (best) 4.5 Guinea 8.10 Pay and productivity 1-7 (best) 0.83 39.6 107 Finland 8.11 Female participation in Labour force ratio 38.4 8.12 Labour tax rate % 62.6 37 United States Pillar 9: Financial system 0-100 (best) 50.3 78.1 14 9.01 Domestic credit to private sector % GDP 4.5 62.9 18 9.02 Financing of SMEs 1-7 (best) 3.6 United States 9.03 Venture capital availability 1-7 (best) 19.8 89.7 18 Multiple (29) 9.04 Market capitalization % GDP 3.5 9.05 Insurance premium % GDP 6.0 38.9 126 United States 9.06 Soundness of banks 1-7 (best) 4.6 United States 9.07 Non-performing loans % loan portfolio value -3.3 32.1 137 9.08 Credit gap percentage points 16.7 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 72.9 23 Multiple (16) - Pillar 10: Market size 0-100 (best) 342 58.8 34 Finland 86.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 79.1 48 Multiple (97) 10.02 Imports % GDP - Multiple (72) 1.0 57.8 = 134 Pillar 11: Business dynamism 0-100 (best) 9.0 China 67.0 67.5 40 China 11.01 Cost of starting a business % GNI per capita 13.0 Hong Kong SAR 11.02 Time to start a business days 3.8 53.0 73 11.03 Insolvency recovery rate cents/$ 5.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.3 58.5 25 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.9 11.06 Willingness to delegate authority 1-7 (best) 43.5 33 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.3 19.8 = 79 Pillar 12: Innovation capability 0-100 (best) 5.67 57.8 = 37 Israel 12.01 Diversity of workforce 1-7 (best) 376.7 83.5 14 Denmark 12.02 State of cluster development 1-7 (best) 27.55 Israel 12.03 International co-inventions applications/million pop. 1.9 91.7 68 12.04 Multi-stakeholder collaboration 1-7 (best) 0.09 United States 12.05 Scientific publications H Index 3.0 100.0 = 46 12.06 Patent applications applications/million pop. 3,704.40 Germany 12.07 R&D expenditures % GDP 99.5 = 61 Canada 12.09 Buyer sophistication 1-7 (best) 64.6 42 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 12 Multiple (7) 70.2 25 Multiple (7) 91.5 = 55 Multiple (7)
72.1 29
47.3 78
66.2 27
55.8 42
47.7 40
57.3 29
55.4 79
50.5 47
58.2 22
50.6 39
87.9 32
61.6 28
23.0 25
32.6 103
88.4 27
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 189 191 | The Global Competitiveness Report 2018 Denmark Economy Profiles
10th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 11th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 86 85 86 82 78 81 79 80 76 75
70 67
60 60
0
Rank /140 10th 10th 14th 8th 1st 31st 5th 15th 5th 12th 55th 6th 12th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 5.8 GDP (PPP) % world GDP 0.23 GDP per capita US$ 56,444.1 Unemployment rate % 5.7 10-year average annual GDP growth % 0.3 0.6 5-year average FDI inward flow % GDP
Social and environmental performance 7.1 Global Gender Gap Index 0-1 (gender parity) 0.8 5.8 Income Gini 0 (perfect equality) -100 (perfect inequality) 28.2
The Global Competitiveness Report 2018 | 191 Economy Profiles 10th /140
Denmark Value Score * Rank/140 Best Performer
Index Component - 75.9 10 New Zealand Pillar 1: Institutions 0-100 (best) 1.0 68.3 55 1.01 Organized crime 1-7 (best) 5.6 98.4 30 Multiple (24) 1.02 Homicide rate /100,000 pop. 64.3 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 65.4 99.9 63 Finland 1.04 Reliability of police services 1-7 (best) 6.1 Australia 1.05 Social capital 0-100 (high) 4.2 77.1 28 Multiple (2) 1.06 Budget transparency 0-100 (best) 14.0 1.07 Judicial independence 1-7 (best) 3.6 64.3 4 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.2 Finland 1.09 Freedom of the press 0-100 (worst) 1.00 65.4 = 42 Norway 1.10 Burden of government regulation 1-7 (best) 4.7 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 88.0 85.7 9 Singapore 1.12 E-Participation Index 0-1 (best) 5.9 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.6 54.0 26 Singapore 1.14 Incidence of corruption 0-100 (best) 24.5 New Zealand 1.15 Property rights 1-7 (best) 5.8 86.0 9 Finland 1.16 Intellectual property protection 1-7 (best) 6.7 Finland 1.17 Quality of land administration 0-30 (best) 6.7 43.8 56 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 69.2 18 Multiple (2) 1.20 Shareholder governance 0-10 (best) 78.5 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 5.5 Singapore 49.6 62.2 19 United States 2.02 Quality of roads 1-7 (best) 4.3 88.0 2 Singapore 2.03 Railroad density km of roads/square km 125,461.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 82.0 13 Switzerland 2.05 Airport connectivity score 5.8 2.06 Efficiency of air transport services 1-7 (best) 55.8 76.5 20 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 5.7 81.7 = 21 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 79.3 18 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 5.3 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 0.6 67.0 = 32 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 67.0 = 32 3.01 Mobile-cellular telephone subscriptions /100 pop. 121.7 86.3 14 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 129.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 78.5 = 35 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 43.2 Korea, Rep. 3.05 Internet users % pop. 11.0 75.8 16 97.0 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 100.0 = 16 4.01 Inflation annual % change 0.7 55.5 33 Multiple (74) 4.02 Debt dynamics 0-100 (best) 100.0 Multiple (36) 66.3 36 Pillar 5: Health 0-100 (best) - Multiple (4) 69.9 80.4 10 Multiple (4)
- 55.8 24 Finland
Pillar 6: Skills 0-100 (best) 12.4 Finland 78.1 6 Switzerland 6.01 Mean years of schooling Years 5.3 Switzerland 6.02 Extent of staff training 1-7 (best) 5.5 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 5.1 Sweden 6.04 Skillset of graduates 1-7 (best) 5.3 98.7 22 United States 6.05 Digital skills among population 1-7 (best) 4.9 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 19.1 100.0 = 8 United States 6.07 School life expectancy Years 5.5 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 10.7 96.5 8 82.3 8 193 | The Global Competitiveness Report 2018 100.0 = 64
97.0 5
93.4 31
84.9 5
82.8 = 20
71.3 9
74.2 5
72.4 12
64.3 22
75.2 2
98.2 = 12 Denmark Economy Profiles
10th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 66.9 15 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 5.2 57.2 26 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.0 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.0 69.8 8 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 67.1 58 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.9 Germany 7.07 Efficiency of the clearance process 15 (best) 21.0 67.0 23 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 11
Pillar 8: Labour market 0-100 (best) 0.0 United States 5.0 33.7 112 Multiple (8) 8.01 Redundancy costs weeks of salary 5.8 8.02 Hiring and firing practices 1-7 (best) 4.3 73.0 4 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.3 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 94.8 79.0 = 39 8.05 Active Labour policies 1-7 (best) 3.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.9 78.0 5 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.0 100.0 = 1 Albania 8.09 Reliance on professional management 1-7 (best) 0.94 Guinea 8.10 Pay and productivity 1-7 (best) 3.8 67.3 8 Finland 8.12 Labour tax rate % - 80.6 4 United States 171.3 Multiple (4) Pillar 9: Financial system 0-100 (best) 55.7 112 4.4 Multiple (26) 9.01 Domestic credit to private sector % GDP 3.4 71.4 7 9.02 Financing of SMEs 1-7 (best) 132.5 United States 9.03 Venture capital availability 1-7 (best) 9.9 94.8 9 Multiple (29) 9.04 Market capitalization % GDP 5.8 9.05 Insurance premium % GDP 3.2 47.3 94 United States 9.06 Soundness of banks 1-7 (best) -16.2 United States 9.07 Non-performing loans % loan portfolio value 19.0 48.5 113 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 82.2 9 Multiple (16) 261 Pillar 10: Market size 0-100 (best) 47.7 66.1 9 Finland 10.01 Gross domestic product PPP $ billions - 92.9 14 Multiple (97) 10.02 Imports % GDP 0.2 Multiple (72) 3.5 100.0 = 13 Pillar 11: Business dynamism 0-100 (best) 88.1 China 12.0 85.8 12 China 11.01 Cost of starting a business % GNI per capita 4.3 Hong Kong SAR 11.02 Time to start a business days 6.1 100.0 = 6 11.03 Insolvency recovery rate cents/$ 4.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.7 56.9 33 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 39.8 41 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.9 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.8 100.0 8 23.96 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 4.9 100.0 = 6 Israel 633.3 12.01 Diversity of workforce 1-7 (best) 206.88 80.7 15 Denmark 12.02 State of cluster development 1-7 (best) 3.0 Israel 12.03 International co-inventions applications/million pop. 0.06 94.5 54 12.04 Multi-stakeholder collaboration 1-7 (best) 4.0 United States 12.05 Scientific publications H Index 10,203.84 100.0 = 11 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 100.0 = 29 Canada 12.09 Buyer sophistication 1-7 (best) 59.6 55 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 62 Multiple (7) 79.1 6 Multiple (7)
94.8 7
55.7 37
84.9 1
64.7 18
61.1 10
75.4 12
65.3 31
63.9 20
98.7 9
64.8 13
95.6 15
98.1 9
17.2 30
50.7 31
99.3 9
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 193 195 | The Global Competitiveness Report 2018 Dominican Republic Economy Profiles
82nd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 82nd/135
Performance Key Previous edition Upper middle income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 65
60 57 57 62 59
54 53 55
50 48 47
0
Rank /140 82nd 99th 77th 82nd 77th 63rd 90th 84th 51st 70th 69th 90th 94th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 10.2 GDP (PPP) % world GDP 0.14 GDP per capita US$ 7,374.8 Unemployment rate % 5.5 10-year average annual GDP growth % 3.9
Social and environmental performance 1.6 Global Gender Gap Index 0-1 (gender parity) 0.7 4.2 Income Gini 0 (perfect equality) -100 (perfect inequality) 45.3
The Global Competitiveness Report 2018 | 195 Economy Profiles 82nd /140
Dominican Republic Value Score * Rank/140 Best Performer
Index Component - 48.5 99 New Zealand Pillar 1: Institutions 0-100 (best) 15.2 54.3 100 1.01 Organized crime 1-7 (best) 2.8 50.2 127 Multiple (24) 1.02 Homicide rate /100,000 pop. 54.9 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 73.1 99.9 70 Finland 1.04 Reliability of police services 1-7 (best) 2.4 Australia 1.05 Social capital 0-100 (high) 2.8 29.3 131 Multiple (2) 1.06 Budget transparency 0-100 (best) 26.8 1.07 Judicial independence 1-7 (best) 3.1 54.9 40 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.1 Finland 1.09 Freedom of the press 0-100 (worst) 0.68 73.1 = 27 Norway 1.10 Burden of government regulation 1-7 (best) 3.2 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 29.0 23.2 125 Singapore 1.12 E-Participation Index 0-1 (best) 4.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.9 29.5 105 Singapore 1.14 Incidence of corruption 0-100 (best) 14.5 New Zealand 1.15 Property rights 1-7 (best) 4.5 73.2 47 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 4.7 34.2 99 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 35.5 95 Multiple (2) 1.20 Shareholder governance 0-10 (best) 64.3 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.4 Singapore n/a 37.3 99 United States 2.01 Road connectivity index 0-100 (best) 3.2 2.02 Quality of roads 1-7 (best) 66,750.6 29.0 113 Singapore 2.03 Railroad density km of roads/square km 4.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 33.9 52.2 81 Switzerland 2.05 Airport connectivity score 4.6 2.06 Efficiency of air transport services 1-7 (best) 97.1 48.7 80 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 12.3 Singapore 2.08 Efficiency of seaport services 1-7 (best) 32.3 48.3 = 74 Multiple (4) 2.09 Electrification rate % pop. 3.6 Singapore 2.10 Electric power transmission and distribution losses % output 57.6 81 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 81.4 57.0 = 65 Multiple (23) 55.7 Switzerland Pillar 3: ICT adoption 0-100 (best) 47.0 = 90 7.3 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 1.0 65.3 77 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 63.9 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 64.3 = 73 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 2.4 56.4 53 48.4 Iceland Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 66.4 36.0 69 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 56.1 55
Pillar 5: Health 0-100 (best) 7.8 Multiple (4) 3.8 61.9 60 Multiple (4) 5.01 Healthy life expectancy years 3.8 3.7 33.9 48 Finland Pillar 6: Skills 0-100 (best) 3.6 Finland 4.0 60.0 43 Switzerland 6.01 Mean years of schooling Years 13.7 Switzerland 6.02 Extent of staff training 1-7 (best) 2.7 97.1 90 Switzerland 6.03 Quality of vocational training 1-7 (best) 18.5 Sweden 6.04 Skillset of graduates 1-7 (best) 91.3 81 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 69.1 107 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 43.4 112 47.4 82 197 | The Global Competitiveness Report 2018 67.9 119
14.6 83
63.9 62
74.2 77
48.4 94
82.5 63
82.5 62
57.0 90
52.2 = 96
46.8 73
46.5 87
44.4 100
43.2 110
50.1 79
76.3 73
27.6 120
78.7 72 Dominican Republic Economy Profiles
82nd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 54.1 84 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 2.9 32.6 125 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.9 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.1 32.2 126 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 6.22 Hong Kong SAR 7.05 Trade tariffs % duty 6.5 64.9 73 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) 12.3 51.0 105 7.08 Services trade openness 0-100 (worst) Ecuador
- 58.5 79
Pillar 8: Labour market 0-100 (best) 26.2 United States 92.1 32 Multiple (8) 8.01 Redundancy costs weeks of salary 3.4 8.02 Hiring and firing practices 1-7 (best) 4.4 35.1 104 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.5 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.1 87.7 = 8 8.05 Active Labour policies 1-7 (best) 84.5 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.2 61.6 51 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.1 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.9 53.8 = 110 Albania 8.09 Reliance on professional management 1-7 (best) 3.5 Guinea 8.10 Pay and productivity 1-7 (best) 1.00 39.3 108 Finland 8.11 Female participation in Labour force ratio 18.6 8.12 Labour tax rate % 56.7 63 United States Pillar 9: Financial system 0-100 (best) 27.2 59.0 103 9.01 Domestic credit to private sector % GDP 3.8 19.0 120 9.02 Financing of SMEs 1-7 (best) 2.8 United States 9.03 Venture capital availability 1-7 (best) 45.4 84.5 28 Multiple (29) 9.04 Market capitalization % GDP 1.1 9.05 Insurance premium % GDP 5.2 53.0 60 United States 9.06 Soundness of banks 1-7 (best) 1.7 United States 9.07 Non-performing loans % loan portfolio value 4.7 68.0 17 9.08 Credit gap percentage points 16.3 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 48.2 91 Multiple (16) - Pillar 10: Market size 0-100 (best) 157 42.3 98 Finland 28.5 Multiple (2) 10.01 Gross domestic product PPP $ billions 100.0 = 3 Multiple (97) 10.02 Imports % GDP - Multiple (72) 14.5 85.3 = 83 Pillar 11: Business dynamism 0-100 (best) 16.5 China 58.8 70 China 11.01 Cost of starting a business % GNI per capita 8.9 Hong Kong SAR 11.02 Time to start a business days 10.5 28.6 106 11.03 Insolvency recovery rate cents/$ United States 11.04 Insolvency regulatory framework 0-16 (best) 4.0 47.1 63 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.1 11.06 Willingness to delegate authority 1-7 (best) 3.9 30.1 78 New Zealand 11.07 Growth of innovative companies 1-7 (best) 3.2 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 45.4 = 43 Pillar 12: Innovation capability 0-100 (best) 4.4 18.2 = 97 Israel 12.01 Diversity of workforce 1-7 (best) 0.06 70.8 56 Denmark 12.02 State of cluster development 1-7 (best) 3.2 Israel 12.03 International co-inventions applications/million pop. 59.7 97.5 28 12.04 Multi-stakeholder collaboration 1-7 (best) 0.27 United States 12.05 Scientific publications H Index 0.0 92.9 116 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 3.2 98.5 = 69 Canada 12.08 Quality of research institutions index 690.13 12.09 Buyer sophistication 1-7 (best) 53.1 69 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 111 Multiple (7) 54.8 90 Multiple (7) 92.8 92 83.9 91 Multiple (7)
65.6 58
49.7 70
52.1 81
47.7 85
37.2 97
31.4 94
56.7 73
46.9 62
1.9 92
36.4 108
60.8 119
4.3 83
0.3 = 119
36.3 89
70.3 58
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 197 199 | The Global Competitiveness Report 2018 Ecuador Economy Profiles
86th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 83rd/135
Performance Key Previous edition Upper middle income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 73
60 56 61
51 55 54
50 48 46 47 45
30 32
0
Rank /140 86th 100th 59th 89th 87th 39th 75th 125th 113rd 82nd 68th 129th 88th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 16.8 GDP (PPP) % world GDP 0.15 GDP per capita US$ 6,098.3 Unemployment rate % 3.8 10-year average annual GDP growth % 0.8
Social and environmental performance 2.0 Income Gini 0 (perfect equality) -100 (perfect inequality) 45.0
The Global Competitiveness Report 2018 | 199 Economy Profiles 86th /140
Ecuador Value Score * Rank/140 Best Performer
Index Component - 48.4 100 New Zealand Pillar 1: Institutions 0-100 (best) 5.9 57.1 92 1.01 Organized crime 1-7 (best) 3.8 81.9 94 Multiple (24) 1.02 Homicide rate /100,000 pop. 55.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 80.8 99.8 76 Finland 1.04 Reliability of police services 1-7 (best) 1.9 Australia 1.05 Social capital 0-100 (high) 2.0 46.3 96 Multiple (2) 1.06 Budget transparency 0-100 (best) 30.6 1.07 Judicial independence 1-7 (best) 2.3 55.1 39 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.67 80.8 = 18 Norway 1.10 Burden of government regulation 1-7 (best) 2.7 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 32.0 15.4 135 Singapore 1.12 E-Participation Index 0-1 (best) 3.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.5 16.1 136 Singapore 1.14 Incidence of corruption 0-100 (best) 16.5 New Zealand 1.15 Property rights 1-7 (best) 4.9 69.4 74 Finland 1.16 Intellectual property protection 1-7 (best) 4.3 Finland 1.17 Quality of land administration 0-30 (best) 5.0 21.8 132 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 28.1 123 Multiple (2) 1.20 Shareholder governance 0-10 (best) 49.5 Kazakhstan 67.4 78 Pillar 2: Infrastructure 0-100 (best) 5.0 Singapore n/a 28.6 122 United States 2.01 Road connectivity index 0-100 (best) 2.4 2.02 Quality of roads 1-7 (best) 20,166.1 32.0 99 Singapore 2.03 Railroad density km of roads/square km 4.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 30.6 40.9 127 Switzerland 2.05 Airport connectivity score 4.4 2.06 Efficiency of air transport services 1-7 (best) 98.2 41.1 107 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 12.5 Singapore 2.08 Efficiency of seaport services 1-7 (best) 7.0 55.0 = 64 Multiple (4) 2.09 Electrification rate % pop. 5.2 Singapore 2.10 Electric power transmission and distribution losses % output 65.6 51 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 83.5 43.0 = 112 Multiple (23) 53.0 Switzerland Pillar 3: ICT adoption 0-100 (best) 10.1 50.0 = 81 3.01 Mobile-cellular telephone subscriptions /100 pop. 1.3 69.7 59 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 54.1 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 49.5 = 92 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 1.1 65.9 31 45.9 Iceland Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 68.2 22.9 102 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 39.9 83
Pillar 5: Health 0-100 (best) 8.7 Multiple (4) 3.5 62.4 59 Multiple (4) 5.01 Healthy life expectancy years 4.1 4.1 30.6 56 Finland Pillar 6: Skills 0-100 (best) 3.7 Finland 4.0 56.9 56 Switzerland 6.01 Mean years of schooling Years 15.8 Switzerland 6.02 Extent of staff training 1-7 (best) 3.3 98.2 88 Switzerland 6.03 Quality of vocational training 1-7 (best) 25.1 Sweden 6.04 Skillset of graduates 1-7 (best) 91.2 83 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 94.9 45 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 70.0 55 201 | The Global Competitiveness Report 2018 69.6 117
20.3 72
54.1 77
73.0 87
45.9 106
88.1 39
88.1 38
61.0 75
57.9 = 80
41.2 111
52.0 62
51.3 67
50.4 75
87.7 = 38
38.3 76
62.2 93 Ecuador Economy Profiles
86th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 47.1 125 Singapore 2.6 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.1 26.0 135 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.7 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.0 34.2 117 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.80 Hong Kong SAR 7.05 Trade tariffs % duty 5.0 61.5 93 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.8 Germany 7.07 Efficiency of the clearance process 15 (best) 6.2 33.6 138 7.08 Services trade openness 0-100 (worst) Ecuador
- 28.0 114
Pillar 8: Labour market 0-100 (best) 31.8 United States 67.4 83 Multiple (8) 8.01 Redundancy costs weeks of salary 2.5 8.02 Hiring and firing practices 1-7 (best) 4.3 45.0 49 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.1 93.8 = 1 8.05 Active Labour policies 1-7 (best) 61.9 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.0 51.2 113 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.3 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.4 42.1 = 126 Albania 8.09 Reliance on professional management 1-7 (best) 3.6 Guinea 8.10 Pay and productivity 1-7 (best) 0.50 25.7 136 Finland 8.11 Female participation in Labour force ratio 13.7 8.12 Labour tax rate % 55.0 76 United States Pillar 9: Financial system 0-100 (best) 27.9 64.5 72 9.01 Domestic credit to private sector % GDP 3.4 18.7 123 9.02 Financing of SMEs 1-7 (best) 2.4 United States 9.03 Venture capital availability 1-7 (best) 6.6 61.9 = 97 Multiple (29) 9.04 Market capitalization % GDP 2.0 9.05 Insurance premium % GDP 5.3 50.4 79 United States 9.06 Soundness of banks 1-7 (best) 4.0 United States 9.07 Non-performing loans % loan portfolio value 1.3 71.8 10 9.08 Credit gap percentage points 19.0 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 40.8 117 Multiple (16) - Pillar 10: Market size 0-100 (best) 175 43.8 90 Finland 22.7 Multiple (2) 10.01 Gross domestic product PPP $ billions 37.6 95 Multiple (97) 10.02 Imports % GDP - Multiple (72) 21.9 92.1 = 61 Pillar 11: Business dynamism 0-100 (best) 48.5 China 17.4 55.1 82 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 5.0 29.3 105 11.03 Insolvency recovery rate cents/$ 3.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.9 40.0 102 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.4 11.06 Willingness to delegate authority 1-7 (best) 3.1 22.6 113 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 6.6 98 Pillar 12: Innovation capability 0-100 (best) 3.2 33.8 = 58 Israel 0.05 12.01 Diversity of workforce 1-7 (best) 3.2 70.9 55 Denmark 12.02 State of cluster development 1-7 (best) 129.7 Israel 12.03 International co-inventions applications/million pop. 0.16 93.0 62 12.04 Multi-stakeholder collaboration 1-7 (best) 0.4 United States 12.05 Scientific publications H Index 0.01 100.0 = 92 12.06 Patent applications applications/million pop. 2.8 Germany 12.07 R&D expenditures % GDP 766.29 100.0 = 28 Canada 12.09 Buyer sophistication 1-7 (best) 53.7 68 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 123 Multiple (7) 45.2 129 Multiple (7) 89.1 106 51.8 = 131 Multiple (7)
18.7 119
48.4 76
48.0 105
40.3 116
34.2 120
32.0 88
53.1 88
36.5 112
1.5 94
36.2 110
72.2 80
2.7 95
14.7 = 70
2.5 64
29.4 113
71.5 52
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 201 203 | The Global Competitiveness Report 2018 Egypt Economy Profiles
94th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 94th/135
Performance Key Previous edition Lower middle income group average Middle East and North Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 69 73
60 51 53 52 54 41 38
50 48 48 46
0
Rank /140 94th 102nd 56th 100th 135th 99th 99th 121st 130th 99th 24th 97th 64th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 94.8 GDP (PPP) % world GDP 0.95 GDP per capita US$ 2,500.8 Unemployment rate % 12.1 3.9 5-year average FDI inward flow % GDP 2.1
Social and environmental performance 2.0 Global Gender Gap Index 0-1 (gender parity) 0.6 2.8 Income Gini 0 (perfect equality) -100 (perfect inequality) 31.8
The Global Competitiveness Report 2018 | 203 Economy Profiles 94th /140
Egypt Value Score * Rank/140 Best Performer
Index Component - 48.1 102 New Zealand Pillar 1: Institutions 0-100 (best) 2.5 71.1 43 41.6 Multiple (9) 1.01 Organized crime 1-7 (best) 4.8 93.2 = 67 Multiple (24) 1.02 Homicide rate /100,000 pop. 44.4 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 38.5 41.6 135 Finland 1.04 Reliability of police services 1-7 (best) 5.2 Australia 1.05 Social capital 0-100 (high) 3.7 63.2 51 Multiple (2) 1.06 Budget transparency 0-100 (best) 56.7 1.07 Judicial independence 1-7 (best) 3.2 44.4 113 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.54 38.5 = 110 Norway 1.10 Burden of government regulation 1-7 (best) 3.9 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 32.0 69.4 29 Singapore 1.12 E-Participation Index 0-1 (best) 4.6 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.3 45.3 48 Singapore 1.14 Incidence of corruption 0-100 (best) 7.0 New Zealand 1.15 Property rights 1-7 (best) 4.7 43.3 132 Finland 1.16 Intellectual property protection 1-7 (best) 4.7 Finland 1.17 Quality of land administration 0-30 (best) 6.3 36.9 87 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 45.8 64 Multiple (2) 1.20 Shareholder governance 0-10 (best) 71.6 Kazakhstan 53.9 99 Pillar 2: Infrastructure 0-100 (best) 4.5 Singapore 5.1 47.8 57 United States 2.01 Road connectivity index 0-100 (best) 3.6 2.02 Quality of roads 1-7 (best) 101,480.7 32.0 99 Singapore 2.03 Railroad density km of roads/square km 5.1 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 54.6 60.4 51 Switzerland 2.05 Airport connectivity score 4.6 2.06 Efficiency of air transport services 1-7 (best) 99.9 38.2 124 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 11.3 Singapore 2.08 Efficiency of seaport services 1-7 (best) 10.9 23.3 = 122 Multiple (4) 2.09 Electrification rate % pop. 4.9 Singapore 2.10 Electric power transmission and distribution losses % output 61.1 68 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 105.5 47.0 = 106 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 50.1 63.0 45 5.4 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 70.5 56 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 41.2 71.6 = 54 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 58.7 45 16.9 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 37.7 12.9 = 68 4.01 Inflation annual % change - 42.8 58 Multiple (74) 4.02 Debt dynamics 0-100 (best) 62.0 Multiple (36) 62.7 40 Pillar 5: Health 0-100 (best) - Multiple (4) 7.6 68.3 43 Multiple (4) 5.01 Healthy life expectancy years 3.5 3.0 54.6 26 Finland Pillar 6: Skills 0-100 (best) 2.9 Finland 4.2 60.8 39 Switzerland 6.01 Mean years of schooling Years 3.6 Switzerland 6.02 Extent of staff training 1-7 (best) 13.1 99.9 69 Switzerland 6.03 Quality of vocational training 1-7 (best) 2.6 Sweden 6.04 Skillset of graduates 1-7 (best) 23.1 92.4 74 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 90.9 71 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 64.6 69 40.6 100 205 | The Global Competitiveness Report 2018 88.0 92
n/a 95
10.7 88
41.2 92
51.0 135
64.3 135
37.7 127
68.9 99
68.9 98
52.8 99
50.7 = 98
42.4 105
33.1 136
31.8 136
53.7 70
43.7 109
72.7 = 83
26.1 123
67.3 86 Egypt Economy Profiles
94th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 48.2 121 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.9 47.8 56 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.1 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.3 48.9 47 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 16.26 Hong Kong SAR 7.05 Trade tariffs % duty 4.9 68.2 57 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) 52.1 54.3 81 7.08 Services trade openness 0-100 (worst) Ecuador
- 0.0 137
Pillar 8: Labour market 0-100 (best) 36.8 United States 65.0 88 Multiple (8) 8.01 Redundancy costs weeks of salary 4.0 8.02 Hiring and firing practices 1-7 (best) 4.3 40.0 76 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.1 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.7 47.9 = 93 8.05 Active Labour policies 1-7 (best) 56.7 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.7 46.4 130 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.3 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.0 31.6 = 129 Albania 8.09 Reliance on professional management 1-7 (best) 3.8 Guinea 8.10 Pay and productivity 1-7 (best) 0.24 50.4 51 Finland 8.11 Female participation in Labour force ratio 27.3 8.12 Labour tax rate % 55.4 73 United States Pillar 9: Financial system 0-100 (best) 28.7 68.5 56 9.01 Domestic credit to private sector % GDP 3.6 27.9 103 9.02 Financing of SMEs 1-7 (best) 2.8 United States 9.03 Venture capital availability 1-7 (best) 16.5 56.7 112 Multiple (29) 9.04 Market capitalization % GDP 0.7 9.05 Insurance premium % GDP 5.6 45.5 103 United States 9.06 Soundness of banks 1-7 (best) 6.0 United States 9.07 Non-performing loans % loan portfolio value 9.8 54.4 89 9.08 Credit gap percentage points 13.6 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 50.8 82 Multiple (16) - Pillar 10: Market size 0-100 (best) 1,094 47.1 75 Finland 10.01 Gross domestic product PPP $ billions 32.6 4.7 130 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 73.2 118
Pillar 11: Business dynamism 0-100 (best) 7.4 China 14.5 52.3 99 China 11.01 Cost of starting a business % GNI per capita 25.8 Hong Kong SAR 11.02 Time to start a business days 8.0 30.2 103 11.03 Insolvency recovery rate cents/$ 3.2 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.9 43.9 89 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.2 11.06 Willingness to delegate authority 1-7 (best) 3.1 30.7 74 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 16.5 83 5.0 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 4.2 11.3 = 110 Israel 0.08 12.01 Diversity of workforce 1-7 (best) 3.4 76.5 32 Denmark 12.02 State of cluster development 1-7 (best) 219.0 Israel 12.03 International co-inventions applications/million pop. 0.21 88.9 78 12.04 Multi-stakeholder collaboration 1-7 (best) 0.7 United States 12.05 Scientific publications H Index 0.06 79.6 132 12.06 Patent applications applications/million pop. 3.2 Germany 12.07 R&D expenditures % GDP 147.69 92.8 = 105 Canada 12.09 Buyer sophistication 1-7 (best) 72.8 24 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 21 n/a 97 Multiple (7) 54.1 97 Multiple (7) 96.3 71 85.9 = 87 Multiple (7)
27.8 105
36.4 130
48.2 102
53.1 53
34.8 116
37.7 64
66.8 25
53.9 39
2.4 88
40.6 85
79.9 49
3.5 88
24.1 50
15.3 32
36.4 86
53.8 99
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 205 207 | The Global Competitiveness Report 2018 El Salvador Economy Profiles
98th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 98th/135
Performance Key Previous edition Lower middle income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 75
60 60 60
53 54 52 52
50 48
41 39 43
30 27
0
Rank /140 98th 131st 90th 103rd 69th 60th 107th 87th 104th 64th 95th 111th 123rd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 6.4 GDP (PPP) % world GDP 0.05 GDP per capita US$ 4,399.9 Unemployment rate % 4.5 10-year average annual GDP growth % 1.6 1.4 5-year average FDI inward flow % GDP
Social and environmental performance 2.0 Global Gender Gap Index 0-1 (gender parity) 0.7 4.0 Income Gini 0 (perfect equality) -100 (perfect inequality) 40.0
The Global Competitiveness Report 2018 | 207 Economy Profiles 98th /140
El Salvador Value Score * Rank/140 Best Performer
Index Component - 40.7 131 New Zealand 1.6 Finland Pillar 1: Institutions 0-100 (best) 82.8 9.9 140 1.01 Organized crime 1-7 (best) 2.5 0.0 140 Multiple (24) 1.02 Homicide rate /100,000 pop. 46.0 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 84.6 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 3.2 Australia 1.05 Social capital 0-100 (high) 2.4 25.5 137 Multiple (2) 1.06 Budget transparency 0-100 (best) 27.8 1.07 Judicial independence 1-7 (best) 2.3 46.0 104 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.5 Finland 1.09 Freedom of the press 0-100 (worst) 0.65 84.6 = 14 Norway 1.10 Burden of government regulation 1-7 (best) 2.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 33.0 36.3 96 Singapore 1.12 E-Participation Index 0-1 (best) 3.4 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.1 23.9 124 Singapore 1.14 Incidence of corruption 0-100 (best) 13.5 New Zealand 1.15 Property rights 1-7 (best) 4.6 72.2 53 Finland 1.16 Intellectual property protection 1-7 (best) 3.3 Finland 1.17 Quality of land administration 0-30 (best) 4.3 21.0 133 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 24.2 126 Multiple (2) 1.20 Shareholder governance 0-10 (best) 58.6 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.0 Singapore n/a 17.8 138 United States 2.01 Road connectivity index 0-100 (best) 1.8 2.02 Quality of roads 1-7 (best) 18,225.8 33.0 96 Singapore 2.03 Railroad density km of roads/square km 4.1 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 9.6 40.7 128 Switzerland 2.05 Airport connectivity score 3.1 2.06 Efficiency of air transport services 1-7 (best) 96.3 34.7 131 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 9.8 Singapore 2.08 Efficiency of seaport services 1-7 (best) 15.8 45.0 = 83 Multiple (4) 2.09 Electrification rate % pop. 3.4 Singapore 2.10 Electric power transmission and distribution losses % output 60.3 71 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 156.5 33.0 = 131 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 56.1 43.0 = 100 6.9 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.2 59.7 90 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 29.0 58.6 = 79 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 50.0 66 Pillar 4: Macroeconomic stability 0-100 (best) 49.7 n/a n/a 4.01 Inflation annual % change - 13.4 123 Multiple (74) 4.02 Debt dynamics 0-100 (best) 66.5 Multiple (36) 38.7 84 Pillar 5: Health 0-100 (best) - Multiple (4) 7.0 51.8 90 Multiple (4) 5.01 Healthy life expectancy years 3.4 3.5 9.6 84 Finland Pillar 6: Skills 0-100 (best) 3.5 Finland 3.3 34.3 104 Switzerland 6.01 Mean years of schooling Years 3.6 Switzerland 6.02 Extent of staff training 1-7 (best) 12.0 96.3 92 Switzerland 6.03 Quality of vocational training 1-7 (best) 2.3 Sweden 6.04 Skillset of graduates 1-7 (best) 28.3 93.9 62 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 85.9 = 84 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 40.0 116 39.5 103 209 | The Global Competitiveness Report 2018 100.0 = 12
13.9 86
29.0 104
74.9 69
49.7 81
82.7 59
48.3 107
46.7 = 104
40.7 114
42.4 108
37.5 123
43.5 110
22.1 135
54.3 100 El Salvador Economy Profiles
98th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 54.0 87 Singapore 2.8 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 2.9 30.0 128 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.9 31.9 127 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 4.73 Hong Kong SAR 7.05 Trade tariffs % duty 6.4 70.2 45 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.3 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 47.9 120 7.08 Services trade openness 0-100 (worst) Ecuador
- 68.5 60
Pillar 8: Labour market 0-100 (best) 22.9 United States 89.9 41 Multiple (8) 8.01 Redundancy costs weeks of salary 2.9 8.02 Hiring and firing practices 1-7 (best) 4.0 32.5 114 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.2 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 1.6 81.1 n/a 8.05 Active Labour policies 1-7 (best) 78.4 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.4 52.2 104 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.1 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.6 60.7 = 100 Albania 8.09 Reliance on professional management 1-7 (best) 3.1 Guinea 8.10 Pay and productivity 1-7 (best) 0.51 32.3 127 Finland 8.11 Female participation in Labour force ratio 17.2 8.12 Labour tax rate % 50.2 104 United States Pillar 9: Financial system 0-100 (best) 44.7 70.7 42 9.01 Domestic credit to private sector % GDP 3.3 10.5 139 9.02 Financing of SMEs 1-7 (best) 2.1 United States 9.03 Venture capital availability 1-7 (best) 37.7 78.4 41 Multiple (29) 9.04 Market capitalization % GDP 1.9 9.05 Insurance premium % GDP 5.2 56.8 44 United States 9.06 Soundness of banks 1-7 (best) 2.1 United States 9.07 Non-performing loans % loan portfolio value 2.1 67.7 19 9.08 Credit gap percentage points 17.3 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 42.5 110 Multiple (16) - Pillar 10: Market size 0-100 (best) 52 35.3 126 Finland 44.3 Multiple (2) 10.01 Gross domestic product PPP $ billions 39.3 93 Multiple (97) 10.02 Imports % GDP - Multiple (72) 41.4 87.2 = 72 Pillar 11: Business dynamism 0-100 (best) 16.5 China 32.6 60.1 64 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 9.0 47.1 78 11.03 Insolvency recovery rate cents/$ 3.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.8 38.8 108 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.2 11.06 Willingness to delegate authority 1-7 (best) 2.7 18.9 124 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 37.7 48 Pillar 12: Innovation capability 0-100 (best) 2.8 32.0 = 59 Israel 12.01 Diversity of workforce 1-7 (best) 2.7 70.0 58 Denmark 12.02 State of cluster development 1-7 (best) 52.7 Israel 12.03 International co-inventions applications/million pop. 0.05 96.8 34 12.04 Multi-stakeholder collaboration 1-7 (best) 0.1 United States 12.05 Scientific publications H Index 0.00 99.6 99 12.06 Patent applications applications/million pop. 2.7 Germany 12.07 R&D expenditures % GDP 732.01 100.0 = 47 Canada 12.09 Buyer sophistication 1-7 (best) 43.2 95 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 68 Multiple (7) 51.6 111 Multiple (7) 79.3 = 123
46.9 79
47.0 112
36.0 130
28.6 136
26.9 123
47.3 118
29.7 134
29.1 137
59.0 126
1.0 103
4.3 101
27.8 120
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 209 211 | The Global Competitiveness Report 2018 Estonia Economy Profiles
32nd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 30th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
78 80 75 77
70 71 70 69 66 69
50 53
0
Rank /140 32nd 22nd 42nd 14th 1st 54th 18th 21st 21st 46th 97th 29th 33rd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 1.3 GDP (PPP) % world GDP 0.03 GDP per capita US$ 19,840.1 Unemployment rate % 5.8 10-year average annual GDP growth % 3.2 0.5 5-year average FDI inward flow % GDP
Social and environmental performance 7.0 Global Gender Gap Index 0-1 (gender parity) 0.7 4.7 Income Gini 0 (perfect equality) -100 (perfect inequality) 32.7
The Global Competitiveness Report 2018 | 211 Economy Profiles 32nd /140
Estonia Value Score * Rank/140 Best Performer
Index Component - 69.5 22 New Zealand 6.2 Finland Pillar 1: Institutions 0-100 (best) 3.2 86.9 5 1.01 Organized crime 1-7 (best) 6.0 90.9 = 73 Multiple (24) 1.02 Homicide rate /100,000 pop. 51.9 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 69.2 100.0 32 Finland 1.04 Reliability of police services 1-7 (best) 5.5 Australia 1.05 Social capital 0-100 (high) 4.0 82.8 17 Multiple (2) 1.06 Budget transparency 0-100 (best) 14.1 1.07 Judicial independence 1-7 (best) 4.0 51.9 58 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.91 69.2 = 36 Norway 1.10 Burden of government regulation 1-7 (best) 4.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 71.0 74.4 22 Singapore 1.12 E-Participation Index 0-1 (best) 5.4 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.4 49.7 38 Singapore 1.14 Incidence of corruption 0-100 (best) 27.5 New Zealand 1.15 Property rights 1-7 (best) 5.5 85.9 12 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 5.7 50.5 30 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 54.2 39 Multiple (2) 1.20 Shareholder governance 0-10 (best) 78.0 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.7 Singapore 27.2 51.3 44 United States 2.02 Quality of roads 1-7 (best) 4.7 71.0 21 Singapore 2.03 Railroad density km of roads/square km 11,321.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 73.2 28 Switzerland 2.05 Airport connectivity score 4.6 2.06 Efficiency of air transport services 1-7 (best) 8.4 73.4 25 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 5.6 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 91.7 = 6 Multiple (4) 2.09 Electrification rate % pop. 7.3 Singapore 2.10 Electric power transmission and distribution losses % output 7.5 74.4 28 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 6.3 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 57.0 = 65 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 145.4 57.0 = 69 133.4 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 75.2 42 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 30.9 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 10.5 78.0 = 37 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 87.2 Korea, Rep. 3.05 Internet users % pop. 61.4 38 Pillar 4: Macroeconomic stability 0-100 (best) 2.3 67.9 = 30 100.0 Multiple (31) 4.01 Inflation annual % change 61.4 20 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 67.2 33.3 92 Pillar 5: Health 0-100 (best) Multiple (4)
- 59.5 67 Multiple (4)
5.01 Healthy life expectancy years 12.9 8.4 90 Finland Pillar 6: Skills 0-100 (best) 4.6 Finland 4.5 76.2 9 Switzerland 6.01 Mean years of schooling Years 4.7 Switzerland 6.02 Extent of staff training 1-7 (best) 5.4 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.6 Sweden 6.04 Skillset of graduates 1-7 (best) 16.1 96.5 46 United States 6.05 Digital skills among population 1-7 (best) 4.5 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 11.5 94.4 = 47 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 87.8 25 77.4 14 213 | The Global Competitiveness Report 2018 100.0 = 22
61.8 25
87.2 21
84.9 54
84.9 53
78.0 18
86.0 = 9
59.7 32
62.2 30
73.6 10
42.5 112
89.4 = 33
57.9 20
96.3 = 17 Estonia Economy Profiles
32nd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 64.8 21 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.1 54.4 37 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.7 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.2 51.1 43 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 79.1 4 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.3 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 69.3 13 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 26
Pillar 8: Labour market 0-100 (best) 12.9 United States 8.01 Redundancy costs weeks of salary 4.5 8.02 Hiring and firing practices 1-7 (best) 5.1 58.1 28 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 6.2 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.9 86.6 n/a 8.05 Active Labour policies 1-7 (best) 87.6 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.5 69.3 21 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.2 81.4 = 45 Albania 8.09 Reliance on professional management 1-7 (best) 4.7 Guinea 8.10 Pay and productivity 1-7 (best) 0.90 57.6 24 Finland 8.11 Female participation in Labour force ratio 38.8 8.12 Labour tax rate % 68.6 25 United States Pillar 9: Financial system 0-100 (best) 70.0 86.0 2 9.01 Domestic credit to private sector % GDP 4.4 64.9 13 9.02 Financing of SMEs 1-7 (best) 3.8 United States 9.03 Venture capital availability 1-7 (best) 11.3 87.6 23 Multiple (29) 9.04 Market capitalization % GDP 1.6 9.05 Insurance premium % GDP 5.6 40.9 119 United States 9.06 Soundness of banks 1-7 (best) 0.9 United States 9.07 Non-performing loans % loan portfolio value -5.4 69.5 13 9.08 Credit gap percentage points 27.9 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 70.2 28 Multiple (16) - Pillar 10: Market size 0-100 (best) 38 61.2 21 Finland 81.9 Multiple (2) 10.01 Gross domestic product PPP $ billions 87.2 30 Multiple (97) 10.02 Imports % GDP - Multiple (72) 1.2 57.2 = 135 Pillar 11: Business dynamism 0-100 (best) 3.5 China 40.6 65.9 46 China 11.01 Cost of starting a business % GNI per capita 14.0 Hong Kong SAR 11.02 Time to start a business days 4.0 73.7 41 11.03 Insolvency recovery rate cents/$ 5.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.6 57.2 32 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.0 11.06 Willingness to delegate authority 1-7 (best) 46.9 26 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.5 11.3 90 Pillar 12: Innovation capability 0-100 (best) 4.47 27.3 = 71 Israel 12.01 Diversity of workforce 1-7 (best) 221.3 77.4 30 Denmark 12.02 State of cluster development 1-7 (best) 25.24 Israel 12.03 International co-inventions applications/million pop. 1.5 99.3 8 12.04 Multi-stakeholder collaboration 1-7 (best) 0.01 United States 12.05 Scientific publications H Index 3.8 100.0 = 35 12.06 Patent applications applications/million pop. 8,568.13 Germany 12.07 R&D expenditures % GDP 100.0 = 2 Canada 12.09 Buyer sophistication 1-7 (best) 42.3 97 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 16 Multiple (7) 69.3 29 Multiple (7) 99.4 = 31
43.7 58
50.6 63
66.2 28
59.5 30
50.3 30
52.5 33
41.4 130
45.6 76
52.2 27
49.8 43
80.0 48
49.8 25
2.9 61
46.2 44
97.4 11
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 213 215 | The Global Competitiveness Report 2018 Eswatini Economy Profiles
120th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 116th/135
Performance Overview Key Previous edition Lower middle income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 68
60 59 57
50 49 52 52 52 51
30 25 30 27
0
Rank /140 120th 97th 94th 125th 115th 139th 102nd 104th 86th 102nd 133rd 116th 134th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 1.2 GDP (PPP) % world GDP 0.01 GDP per capita US$ 3,914.8 Unemployment rate % 26.4 2.6 5-year average FDI inward flow % GDP 0.3
Social and environmental performance 2.4 Income Gini 0 (perfect equality) -100 (perfect inequality) 51.5
The Global Competitiveness Report 2018 | 215 Economy Profiles 120th /140
Eswatini Value Score * Rank/140 Best Performer
Index Component - 48.8 97 New Zealand Pillar 1: Institutions 0-100 (best) 17.3 73.4 32 1.01 Organized crime 1-7 (best) 5.2 43.1 = 129 Multiple (24) 1.02 Homicide rate /100,000 pop. 49.7 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 38.5 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 3.8 Australia 1.05 Social capital 0-100 (high) 3.2 70.0 41 Multiple (2) 1.06 Budget transparency 0-100 (best) 51.5 1.07 Judicial independence 1-7 (best) 3.7 49.7 = 76 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.5 Finland 1.09 Freedom of the press 0-100 (worst) 0.33 38.5 = 110 Norway 1.10 Burden of government regulation 1-7 (best) 3.2 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 39.0 46.7 71 Singapore 1.12 E-Participation Index 0-1 (best) 4.3 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.4 37.2 72 Singapore 1.14 Incidence of corruption 0-100 (best) 16.0 New Zealand 1.15 Property rights 1-7 (best) 5.1 48.5 125 Finland 1.16 Intellectual property protection 1-7 (best) 4.3 Finland 1.17 Quality of land administration 0-30 (best) 4.0 44.3 54 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 41.3 81 Multiple (2) 1.20 Shareholder governance 0-10 (best) 68.5 Kazakhstan 33.2 121 Pillar 2: Infrastructure 0-100 (best) 4.3 Singapore 17.3 35.9 106 United States 2.02 Quality of roads 1-7 (best) 3.1 39.0 73 Singapore 2.03 Railroad density km of roads/square km 188.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 55.6 72 Switzerland 2.05 Airport connectivity score 3.7 2.06 Efficiency of air transport services 1-7 (best) n/a 39.7 115 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 3.4 Singapore 2.08 Efficiency of seaport services 1-7 (best) 84.0 53.3 = 67 Multiple (4) 2.09 Electrification rate % pop. n/a Singapore 2.10 Electric power transmission and distribution losses % output 33.5 67.8 46 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 4.4 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 43.0 = 112 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 74.1 40.0 = 106 12.6 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 58.8 94 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 0.5 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. n/a 68.5 = 60 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 28.6 Korea, Rep. 3.05 Internet users % pop. 55.0 57 Pillar 4: Macroeconomic stability 0-100 (best) 7.2 43.2 = 43 44.4 Multiple (31) 4.01 Inflation annual % change 35.3 73 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 49.6 5.9 137 Pillar 5: Health 0-100 (best) Multiple (4)
- 44.8 111 Multiple (4)
5.01 Healthy life expectancy years 8.8 4.0 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.6 Finland 3.6 39.7 94 Switzerland 6.01 Mean years of schooling Years 3.1 Switzerland 6.02 Extent of staff training 1-7 (best) 4.0 84.0 104 Switzerland 6.03 Quality of vocational training 1-7 (best) 11.2 Sweden 6.04 Skillset of graduates 1-7 (best) 3.0 94.3 n/a United States 6.05 Digital skills among population 1-7 (best) 27.6 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 67.8 110 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 56.1 88 24.9 125 217 | The Global Competitiveness Report 2018 61.7 = 125
1.0 = 116
28.6 105
67.8 115
91.2 115
44.4 110
30.1 139
30.1 138
52.3 102
58.7 = 77
49.3 63
42.5 105
43.7 102
34.5 131
49.4 83
62.2 = 112
33.1 103
56.0 = 99 Eswatini Economy Profiles
120th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 51.6 104 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 2.6 52.9 39 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.5 26.4 135 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 6.56 Hong Kong SAR 7.05 Trade tariffs % duty 4.9 59.6 102 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) n/a Germany 7.07 Efficiency of the clearance process 15 (best) n/a 57.8 58 7.08 Services trade openness 0-100 (worst) Ecuador
- 56.3 83
Pillar 8: Labour market 0-100 (best) 14.6 United States 64.2 92 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 3.9 35.0 n/a Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.3 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.4 71.3 n/a 8.05 Active Labour policies 1-7 (best) 66.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.6 57.5 86 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.5 78.0 = 60 Albania 8.09 Reliance on professional management 1-7 (best) 3.8 Guinea 8.10 Pay and productivity 1-7 (best) 0.53 50.7 48 Finland 8.11 Female participation in Labour force ratio 5.7 8.12 Labour tax rate % 48.6 110 United States Pillar 9: Financial system 0-100 (best) 21.2 55.0 118 9.01 Domestic credit to private sector % GDP 3.1 23.2 112 9.02 Financing of SMEs 1-7 (best) 2.4 United States 9.03 Venture capital availability 1-7 (best) 0.0 66.0 88 Multiple (29) 9.04 Market capitalization % GDP 2.2 9.05 Insurance premium % GDP 5.1 43.4 110 United States 9.06 Soundness of banks 1-7 (best) 9.6 United States 9.07 Non-performing loans % loan portfolio value -1.6 62.8 44 9.08 Credit gap percentage points 23.2 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 58.4 52 Multiple (16) - Pillar 10: Market size 0-100 (best) 10 46.1 80 Finland 44.3 Multiple (2) 10.01 Gross domestic product PPP $ billions 41.2 92 Multiple (97) 10.02 Imports % GDP - Multiple (72) 16.4 100.0 = 21 Pillar 11: Business dynamism 0-100 (best) 30.0 China 37.4 51.9 102 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 6.0 22.3 116 11.03 Insolvency recovery rate cents/$ 3.4 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.5 34.5 120 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.1 11.06 Willingness to delegate authority 1-7 (best) 2.9 23.4 107 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 0.0 = 120 Pillar 12: Innovation capability 0-100 (best) 3.2 37.2 = 55 Israel 0.15 12.01 Diversity of workforce 1-7 (best) 2.9 68.1 65 Denmark 12.02 State of cluster development 1-7 (best) 52.0 Israel 12.03 International co-inventions applications/million pop. 0.15 81.6 99 12.04 Multi-stakeholder collaboration 1-7 (best) n/a United States 12.05 Scientific publications H Index 0.00 100.0 = 55 12.06 Patent applications applications/million pop. 2.7 Germany 12.07 R&D expenditures % GDP 0.00 100.0 = 8 Canada 12.09 Buyer sophistication 1-7 (best) 27.0 133 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 67 Multiple (7) 50.7 116 Multiple (7) 91.8 98 70.4 = 119 Multiple (7)
40.3 68
39.6 121
58.4 51
35.4 131
22.7 134
57.1 71
37.3 107
4.3 76
58.8 129
2.6 96
6.1 n/a
28.9 115
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 217 219 | The Global Competitiveness Report 2018 Ethiopia Economy Profiles
122nd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 120th/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 68
60 56 55 55
50 45 46 46 48
44 41
30 33
20 16
0
Rank /140 122nd 116th 120th 138th 113rd 113rd 135th 135th 98th 126th 63rd 125th 127th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 92.7 GDP (PPP) % world GDP 0.16 GDP per capita US$ 872.8 Unemployment rate % 5.2 10-year average annual GDP growth % 3.5 9.7 5-year average FDI inward flow % GDP
Social and environmental performance 1.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 39.1
The Global Competitiveness Report 2018 | 219 Economy Profiles 122nd /140
Ethiopia Value Score * Rank/140 Best Performer
Index Component - 44.9 116 New Zealand 4.5 Finland Pillar 1: Institutions 0-100 (best) 7.6 58.3 = 87 94.9 Multiple (9) 1.01 Organized crime 1-7 (best) 4.0 76.1 = 106 Multiple (24) 1.02 Homicide rate /100,000 pop. 44.4 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 30.8 94.9 116 Finland 1.04 Reliability of police services 1-7 (best) 3.7 Australia 1.05 Social capital 0-100 (high) 3.4 50.2 = 93 Multiple (2) 1.06 Budget transparency 0-100 (best) 50.2 1.07 Judicial independence 1-7 (best) 3.8 44.4 114 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.57 30.8 = 126 Norway 1.10 Burden of government regulation 1-7 (best) 3.7 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 35.0 44.7 = 76 Singapore 1.12 E-Participation Index 0-1 (best) 4.2 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.8 40.4 = 62 Singapore 1.14 Incidence of corruption 0-100 (best) 6.0 New Zealand 1.15 Property rights 1-7 (best) 3.9 49.8 123 Finland 1.16 Intellectual property protection 1-7 (best) 1.7 Finland 1.17 Quality of land administration 0-30 (best) 4.0 46.3 = 44 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 45.5 = 66 Multiple (2) 1.20 Shareholder governance 0-10 (best) 32.0 Kazakhstan 57.3 95 Pillar 2: Infrastructure 0-100 (best) 3.3 Singapore 0.6 44.3 = 72 United States 2.01 Road connectivity index 0-100 (best) 2.9 2.02 Quality of roads 1-7 (best) 42,696.8 35.0 91 Singapore 2.03 Railroad density km of roads/square km 4.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 53.4 = 77 Switzerland 2.05 Airport connectivity score 2.8 2.06 Efficiency of air transport services 1-7 (best) 40.4 46.4 = 91 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 17.3 Singapore 2.08 Efficiency of seaport services 1-7 (best) 41.1 20.0 = 132 Multiple (4) 2.09 Electrification rate % pop. 3.6 Singapore 2.10 Electric power transmission and distribution losses % output 48.4 = 110 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 59.7 17.0 = 140 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 7.1 40.0 = 106 0.6 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 45.5 120 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 15.4 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 32.0 = 123 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 8.6 37.8 = 103 48.6 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 1.5 = 98 4.01 Inflation annual % change 57.9 30.8 = 83 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 49.6 69
Pillar 5: Health 0-100 (best) 2.9 Multiple (4) 3.6 50.2 = 93 Multiple (4) 5.01 Healthy life expectancy years 3.7 Pillar 6: Skills 0-100 (best) 3.5 Finland 3.7 29.4 = 114 Switzerland 6.01 Mean years of schooling Years 8.4 Switzerland 6.02 Extent of staff training 1-7 (best) 3.5 40.4 121 Switzerland 6.03 Quality of vocational training 1-7 (best) 55.1 Sweden 6.04 Skillset of graduates 1-7 (best) 86.2 107 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 60.1 127 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 42.7 = 113 16.0 138 221 | The Global Competitiveness Report 2018 49.7 130
n/a 138
1.1 115
15.4 127
68.0 113
87.3 120
48.6 92
56.0 113
56.0 112
32.6 = 135
19.3 = 132
42.8 = 101
45.4 = 94
39.9 = 122
42.1 = 112
44.8 = 102
46.8 = 136
42.2 = 61
0.0 135 Ethiopia Economy Profiles
122nd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 41.0 135 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.5 48.5 = 54 Switzerland 7.02 Extent of market dominance 1-7 (best) 3.1 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.8 42.4 = 85 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 13.73 Hong Kong SAR 7.05 Trade tariffs % duty 6.5 35.5 = 140 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) 88.2 47.0 = 127 7.08 Services trade openness 0-100 (worst) Ecuador
- 8.4 129
Pillar 8: Labour market 0-100 (best) 19.1 United States 91.7 = 34 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 3.8 40.0 = 77 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.3 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.4 11.8 = 98 8.05 Active Labour policies 1-7 (best) 67.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.5 54.6 98 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.6 68.5 = 84 Albania 8.09 Reliance on professional management 1-7 (best) 3.8 Guinea 8.10 Pay and productivity 1-7 (best) 0.58 44.7 = 82 Finland 8.12 Labour tax rate % 45.8 = 120 United States Pillar 9: Financial system 0-100 (best) 29.0 55.4 = 115 9.01 Domestic credit to private sector % GDP 3.7 39.8 = 66 9.02 Financing of SMEs 1-7 (best) 3.2 United States 9.03 Venture capital availability 1-7 (best) 0.0 67.0 84 Multiple (29) 9.05 Insurance premium % GDP 3.6 40.9 = 120 United States 9.06 Soundness of banks 1-7 (best) 25.0 United States 9.07 Non-performing loans % loan portfolio value 2.3 48.4 = 114 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 42.9 = 109 Multiple (16) - Pillar 10: Market size 0-100 (best) 182 46.6 = 79 Finland 29.3 Multiple (2) 10.01 Gross domestic product PPP $ billions 47.9 87 Multiple (97) 10.02 Imports % GDP - Multiple (72) 57.8 93.9 = 44 Pillar 11: Business dynamism 0-100 (best) 33.0 China 28.7 46.0 126 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 7.0 30.5 = 102 11.03 Insolvency recovery rate cents/$ 3.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.4 45.5 = 76 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.7 11.06 Willingness to delegate authority 1-7 (best) 3.6 36.1 = 52 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 0.0 121 Pillar 12: Innovation capability 0-100 (best) 3.6 8.4 = 123 Israel 12.01 Diversity of workforce 1-7 (best) 3.6 43.9 = 119 Denmark 12.02 State of cluster development 1-7 (best) 118.3 Israel 12.03 International co-inventions applications/million pop. 0.01 50.5 = 135 12.04 Multi-stakeholder collaboration 1-7 (best) 0.6 United States 12.05 Scientific publications H Index 0.01 99.2 103 12.06 Patent applications applications/million pop. 3.2 Germany 12.07 R&D expenditures % GDP 0.00 100.0 = n/a Canada 12.09 Buyer sophistication 1-7 (best) 54.6 63 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 107 Multiple (7) 47.9 125 Multiple (7) 71.1 131 67.3 121 Multiple (7)
41.0 = 117
39.9 = 129
45.5 = 96
43.4 = 58
26.5 127
49.8 = 103
42.7 = 88
42.7 = 73
70.8 85
0.3 119
20.2 = 57
2.1 69
36.2 = 91
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 221 223 | The Global Competitiveness Report 2018 Finland Economy Profiles
11th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 12th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 88
80 80 81 82 77 78
71 76
70 67
60 57
0
Rank /140 11th 2nd 23rd 16th 1st 22nd 1st 14th 19th 3rd 61st 8th 10th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 5.5 GDP (PPP) % world GDP 0.19 GDP per capita US$ 46,016.7 Unemployment rate % 8.6 10-year average annual GDP growth % 2.4 0.0 5-year average FDI inward flow % GDP
Social and environmental performance 6.1 Global Gender Gap Index 0-1 (gender parity) 0.8 5.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 27.1
The Global Competitiveness Report 2018 | 223 Economy Profiles 11th /140
Finland Value Score * Rank/140 Best Performer
Index Component - 81.0 2 New Zealand 6.8 Finland Pillar 1: Institutions 0-100 (best) 1.4 96.7 1 99.6 Multiple (9) 1.01 Organized crime 1-7 (best) 6.8 96.9 47 Multiple (24) 1.02 Homicide rate /100,000 pop. 61.9 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 73.1 99.6 84 Finland 1.04 Reliability of police services 1-7 (best) 6.7 Australia 1.05 Social capital 0-100 (high) 5.6 96.8 1 Multiple (2) 1.06 Budget transparency 0-100 (best) 10.3 1.07 Judicial independence 1-7 (best) 4.6 61.9 12 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.9 Finland 1.09 Freedom of the press 0-100 (worst) 1.00 73.1 = 27 Norway 1.10 Burden of government regulation 1-7 (best) 5.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 85.0 95.0 1 Singapore 1.12 E-Participation Index 0-1 (best) 6.6 Multiple (3) 1.13 Future orientation of government 1-7 (best) 6.5 77.3 1 Singapore 1.14 Incidence of corruption 0-100 (best) 26.5 New Zealand 1.15 Property rights 1-7 (best) 6.6 89.7 4 Finland 1.16 Intellectual property protection 1-7 (best) 6.0 Finland 1.17 Quality of land administration 0-30 (best) 5.7 60.8 11 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 81.7 2 Multiple (2) 1.20 Shareholder governance 0-10 (best) 87.7 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 5.3 Singapore 17.5 68.9 11 United States 2.02 Quality of roads 1-7 (best) 5.5 85.0 3 Singapore 2.03 Railroad density km of roads/square km 82,578.9 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 92.7 1 Switzerland 2.05 Airport connectivity score 6.2 2.06 Efficiency of air transport services 1-7 (best) 12.0 91.6 1 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 6.2 88.3 = 11 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 92.7 1 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 2.9 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 0.6 60.0 = 54 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 57.0 = 69 3.01 Mobile-cellular telephone subscriptions /100 pop. 132.3 82.3 23 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 153.8 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 87.7 = 18 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 30.9 Korea, Rep. 3.05 Internet users % pop. 9.8 71.1 22 Pillar 4: Macroeconomic stability 0-100 (best) 87.7 43.8 = 42 4.01 Inflation annual % change - 75.0 8 Multiple (74) 4.02 Debt dynamics 0-100 (best) 0.6 Multiple (36) 100.0 59.4 46 Pillar 5: Health 0-100 (best) Multiple (4)
- 86.5 5 Multiple (4)
5.01 Healthy life expectancy years 70.5 12.0 78 Finland Pillar 6: Skills 0-100 (best) - Finland 14.2 86.5 3 Switzerland 6.01 Mean years of schooling Years Switzerland 6.02 Extent of staff training 1-7 (best) 5.2 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 5.4 Sweden 6.04 Skillset of graduates 1-7 (best) 5.4 100.0 = 5 United States 6.05 Digital skills among population 1-7 (best) 5.8 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 5.3 100.0 = 4 United States 6.07 School life expectancy Years 19.3 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 5.4 97.3 5 6.09 Pupil-to-teacher ratio in primary education Ratio 13.3 77.0 16 225 | The Global Competitiveness Report 2018 100.0 = 36
61.9 24
87.7 19
95.4 22
95.4 21
87.9 1
94.7 = 1
70.5 10
73.4 6
80.3 3
72.3 3
91.7 37 Finland Economy Profiles
11th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 66.9 14 Singapore 4.9 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.2 65.6 10 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.7 53.6 35 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 72.9 27 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.8 Germany 7.07 Efficiency of the clearance process 15 (best) 25.6 78.4 3 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 8
Pillar 8: Labour market 0-100 (best) 10.1 United States 8.01 Redundancy costs weeks of salary 3.5 8.02 Hiring and firing practices 1-7 (best) 5.3 70.4 8 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 2.4 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.9 74.4 = 53 8.05 Active Labour policies 1-7 (best) 100.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.0 70.9 19 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 6.2 87.3 = 32 Albania 8.09 Reliance on professional management 1-7 (best) 4.6 Guinea 8.10 Pay and productivity 1-7 (best) 1.00 41.3 101 Finland 8.11 Female participation in Labour force ratio 25.4 8.12 Labour tax rate % 70.9 16 United States Pillar 9: Financial system 0-100 (best) 94.5 24.1 138 9.01 Domestic credit to private sector % GDP 5.3 65.8 12 9.02 Financing of SMEs 1-7 (best) 4.9 United States 9.03 Venture capital availability 1-7 (best) 99.8 100.0 1 Multiple (29) 9.04 Market capitalization % GDP 4.8 9.05 Insurance premium % GDP 6.7 50.0 80 United States 9.06 Soundness of banks 1-7 (best) 1.4 United States 9.07 Non-performing loans % loan portfolio value -6.2 48.2 115 9.08 Credit gap percentage points 18.8 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 86.7 1 Multiple (16) - Pillar 10: Market size 0-100 (best) 222 60.6 25 Finland 39.9 Multiple (2) 10.01 Gross domestic product PPP $ billions 100.0 = 4 Multiple (97) 10.02 Imports % GDP - Multiple (72) 1.0 75.8 111 Pillar 11: Business dynamism 0-100 (best) 14.0 China 88.3 89.7 3 China 11.01 Cost of starting a business % GNI per capita 14.5 Hong Kong SAR 11.02 Time to start a business days 4.2 99.5 30 11.03 Insolvency recovery rate cents/$ 5.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.9 71.7 3 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.4 11.06 Willingness to delegate authority 1-7 (best) 64.6 4 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.6 99.8 14 Pillar 12: Innovation capability 0-100 (best) 25.46 79.4 = 25 Israel 12.01 Diversity of workforce 1-7 (best) 545.7 94.5 1 Denmark 12.02 State of cluster development 1-7 (best) 285.97 Israel 12.03 International co-inventions applications/million pop. 2.9 98.2 16 12.04 Multi-stakeholder collaboration 1-7 (best) 0.07 United States 12.05 Scientific publications H Index 4.7 100.0 = 29 12.06 Patent applications applications/million pop. 8,220.17 Germany 12.07 R&D expenditures % GDP 100.0 = 31 Canada 12.09 Buyer sophistication 1-7 (best) 57.4 61 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 82 Multiple (7) 78.3 8 Multiple (7) 99.5 = 22
95.0 6
53.1 50
79.5 6
57.3 17
76.3 10
64.9 18
71.2 8
93.4 19
96.8 9
17.7 29
62.5 9
97.0 13
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 225 227 | The Global Competitiveness Report 2018 France Economy Profiles
17th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 18th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 100 99
90 90
78 83 81
80 76
70 71 73 69
63 61
0
Rank /140 17th 23rd 8th 29th 33rd 7th 34th 31st 53rd 17th 9th 28th 11th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 64.8 GDP (PPP) % world GDP 2.23 GDP per capita US$ 39,869.1 Unemployment rate % 9.4 10-year average annual GDP growth % 1.2 0.7 5-year average FDI inward flow % GDP
Social and environmental performance 4.7 Global Gender Gap Index 0-1 (gender parity) 0.8 5.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 32.7
The Global Competitiveness Report 2018 | 227 Economy Profiles 17th /140
France Value Score * Rank/140 Best Performer
Index Component - 69.5 23 New Zealand Pillar 1: Institutions 0-100 (best) 1.4 71.6 41 92.5 Multiple (9) 1.01 Organized crime 1-7 (best) 5.7 97.1 43 Multiple (24) 1.02 Homicide rate /100,000 pop. 54.4 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 69.2 92.5 120 Finland 1.04 Reliability of police services 1-7 (best) 5.3 Australia 1.05 Social capital 0-100 (high) 4.0 77.5 27 Multiple (2) 1.06 Budget transparency 0-100 (best) 21.9 1.07 Judicial independence 1-7 (best) 2.9 54.4 42 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.5 Finland 1.09 Freedom of the press 0-100 (worst) 0.97 69.2 = 36 Norway 1.10 Burden of government regulation 1-7 (best) 4.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 70.0 70.9 28 Singapore 1.12 E-Participation Index 0-1 (best) 5.6 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.9 50.4 36 Singapore 1.14 Incidence of corruption 0-100 (best) 24.0 New Zealand 1.15 Property rights 1-7 (best) 5.7 78.1 30 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 7.7 31.8 107 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 58.9 31 Multiple (2) 1.20 Shareholder governance 0-10 (best) 93.4 Kazakhstan 96.6 13 Pillar 2: Infrastructure 0-100 (best) 6.0 Singapore 54.7 51.1 47 United States 2.02 Quality of roads 1-7 (best) 5.1 70.0 23 Singapore 2.03 Railroad density km of roads/square km 580,887.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 77.2 21 Switzerland 2.05 Airport connectivity score 5.5 2.06 Efficiency of air transport services 1-7 (best) 72.2 81.6 10 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 5.0 80.0 25 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 79.0 19 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 7.1 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 0.7 57.0 = 65 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 77.0 10 3.01 Mobile-cellular telephone subscriptions /100 pop. 106.2 90.1 8 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 87.5 93.4 = 9 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 43.8 Korea, Rep. 3.05 Internet users % pop. 82.7 7 3.4 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 79.3 100.0 = 15 4.01 Inflation annual % change - 68.9 14 Multiple (74) 4.02 Debt dynamics 0-100 (best) 0.7 Multiple (36) 99.8 95.8 13 Pillar 5: Health 0-100 (best) Multiple (4)
- 75.0 22 Multiple (4)
5.01 Healthy life expectancy years 71.7 72.2 13 Finland Pillar 6: Skills 0-100 (best) - Finland 11.3 66.3 25 Switzerland 6.01 Mean years of schooling Years 4.8 Switzerland 6.02 Extent of staff training 1-7 (best) 4.9 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.7 Sweden 6.04 Skillset of graduates 1-7 (best) 4.3 96.7 43 United States 6.05 Digital skills among population 1-7 (best) 4.8 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 16.4 100.0 = 15 United States 6.07 School life expectancy Years 3.7 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 18.2 97.2 7 71.1 29 229 | The Global Competitiveness Report 2018 88.5 91
87.5 2
79.3 32
99.9 33
99.8 37
99.1 7
99.1 6
72.6 34
75.5 = 36
63.4 25
64.2 23
60.8 35
55.3 63
63.3 28
91.2 = 24
44.9 48
79.6 = 65 France Economy Profiles
17th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 62.5 31 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.4 58.1 25 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 55.8 28 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 70.7 40 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.6 Germany 7.07 Efficiency of the clearance process 15 (best) 26.4 53.2 90 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 29
Pillar 8: Labour market 0-100 (best) 11.8 United States 2.7 33.7 112 Multiple (8) 8.01 Redundancy costs weeks of salary 4.1 8.02 Hiring and firing practices 1-7 (best) 5.0 64.7 19 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.5 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 89.7 73.6 = 55 8.05 Active Labour policies 1-7 (best) 4.2 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.9 61.5 53 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.3 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.9 83.7 = 42 Albania 8.09 Reliance on professional management 1-7 (best) 0.93 Guinea 8.10 Pay and productivity 1-7 (best) 51.1 28.8 130 Finland 8.12 Labour tax rate % - 51.0 99 United States 95.7 Multiple (4) Pillar 9: Financial system 0-100 (best) 67.3 58 3.9 Multiple (26) 9.01 Domestic credit to private sector % GDP 3.7 57.5 31 9.02 Financing of SMEs 1-7 (best) 82.2 United States 9.03 Venture capital availability 1-7 (best) 8.5 89.7 18 Multiple (29) 9.04 Market capitalization % GDP 5.7 9.05 Insurance premium % GDP 3.6 53.0 61 United States 9.06 Soundness of banks 1-7 (best) -3.0 United States 9.07 Non-performing loans % loan portfolio value 16.3 48.6 112 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 72.1 24 Multiple (16) 2,583 Pillar 10: Market size 0-100 (best) 48.8 68 Finland 33.5 Multiple (2) 10.01 Gross domestic product PPP $ billions 91.0 21 Multiple (97) 10.02 Imports % GDP - Multiple (72) 0.7 40.1 140 Pillar 11: Business dynamism 0-100 (best) 3.5 China 73.5 82.9 17 China 11.01 Cost of starting a business % GNI per capita 11.0 Hong Kong SAR 11.02 Time to start a business days 3.8 100.0 = 29 11.03 Insolvency recovery rate cents/$ 4.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.3 48.7 51 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.8 11.06 Willingness to delegate authority 1-7 (best) 45.1 30 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.4 82.2 24 Pillar 12: Innovation capability 0-100 (best) 11.59 100.0 = 8 Israel 12.01 Diversity of workforce 1-7 (best) 985.0 77.8 27 Denmark 12.02 State of cluster development 1-7 (best) 144.66 Israel 12.03 International co-inventions applications/million pop. 2.2 93.7 58 12.04 Multi-stakeholder collaboration 1-7 (best) 1.34 United States 12.05 Scientific publications H Index 4.0 100.0 = 48 12.06 Patent applications applications/million pop. 5,542.72 Germany 12.07 R&D expenditures % GDP 98.6 = 68 Canada 12.09 Buyer sophistication 1-7 (best) 81.5 9 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 92 Multiple (7) 69.4 28 Multiple (7)
79.1 24
46.2 84
63.2 36
54.7 44
46.7 45
76.1 11
57.4 70
63.2 21
77.7 20
53.8 35
91.5 12
74.4 13
49.8 37
92.7 21
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 229 231 | The Global Competitiveness Report 2018 Gambia, The Economy Profiles
119th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 119th/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 57 55
49 52 53 50 48 50 45
30 28
20 16
0
Rank /140 119th 95th 110th 114th 123rd 111th 115th 97th 99th 110th 140th 126th 104th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 2.1 GDP (PPP) % world GDP 0.00 GDP per capita US$ 480.0 Unemployment rate % 9.5 10-year average annual GDP growth % 3.1
Social and environmental performance 1.0 Income Gini 0 (perfect equality) -100 (perfect inequality) 35.9
The Global Competitiveness Report 2018 | 231 Economy Profiles 119th /140
Gambia, The Value Score * Rank/140 Best Performer
Index Component - 49.3 95 New Zealand Pillar 1: Institutions 0-100 (best) 9.1 68.9 51 1.01 Organized crime 1-7 (best) 5.3 70.8 = 111 Multiple (24) 1.02 Homicide rate /100,000 pop. n/a 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 46.2 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 4.2 Australia 1.05 Social capital 0-100 (high) 3.4 72.4 37 Multiple (2) 1.06 Budget transparency 0-100 (best) 38.4 1.07 Judicial independence 1-7 (best) 4.3 n/a n/a Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.29 46.2 = 90 Norway 1.10 Burden of government regulation 1-7 (best) 4.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 30.0 53.6 57 Singapore 1.12 E-Participation Index 0-1 (best) 4.4 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.7 39.7 64 Singapore 1.14 Incidence of corruption 0-100 (best) 8.5 New Zealand 1.15 Property rights 1-7 (best) 4.7 61.6 98 Finland 1.16 Intellectual property protection 1-7 (best) 4.0 Finland 1.17 Quality of land administration 0-30 (best) 3.3 55.1 22 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 61.1 26 Multiple (2) 1.20 Shareholder governance 0-10 (best) 66.4 Kazakhstan 28.7 125 Pillar 2: Infrastructure 0-100 (best) 3.8 Singapore n/a 52.2 37 United States 2.01 Road connectivity index 0-100 (best) 2.3 2.02 Quality of roads 1-7 (best) 293.3 30.0 109 Singapore 2.03 Railroad density km of roads/square km 4.5 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 7.3 56.1 69 Switzerland 2.05 Airport connectivity score 4.2 2.06 Efficiency of air transport services 1-7 (best) 47.5 45.4 96 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) n/a Singapore 2.08 Efficiency of seaport services 1-7 (best) 34.7 28.3 = 110 Multiple (4) 2.09 Electrification rate % pop. 4.5 Singapore 2.10 Electric power transmission and distribution losses % output 61.9 64 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 139.2 40.0 = 121 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 21.2 33.0 = 124 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 52.1 110 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 18.5 66.4 = 65 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 46.9 77 7.6 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 37.3 n/a n/a 4.01 Inflation annual % change - 21.8 104 Multiple (74) 4.02 Debt dynamics 0-100 (best) 58.3 Multiple (36) 7.5 135 Pillar 5: Health 0-100 (best) - Multiple (4) 5.2 59.1 68 Multiple (4) 5.01 Healthy life expectancy years 3.8 4.0 7.3 98 Finland Pillar 6: Skills 0-100 (best) 4.4 Finland 3.8 52.6 66 Switzerland 6.01 Mean years of schooling Years 4.5 Switzerland 6.02 Extent of staff training 1-7 (best) 8.9 47.5 119 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.1 Sweden 6.04 Skillset of graduates 1-7 (best) 38.7 85.2 n/a United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 66.6 114 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 58.0 83 28.3 114 233 | The Global Competitiveness Report 2018 100.0 = 27
0.4 = 126
18.5 121
63.6 123
89.9 117
57.1 111
57.1 110
44.0 115
34.7 = 119
46.2 79
50.5 70
56.1 45
46.8 91
58.5 46
49.4 = 132
52.2 33
28.3 120 Gambia, The Economy Profiles
119th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 52.6 97 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.8 49.9 51 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.9 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 47.2 52 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 13.88 Hong Kong SAR 7.05 Trade tariffs % duty 6.7 65.0 70 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.1 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 53.0 93 7.08 Services trade openness 0-100 (worst) Ecuador
- 7.5 130
Pillar 8: Labour market 0-100 (best) 52.0 United States 94.6 = 17 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 4.7 26.9 128 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.2 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.3 73.4 n/a 8.05 Active Labour policies 1-7 (best) n/a Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.4 54.5 99 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.5 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.9 0.0 133 Albania 8.09 Reliance on professional management 1-7 (best) 4.4 Guinea 8.10 Pay and productivity 1-7 (best) 0.38 48.6 63 Finland 8.11 Female participation in Labour force ratio 12.7 8.12 Labour tax rate % 62.2 41 United States Pillar 9: Financial system 0-100 (best) 14.7 69.4 49 9.01 Domestic credit to private sector % GDP 3.4 38.7 67 9.02 Financing of SMEs 1-7 (best) 2.4 United States 9.03 Venture capital availability 1-7 (best) 0.0 64.7 n/a Multiple (29) 9.04 Market capitalization % GDP 0.7 9.05 Insurance premium % GDP 5.1 57.3 41 United States 9.06 Soundness of banks 1-7 (best) 6.5 United States 9.07 Non-performing loans % loan portfolio value -3.1 57.6 71 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 64.4 35 Multiple (16) - Pillar 10: Market size 0-100 (best) 3 56.8 44 Finland 50.8 Multiple (2) 10.01 Gross domestic product PPP $ billions 22.1 115 Multiple (97) 10.02 Imports % GDP - Multiple (72) 128.2 93.5 = 49 Pillar 11: Business dynamism 0-100 (best) China 25.0 49.6 110 China 11.01 Cost of starting a business % GNI per capita 26.8 Hong Kong SAR 11.02 Time to start a business days 15.4 = 133 11.03 Insolvency recovery rate cents/$ 6.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.5 39.9 103 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 5.2 11.06 Willingness to delegate authority 1-7 (best) 3.9 23.1 109 New Zealand 11.07 Growth of innovative companies 1-7 (best) 3.4 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 0.0 121 Pillar 12: Innovation capability 0-100 (best) 4.2 11.9 = 106 Israel 12.01 Diversity of workforce 1-7 (best) 0.09 68.5 64 Denmark 12.02 State of cluster development 1-7 (best) 3.0 Israel 12.03 International co-inventions applications/million pop. 109.0 87.9 81 12.04 Multi-stakeholder collaboration 1-7 (best) 0.26 United States 12.05 Scientific publications H Index 0.1 100.0 = 47 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 3.7 100.0 = n/a Canada 12.08 Quality of research institutions index 70.51 12.09 Buyer sophistication 1-7 (best) 16.0 140 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 139 n/a 56 Multiple (7) 47.9 126 Multiple (7) 35.9 137 75.4 = 111 Multiple (7)
28.8 102
40.6 = 108
70.4 21
48.5 70
40.8 76
30.4 104
53.9 85
44.7 79
2.6 86
33.3 122
69.6 89
4.3 84
4.4 = 100
0.5 88
45.0 51
45.9 109
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 233 235 | The Global Competitiveness Report 2018 Georgia Economy Profiles
66th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 67th/135
Performance Overview 2018 Key Previous edition Lower middle income group average Eurasia average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 78
74 69
70 67 65 66
60 61 61 61 62
0
Rank /140 66th 40th 72nd 45th 72nd 80th 45th 42nd 31st 88th 102nd 53rd 85th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 3.7 GDP (PPP) % world GDP 0.03 GDP per capita US$ 4,098.6 Unemployment rate % 11.6 10-year average annual GDP growth % 9.9 3.6 5-year average FDI inward flow % GDP
Social and environmental performance 1.9 Global Gender Gap Index 0-1 (gender parity) 0.7 4.0 Income Gini 0 (perfect equality) -100 (perfect inequality) 36.5
The Global Competitiveness Report 2018 | 235 Economy Profiles 66th /140
Georgia Value Score * Rank/140 Best Performer
Index Component - 61.0 40 New Zealand 5.6 Finland Pillar 1: Institutions 0-100 (best) 1.0 76.7 24 1.01 Organized crime 1-7 (best) 5.2 98.3 32 Multiple (24) 1.02 Homicide rate /100,000 pop. 41.0 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 73.1 99.7 80 Finland 1.04 Reliability of police services 1-7 (best) 3.6 Australia 1.05 Social capital 0-100 (high) 3.7 70.7 40 Multiple (2) 1.06 Budget transparency 0-100 (best) 27.3 1.07 Judicial independence 1-7 (best) 4.6 41.0 126 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.62 73.1 = 27 Norway 1.10 Burden of government regulation 1-7 (best) 3.8 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 56.0 42.5 83 Singapore 1.12 E-Participation Index 0-1 (best) 4.7 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.8 44.6 51 Singapore 1.14 Incidence of corruption 0-100 (best) 21.5 New Zealand 1.15 Property rights 1-7 (best) 4.4 72.7 49 Finland 1.16 Intellectual property protection 1-7 (best) 8.0 Finland 1.17 Quality of land administration 0-30 (best) 8.3 60.8 10 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 39.0 86 Multiple (2) 1.20 Shareholder governance 0-10 (best) 64.8 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.8 Singapore 20.3 47.1 63 United States 2.02 Quality of roads 1-7 (best) 3.9 56.0 41 Singapore 2.03 Railroad density km of roads/square km 21,457.2 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 62.5 48 Switzerland 2.05 Airport connectivity score 4.4 2.06 Efficiency of air transport services 1-7 (best) 5.3 46.5 90 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 3.8 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 71.7 = 39 Multiple (4) 2.09 Electrification rate % pop. 6.5 Singapore 2.10 Electric power transmission and distribution losses % output 12.4 56.6 83 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 5.1 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 80.0 11 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 146.5 83.0 3 3.01 Mobile-cellular telephone subscriptions /100 pop. 73.1 66.7 72 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 19.7 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 10.2 64.8 = 71 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 59.3 Korea, Rep. 3.05 Internet users % pop. 46.6 80 Pillar 4: Macroeconomic stability 0-100 (best) 4.1 50.8 = 37 49.2 Multiple (31) 4.01 Inflation annual % change 48.9 47 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 65.0 40.6 81 Pillar 5: Health 0-100 (best) Multiple (4)
- 56.2 81 Multiple (4)
5.01 Healthy life expectancy years 12.6 5.3 106 Finland Pillar 6: Skills 0-100 (best) 3.5 Finland 3.1 45.9 80 Switzerland 6.01 Mean years of schooling Years 3.4 Switzerland 6.02 Extent of staff training 1-7 (best) 3.7 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.6 Sweden 6.04 Skillset of graduates 1-7 (best) 15.0 97.4 37 United States 6.05 Digital skills among population 1-7 (best) 3.1 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 8.8 89.4 = 74 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 67.5 59 64.8 45 237 | The Global Competitiveness Report 2018 100.0 = 19
39.4 48
59.3 71
74.5 72
99.8 77
49.2 85
78.2 80
78.2 79
68.9 45
84.0 = 17
41.1 112
39.8 123
44.3 101
83.5 52
35.3 92
Georgia Economy Profiles
66th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 61.0 42 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.6 57.1 27 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.7 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.9 43.1 80 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 0.92 Hong Kong SAR 7.05 Trade tariffs % duty 4.4 61.6 90 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) 11.5 65.0 25 7.08 Services trade openness 0-100 (worst) Ecuador
- 93.9 5
Pillar 8: Labour market 0-100 (best) 8.6 United States 4.5 57.1 101 Multiple (8) 8.01 Redundancy costs weeks of salary 4.2 8.02 Hiring and firing practices 1-7 (best) 5.2 35.6 97 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 2.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 73.2 88.5 = 6 8.05 Active Labour policies 1-7 (best) 5.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.7 65.6 31 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.7 90.4 = 18 Albania 8.09 Reliance on professional management 1-7 (best) 0.85 Guinea 8.10 Pay and productivity 1-7 (best) 0.0 57.9 21 Finland 8.12 Labour tax rate % - 53.4 90 United States 55.1 Multiple (4) Pillar 9: Financial system 0-100 (best) 70.8 41 3.8 Multiple (26) 9.01 Domestic credit to private sector % GDP 2.6 30.9 91 9.02 Financing of SMEs 1-7 (best) 0.0 United States 9.03 Venture capital availability 1-7 (best) 0.5 73.2 54 Multiple (29) 9.04 Market capitalization % GDP 4.8 9.05 Insurance premium % GDP 3.4 69.0 6 United States 9.06 Soundness of banks 1-7 (best) 5.5 United States 9.07 Non-performing loans % loan portfolio value 17.3 44.6 127 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 53.2 69 Multiple (16) Pillar 10: Market size 0-100 (best) 65.2 44.6 85 Finland 10.01 Gross domestic product PPP $ billions - 81.8 41 Multiple (97) 10.02 Imports % GDP 2.5 Multiple (72) 2.0 100.0 = 1 Pillar 11: Business dynamism 0-100 (best) 39.4 China 11.0 54.1 88 China 11.01 Cost of starting a business % GNI per capita 4.1 Hong Kong SAR 11.02 Time to start a business days 4.0 58.0 64 11.03 Insolvency recovery rate cents/$ 3.6 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.6 46.0 69 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 26.3 99 New Zealand 11.07 Growth of innovative companies 1-7 (best) 3.9 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.1 0.0 121 0.24 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 3.3 8.4 = 122 Israel 141.7 12.01 Diversity of workforce 1-7 (best) 0.60 63.3 76 Denmark 12.02 State of cluster development 1-7 (best) 0.3 Israel 12.03 International co-inventions applications/million pop. 0.01 94.0 56 12.04 Multi-stakeholder collaboration 1-7 (best) 3.2 United States 12.05 Scientific publications H Index 510.00 90.8 119 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 100.0 = 48 Canada 12.09 Buyer sophistication 1-7 (best) 40.9 102 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 30 Multiple (7) 62.1 53 Multiple (7) 98.8 48 98.5 = 4 Multiple (7)
42.4 61
52.4 52
49.4 95
32.7 85
47.7 116
34.8 117
6.6 70
39.0 91
73.5 74
8.6 72
10.7 82
1.7 75
37.2 84
67.1 69
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 237 239 | The Global Competitiveness Report 2018 Germany Economy Profiles
3rd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 3rd/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 94
90 85 86 88
83 80 82
73 69 72 74
0
Rank /140 3rd 16th 7th 31st 1st 25th 4th 7th 12th 21st 5th 2nd 1st
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 82.7 GDP (PPP) % world GDP 3.28 GDP per capita US$ 44,549.7 Unemployment rate % 3.8 10-year average annual GDP growth % 0.6 1.2 5-year average FDI inward flow % GDP
Social and environmental performance 5.1 Global Gender Gap Index 0-1 (gender parity) 0.8 5.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 31.7
The Global Competitiveness Report 2018 | 239 Economy Profiles 3rd /140
Germany Value Score * Rank/140 Best Performer
Index Component - 73.5 16 New Zealand Pillar 1: Institutions 0-100 (best) 1.2 65.8 64 96.8 Multiple (9) 1.01 Organized crime 1-7 (best) 5.3 97.7 38 Multiple (24) 1.02 Homicide rate /100,000 pop. 61.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 80.8 96.8 110 Finland 1.04 Reliability of police services 1-7 (best) 5.4 Australia 1.05 Social capital 0-100 (high) 5.2 71.7 38 Multiple (2) 1.06 Budget transparency 0-100 (best) 14.4 1.07 Judicial independence 1-7 (best) 4.8 61.1 17 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.92 80.8 = 18 Norway 1.10 Burden of government regulation 1-7 (best) 5.0 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 81.0 72.7 25 Singapore 1.12 E-Participation Index 0-1 (best) 5.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.5 69.5 7 Singapore 1.14 Incidence of corruption 0-100 (best) 22.0 New Zealand 1.15 Property rights 1-7 (best) 5.5 85.6 15 Finland 1.16 Intellectual property protection 1-7 (best) 5.0 Finland 1.17 Quality of land administration 0-30 (best) 6.7 63.9 7 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 69.7 17 Multiple (2) 1.20 Shareholder governance 0-10 (best) 93.5 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 5.5 Singapore 93.4 67.5 13 United States 2.02 Quality of roads 1-7 (best) 5.5 81.0 = 12 Singapore 2.03 Railroad density km of roads/square km 887,909.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 75.6 23 Switzerland 2.05 Airport connectivity score 5.6 2.06 Efficiency of air transport services 1-7 (best) 85.9 75.5 21 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 5.3 73.3 = 36 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 74.6 26 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 4.3 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 0.5 50.0 = 95 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 67.0 = 32 3.01 Mobile-cellular telephone subscriptions /100 pop. 129.1 90.2 7 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 79.8 93.5 = 6 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 40.5 Korea, Rep. 3.05 Internet users % pop. 74.3 19 0.7 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 89.6 100.0 = 5 4.01 Inflation annual % change - 74.3 9 Multiple (74) 4.02 Debt dynamics 0-100 (best) 1.0 Multiple (36) 100.0 100.0 = 7 Pillar 5: Health 0-100 (best) Multiple (4)
- 77.0 16 Multiple (4)
5.01 Healthy life expectancy years 70.2 85.9 8 Finland Pillar 6: Skills 0-100 (best) - Finland 14.1 72.4 16 Switzerland 6.01 Mean years of schooling Years Switzerland 6.02 Extent of staff training 1-7 (best) 5.2 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 5.4 Sweden 6.04 Skillset of graduates 1-7 (best) 5.3 99.7 13 United States 6.05 Digital skills among population 1-7 (best) 5.2 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 5.2 100.0 = 2 United States 6.07 School life expectancy Years 17.0 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 5.2 83.2 32 6.09 Pupil-to-teacher ratio in primary education Ratio 12.2 69.3 31 241 | The Global Competitiveness Report 2018 100.0 = 42
80.9 7
89.6 15
94.5 25
94.5 24
85.4 4
93.8 = 2
69.9 11
73.1 7
71.8 7
70.4 16
70.1 7
94.2 = 17
70.7 8
94.4 = 31 Germany Economy Profiles
3rd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 72.0 7 Singapore 5.0 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 5.5 66.7 8 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.1 75.8 4 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 77.1 8 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 4.1 Germany 7.07 Efficiency of the clearance process 15 (best) 17.5 68.2 17 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 14
Pillar 8: Labour market 0-100 (best) 21.6 United States 8.01 Redundancy costs weeks of salary 4.8 8.02 Hiring and firing practices 1-7 (best) 5.2 77.3 1 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 5.2 82.5 = 26 8.05 Active Labour policies 1-7 (best) 94.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 5.0 74.1 12 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.4 63.4 = 94 Albania 8.09 Reliance on professional management 1-7 (best) 5.3 Guinea 8.10 Pay and productivity 1-7 (best) 0.90 63.4 11 Finland 8.11 Female participation in Labour force ratio 21.4 8.12 Labour tax rate % 69.8 19 United States Pillar 9: Financial system 0-100 (best) 78.0 62.0 87 9.01 Domestic credit to private sector % GDP 5.3 70.1 8 9.02 Financing of SMEs 1-7 (best) 5.0 United States 9.03 Venture capital availability 1-7 (best) 48.3 94.8 9 Multiple (29) 9.04 Market capitalization % GDP 5.2 9.05 Insurance premium % GDP 5.2 65.8 11 United States 9.06 Soundness of banks 1-7 (best) 1.7 United States 9.07 Non-performing loans % loan portfolio value 2.4 69.4 15 9.08 Credit gap percentage points 18.5 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 73.7 22 Multiple (16) - Pillar 10: Market size 0-100 (best) 3,799 71.1 6 Finland 10.01 Gross domestic product PPP $ billions 40.4 87.2 29 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 81.4 97
Pillar 11: Business dynamism 0-100 (best) 1.9 China 10.5 80.2 21 China 11.01 Cost of starting a business % GNI per capita 80.6 Hong Kong SAR 11.02 Time to start a business days 15.0 82.1 38 11.03 Insolvency recovery rate cents/$ 5.1 United States 11.04 Insolvency regulatory framework 0-16 (best) 5.6 71.9 2 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 5.4 11.06 Willingness to delegate authority 1-7 (best) 5.0 66.8 3 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 48.3 40 Pillar 12: Innovation capability 0-100 (best) 5.5 85.9 = 21 Israel 21.26 12.01 Diversity of workforce 1-7 (best) 5.4 70.3 57 Denmark 12.02 State of cluster development 1-7 (best) 1,083.0 Israel 12.03 International co-inventions applications/million pop. 295.32 97.6 25 12.04 Multi-stakeholder collaboration 1-7 (best) 2.9 United States 12.05 Scientific publications H Index 0.89 98.9 105 12.06 Patent applications applications/million pop. 5.0 Germany 12.07 R&D expenditures % GDP 8,457.38 100.0 = 36 Canada 12.09 Buyer sophistication 1-7 (best) 85.8 5 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 79 Multiple (7) 81.6 2 Multiple (7) 99.1 = 41 89.9 = 66 Multiple (7)
86.8 20
67.5 6
76.3 12
72.9 4
87.5 1
71.9 16
75.4 2
95.2 11
73.4 4
95.9 10
66.1 5
97.3 12
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 241 243 | The Global Competitiveness Report 2018 Ghana Economy Profiles
106th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 104th/135
Performance Overview Key Previous edition Lower middle income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 56 55 56 57 56 52 55 51 50 46 51 50
0
Rank /140 106th 59th 116th 88th 132nd 112nd 104th 61st 89th 112nd 73rd 87th 83rd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 28.3 GDP (PPP) % world GDP 0.11
GDP per capita US$ 1,663.2 Unemployment rate % 2.4
10-year average annual GDP growth % 7.0 5-year average FDI inward flow % GDP 7.8
Social and environmental performance 2.0 Global Gender Gap Index 0-1 (gender parity) 0.7 3.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 42.4
The Global Competitiveness Report 2018 | 243 Economy Profiles 106th /140
Ghana Value Score * Rank/140 Best Performer
Index Component - 55.7 59 New Zealand Pillar 1: Institutions 0-100 (best) 1.7 59.7 84 1.01 Organized crime 1-7 (best) 4.6 96.0 = 53 Multiple (24) 1.02 Homicide rate /100,000 pop. 53.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 61.5 100.0 40 Finland 1.04 Reliability of police services 1-7 (best) 4.5 Australia 1.05 Social capital 0-100 (high) 4.1 59.3 66 Multiple (2) 1.06 Budget transparency 0-100 (best) 18.4 1.07 Judicial independence 1-7 (best) 4.0 53.8 49 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.5 Finland 1.09 Freedom of the press 0-100 (worst) 0.63 61.5 = 49 Norway 1.10 Burden of government regulation 1-7 (best) 4.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 40.0 58.7 44 Singapore 1.12 E-Participation Index 0-1 (best) 4.4 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.2 52.2 30 Singapore 1.14 Incidence of corruption 0-100 (best) 8.0 New Zealand 1.15 Property rights 1-7 (best) 4.3 81.6 21 Finland 1.16 Intellectual property protection 1-7 (best) 6.3 Finland 1.17 Quality of land administration 0-30 (best) 4.0 49.6 34 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 58.5 33 Multiple (2) 1.20 Shareholder governance 0-10 (best) 58.8 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.5 Singapore 4.0 51.7 41 United States 2.01 Road connectivity index 0-100 (best) 1.9 2.02 Quality of roads 1-7 (best) 10,564.4 40.0 69 Singapore 2.03 Railroad density km of roads/square km 3.8 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 16.3 56.9 67 Switzerland 2.05 Airport connectivity score 3.0 2.06 Efficiency of air transport services 1-7 (best) 84.1 53.6 64 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 21.4 Singapore 2.08 Efficiency of seaport services 1-7 (best) 41.8 26.7 = 113 Multiple (4) 2.09 Electrification rate % pop. 4.0 Singapore 2.10 Electric power transmission and distribution losses % output 54.9 90 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 127.5 63.0 = 45 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 83.2 40.0 = 106 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 50.3 116 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 34.7 58.8 = 78 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 41.4 91 14.9 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 40.0 10.0 = 76 4.01 Inflation annual % change - 15.7 122 Multiple (74) 4.02 Debt dynamics 0-100 (best) 57.9 Multiple (36) 32.6 94 Pillar 5: Health 0-100 (best) - Multiple (4) 6.5 45.8 107 Multiple (4) 5.01 Healthy life expectancy years 4.2 4.1 16.3 69 Finland Pillar 6: Skills 0-100 (best) 4.1 Finland 4.1 33.8 109 Switzerland 6.01 Mean years of schooling Years 4.6 Switzerland 6.02 Extent of staff training 1-7 (best) 11.6 84.1 103 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.4 Sweden 6.04 Skillset of graduates 1-7 (best) 30.6 81.9 116 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 59.4 129 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 49.4 103 245 | The Global Competitiveness Report 2018 100.0 = 44
0.4 125
34.7 96
54.8 132
69.7 132
56.0 112
56.0 111
51.3 104
43.3 = 109
53.6 52
51.2 66
51.3 65
51.0 76
60.2 40
64.5 108
39.6 69
48.6 109 Ghana Economy Profiles
106th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 56.8 61 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.1 49.4 52 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.4 50.9 45 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.10 Hong Kong SAR 7.05 Trade tariffs % duty 6.7 59.4 104 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.5 Germany 7.07 Efficiency of the clearance process 15 (best) 18.4 56.7 68 7.08 Services trade openness 0-100 (worst) Ecuador
- 32.6 101
Pillar 8: Labour market 0-100 (best) 49.8 United States 94.6 16 Multiple (8) 8.01 Redundancy costs weeks of salary 4.5 8.02 Hiring and firing practices 1-7 (best) 4.4 36.3 94 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.6 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.6 81.6 = 33 8.05 Active Labour policies 1-7 (best) 76.3 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.4 55.9 89 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.8 4.6 = 131 Albania 8.09 Reliance on professional management 1-7 (best) 4.1 Guinea 8.10 Pay and productivity 1-7 (best) 0.46 57.8 22 Finland 8.11 Female participation in Labour force ratio 14.7 8.12 Labour tax rate % 57.0 62 United States Pillar 9: Financial system 0-100 (best) 20.0 60.3 99 9.01 Domestic credit to private sector % GDP 3.8 43.0 60 9.02 Financing of SMEs 1-7 (best) 2.8 United States 9.03 Venture capital availability 1-7 (best) 7.9 76.3 47 Multiple (29) 9.05 Insurance premium % GDP 4.3 57.4 40 United States 9.06 Soundness of banks 1-7 (best) 17.3 United States 9.07 Non-performing loans % loan portfolio value 0.3 63.1 40 9.08 Credit gap percentage points 18.1 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 63.3 37 Multiple (16) - Pillar 10: Market size 0-100 (best) 122 51.3 59 Finland 46.3 Multiple (2) 10.01 Gross domestic product PPP $ billions 32.3 105 Multiple (97) 10.02 Imports % GDP - Multiple (72) 17.5 90.7 = 65 Pillar 11: Business dynamism 0-100 (best) 14.0 China 22.8 49.6 112 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 4.0 21.0 122 11.03 Insolvency recovery rate cents/$ 4.1 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.5 47.3 61 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.4 11.06 Willingness to delegate authority 1-7 (best) 3.9 30.7 75 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 7.9 = 96 4.7 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 4.2 19.0 = 92 Israel 12.01 Diversity of workforce 1-7 (best) 3.9 54.2 99 Denmark 12.02 State of cluster development 1-7 (best) 122.3 Israel 12.03 International co-inventions applications/million pop. 0.02 66.1 125 12.04 Multi-stakeholder collaboration 1-7 (best) 0.4 United States 12.05 Scientific publications H Index 0.00 100.0 = 78 12.06 Patent applications applications/million pop. 3.3 Germany 12.07 R&D expenditures % GDP 39.18 100.0 = 40 Canada 12.09 Buyer sophistication 1-7 (best) 51.8 73 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 64 Multiple (7) 55.3 87 Multiple (7) 91.3 102
24.5 108
51.1 59
58.8 48
56.7 40
48.3 36
32.7 83
61.5 46
52.9 43
48.9 46
71.3 83
12.6 = 75
1.3 82
38.1 80
39.7 116
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 245 247 | The Global Competitiveness Report 2018 Greece Economy Profiles
57th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 53rd/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 96
80 76 74
70 70
62 59 57 59 58
50 50 52 49
0
Rank /140 57th 87th 38th 57th 83rd 21st 39th 63rd 107th 114th 58th 72nd 44th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 10.8 GDP (PPP) % world GDP 0.24 GDP per capita US$ 18,637.3 Unemployment rate % 21.5 -2.9 5-year average FDI inward flow % GDP 1.2
Social and environmental performance 4.3 Global Gender Gap Index 0-1 (gender parity) 0.7 3.7 Income Gini 0 (perfect equality) -100 (perfect inequality) 36.0
The Global Competitiveness Report 2018 | 247 Economy Profiles 57th /140
Greece Value Score * Rank/140 Best Performer
Index Component - 50.5 87 New Zealand Pillar 1: Institutions 0-100 (best) 0.8 63.8 69 97.3 Multiple (9) 1.01 Organized crime 1-7 (best) 4.2 99.2 24 Multiple (24) 1.02 Homicide rate /100,000 pop. 48.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 46.2 97.3 107 Finland 1.04 Reliability of police services 1-7 (best) 3.6 Australia 1.05 Social capital 0-100 (high) 2.3 53.3 79 Multiple (2) 1.06 Budget transparency 0-100 (best) 29.2 1.07 Judicial independence 1-7 (best) 2.3 48.8 85 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.88 46.2 = 90 Norway 1.10 Burden of government regulation 1-7 (best) 2.2 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 48.0 43.6 78 Singapore 1.12 E-Participation Index 0-1 (best) 3.9 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.1 21.3 127 Singapore 1.14 Incidence of corruption 0-100 (best) 4.5 New Zealand 1.15 Property rights 1-7 (best) 3.7 70.8 61 Finland 1.16 Intellectual property protection 1-7 (best) 5.3 Finland 1.17 Quality of land administration 0-30 (best) 7.3 22.4 131 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 19.6 133 Multiple (2) 1.20 Shareholder governance 0-10 (best) 66.9 Kazakhstan 87.6 33 Pillar 2: Infrastructure 0-100 (best) 4.7 Singapore 17.0 19.4 135 United States 2.02 Quality of roads 1-7 (best) 3.0 48.0 52 Singapore 2.03 Railroad density km of roads/square km 232,147.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 47.7 107 Switzerland 2.05 Airport connectivity score 5.2 2.06 Efficiency of air transport services 1-7 (best) 50.2 51.9 68 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 4.6 15.0 = 135 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 45.8 119 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 8.0 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 0.7 53.0 = 84 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 73.0 = 15 3.01 Mobile-cellular telephone subscriptions /100 pop. 115.9 76.2 38 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 63.4 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 33.9 66.9 = 63 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. 0.1 62.2 36 69.1 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 42.4 = 45 4.01 Inflation annual % change 0.6 34.0 77 Multiple (74) 4.02 Debt dynamics 0-100 (best) 47.3 Multiple (36) 77.2 27 Pillar 5: Health 0-100 (best) - Multiple (4) 70.6 70.8 37 Multiple (4)
- 50.1 30 Finland
Pillar 6: Skills 0-100 (best) 10.7 Finland 60.8 38 Switzerland 6.01 Mean years of schooling Years 3.6 Switzerland 6.02 Extent of staff training 1-7 (best) 3.5 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.4 Sweden 6.04 Skillset of graduates 1-7 (best) 4.2 95.9 49 United States 6.05 Digital skills among population 1-7 (best) 4.4 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 17.3 100.0 = 17 United States 6.07 School life expectancy Years 2.7 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 9.6 81.6 37 58.9 57 249 | The Global Competitiveness Report 2018 96.6 76
67.7 18
69.1 56
73.6 83
47.3 99
95.7 20
70.4 39
71.6 = 44
43.5 99
41.5 111
56.0 46
56.6 52
95.9 = 15
27.7 119
Greece Economy Profiles
57th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 56.7 63 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.8 34.5 118 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.0 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.9 47.3 50 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 66.6 64 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.8 Germany 7.07 Efficiency of the clearance process 15 (best) 18.0 65.6 24 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 23
Pillar 8: Labour market 0-100 (best) 15.9 United States 8.02 Hiring and firing practices 1-7 (best) 4.0 46.0 48 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.4 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.9 82.0 = 31 8.05 Active Labour policies 1-7 (best) 0.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.4 51.8 107 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.0 75.2 = 69 Albania 8.09 Reliance on professional management 1-7 (best) 3.4 Guinea 8.10 Pay and productivity 1-7 (best) 0.78 42.1 97 Finland 8.11 Female participation in Labour force ratio 28.0 8.12 Labour tax rate % 50.1 105 United States Pillar 9: Financial system 0-100 (best) 112.6 56.8 110 9.01 Domestic credit to private sector % GDP 2.4 31.4 87 9.02 Financing of SMEs 1-7 (best) 2.0 United States 9.03 Venture capital availability 1-7 (best) 21.4 0.0 116 Multiple (29) 9.04 Market capitalization % GDP 2.1 9.05 Insurance premium % GDP 2.6 57.0 43 United States 9.06 Soundness of banks 1-7 (best) 36.3 United States 9.07 Non-performing loans % loan portfolio value -16.7 46.9 120 9.08 Credit gap percentage points 14.7 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 49.9 84 Multiple (16) - Pillar 10: Market size 0-100 (best) 272 40.5 111 Finland 34.4 Multiple (2) 10.01 Gross domestic product PPP $ billions 71.9 59 Multiple (97) 10.02 Imports % GDP - Multiple (72) 2.2 72.2 119 Pillar 11: Business dynamism 0-100 (best) 12.5 China 33.6 49.4 114 China 11.01 Cost of starting a business % GNI per capita 12.0 Hong Kong SAR 11.02 Time to start a business days 3.7 100.0 = 23 11.03 Insolvency recovery rate cents/$ 3.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.3 22.7 137 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.0 11.06 Willingness to delegate authority 1-7 (best) 16.8 129 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.7 21.4 74 2.9 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 1.30 34.6 = 56 Israel 12.01 Diversity of workforce 1-7 (best) 412.7 26.1 137 Denmark 12.02 State of cluster development 1-7 (best) 9.72 Israel 12.03 International co-inventions applications/million pop. 1.0 27.7 137 12.04 Multi-stakeholder collaboration 1-7 (best) 0.06 United States 12.05 Scientific publications H Index 3.1 100.0 = 10 12.06 Patent applications applications/million pop. n/a Germany 12.07 R&D expenditures % GDP 95.3 = 93 Canada 12.09 Buyer sophistication 1-7 (best) 59.0 58 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 89 Multiple (7) 58.0 72 Multiple (7) 98.9 = 45 87.9 77 Multiple (7)
36.2 80
45.6 90
48.6 100
38.4 120
33.1 126
45.0 44
45.8 123
32.3 127
25.6 39
33.3 123
89.2 30
43.6 36
31.9 40
16.2 31
35.5 94
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 249 251 | The Global Competitiveness Report 2018 Guatemala Economy Profiles
96th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 91st/135
Performance Key Previous edition Upper middle income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 75
60 58 61 57
53 53 51 51 55
30 31 31
0
Rank /140 96th 123rd 96th 112nd 75th 89th 101st 40th 110th 74th 74th 91st 100th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 16.9 GDP (PPP) % world GDP 0.11
GDP per capita US$ 4,471.9 Unemployment rate % 2.7
10-year average annual GDP growth % 3.1 5-year average FDI inward flow % GDP 2.1
Social and environmental performance 1.8 Global Gender Gap Index 0-1 (gender parity) 0.7 3.7 Income Gini 0 (perfect equality) -100 (perfect inequality) 48.3
The Global Competitiveness Report 2018 | 251 Economy Profiles 96th /140
Guatemala Value Score * Rank/140 Best Performer
Index Component - 43.5 123 New Zealand 2.6 Finland Pillar 1: Institutions 0-100 (best) 27.3 25.9 138 1.01 Organized crime 1-7 (best) 3.0 9.3 132 Multiple (24) 1.02 Homicide rate /100,000 pop. 53.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 76.9 100.0 39 Finland 1.04 Reliability of police services 1-7 (best) 3.4 Australia 1.05 Social capital 0-100 (high) 2.6 32.8 126 Multiple (2) 1.06 Budget transparency 0-100 (best) 36.2 1.07 Judicial independence 1-7 (best) 2.8 53.1 54 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.8 Finland 1.09 Freedom of the press 0-100 (worst) 0.62 76.9 = 21 Norway 1.10 Burden of government regulation 1-7 (best) 2.7 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 28.0 39.8 90 Singapore 1.12 E-Participation Index 0-1 (best) 4.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.8 27.0 117 Singapore 1.14 Incidence of corruption 0-100 (best) 13.0 New Zealand 1.15 Property rights 1-7 (best) 5.3 63.8 94 Finland 1.16 Intellectual property protection 1-7 (best) 3.3 Finland 1.17 Quality of land administration 0-30 (best) 3.0 30.5 112 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 29.7 118 Multiple (2) 1.20 Shareholder governance 0-10 (best) 15.8 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 2.6 Singapore n/a 28.4 123 United States 2.01 Road connectivity index 0-100 (best) 1.1 2.02 Quality of roads 1-7 (best) 13,927.0 28.0 = 120 Singapore 2.03 Railroad density km of roads/square km 4.1 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 18.4 51.0 88 Switzerland 2.05 Airport connectivity score 3.8 2.06 Efficiency of air transport services 1-7 (best) 93.9 47.0 88 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 6.8 Singapore 2.08 Efficiency of seaport services 1-7 (best) 15.6 43.3 = 87 Multiple (4) 2.09 Electrification rate % pop. 4.6 Singapore 2.10 Electric power transmission and distribution losses % output 71.8 35 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 118.2 33.0 = 131 Multiple (23) 13.9 Switzerland Pillar 3: ICT adoption 0-100 (best) 30.0 = 131 3.1 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.1 58.3 96 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 34.5 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 15.8 = 131 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 4.4 26.1 128 Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 63.9 1.6 139 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 35.6 89
Pillar 5: Health 0-100 (best) 7.1 Multiple (4) 4.2 51.6 91 Multiple (4) 5.01 Healthy life expectancy years 4.5 4.1 18.4 66 Finland Pillar 6: Skills 0-100 (best) 3.6 Finland 4.3 47.4 76 Switzerland 6.01 Mean years of schooling Years 10.8 Switzerland 6.02 Extent of staff training 1-7 (best) 2.9 93.9 95 Switzerland 6.03 Quality of vocational training 1-7 (best) 21.7 Sweden 6.04 Skillset of graduates 1-7 (best) 97.1 38 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 86.1 83 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 59.5 79 31.1 112 253 | The Global Competitiveness Report 2018 98.5 73
n/a 132
6.1 = 98
n/a 89
34.5 97
74.4 75
98.8 83
50.0 77
74.6 89
74.6 88
52.6 101
47.2 = 103
54.1 49
57.7 43
51.6 64
43.5 = 109
54.7 58
59.7 = 116
31.4 112
70.6 80 Guatemala Economy Profiles
96th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 61.1 40 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.7 46.5 63 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.3 45.4 65 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 3.61 Hong Kong SAR 7.05 Trade tariffs % duty 6.7 72.7 29 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.2 Germany 7.07 Efficiency of the clearance process 15 (best) 17.7 55.4 74 7.08 Services trade openness 0-100 (worst) Ecuador
- 75.9 51
Pillar 8: Labour market 0-100 (best) 27.0 United States 94.3 = 20 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 5.0 28.9 123 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.1 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.1 82.3 = 28 8.05 Active Labour policies 1-7 (best) 0.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.3 51.3 110 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.3 52.2 = 111 Albania 8.09 Reliance on professional management 1-7 (best) 4.0 Guinea 8.10 Pay and productivity 1-7 (best) 0.38 48.7 62 Finland 8.11 Female participation in Labour force ratio 14.3 8.12 Labour tax rate % 66.9 30 United States Pillar 9: Financial system 0-100 (best) 33.9 69.1 51 9.01 Domestic credit to private sector % GDP 4.1 18.0 125 9.02 Financing of SMEs 1-7 (best) 3.1 United States 9.03 Venture capital availability 1-7 (best) 0.0 0.0 116 Multiple (29) 9.05 Insurance premium % GDP 6.0 54.7 50 United States 9.06 Soundness of banks 1-7 (best) 2.1 United States 9.07 Non-performing loans % loan portfolio value 0.8 73.5 6 9.08 Credit gap percentage points 14.5 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 55.4 62 Multiple (16) - Pillar 10: Market size 0-100 (best) 126 49.5 64 Finland 28.5 Multiple (2) 10.01 Gross domestic product PPP $ billions 22.9 113 Multiple (97) 10.02 Imports % GDP - Multiple (72) 22.9 91.3 = 63 Pillar 11: Business dynamism 0-100 (best) 26.5 China 28.0 57.4 74 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 4.0 35.7 93 11.03 Insolvency recovery rate cents/$ 4.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.5 51.7 42 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.2 11.06 Willingness to delegate authority 1-7 (best) 3.6 34.9 58 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 0.0 = 118 Pillar 12: Innovation capability 0-100 (best) 3.6 18.6 = 94 Israel 12.01 Diversity of workforce 1-7 (best) 3.7 83.7 13 Denmark 12.02 State of cluster development 1-7 (best) 79.7 Israel 12.03 International co-inventions applications/million pop. 0.03 96.9 33 12.04 Multi-stakeholder collaboration 1-7 (best) 0.0 United States 12.05 Scientific publications H Index 0.00 100.0 = 85 12.06 Patent applications applications/million pop. 3.3 Germany 12.07 R&D expenditures % GDP n/a 94.8 = 94 Canada 12.09 Buyer sophistication 1-7 (best) 50.8 74 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 110 Multiple (7) 54.6 91 Multiple (7) 88.6 109 73.9 = 113 Multiple (7)
64.4 12
57.9 55
42.8 64
30.7 100
55.1 80
42.9 87
0.2 120
45.5 57
1.5 = 117
38.1 79
58.7 n/a
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 253 255 | The Global Competitiveness Report 2018 Guinea Economy Profiles
126th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 123rd/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 59
53 50
50 47
43 42 40 40 37 37
21
0
Rank /140 126th 128th 131st 132nd 108th 130th 136th 94th 128th 111th 116th 65th 90th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 13.0 GDP (PPP) % world GDP 0.02 GDP per capita US$ 749.5 Unemployment rate % 4.5 10-year average annual GDP growth % 6.0
Social and environmental performance 1.5 Income Gini 0 (perfect equality) -100 (perfect inequality) 33.7
The Global Competitiveness Report 2018 | 255 Economy Profiles 126th /140
Guinea Value Score * Rank/140 Best Performer
Index Component - 41.6 128 New Zealand 3.4 Finland Pillar 1: Institutions 0-100 (best) 8.8 39.4 = 126 1.01 Organized crime 1-7 (best) 2.2 71.8 = 109 Multiple (24) 1.02 Homicide rate /100,000 pop. 45.0 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 3.8 99.9 56 Finland 1.04 Reliability of police services 1-7 (best) 2.5 Australia 1.05 Social capital 0-100 (high) 3.0 19.7 = 139 Multiple (2) 1.06 Budget transparency 0-100 (best) 31.9 1.07 Judicial independence 1-7 (best) 3.5 45.0 110 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.4 Finland 1.09 Freedom of the press 0-100 (worst) 0.35 3.8 = 138 Norway 1.10 Burden of government regulation 1-7 (best) 3.6 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 27.0 25.0 = 122 Singapore 1.12 E-Participation Index 0-1 (best) 4.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.1 32.6 = 90 Singapore 1.14 Incidence of corruption 0-100 (best) 6.5 New Zealand 1.15 Property rights 1-7 (best) 5.1 68.1 85 Finland 1.16 Intellectual property protection 1-7 (best) 4.3 Finland 1.17 Quality of land administration 0-30 (best) 3.7 41.8 = 64 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 22.7 = 127 Multiple (2) 1.20 Shareholder governance 0-10 (best) 43.8 Kazakhstan 35.4 120 Pillar 2: Infrastructure 0-100 (best) 2.2 Singapore n/a 42.8 = 78 United States 2.01 Road connectivity index 0-100 (best) 2.0 2.02 Quality of roads 1-7 (best) 775.0 27.0 = 125 Singapore 2.03 Railroad density km of roads/square km 3.8 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 10.3 58.8 = 58 Switzerland 2.05 Airport connectivity score 3.2 2.06 Efficiency of air transport services 1-7 (best) 19.7 51.0 = 71 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) n/a Singapore 2.08 Efficiency of seaport services 1-7 (best) 40.5 21.7 128 Multiple (4) 2.09 Electrification rate % pop. 2.4 Singapore 2.10 Electric power transmission and distribution losses % output 68.5 = 45 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 87.1 43.0 = 112 Multiple (23) 15.3 Switzerland Pillar 3: ICT adoption 0-100 (best) 37.0 = 112 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 37.2 131 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 9.8 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 43.8 = 108 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 8.5 20.8 = 134 Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 52.9 16.1 = 121 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 12.1 134
Pillar 5: Health 0-100 (best) 2.8 Multiple (4) 5.3 46.3 = 105 Multiple (4) 5.01 Healthy life expectancy years 4.6 2.9 10.3 83 Finland Pillar 6: Skills 0-100 (best) 2.7 Finland 3.0 36.3 = 100 Switzerland 6.01 Mean years of schooling Years 9.1 Switzerland 6.02 Extent of staff training 1-7 (best) 2.3 19.7 133 Switzerland 6.03 Quality of vocational training 1-7 (best) 45.6 Sweden 6.04 Skillset of graduates 1-7 (best) 79.9 n/a United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 60.7 124 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 23.8 = 132 21.0 132 257 | The Global Competitiveness Report 2018 72.6 = 112
n/a 130
0.0 = 138
9.8 136
68.7 108
87.4 119
40.4 130
40.4 129
32.5 = 136
18.7 = 133
71.9 = 8
59.4 = 38
31.5 = 137
27.5 = 138
33.3 = 137
50.6 = 127
21.2 = 137
11.0 = 130 Guinea Economy Profiles
126th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 53.1 94 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.7 34.1 = 120 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.7 45.1 = 70 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.14 Hong Kong SAR 7.05 Trade tariffs % duty 6.7 72.5 = 30 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 45.4 = 130 7.08 Services trade openness 0-100 (worst) Ecuador
- 32.4 106
Pillar 8: Labour market 0-100 (best) 10.1 United States 94.7 10 Multiple (8) 8.01 Redundancy costs weeks of salary 3.9 8.02 Hiring and firing practices 1-7 (best) 4.1 36.2 95 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.5 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.1 69.7 n/a 8.05 Active Labour policies 1-7 (best) n/a Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.9 46.5 128 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 2.7 87.4 = 31 Albania 8.09 Reliance on professional management 1-7 (best) 2.5 Guinea 8.10 Pay and productivity 1-7 (best) 0.22 48.2 = 66 Finland 8.11 Female participation in Labour force ratio 28.6 8.12 Labour tax rate % 52.1 = 94 United States Pillar 9: Financial system 0-100 (best) 10.0 75.1 = 22 9.01 Domestic credit to private sector % GDP 3.8 18.8 = 122 9.02 Financing of SMEs 1-7 (best) 3.0 United States 9.03 Venture capital availability 1-7 (best) 0.0 63.8 n/a Multiple (29) 9.04 Market capitalization % GDP 0.0 9.05 Insurance premium % GDP 5.4 65.1 = 13 United States 9.06 Soundness of banks 1-7 (best) 9.4 United States 9.07 Non-performing loans % loan portfolio value 1.0 79.9 = 1 9.08 Credit gap percentage points 16.8 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 29.0 = 135 Multiple (16) - Pillar 10: Market size 0-100 (best) 24 24.3 = 136 Finland 67.1 Multiple (2) 10.01 Gross domestic product PPP $ billions 2.1 134 Multiple (97) 10.02 Imports % GDP - Multiple (72) 67.5 71.4 = 122 Pillar 11: Business dynamism 0-100 (best) China 8.0 49.6 111 China 11.01 Cost of starting a business % GNI per capita 20.7 Hong Kong SAR 11.02 Time to start a business days 10.5 137 11.03 Insolvency recovery rate cents/$ 9.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.7 46.2 = 68 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.8 11.06 Willingness to delegate authority 1-7 (best) 4.5 33.9 = 60 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.3 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 0.0 121 Pillar 12: Innovation capability 0-100 (best) 4.9 0.5 = 135 Israel 12.01 Diversity of workforce 1-7 (best) 0.00 73.7 = 44 Denmark 12.02 State of cluster development 1-7 (best) 4.7 Israel 12.03 International co-inventions applications/million pop. 52.7 81.9 96 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index n/a 100.0 89 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 2.2 99.6 = 59 Canada 12.08 Quality of research institutions index 195.48 12.09 Buyer sophistication 1-7 (best) 37.0 116 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 26 Multiple (7) 59.4 65 Multiple (7) 66.3 134 92.5 = 48 Multiple (7)
22.3 114
56.3 = 71
61.4 = 22
63.4 = 35
58.6 = 34
54.8 = 23
31.8 90
65.7 = 29
50.3 = 48
62.2 = 21
59.0 126
3.3 n/a
20.6 = 134
56.8 93
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 257 259 | The Global Competitiveness Report 2018 Haiti Economy Profiles
138th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 133rd/135
Performance Key Previous edition Low income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
50 50 49
39 43 43
40 36
33 29 33
23 20
0
Rank /140 138th 138th 140th 129th 125th 122nd 126th 133rd 123rd 134th 129th 140th 138th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 11.0 GDP (PPP) % world GDP 0.02 GDP per capita US$ 783.8 Unemployment rate % 14.0 1.7 5-year average FDI inward flow % GDP 2.0
Environmental footprint gha/capita 0.7 Income Gini 0 (perfect equality) -100 (perfect inequality) 41.1
The Global Competitiveness Report 2018 | 259 Economy Profiles 138th /140
Haiti Value Score * Rank/140 Best Performer
Index Component - 32.9 138 New Zealand 3.3 Finland Pillar 1: Institutions 0-100 (best) 10.0 38.1 127 1.01 Organized crime 1-7 (best) 3.1 67.7 = 116 Multiple (24) 1.02 Homicide rate /100,000 pop. n/a 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 46.2 99.9 53 Finland 1.04 Reliability of police services 1-7 (best) 2.2 Australia 1.05 Social capital 0-100 (high) 2.7 34.6 122 Multiple (2) 1.06 Budget transparency 0-100 (best) 26.8 1.07 Judicial independence 1-7 (best) 2.5 n/a n/a Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.5 Finland 1.09 Freedom of the press 0-100 (worst) 0.48 46.2 = 90 Norway 1.10 Burden of government regulation 1-7 (best) 2.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 22.0 20.1 132 Singapore 1.12 E-Participation Index 0-1 (best) 2.6 Multiple (3) 1.13 Future orientation of government 1-7 (best) 2.3 27.8 110 Singapore 1.14 Incidence of corruption 0-100 (best) 3.5 New Zealand 1.15 Property rights 1-7 (best) 2.8 73.2 48 Finland 1.16 Intellectual property protection 1-7 (best) 3.0 Finland 1.17 Quality of land administration 0-30 (best) 1.0 25.8 125 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 24.8 125 Multiple (2) 1.20 Shareholder governance 0-10 (best) 8.0 Kazakhstan 2.0 48.3 104 Pillar 2: Infrastructure 0-100 (best) n/a Singapore 1.7 23.8 131 United States 2.01 Road connectivity index 0-100 (best) 8,879.8 2.02 Quality of roads 1-7 (best) 2.9 22.0 131 Singapore 2.03 Railroad density km of roads/square km 8.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 2.4 26.7 136 Switzerland 2.05 Airport connectivity score 32.7 2.06 Efficiency of air transport services 1-7 (best) 58.6 21.0 139 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 40.4 Singapore 2.08 Efficiency of seaport services 1-7 (best) 1.7 11.7 = 138 Multiple (4) 2.09 Electrification rate % pop. Singapore 2.10 Electric power transmission and distribution losses % output - 29.6 137 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 59.1 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 27.1 30.0 = 137 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 0.3 10.0 = 140 n/a Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 12.2 28.6 140 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. - 8.0 = 132 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 14.1 Korea, Rep. 3.05 Internet users % pop. 50.0 17.5 139 Pillar 4: Macroeconomic stability 0-100 (best) - n/a n/a 55.9 Multiple (31) 4.01 Inflation annual % change 11.5 126 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 5.6 30.8 99 Pillar 5: Health 0-100 (best) 2.6 Multiple (4) 3.1 32.2 131 Multiple (4) 5.01 Healthy life expectancy years 3.5 2.8 8.4 90 Finland Pillar 6: Skills 0-100 (best) 3.0 Finland 9.1 23.8 126 Switzerland 6.01 Mean years of schooling Years 2.1 Switzerland 6.02 Extent of staff training 1-7 (best) 29.7 32.7 126 Switzerland 6.03 Quality of vocational training 1-7 (best) Sweden 6.04 Skillset of graduates 1-7 (best) 43.2 124 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 60.8 123 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 11.5 139 22.6 129 261 | The Global Competitiveness Report 2018 49.2 132
0.5 121
12.2 131
61.0 125
72.1 129
50.0 76
49.7 122
49.7 121
39.0 126
37.3 = 117
26.7 139
34.7 133
41.7 112
30.4 136
33.4 136
50.6 = 128
19.1 139
50.7 = 103 Haiti Economy Profiles
138th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 42.8 133 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 1.7 27.9 133 Switzerland 7.02 Extent of market dominance 1-7 (best) 3.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.8 12.1 140 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 5.86 Hong Kong SAR 7.05 Trade tariffs % duty 5.4 43.4 136 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.0 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 47.1 125 7.08 Services trade openness 0-100 (worst) Ecuador
- 61.0 75
Pillar 8: Labour market 0-100 (best) 10.1 United States 72.8 = 77 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 3.4 25.8 129 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 1.8 82.5 n/a 8.05 Active Labour policies 1-7 (best) 70.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.5 49.4 123 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.1 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 2.2 87.3 = 32 Albania 8.09 Reliance on professional management 1-7 (best) 2.2 Guinea 8.10 Pay and productivity 1-7 (best) 0.58 47.7 68 Finland 8.12 Labour tax rate % 40.5 135 United States Pillar 9: Financial system 0-100 (best) 18.8 61.8 88 9.01 Domestic credit to private sector % GDP 2.4 12.8 135 9.02 Financing of SMEs 1-7 (best) 1.9 United States 9.03 Venture capital availability 1-7 (best) 0.0 70.1 71 Multiple (29) 9.05 Insurance premium % GDP 3.3 59.0 30 United States 9.06 Soundness of banks 1-7 (best) n/a United States 9.07 Non-performing loans % loan portfolio value 0.1 50.8 104 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 19.8 140 Multiple (16) - Pillar 10: Market size 0-100 (best) 18 19.3 140 Finland 53.6 Multiple (2) 10.01 Gross domestic product PPP $ billions 46.9 88 Multiple (97) 10.02 Imports % GDP - Multiple (72) 200.2 93.9 = 44 Pillar 11: Business dynamism 0-100 (best) China 97.0 42.9 134 China 11.01 Cost of starting a business % GNI per capita 0.0 Hong Kong SAR 11.02 Time to start a business days 0.0 19.8 125 11.03 Insolvency recovery rate cents/$ 2.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 2.9 23.2 136 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 2.6 11.06 Willingness to delegate authority 1-7 (best) 2.7 14.7 134 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 0.0 121 Pillar 12: Innovation capability 0-100 (best) 2.4 10.1 = 115 Israel 12.01 Diversity of workforce 1-7 (best) 2.5 38.4 128 Denmark 12.02 State of cluster development 1-7 (best) 56.3 Israel 12.03 International co-inventions applications/million pop. 0.01 80.1 n/a 12.04 Multi-stakeholder collaboration 1-7 (best) n/a United States 12.05 Scientific publications H Index 0.00 100.0 = 77 12.06 Patent applications applications/million pop. 2.1 Germany 12.07 R&D expenditures % GDP 44.82 100.0 = n/a Canada 12.09 Buyer sophistication 1-7 (best) 33.3 129 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 128 n/a 52 Multiple (7) 14.9 140 Multiple (7) 0.0 139 3.0 = 138 Multiple (7)
29.4 139
26.3 140
28.2 138
20.3 138
30.0 138
24.1 138
0.2 117
24.9 139
60.0 122
5.1 n/a
17.5 138
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 261 263 | The Global Competitiveness Report 2018 Honduras Economy Profiles
101st / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 103rd/135
Performance Key Previous edition Lower middle income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 76
60 58 57 56 60
52 54
50 45 48
40 42
30 28 32
0
Rank /140 101st 117th 98th 115th 78th 85th 108th 59th 88th 67th 98th 100th 92nd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 8.3 GDP (PPP) % world GDP 0.04 GDP per capita US$ 2,765.9 Unemployment rate % 4.5 10-year average annual GDP growth % 5.8 3.1 5-year average FDI inward flow % GDP
Social and environmental performance 1.7 Global Gender Gap Index 0-1 (gender parity) 0.7 3.6 Income Gini 0 (perfect equality) -100 (perfect inequality) 50.0
The Global Competitiveness Report 2018 | 263 Economy Profiles 101st /140
Honduras Value Score * Rank/140 Best Performer
Index Component - 44.7 117 New Zealand 2.8 Finland Pillar 1: Institutions 0-100 (best) 56.5 30.0 136 1.01 Organized crime 1-7 (best) 3.1 0.0 139 Multiple (24) 1.02 Homicide rate /100,000 pop. 51.6 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 69.2 99.9 67 Finland 1.04 Reliability of police services 1-7 (best) 2.9 Australia 1.05 Social capital 0-100 (high) 2.8 35.1 120 Multiple (2) 1.06 Budget transparency 0-100 (best) 45.2 1.07 Judicial independence 1-7 (best) 2.8 51.6 60 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.54 69.2 = 36 Norway 1.10 Burden of government regulation 1-7 (best) 3.6 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 29.0 32.5 108 Singapore 1.12 E-Participation Index 0-1 (best) 4.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.9 30.2 102 Singapore 1.14 Incidence of corruption 0-100 (best) 14.0 New Zealand 1.15 Property rights 1-7 (best) 5.4 54.8 115 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 3.3 29.7 114 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 35.9 94 Multiple (2) 1.20 Shareholder governance 0-10 (best) 45.1 Kazakhstan 54.5 98 Pillar 2: Infrastructure 0-100 (best) 4.1 Singapore n/a 42.6 80 United States 2.01 Road connectivity index 0-100 (best) 1.3 2.02 Quality of roads 1-7 (best) 7,900.3 29.0 113 Singapore 2.03 Railroad density km of roads/square km 4.3 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 16.2 51.7 84 Switzerland 2.05 Airport connectivity score 4.4 2.06 Efficiency of air transport services 1-7 (best) 76.2 49.0 79 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 14.2 Singapore 2.08 Efficiency of seaport services 1-7 (best) 18.6 46.7 = 78 Multiple (4) 2.09 Electrification rate % pop. 3.8 Singapore 2.10 Electric power transmission and distribution losses % output 73.2 30 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 88.9 57.0 = 65 Multiple (23) 24.5 Switzerland Pillar 3: ICT adoption 0-100 (best) 33.0 = 124 2.5 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 58.0 98 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 30.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 45.1 = 106 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 3.3 50.9 65 48.3 Iceland Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 64.3 5.2 135 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 29.6 106
Pillar 5: Health 0-100 (best) 6.3 Multiple (4) 4.1 54.6 84 Multiple (4) 5.01 Healthy life expectancy years 3.9 4.0 16.2 70 Finland Pillar 6: Skills 0-100 (best) 3.6 Finland 4.0 56.6 57 Switzerland 6.01 Mean years of schooling Years 10.2 Switzerland 6.02 Extent of staff training 1-7 (best) 3.2 76.2 107 Switzerland 6.03 Quality of vocational training 1-7 (best) 28.4 Sweden 6.04 Skillset of graduates 1-7 (best) 89.4 92 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 83.1 90 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 46.8 109 265 | The Global Competitiveness Report 2018 74.1 108
5.0 103
30.0 102
74.2 78
48.3 95
75.8 85
75.8 84
48.2 108
41.9 = 112
52.1 57
48.9 77
50.1 70
43.9 = 104
50.5 73
56.8 = 119
36.2 84
54.1 101 Honduras Economy Profiles
101st /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 56.9 59 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.6 40.0 93 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.7 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.1 43.1 81 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 4.19 Hong Kong SAR 7.05 Trade tariffs % duty 6.6 62.1 88 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.2 Germany 7.07 Efficiency of the clearance process 15 (best) 21.1 51.9 101 7.08 Services trade openness 0-100 (worst) Ecuador
- 72.1 54
Pillar 8: Labour market 0-100 (best) 30.3 United States 93.5 = 23 Multiple (8) 8.01 Redundancy costs weeks of salary 3.7 8.02 Hiring and firing practices 1-7 (best) 4.7 31.0 118 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.4 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.4 78.9 = 42 8.05 Active Labour policies 1-7 (best) 59.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.5 56.4 88 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.2 45.1 = 123 Albania 8.09 Reliance on professional management 1-7 (best) 3.8 Guinea 8.10 Pay and productivity 1-7 (best) 0.50 45.6 76 Finland 8.11 Female participation in Labour force ratio 3.3 8.12 Labour tax rate % 62.0 43 United States Pillar 9: Financial system 0-100 (best) 55.2 57.4 108 9.01 Domestic credit to private sector % GDP 4.0 24.0 111 9.02 Financing of SMEs 1-7 (best) 3.0 United States 9.03 Venture capital availability 1-7 (best) 0.0 59.8 105 Multiple (29) 9.04 Market capitalization % GDP 1.6 9.05 Insurance premium % GDP 5.8 58.9 31 United States 9.06 Soundness of banks 1-7 (best) 2.9 United States 9.07 Non-performing loans % loan portfolio value -1.0 73.8 5 9.08 Credit gap percentage points 14.7 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 52.9 72 Multiple (16) - Pillar 10: Market size 0-100 (best) 42 47.3 74 Finland 57.6 Multiple (2) 10.01 Gross domestic product PPP $ billions 37.5 96 Multiple (97) 10.02 Imports % GDP - Multiple (72) 41.3 100.0 = 12 Pillar 11: Business dynamism 0-100 (best) 13.0 China 18.9 59.8 67 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 7.0 58.1 63 11.03 Insolvency recovery rate cents/$ 4.4 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.4 49.6 47 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.9 11.06 Willingness to delegate authority 1-7 (best) 3.4 32.8 66 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 0.0 121 Pillar 12: Innovation capability 0-100 (best) 3.8 27.1 = 72 Israel 12.01 Diversity of workforce 1-7 (best) 3.6 80.2 17 Denmark 12.02 State of cluster development 1-7 (best) 56.0 Israel 12.03 International co-inventions applications/million pop. 0.01 95.1 47 12.04 Multi-stakeholder collaboration 1-7 (best) n/a United States 12.05 Scientific publications H Index 0.00 100.0 = 61 12.06 Patent applications applications/million pop. 3.2 Germany 12.07 R&D expenditures % GDP 291.00 95.3 = 92 Canada 12.09 Buyer sophistication 1-7 (best) 41.9 98 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 41 Multiple (7) 53.9 100 Multiple (7) 79.4 122
20.3 118
56.1 34
56.0 64
48.5 72
39.8 79
31.5 92
58.8 59
46.0 71
42.8 72
59.9 123
0.3 120
9.6 n/a
36.3 87
61.1 84
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 265 267 | The Global Competitiveness Report 2018 Hong Kong SAR Economy Profiles
7th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 7th/135
Performance Overview 2018 Key Previous edition High income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 100 100
94 90
90 88
80 82 77 77 79
74 75
0
Rank /140 7th 6th 2nd 2nd 1st 1st 19th 2nd 11th 2nd 26th 17th 26th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 7.4 GDP (PPP) % world GDP 0.36 GDP per capita US$ 46,109.1 Unemployment rate % 3.1 2.7 5-year average FDI inward flow % GDP 36.0
The Global Competitiveness Report 2018 | 267 Economy Profiles 7th /140
Hong Kong SAR Value Score * Rank/140 Best Performer
Index Component - 76.9 6 New Zealand Pillar 1: Institutions 0-100 (best) 0.4 77.7 22 1.01 Organized crime 1-7 (best) 6.3 100.0 = 6 Multiple (24) 1.02 Homicide rate /100,000 pop. 51.7 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 65.4 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 6.2 Australia 1.05 Social capital 0-100 (high) 5.3 88.8 6 Multiple (2) 1.06 Budget transparency 0-100 (best) 29.0 1.07 Judicial independence 1-7 (best) 5.3 51.7 59 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.9 Finland 1.09 Freedom of the press 0-100 (worst) n/a 65.4 = 42 Norway 1.10 Burden of government regulation 1-7 (best) 4.9 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 77.0 85.9 8 Singapore 1.12 E-Participation Index 0-1 (best) 6.2 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.9 72.1 4 Singapore 1.14 Incidence of corruption 0-100 (best) 27.5 New Zealand 1.15 Property rights 1-7 (best) 6.3 71.0 57 Finland 1.16 Intellectual property protection 1-7 (best) 9.0 Finland 1.17 Quality of land administration 0-30 (best) 6.3 71.5 2 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 81.3 4 Multiple (2) 1.20 Shareholder governance 0-10 (best) n/a Kazakhstan 6.1 92.9 n/a Pillar 2: Infrastructure 0-100 (best) n/a Singapore 6.4 64.9 16 United States 2.01 Road connectivity index 0-100 (best) 408,365.3 2.02 Quality of roads 1-7 (best) 6.5 77.0 = 13 Singapore 2.03 Railroad density km of roads/square km 105.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 6.2 86.0 6 Switzerland 2.05 Airport connectivity score 100.0 2.06 Efficiency of air transport services 1-7 (best) 3.8 82.2 9 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) n/a Singapore 2.08 Efficiency of seaport services 1-7 (best) 6.8 91.7 6 Multiple (4) 2.09 Electrification rate % pop. Singapore 2.10 Electric power transmission and distribution losses % output - 87.9 4 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 249.0 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 105.0 90.0 = 3 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 35.9 63.0 = 45 26.9 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 87.5 94.0 2 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. - n/a n/a Switzerland 3.04 Fibre Internet subscriptions /100 pop. 1.9 Korea, Rep. 3.05 Internet users % pop. 100.0 84.4 4 Pillar 4: Macroeconomic stability 0-100 (best) - n/a n/a n/a Multiple (31) 4.01 Inflation annual % change 90.0 3 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 12.0 88.3 21 Pillar 5: Health 0-100 (best) Multiple (4) 5.1 92.4 2 Multiple (4) 5.01 Healthy life expectancy years 5.1 5.1 100.0 = 4 Finland Pillar 6: Skills 0-100 (best) 5.4 Finland 5.1 86.2 4 Switzerland 6.01 Mean years of schooling Years 16.3 Switzerland 6.02 Extent of staff training 1-7 (best) 3.9 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 13.7 Sweden 6.04 Skillset of graduates 1-7 (best) 100.0 = 9 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 97.8 n/a United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 97.3 6 87.9 2 269 | The Global Competitiveness Report 2018
71.8 15
87.5 20
100.0 = n/a
77.4 19
80.3 = 29
68.5 13
68.9 13
67.8 14
74.1 9
67.6 11
90.7 27
90.8 38 Hong Kong SAR Economy Profiles
7th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 79.0 2 Singapore 5.4 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.8 72.9 4 Switzerland 7.02 Extent of market dominance 1-7 (best) 6.1 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.9 63.0 16 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 0.00 Hong Kong SAR 7.05 Trade tariffs % duty 7.0 84.3 1 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.8 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 81.6 2 7.08 Services trade openness 0-100 (worst) Ecuador
- 100.0 = 1
Pillar 8: Labour market 0-100 (best) 5.8 United States 5.8 100.0 = 1 Multiple (8) 8.01 Redundancy costs weeks of salary 5.6 8.02 Hiring and firing practices 1-7 (best) 6.2 70.4 9 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 0.0 70.7 n/a 8.05 Active Labour policies 1-7 (best) 4.3 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.6 74.2 11 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.5 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.4 96.3 = 14 Albania 8.09 Reliance on professional management 1-7 (best) 0.89 Guinea 8.10 Pay and productivity 1-7 (best) 5.3 80.0 1 Finland 8.12 Labour tax rate % - 76.4 9 United States 215.0 Multiple (4) Pillar 9: Financial system 0-100 (best) 86.6 1 5.0 Multiple (26) 9.01 Domestic credit to private sector % GDP 4.3 63.4 15 9.02 Financing of SMEs 1-7 (best) 1,044.6 United States 9.03 Venture capital availability 1-7 (best) 13.9 0.0 116 Multiple (29) 9.04 Market capitalization % GDP 6.3 9.05 Insurance premium % GDP 0.9 54.6 53 United States 9.06 Soundness of banks 1-7 (best) -13.5 United States 9.07 Non-performing loans % loan portfolio value 17.0 59.2 67 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 75.3 18 Multiple (16) 414 Pillar 10: Market size 0-100 (best) 195.2 74.1 4 Finland 10.01 Gross domestic product PPP $ billions - 86.2 32 Multiple (97) 10.02 Imports % GDP 1.1 Multiple (72) 1.5 100.0 = 17 Pillar 11: Business dynamism 0-100 (best) 87.2 China 6.0 90.1 2 China 11.01 Cost of starting a business % GNI per capita 5.1 Hong Kong SAR 11.02 Time to start a business days 5.2 100.0 = 2 11.03 Insolvency recovery rate cents/$ 5.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.7 66.8 7 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 55.7 12 New Zealand 11.07 Growth of innovative companies 1-7 (best) 5.2 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.4 100.0 = 1 4.41 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 4.9 100.0 = 2 Israel 457.7 12.01 Diversity of workforce 1-7 (best) 44.76 88.7 6 Denmark 12.02 State of cluster development 1-7 (best) 0.8 Israel 12.03 International co-inventions applications/million pop. 0.04 99.3 7 12.04 Multi-stakeholder collaboration 1-7 (best) 5.0 United States 12.05 Scientific publications H Index 7,047.95 100.0 = 13 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 100.0 = 53 Canada 12.09 Buyer sophistication 1-7 (best) 71.1 26 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 1 Multiple (7) 74.5 17 Multiple (7) 99.0 = 2 Multiple (7)
93.9 9
68.8 4
69.3 23
66.5 11
61.9 8
61.9 26
69.3 20
72.6 7
51.8 28
65.3 11
90.8 25
70.3 26
25.4 48
10.4 43
67.5 3
95.3 17
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 269 271 | The Global Competitiveness Report 2018 Hungary Economy Profiles
48th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 48th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 78 81
70 68
64 61 60 62
60 58 57
54 54
50 48
0
Rank /140 48th 66th 28th 51st 43rd 69th 49th 82nd 83rd 66th 48th 75th 39th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 9.8 GDP (PPP) % world GDP 0.23 GDP per capita US$ 15,531.2 Unemployment rate % 4.2 10-year average annual GDP growth % 0.7 1.0 5-year average FDI inward flow % GDP
Social and environmental performance 3.6 Global Gender Gap Index 0-1 (gender parity) 0.7 4.7 Income Gini 0 (perfect equality) -100 (perfect inequality) 30.4
The Global Competitiveness Report 2018 | 271 Economy Profiles 48th /140
Hungary Value Score * Rank/140 Best Performer
Index Component - 54.2 66 New Zealand 5.0 Finland Pillar 1: Institutions 0-100 (best) 2.1 66.0 63 1.01 Organized crime 1-7 (best) 4.4 94.7 61 Multiple (24) 1.02 Homicide rate /100,000 pop. 48.7 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 57.7 100.0 48 Finland 1.04 Reliability of police services 1-7 (best) 3.1 Australia 1.05 Social capital 0-100 (high) 2.1 57.4 69 Multiple (2) 1.06 Budget transparency 0-100 (best) 29.1 1.07 Judicial independence 1-7 (best) 3.1 48.7 87 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.71 57.7 = 61 Norway 1.10 Burden of government regulation 1-7 (best) 3.3 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 45.0 34.4 103 Singapore 1.12 E-Participation Index 0-1 (best) 3.8 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.0 18.2 134 Singapore 1.14 Incidence of corruption 0-100 (best) 26.0 New Zealand 1.15 Property rights 1-7 (best) 4.8 70.9 60 Finland 1.16 Intellectual property protection 1-7 (best) 4.0 Finland 1.17 Quality of land administration 0-30 (best) 6.0 34.6 95 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 38.4 89 Multiple (2) 1.20 Shareholder governance 0-10 (best) 80.8 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.9 Singapore 83.3 38.0 96 United States 2.02 Quality of roads 1-7 (best) 3.8 45.0 57 Singapore 2.03 Railroad density km of roads/square km 52,147.1 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 46.9 108 Switzerland 2.05 Airport connectivity score 4.1 2.06 Efficiency of air transport services 1-7 (best) n/a 49.5 76 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 3.3 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 86.7 = 15 Multiple (4) 2.09 Electrification rate % pop. 8.4 Singapore 2.10 Electric power transmission and distribution losses % output 6.6 62.8 59 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 6.0 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 40.0 = 121 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 123.8 60.0 = 56 3.01 Mobile-cellular telephone subscriptions /100 pop. 49.1 78.4 28 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 30.4 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 80.8 = 28 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 5.4 Korea, Rep. 3.05 Internet users % pop. 79.3 48.2 74 Pillar 4: Macroeconomic stability 0-100 (best) - 100.0 = 6 1.4 Multiple (31) 4.01 Inflation annual % change 80.0 46.4 53 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 52.5 62
Pillar 5: Health 0-100 (best) 65.8 Multiple (4) 52.4 87 Multiple (4) 5.01 Healthy life expectancy years - 12.3 n/a n/a Finland Pillar 6: Skills 0-100 (best) Finland 3.6 38.5 96 Switzerland 6.01 Mean years of schooling Years 3.3 Switzerland 6.02 Extent of staff training 1-7 (best) 3.7 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.5 Sweden 6.04 Skillset of graduates 1-7 (best) 2.9 95.4 52 United States 6.05 Digital skills among population 1-7 (best) 15.1 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 3.3 95.3 = 43 United States 6.07 School life expectancy Years 10.8 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 82.8 33 61.0 51 273 | The Global Competitiveness Report 2018 100.0 = 56
79.3 33
80.7 69
80.7 68
68.5 49
81.8 = 25
43.0 100
39.0 123
32.5 138
83.8 50
38.4 75
98.1 13 Hungary Economy Profiles
48th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 54.4 82 Singapore 2.9 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.4 31.3 127 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.4 40.8 99 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 59.8 101 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.4 Germany 7.07 Efficiency of the clearance process 15 (best) 17.5 56.3 70 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 7
Pillar 8: Labour market 0-100 (best) 13.4 United States 8.01 Redundancy costs weeks of salary 4.2 8.02 Hiring and firing practices 1-7 (best) 4.2 58.9 27 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.5 82.5 = 26 8.05 Active Labour policies 1-7 (best) 78.4 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.7 57.8 83 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.1 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.8 80.4 = 54 Albania 8.09 Reliance on professional management 1-7 (best) 3.6 Guinea 8.10 Pay and productivity 1-7 (best) 0.81 54.2 38 Finland 8.11 Female participation in Labour force ratio 34.3 8.12 Labour tax rate % 53.7 86 United States Pillar 9: Financial system 0-100 (best) 37.6 62.7 83 9.01 Domestic credit to private sector % GDP 4.0 41.4 63 9.02 Financing of SMEs 1-7 (best) 3.3 United States 9.03 Venture capital availability 1-7 (best) 14.2 78.4 41 Multiple (29) 9.04 Market capitalization % GDP 2.5 9.05 Insurance premium % GDP 5.1 61.2 22 United States 9.06 Soundness of banks 1-7 (best) 7.4 United States 9.07 Non-performing loans % loan portfolio value -12.7 34.5 136 9.08 Credit gap percentage points 17.1 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 46.8 95 Multiple (16) - Pillar 10: Market size 0-100 (best) 263 42.7 93 Finland 82.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 75.9 52 Multiple (97) 10.02 Imports % GDP - Multiple (72) 5.4 63.5 = 128 Pillar 11: Business dynamism 0-100 (best) 7.0 China 43.7 59.8 66 China 11.01 Cost of starting a business % GNI per capita 10.0 Hong Kong SAR 11.02 Time to start a business days 3.0 39.6 87 11.03 Insolvency recovery rate cents/$ 4.1 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.5 49.3 49 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 2.9 11.06 Willingness to delegate authority 1-7 (best) 38.8 43 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 2.8 14.2 87 Pillar 12: Innovation capability 0-100 (best) 4.75 41.7 = 47 Israel 12.01 Diversity of workforce 1-7 (best) 372.0 68.6 63 Denmark 12.02 State of cluster development 1-7 (best) 19.90 Israel 12.03 International co-inventions applications/million pop. 1.4 86.1 89 12.04 Multi-stakeholder collaboration 1-7 (best) 0.04 United States 12.05 Scientific publications H Index 2.8 100.0 = 14 12.06 Patent applications applications/million pop. 2,330.35 Germany 12.07 R&D expenditures % GDP 100.0 = 51 Canada 12.09 Buyer sophistication 1-7 (best) 61.7 48 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 15 Multiple (7) 57.2 75 Multiple (7)
47.0 49
33.4 134
51.2 87
41.6 111
31.5 132
48.0 39
29.7 139
46.8 65
53.7 26
37.1 101
87.7 33
55.9 31
45.9 26
9.9 45
29.7 111
83.4 35
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 273 275 | The Global Competitiveness Report 2018 Iceland Economy Profiles
24th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 24th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 100 98
83 83
80 75 76 75 77 69 66
0
Rank /140 24th 14th 37th 7th 1st 10th 9th 43rd 9th 36th 131st 11th 23rd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 0.3 GDP (PPP) % world GDP 0.01 GDP per capita US$ 70,332.2 Unemployment rate % 2.8 10-year average annual GDP growth % 2.4
Social and environmental performance 6.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 27.8 0.9
The Global Competitiveness Report 2018 | 275 Economy Profiles 24th /140
Iceland Value Score * Rank/140 Best Performer
Index Component - 74.3 14 New Zealand 6.5 Finland Pillar 1: Institutions 0-100 (best) 0.3 91.5 2 1.01 Organized crime 1-7 (best) 6.4 100.0 2 Multiple (24) 1.02 Homicide rate /100,000 pop. 64.3 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 50.0 100.0 25 Finland 1.04 Reliability of police services 1-7 (best) 5.6 Australia 1.05 Social capital 0-100 (high) 4.9 89.8 4 Multiple (2) 1.06 Budget transparency 0-100 (best) 14.1 1.07 Judicial independence 1-7 (best) 4.0 64.3 3 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.69 50.0 = 77 Norway 1.10 Burden of government regulation 1-7 (best) 4.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 77.0 76.6 21 Singapore 1.12 E-Participation Index 0-1 (best) 5.8 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.5 65.8 10 Singapore 1.14 Incidence of corruption 0-100 (best) 26.5 New Zealand 1.15 Property rights 1-7 (best) 5.6 85.9 13 Finland 1.16 Intellectual property protection 1-7 (best) 6.7 Finland 1.17 Quality of land administration 0-30 (best) 7.0 50.6 29 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 70.0 16 Multiple (2) 1.20 Shareholder governance 0-10 (best) 57.5 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.1 Singapore n/a 56.4 31 United States 2.01 Road connectivity index 0-100 (best) 4.3 2.02 Quality of roads 1-7 (best) 53,237.5 77.0 13 Singapore 2.03 Railroad density km of roads/square km 5.5 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 7.2 80.4 15 Switzerland 2.05 Airport connectivity score 5.5 2.06 Efficiency of air transport services 1-7 (best) 100.0 74.4 23 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 3.1 Singapore 2.08 Efficiency of seaport services 1-7 (best) 0.6 88.3 = 11 Multiple (4) 2.09 Electrification rate % pop. 6.9 Singapore 2.10 Electric power transmission and distribution losses % output 76.5 24 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 122.6 67.0 = 32 Multiple (23) 113.3 Switzerland Pillar 3: ICT adoption 0-100 (best) 70.0 = 24 39.9 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 12.7 76.4 37 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 98.2 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 57.5 = 81 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 1.7 52.3 63 Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 71.5 54.6 35 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 52.8 61
Pillar 5: Health 0-100 (best) 12.5 Multiple (4) 74.9 24 Multiple (4) 5.01 Healthy life expectancy years 4.9 5.1 7.2 101 Finland Pillar 6: Skills 0-100 (best) 5.3 Finland 5.7 75.0 11 Switzerland 6.01 Mean years of schooling Years 5.0 Switzerland 6.02 Extent of staff training 1-7 (best) 19.3 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.6 Sweden 6.04 Skillset of graduates 1-7 (best) 10.1 100.0 = 6 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 100.0 = 5 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 98.2 2 82.7 7 277 | The Global Competitiveness Report 2018 100.0 = 59
79.7 9
98.2 1
98.4 10
83.3 9
65.8 19
67.9 14
71.6 8
78.9 5
66.2 17
60.2 18
99.6 = 8 Iceland Economy Profiles
24th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 60.9 43 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.7 56.0 32 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.3 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 45.1 68 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 2.64 Hong Kong SAR 7.05 Trade tariffs % duty 4.4 71.3 38 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.8 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 52.7 96 7.08 Services trade openness 0-100 (worst) Ecuador
- 82.4 42
Pillar 8: Labour market 0-100 (best) 13.0 United States 55.9 102 Multiple (8) 8.01 Redundancy costs weeks of salary 5.3 8.02 Hiring and firing practices 1-7 (best) 5.4 44.2 55 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 3.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 5.3 86.8 n/a 8.05 Active Labour policies 1-7 (best) 100.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.5 75.0 9 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.3 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.5 81.3 = 47 Albania 8.09 Reliance on professional management 1-7 (best) 4.6 Guinea 8.10 Pay and productivity 1-7 (best) 0.99 71.6 5 Finland 8.11 Female participation in Labour force ratio 17.8 8.12 Labour tax rate % 74.1 12 United States Pillar 9: Financial system 0-100 (best) 91.2 47.8 128 9.01 Domestic credit to private sector % GDP 4.5 71.5 6 9.02 Financing of SMEs 1-7 (best) 3.4 United States 9.03 Venture capital availability 1-7 (best) 31.0 100.0 = 1 Multiple (29) 9.04 Market capitalization % GDP 2.3 9.05 Insurance premium % GDP 5.2 58.6 35 United States 9.06 Soundness of banks 1-7 (best) 5.1 United States 9.07 Non-performing loans % loan portfolio value -28.8 55.0 86 9.08 Credit gap percentage points 27.6 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 74.9 20 Multiple (16) - Pillar 10: Market size 0-100 (best) 16 60.5 26 Finland 44.7 Multiple (2) 10.01 Gross domestic product PPP $ billions 98.3 7 Multiple (97) 10.02 Imports % GDP - Multiple (72) 1.8 86.4 75 Pillar 11: Business dynamism 0-100 (best) 11.6 China 84.5 69.3 36 China 11.01 Cost of starting a business % GNI per capita 11.5 Hong Kong SAR 11.02 Time to start a business days 5.0 96.0 32 11.03 Insolvency recovery rate cents/$ 5.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.7 58.4 26 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.6 11.06 Willingness to delegate authority 1-7 (best) 40.2 39 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.9 31.0 56 Pillar 12: Innovation capability 0-100 (best) 14.85 38.0 = 52 Israel 4.7 12.01 Diversity of workforce 1-7 (best) 257.0 69.5 61 Denmark 12.02 State of cluster development 1-7 (best) 85.77 Israel 12.03 International co-inventions applications/million pop. 2.2 90.7 73 12.04 Multi-stakeholder collaboration 1-7 (best) 0.01 United States 12.05 Scientific publications H Index 4.1 100.0 = 5 12.06 Patent applications applications/million pop. 12,243.49 Germany 12.07 R&D expenditures % GDP 100.0 = 4 Canada 12.09 Buyer sophistication 1-7 (best) 31.5 131 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 130 n/a 65 Multiple (7) 76.6 11 Multiple (7) 88.8 73 Multiple (7)
91.0 14
66.3 8
74.6 17
61.6 24
59.4 13
65.7 23
65.7 28
52.6 44
84.8 16
82.2 40
82.0 20
73.8 14
1.6 76
52.4 28
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 277 279 | The Global Competitiveness Report 2018 India Economy Profiles
58th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 63rd/135
Performance Overview 2018 Key Previous edition Lower middle income group average South Asia average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 93
70 69 70
60 62 58 59 58 61 54 51
30 28
0
Rank /140 58th 47th 63rd 117th 49th 108th 96th 110th 75th 35th 3rd 58th 31st
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 1,316.9 GDP (PPP) % world GDP 7.45 GDP per capita US$ 1,982.7 Unemployment rate % 3.5 10-year average annual GDP growth % 1.7 6.8 5-year average FDI inward flow % GDP
Social and environmental performance 1.1 Global Gender Gap Index 0-1 (gender parity) 0.7 3.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 35.1
The Global Competitiveness Report 2018 | 279 Economy Profiles 58th /140
India Value Score * Rank/140 Best Performer
Index Component - 57.9 47 New Zealand Pillar 1: Institutions 0-100 (best) 3.2 57.3 90 26.3 Multiple (9) 1.01 Organized crime 1-7 (best) 4.6 90.8 75 Multiple (24) 1.02 Homicide rate /100,000 pop. 49.5 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 80.8 26.3 137 Finland 1.04 Reliability of police services 1-7 (best) 4.6 Australia 1.05 Social capital 0-100 (high) 4.5 60.3 60 Multiple (2) 1.06 Budget transparency 0-100 (best) 43.2 1.07 Judicial independence 1-7 (best) 4.5 49.5 78 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.5 Finland 1.09 Freedom of the press 0-100 (worst) 0.96 80.8 = 18 Norway 1.10 Burden of government regulation 1-7 (best) 4.7 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 40.0 60.7 41 Singapore 1.12 E-Participation Index 0-1 (best) 4.8 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.6 58.5 18 Singapore 1.14 Incidence of corruption 0-100 (best) 8.2 New Zealand 1.15 Property rights 1-7 (best) 4.7 56.8 112 Finland 1.16 Intellectual property protection 1-7 (best) 7.3 Finland 1.17 Quality of land administration 0-30 (best) 8.7 58.9 16 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 58.7 32 Multiple (2) 1.20 Shareholder governance 0-10 (best) 62.0 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.4 Singapore 20.1 60.9 21 United States 2.02 Quality of roads 1-7 (best) 4.5 40.0 = 69 Singapore 2.03 Railroad density km of roads/square km 1,224,525.6 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 63.6 45 Switzerland 2.05 Airport connectivity score 4.8 2.06 Efficiency of air transport services 1-7 (best) 52.9 60.1 45 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 4.6 27.3 112 Multiple (4) 2.09 Electrification rate % pop. 82.0 Singapore 2.10 Electric power transmission and distribution losses % output 18.6 62.3 63 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 32.0 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 73.0 20 Multiple (23) 4.7 Switzerland Pillar 3: ICT adoption 0-100 (best) 87.0 = 2 3.01 Mobile-cellular telephone subscriptions /100 pop. 87.3 68.7 63 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 25.8 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 62.0 = 76 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 1.3 Korea, Rep. 3.05 Internet users % pop. 0.0 57.4 51 29.5 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 50.2 = 38 4.01 Inflation annual % change 4.1 57.9 26 Multiple (74) 4.02 Debt dynamics 0-100 (best) 79.8 Multiple (36) Pillar 5: Health 0-100 (best) - Multiple (4) 58.9 64.1 53 Multiple (4)
- 52.9 28 Finland
Pillar 6: Skills 0-100 (best) 6.0 Finland 4.6 60.4 40 Switzerland 6.01 Mean years of schooling Years 4.6 Switzerland 6.02 Extent of staff training 1-7 (best) 4.6 82.0 105 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.6 Sweden 6.04 Skillset of graduates 1-7 (best) 4.7 84.8 110 United States 6.05 Digital skills among population 1-7 (best) 12.3 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 4.6 69.4 106 United States 6.07 School life expectancy Years 35.2 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 60.9 74 28.0 117 281 | The Global Competitiveness Report 2018 72.7 111
2.7 107
29.5 103
89.8 49
99.9 75
79.8 53
59.0 108
59.0 107
54.5 96
40.0 = 114
59.4 33
60.6 33
60.5 36
60.5 48
61.4 34
68.6 96
60.6 17
37.0 115 India Economy Profiles
58th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 50.9 110 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.6 56.0 33 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.8 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.5 60.6 21 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 14.88 Hong Kong SAR 7.05 Trade tariffs % duty 4.9 63.9 77 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.0 Germany 7.07 Efficiency of the clearance process 15 (best) 65.7 58.8 53 7.08 Services trade openness 0-100 (worst) Ecuador
- 0.8 133
Pillar 8: Labour market 0-100 (best) 15.8 United States 65.2 87 Multiple (8) 8.01 Redundancy costs weeks of salary 4.6 8.02 Hiring and firing practices 1-7 (best) 4.7 49.1 41 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.4 34.3 = 97 8.05 Active Labour policies 1-7 (best) 57.7 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.4 58.3 75 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.9 75.5 = 67 Albania 8.09 Reliance on professional management 1-7 (best) 4.7 Guinea 8.10 Pay and productivity 1-7 (best) 0.29 60.6 14 Finland 8.11 Female participation in Labour force ratio 20.5 8.12 Labour tax rate % 61.9 45 United States Pillar 9: Financial system 0-100 (best) 51.3 61.3 95 9.01 Domestic credit to private sector % GDP 4.8 56.6 33 9.02 Financing of SMEs 1-7 (best) 4.3 United States 9.03 Venture capital availability 1-7 (best) 72.8 57.7 110 Multiple (29) 9.04 Market capitalization % GDP 2.9 9.05 Insurance premium % GDP 4.6 57.1 42 United States 9.06 Soundness of banks 1-7 (best) 9.2 United States 9.07 Non-performing loans % loan portfolio value -6.1 63.3 39 9.08 Credit gap percentage points 12.5 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 64.9 33 Multiple (16) - Pillar 10: Market size 0-100 (best) 8,616 61.0 23 Finland 10.01 Gross domestic product PPP $ billions 23.0 10.8 124 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 82.6 = 95
Pillar 11: Business dynamism 0-100 (best) 14.8 China 29.8 69.5 35 China 11.01 Cost of starting a business % GNI per capita 26.4 Hong Kong SAR 11.02 Time to start a business days 54.0 71 11.03 Insolvency recovery rate cents/$ 8.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.7 62.5 16 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.7 11.06 Willingness to delegate authority 1-7 (best) 4.7 55.3 13 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.6 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 72.8 26 Pillar 12: Innovation capability 0-100 (best) 4.8 48.4 = 42 Israel 12.01 Diversity of workforce 1-7 (best) 0.38 60.5 83 Denmark 12.02 State of cluster development 1-7 (best) 4.6 Israel 12.03 International co-inventions applications/million pop. 492.3 82.5 95 12.04 Multi-stakeholder collaboration 1-7 (best) 1.42 United States 12.05 Scientific publications H Index 0.6 100.0 = 30 12.06 Patent applications applications/million pop. 0.42 Germany 12.07 R&D expenditures % GDP 4.5 90.0 = 115 Canada 12.08 Quality of research institutions index 200.94 12.09 Buyer sophistication 1-7 (best) 92.7 3 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 122 Multiple (7) 61.2 58 Multiple (7) 92.6 94 70.6 118 Multiple (7)
28.4 103
62.0 19
62.1 38
59.5 11
53.8 31
63.8 38
60.4 26
9.8 59
59.9 26
91.8 21
16.3 61
20.9 53
99.1 8
58.6 18
57.1 92
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 281 283 | The Global Competitiveness Report 2018 Indonesia Economy Profiles
45th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 47th/135
Performance Overview Key Previous edition Lower middle income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 67 72 69
65 61 64 64
60 58 58 58
40 37
0
Rank /140 45th 48th 71st 50th 51st 95th 62nd 51st 82nd 52nd 8th 30th 68th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 262.0 GDP (PPP) % world GDP 2.55 GDP per capita US$ 3,875.8 Unemployment rate % 4.2 10-year average annual GDP growth % 1.9
Social and environmental performance 1.6 Global Gender Gap Index 0-1 (gender parity) 0.7 4.0 Income Gini 0 (perfect equality) -100 (perfect inequality) 39.5
The Global Competitiveness Report 2018 | 283 Economy Profiles 45th /140
Indonesia Value Score * Rank/140 Best Performer
Index Component - 57.9 48 New Zealand Pillar 1: Institutions 0-100 (best) 0.5 54.9 98 96.8 Multiple (9) 1.01 Organized crime 1-7 (best) 4.4 100.0 9 Multiple (24) 1.02 Homicide rate /100,000 pop. 63.0 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 53.8 96.8 109 Finland 1.04 Reliability of police services 1-7 (best) 4.4 Australia 1.05 Social capital 0-100 (high) 4.0 56.3 72 Multiple (2) 1.06 Budget transparency 0-100 (best) 39.7 1.07 Judicial independence 1-7 (best) 4.1 63.0 10 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.1 Finland 1.09 Freedom of the press 0-100 (worst) 0.62 53.8 = 67 Norway 1.10 Burden of government regulation 1-7 (best) 4.6 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 37.0 56.6 50 Singapore 1.12 E-Participation Index 0-1 (best) 4.8 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.6 49.8 37 Singapore 1.14 Incidence of corruption 0-100 (best) 11.3 New Zealand 1.15 Property rights 1-7 (best) 4.7 60.3 100 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 7.0 52.0 26 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 52.0 46 Multiple (2) 1.20 Shareholder governance 0-10 (best) 34.6 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.9 Singapore 2.5 60.0 24 United States 2.01 Road connectivity index 0-100 (best) 4.7 2.02 Quality of roads 1-7 (best) 972,336.6 37.0 = 80 Singapore 2.03 Railroad density km of roads/square km 5.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 40.9 62.8 47 Switzerland 2.05 Airport connectivity score 4.2 2.06 Efficiency of air transport services 1-7 (best) 91.2 60.1 44 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 9.4 Singapore 2.08 Efficiency of seaport services 1-7 (best) 19.2 37.7 = 95 Multiple (4) 2.09 Electrification rate % pop. 4.6 Singapore 2.10 Electric power transmission and distribution losses % output 62.3 62 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 173.8 57.0 = 65 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 95.7 70.0 24 2.3 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 1.8 66.8 71 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 25.5 34.6 = 120 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 48.1 75 3.7 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 79.3 6.1 = 82 4.01 Inflation annual % change - 61.4 19 Multiple (74) 4.02 Debt dynamics 0-100 (best) 62.9 Multiple (36) Pillar 5: Health 0-100 (best) - Multiple (4) 7.9 66.7 49 Multiple (4) 5.01 Healthy life expectancy years 4.7 4.6 40.9 41 Finland Pillar 6: Skills 0-100 (best) 4.7 Finland 4.7 54.1 61 Switzerland 6.01 Mean years of schooling Years 4.7 Switzerland 6.02 Extent of staff training 1-7 (best) 12.8 91.2 98 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.2 Sweden 6.04 Skillset of graduates 1-7 (best) 14.0 94.3 56 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 82.5 92 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 60.7 75 61.1 50 285 | The Global Competitiveness Report 2018
4.6 104
25.5 110
89.7 51
79.3 55
71.7 95
71.7 94
64.1 62
52.8 = 94
61.8 29
60.0 34
61.1 33
62.2 39
61.1 35
71.2 85
52.8 29
90.1 40 Indonesia Economy Profiles
45th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 58.5 51 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.1 55.8 34 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.3 52.5 39 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 6.01 Hong Kong SAR 7.05 Trade tariffs % duty 5.7 70.5 42 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.7 Germany 7.07 Efficiency of the clearance process 15 (best) 48.3 55.6 73 7.08 Services trade openness 0-100 (worst) Ecuador
- 60.0 77
Pillar 8: Labour market 0-100 (best) 57.8 United States 77.9 70 Multiple (8) 8.01 Redundancy costs weeks of salary 4.5 8.02 Hiring and firing practices 1-7 (best) 4.6 41.8 61 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.1 51.7 = 89 8.05 Active Labour policies 1-7 (best) 60.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.2 57.8 82 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.6 0.0 134 Albania 8.09 Reliance on professional management 1-7 (best) 4.7 Guinea 8.10 Pay and productivity 1-7 (best) 0.50 59.1 19 Finland 8.11 Female participation in Labour force ratio 11.5 8.12 Labour tax rate % 60.1 50 United States Pillar 9: Financial system 0-100 (best) 38.3 64.7 71 9.01 Domestic credit to private sector % GDP 4.6 51.6 39 9.02 Financing of SMEs 1-7 (best) 3.8 United States 9.03 Venture capital availability 1-7 (best) 44.7 60.8 101 Multiple (29) 9.04 Market capitalization % GDP 1.4 9.05 Insurance premium % GDP 4.9 53.2 59 United States 9.06 Soundness of banks 1-7 (best) 2.9 United States 9.07 Non-performing loans % loan portfolio value 0.8 64.5 31 9.08 Credit gap percentage points 19.9 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 60.7 42 Multiple (16) - Pillar 10: Market size 0-100 (best) 2,954 62.4 18 Finland 10.01 Gross domestic product PPP $ billions 18.6 37.2 97 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 95.1 42
Pillar 11: Business dynamism 0-100 (best) 10.9 China 23.1 63.9 52 China 11.01 Cost of starting a business % GNI per capita 64.7 Hong Kong SAR 11.02 Time to start a business days 10.5 40.3 86 11.03 Insolvency recovery rate cents/$ United States 11.04 Insolvency regulatory framework 0-16 (best) 4.5 59.5 23 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 5.0 11.06 Willingness to delegate authority 1-7 (best) 4.9 47.0 25 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.3 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 44.7 44 Pillar 12: Innovation capability 0-100 (best) 4.9 23.6 = 80 Israel 12.01 Diversity of workforce 1-7 (best) 0.04 64.6 72 Denmark 12.02 State of cluster development 1-7 (best) 4.6 Israel 12.03 International co-inventions applications/million pop. 182.0 95.2 46 12.04 Multi-stakeholder collaboration 1-7 (best) 0.08 United States 12.05 Scientific publications H Index 0.1 100.0 87 12.06 Patent applications applications/million pop. 0.02 Germany 12.07 R&D expenditures % GDP 3.7 100.0 = 23 Canada 12.08 Quality of research institutions index 166.22 12.09 Buyer sophistication 1-7 (best) 81.6 8 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 132 Multiple (7) 69.0 30 Multiple (7) 94.6 81 77.3 108 Multiple (7)
69.6 33
58.8 26
66.4 26
64.2 19
55.1 21
37.1 68
64.2 37
60.0 28
1.2 97
60.2 25
77.2 58
1.5 99
2.8 = 112
4.2 53
45.2 49
55.1 97
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 285 287 | The Global Competitiveness Report 2018 Iran, Islamic Rep. Economy Profiles
89th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 88th/135
Performance Key Previous edition Upper middle income group average Middle East and North Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 77
70 65 67
60 55 57 50 48 50 44 42 43
0
Rank /140 89th 121st 76th 80th 117th 84th 91st 134th 136th 98th 19th 119th 65th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 81.4 GDP (PPP) % world GDP 1.30 GDP per capita US$ 5,304.7 Unemployment rate % 12.5 1.8 5-year average FDI inward flow % GDP 0.8
Social and environmental performance 3.4 Global Gender Gap Index 0-1 (gender parity) 0.6 4.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 38.8
The Global Competitiveness Report 2018 | 287 Economy Profiles 89th /140
Iran, Islamic Rep. Value Score * Rank/140 Best Performer
Index Component - 44.3 121 New Zealand Pillar 1: Institutions 0-100 (best) 2.5 57.4 89 97.6 Multiple (9) 1.01 Organized crime 1-7 (best) 4.4 93.3 = 65 Multiple (24) 1.02 Homicide rate /100,000 pop. 51.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 11.5 97.6 106 Finland 1.04 Reliability of police services 1-7 (best) 3.5 Australia 1.05 Social capital 0-100 (high) 2.9 56.0 73 Multiple (2) 1.06 Budget transparency 0-100 (best) 60.7 1.07 Judicial independence 1-7 (best) 3.1 51.1 66 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.1 Finland 1.09 Freedom of the press 0-100 (worst) 0.53 11.5 = 134 Norway 1.10 Burden of government regulation 1-7 (best) 3.3 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 30.0 41.5 86 Singapore 1.12 E-Participation Index 0-1 (best) 3.9 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.2 31.6 92 Singapore 1.14 Incidence of corruption 0-100 (best) 15.0 New Zealand 1.15 Property rights 1-7 (best) 3.6 39.3 134 Finland 1.16 Intellectual property protection 1-7 (best) 4.0 Finland 1.17 Quality of land administration 0-30 (best) 2.7 34.3 97 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 35.3 96 Multiple (2) 1.20 Shareholder governance 0-10 (best) 77.2 Kazakhstan 52.8 101 Pillar 2: Infrastructure 0-100 (best) 3.9 Singapore 4.9 37.9 97 United States 2.01 Road connectivity index 0-100 (best) 3.8 2.02 Quality of roads 1-7 (best) 80,533.3 30.0 109 Singapore 2.03 Railroad density km of roads/square km 3.3 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 40.8 48.0 103 Switzerland 2.05 Airport connectivity score 3.9 2.06 Efficiency of air transport services 1-7 (best) 99.2 36.8 126 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 15.0 Singapore 2.08 Efficiency of seaport services 1-7 (best) 9.2 50.0 = 72 Multiple (4) 2.09 Electrification rate % pop. 4.4 Singapore 2.10 Electric power transmission and distribution losses % output 42.8 127 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 107.3 40.0 = 121 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 68.2 27.0 = 136 12.4 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 65.4 76 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 0.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 53.2 77.2 = 39 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 48.5 71 9.5 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 49.0 12.3 = 70 4.01 Inflation annual % change - 46.6 51 Multiple (74) 4.02 Debt dynamics 0-100 (best) 64.8 Multiple (36) 59.0 49 Pillar 5: Health 0-100 (best) - Multiple (4) 8.0 37.8 121 Multiple (4) 5.01 Healthy life expectancy years 3.4 3.7 40.8 42 Finland Pillar 6: Skills 0-100 (best) 3.5 Finland 4.2 48.1 75 Switzerland 6.01 Mean years of schooling Years 4.0 Switzerland 6.02 Extent of staff training 1-7 (best) 14.9 99.2 79 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.0 Sweden 6.04 Skillset of graduates 1-7 (best) 26.8 88.6 95 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 92.6 60 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 57.4 85 47.6 80 289 | The Global Competitiveness Report 2018 89.4 88
n/a 71
24.8 67
53.2 81
66.9 117
84.8 122
49.0 87
77.5 84
77.5 83
57.0 91
53.3 = 92
39.8 121
45.1 96
41.5 113
53.8 69
50.2 78
82.7 = 57
33.5 102
58.1 = 97 Iran, Islamic Rep. Economy Profiles
89th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 42.0 134 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.6 38.0 108 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.9 43.7 76 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 28.49 Hong Kong SAR 7.05 Trade tariffs % duty 5.2 53.1 124 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) 63.3 48.6 117 7.08 Services trade openness 0-100 (worst) Ecuador
- 0.0 140
Pillar 8: Labour market 0-100 (best) 23.1 United States 69.4 = 82 Multiple (8) 8.01 Redundancy costs weeks of salary 3.6 8.02 Hiring and firing practices 1-7 (best) 3.6 40.6 71 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.2 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.9 36.7 = 95 8.05 Active Labour policies 1-7 (best) 62.9 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.2 43.1 136 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.2 60.2 = 101 Albania 8.09 Reliance on professional management 1-7 (best) 3.5 Guinea 8.10 Pay and productivity 1-7 (best) 0.21 43.9 89 Finland 8.11 Female participation in Labour force ratio 25.9 8.12 Labour tax rate % 43.6 123 United States Pillar 9: Financial system 0-100 (best) 59.3 54.1 120 9.01 Domestic credit to private sector % GDP 2.9 31.4 88 9.02 Financing of SMEs 1-7 (best) 2.4 United States 9.03 Venture capital availability 1-7 (best) 25.3 62.9 92 Multiple (29) 9.04 Market capitalization % GDP 1.4 9.05 Insurance premium % GDP 3.1 36.2 129 United States 9.06 Soundness of banks 1-7 (best) 10.0 United States 9.07 Non-performing loans % loan portfolio value 4.4 47.8 117 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 37.1 129 Multiple (16) - Pillar 10: Market size 0-100 (best) 1,498 41.3 105 Finland 10.01 Gross domestic product PPP $ billions 14.6 1.4 136 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 75.1 = 114
Pillar 11: Business dynamism 0-100 (best) 1.4 China 15.0 52.5 98 China 11.01 Cost of starting a business % GNI per capita 15.4 Hong Kong SAR 11.02 Time to start a business days 5.0 62.4 57 11.03 Insolvency recovery rate cents/$ 3.3 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.4 32.2 127 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.9 11.06 Willingness to delegate authority 1-7 (best) 3.5 23.0 111 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 25.3 67 Pillar 12: Innovation capability 0-100 (best) 3.6 23.8 = 79 Israel 0.06 12.01 Diversity of workforce 1-7 (best) 3.1 34.7 131 Denmark 12.02 State of cluster development 1-7 (best) 241.7 Israel 12.03 International co-inventions applications/million pop. 0.08 80.8 = 103 12.04 Multi-stakeholder collaboration 1-7 (best) 0.3 United States 12.05 Scientific publications H Index 0.17 93.7 115 12.06 Patent applications applications/million pop. 3.6 Germany 12.07 R&D expenditures % GDP 675.69 96.1 n/a Canada 12.09 Buyer sophistication 1-7 (best) 74.5 19 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 18 n/a 137 Multiple (7) 50.0 119 Multiple (7) 99.3 33 85.4 88 Multiple (7)
16.6 123
38.0 126
48.2 75
41.6 71
37.6 65
44.2 125
43.9 82
1.9 91
34.9 114
81.3 42
1.4 100
10.8 = 81
44.2 16
43.3 56
70.1 59
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 289 291 | The Global Competitiveness Report 2018 Ireland Economy Profiles
23rd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 23rd/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 99
80 76 77 80 77 77
73 69 70 66 67
0
Rank /140 23rd 17th 34th 41st 37th 24th 15th 23rd 7th 37th 44th 10th 21st
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 4.7 GDP (PPP) % world GDP 0.28 GDP per capita US$ 70,638.3 Unemployment rate % 6.4 4.1 5-year average FDI inward flow % GDP 23.8
Social and environmental performance 4.7 Global Gender Gap Index 0-1 (gender parity) 0.8 5.4 Income Gini 0 (perfect equality) -100 (perfect inequality) 31.8
The Global Competitiveness Report 2018 | 291 Economy Profiles 23rd /140
Ireland Value Score * Rank/140 Best Performer
Index Component - 73.1 17 New Zealand Pillar 1: Institutions 0-100 (best) 0.8 75.3 26 98.9 Multiple (9) 1.01 Organized crime 1-7 (best) 5.7 99.0 25 Multiple (24) 1.02 Homicide rate /100,000 pop. 63.5 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 76.9 98.9 93 Finland 1.04 Reliability of police services 1-7 (best) 6.0 Australia 1.05 Social capital 0-100 (high) 4.1 77.9 25 Multiple (2) 1.06 Budget transparency 0-100 (best) 14.6 1.07 Judicial independence 1-7 (best) 3.9 63.5 8 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.93 76.9 = 21 Norway 1.10 Burden of government regulation 1-7 (best) 4.5 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 74.0 83.3 12 Singapore 1.12 E-Participation Index 0-1 (best) 5.9 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.8 51.1 35 Singapore 1.14 Incidence of corruption 0-100 (best) 21.0 New Zealand 1.15 Property rights 1-7 (best) 5.1 85.4 16 Finland 1.16 Intellectual property protection 1-7 (best) 8.7 Finland 1.17 Quality of land administration 0-30 (best) 6.3 48.8 36 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 50.7 51 Multiple (2) 1.20 Shareholder governance 0-10 (best) 76.4 Kazakhstan 93.3 22 Pillar 2: Infrastructure 0-100 (best) 4.5 Singapore 30.2 57.8 26 United States 2.02 Quality of roads 1-7 (best) 3.9 74.0 19 Singapore 2.03 Railroad density km of roads/square km 139,529.5 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 80.9 14 Switzerland 2.05 Airport connectivity score 5.4 2.06 Efficiency of air transport services 1-7 (best) 10.7 79.5 15 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 5.0 70.0 = 43 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 69.1 42 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 7.2 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 0.6 87.0 = 4 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 63.0 = 45 3.01 Mobile-cellular telephone subscriptions /100 pop. 102.9 77.0 34 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 102.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 76.4 = 42 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 29.4 Korea, Rep. 3.05 Internet users % pop. 0.2 57.9 49 Pillar 4: Macroeconomic stability 0-100 (best) 85.0 75.6 = 26 4.01 Inflation annual % change - 49.1 46 Multiple (74) 4.02 Debt dynamics 0-100 (best) 0.0 Multiple (36) 100.0 68.1 33 Pillar 5: Health 0-100 (best) Multiple (4)
- 73.8 29 Multiple (4)
5.01 Healthy life expectancy years 70.4 10.7 82 Finland Pillar 6: Skills 0-100 (best) - Finland 12.5 66.1 27 Switzerland 6.01 Mean years of schooling Years Switzerland 6.02 Extent of staff training 1-7 (best) 5.0 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.9 Sweden 6.04 Skillset of graduates 1-7 (best) 5.1 96.7 44 United States 6.05 Digital skills among population 1-7 (best) 5.2 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 5.0 100.0 = 9 United States 6.07 School life expectancy Years 19.6 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 4.2 80.9 39 6.09 Pupil-to-teacher ratio in primary education Ratio 16.1 66.0 41 293 | The Global Competitiveness Report 2018 85.7 99
58.9 27
85.0 23
99.4 37
98.7 85
95.1 23
79.9 15
67.0 16
64.7 22
68.5 12
70.0 19
67.4 12
52.6 31
84.8 = 49 Ireland Economy Profiles
23rd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 64.2 23 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.6 60.4 19 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.8 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.9 59.8 22 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 63.0 84 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.4 Germany 7.07 Efficiency of the clearance process 15 (best) 12.4 64.2 30 7.08 Services trade openness 0-100 (worst) Ecuador Pillar 8: Labour market 0-100 (best) 14.3 United States 8.01 Redundancy costs weeks of salary 3.9 8.02 Hiring and firing practices 1-7 (best) 5.2 58.9 26 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.3 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.8 87.6 = 9 8.05 Active Labour policies 1-7 (best) 91.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.6 76.8 7 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.9 78.5 = 58 Albania 8.09 Reliance on professional management 1-7 (best) 4.9 Guinea 8.10 Pay and productivity 1-7 (best) 0.99 49.0 58 Finland 8.11 Female participation in Labour force ratio 12.2 8.12 Labour tax rate % 69.3 22 United States Pillar 9: Financial system 0-100 (best) 60.5 71.6 39 9.01 Domestic credit to private sector % GDP 3.7 63.1 16 9.02 Financing of SMEs 1-7 (best) 3.3 United States 9.03 Venture capital availability 1-7 (best) 46.3 91.8 13 Multiple (29) 9.04 Market capitalization % GDP 6.7 9.05 Insurance premium % GDP 4.0 60.1 28 United States 9.06 Soundness of banks 1-7 (best) 13.6 United States 9.07 Non-performing loans % loan portfolio value -40.6 65.5 27 9.08 Credit gap percentage points 22.5 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 82.4 8 Multiple (16) - Pillar 10: Market size 0-100 (best) 325 64.9 12 Finland 85.5 Multiple (2) 10.01 Gross domestic product PPP $ billions 98.3 8 Multiple (97) 10.02 Imports % GDP - Multiple (72) 0.2 94.2 = 43 Pillar 11: Business dynamism 0-100 (best) 5.0 China 85.8 68.5 37 China 11.01 Cost of starting a business % GNI per capita 10.5 Hong Kong SAR 11.02 Time to start a business days 4.9 63.7 55 11.03 Insolvency recovery rate cents/$ 5.6 United States 11.04 Insolvency regulatory framework 0-16 (best) 5.0 44.8 80 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.3 11.06 Willingness to delegate authority 1-7 (best) 38.7 45 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.2 46.3 42 Pillar 12: Innovation capability 0-100 (best) 18.82 100.0 = 12 Israel 12.01 Diversity of workforce 1-7 (best) 426.3 49.7 109 Denmark 12.02 State of cluster development 1-7 (best) 79.62 Israel 12.03 International co-inventions applications/million pop. 1.5 73.5 117 12.04 Multi-stakeholder collaboration 1-7 (best) 0.04 United States 12.05 Scientific publications H Index 4.3 100.0 = 1 12.06 Patent applications applications/million pop. 7,924.38 Germany 12.07 R&D expenditures % GDP 100.0 = 11 Canada 12.09 Buyer sophistication 1-7 (best) 64.0 44 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 13 Multiple (7) 76.9 10 Multiple (7)
92.4 10
64.7 11
76.5 11
66.1 14
54.8 22
67.0 21
69.8 19
60.8 24
91.7 13
63.7 15
89.7 28
80.7 21
50.5 = 24
11.8 38
55.4 22
96.6 14
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 293 295 | The Global Competitiveness Report 2018 Israel Economy Profiles
20th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 20th/135
Performance Overview Key Previous edition High income group average Middle East and North Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 99 98
83 80 80 80
80 77
72 74
70 66 67
60 61 59
0
Rank /140 20th 26th 20th 39th 38th 11th 14th 41st 15th 22nd 57th 5th 16th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 8.7 GDP (PPP) % world GDP 0.25 GDP per capita US$ 40,258.4 Unemployment rate % 4.2 10-year average annual GDP growth % 3.7 3.4 5-year average FDI inward flow % GDP
Social and environmental performance 4.7 Global Gender Gap Index 0-1 (gender parity) 0.7 4.5 Income Gini 0 (perfect equality) -100 (perfect inequality) 41.4
The Global Competitiveness Report 2018 | 295 Economy Profiles 20th /140
Israel Value Score * Rank/140 Best Performer
Index Component - 66.3 26 New Zealand 5.0 Finland Pillar 1: Institutions 0-100 (best) 1.4 67.4 60 94.2 Multiple (9) 1.01 Organized crime 1-7 (best) 5.2 97.1 = 45 Multiple (24) 1.02 Homicide rate /100,000 pop. 54.6 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 46.2 94.2 117 Finland 1.04 Reliability of police services 1-7 (best) 5.8 Australia 1.05 Social capital 0-100 (high) 4.1 69.7 42 Multiple (2) 1.06 Budget transparency 0-100 (best) 30.3 1.07 Judicial independence 1-7 (best) 3.6 54.6 41 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.6 Finland 1.09 Freedom of the press 0-100 (worst) 0.83 46.2 = 90 Norway 1.10 Burden of government regulation 1-7 (best) 4.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 62.0 80.3 14 Singapore 1.12 E-Participation Index 0-1 (best) 5.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.6 52.0 31 Singapore 1.14 Incidence of corruption 0-100 (best) 14.0 New Zealand 1.15 Property rights 1-7 (best) 6.0 69.7 70 Finland 1.16 Intellectual property protection 1-7 (best) 8.3 Finland 1.17 Quality of land administration 0-30 (best) 6.3 42.9 59 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 60.8 27 Multiple (2) 1.20 Shareholder governance 0-10 (best) 83.5 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 5.0 Singapore 60.7 56.5 30 United States 2.02 Quality of roads 1-7 (best) 4.1 62.0 29 Singapore 2.03 Railroad density km of roads/square km 89,748.1 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 74.7 25 Switzerland 2.05 Airport connectivity score 5.4 2.06 Efficiency of air transport services 1-7 (best) 46.5 77.3 19 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 4.6 46.7 = 78 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 83.6 10 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 4.2 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 1.0 83.0 = 7 Multiple (23) 6.7 Switzerland Pillar 3: ICT adoption 0-100 (best) 63.0 = 45 3.01 Mobile-cellular telephone subscriptions /100 pop. 126.7 83.3 20 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 105.1 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 83.5 = 23 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 28.1 Korea, Rep. 3.05 Internet users % pop. 0.0 66.5 29 Pillar 4: Macroeconomic stability 0-100 (best) 79.7 100.0 = 10 4.01 Inflation annual % change - 51.1 42 Multiple (74) 4.02 Debt dynamics 0-100 (best) -0.2 Multiple (36) 100.0 60.8 44 Pillar 5: Health 0-100 (best) Multiple (4)
- 74.0 27 Multiple (4)
5.01 Healthy life expectancy years 71.4 46.5 32 Finland Pillar 6: Skills 0-100 (best) - Finland 13.0 60.0 42 Switzerland 6.01 Mean years of schooling Years Switzerland 6.02 Extent of staff training 1-7 (best) 4.8 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.6 Sweden 6.04 Skillset of graduates 1-7 (best) 5.3 99.8 12 United States 6.05 Digital skills among population 1-7 (best) 5.6 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 5.5 100.0 = 21 United States 6.07 School life expectancy Years 15.9 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 4.4 95.1 12 6.09 Pupil-to-teacher ratio in primary education Ratio 12.1 66.7 39 297 | The Global Competitiveness Report 2018 100.0 = 47
56.3 31
79.7 31
98.2 92
98.2 11
98.2 10
80.0 14
86.4 = 8
63.5 23
59.5 37
71.2 9
74.5 2
88.4 35
57.4 22
94.8 = 27 Israel Economy Profiles
20th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 61.1 41 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.8 54.8 36 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.3 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.5 47.3 51 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 3.09 Hong Kong SAR 7.05 Trade tariffs % duty 5.2 72.4 31 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.3 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 59.1 51 7.08 Services trade openness 0-100 (worst) Ecuador
- 79.4 46
Pillar 8: Labour market 0-100 (best) 27.4 United States 70.1 81 Multiple (8) 8.01 Redundancy costs weeks of salary 4.4 8.02 Hiring and firing practices 1-7 (best) 5.1 57.9 29 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.2 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.4 53.3 n/a 8.05 Active Labour policies 1-7 (best) 82.5 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.4 71.9 15 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.5 51.2 = 118 Albania 8.09 Reliance on professional management 1-7 (best) 4.7 Guinea 8.10 Pay and productivity 1-7 (best) 0.99 57.4 25 Finland 8.11 Female participation in Labour force ratio 5.9 8.12 Labour tax rate % 68.3 27 United States Pillar 9: Financial system 0-100 (best) 66.2 69.6 47 9.01 Domestic credit to private sector % GDP 4.8 57.0 32 9.02 Financing of SMEs 1-7 (best) 5.2 United States 9.03 Venture capital availability 1-7 (best) 71.3 82.5 32 Multiple (29) 9.04 Market capitalization % GDP 4.2 9.05 Insurance premium % GDP 6.1 39.2 125 United States 9.06 Soundness of banks 1-7 (best) 1.6 United States 9.07 Non-performing loans % loan portfolio value 0.8 55.9 80 9.08 Credit gap percentage points 14.4 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 75.1 19 Multiple (16) - Pillar 10: Market size 0-100 (best) 288 61.1 22 Finland 28.7 Multiple (2) 10.01 Gross domestic product PPP $ billions 98.9 6 Multiple (97) 10.02 Imports % GDP - Multiple (72) 3.2 100.0 = 22 Pillar 11: Business dynamism 0-100 (best) 12.0 China 62.6 80.1 22 China 11.01 Cost of starting a business % GNI per capita 12.5 Hong Kong SAR 11.02 Time to start a business days 6.0 69.7 45 11.03 Insolvency recovery rate cents/$ 5.3 United States 11.04 Insolvency regulatory framework 0-16 (best) 5.8 63.2 15 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 5.2 11.06 Willingness to delegate authority 1-7 (best) 70.6 2 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.2 71.3 27 Pillar 12: Innovation capability 0-100 (best) 21.36 69.8 = 31 Israel 12.01 Diversity of workforce 1-7 (best) 597.3 84.2 12 Denmark 12.02 State of cluster development 1-7 (best) 198.74 Israel 12.03 International co-inventions applications/million pop. 4.3 97.8 22 12.04 Multi-stakeholder collaboration 1-7 (best) 0.05 United States 12.05 Scientific publications H Index 4.2 100.0 = 86 12.06 Patent applications applications/million pop. 2,143.84 Germany 12.07 R&D expenditures % GDP 94.6 = 96 Canada 12.09 Buyer sophistication 1-7 (best) 59.2 57 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 109 Multiple (7) 79.6 5 Multiple (7) 98.4 50 88.4 = 74 Multiple (7)
67.4 37
83.1 1
71.6 20
80.5 1
69.2 3
74.0 16
69.3 21
58.5 31
95.4 10
74.7 3
94.7 16
97.3 10
14.7 35
53.4 26
82.5 36
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 297 299 | The Global Competitiveness Report 2018 Italy Economy Profiles
31st / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 31st/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 99
83 79
71 70 65 66
60 63 64 60 58
0
Rank /140 31st 56th 21st 52nd 58th 6th 40th 30th 79th 49th 12th 42nd 22nd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 60.6 GDP (PPP) % world GDP 1.82 GDP per capita US$ 31,984.0 Unemployment rate % 11.2 10-year average annual GDP growth % 0.9 -0.6 5-year average FDI inward flow % GDP
Social and environmental performance 4.3 Global Gender Gap Index 0-1 (gender parity) 0.7 4.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 35.4
The Global Competitiveness Report 2018 | 299 Economy Profiles 31st /140
Italy Value Score * Rank/140 Best Performer
Index Component - 56.4 56 New Zealand 3.5 Finland Pillar 1: Institutions 0-100 (best) 0.7 42.3 122 1.01 Organized crime 1-7 (best) 4.6 99.4 21 Multiple (24) 1.02 Homicide rate /100,000 pop. 53.3 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 53.8 99.3 85 Finland 1.04 Reliability of police services 1-7 (best) 4.0 Australia 1.05 Social capital 0-100 (high) 2.2 60.4 59 Multiple (2) 1.06 Budget transparency 0-100 (best) 24.1 1.07 Judicial independence 1-7 (best) 2.1 53.3 52 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.1 Finland 1.09 Freedom of the press 0-100 (worst) 0.96 53.8 = 67 Norway 1.10 Burden of government regulation 1-7 (best) 2.7 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 50.0 50.1 62 Singapore 1.12 E-Participation Index 0-1 (best) 4.4 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.6 20.0 130 Singapore 1.14 Incidence of corruption 0-100 (best) 26.5 New Zealand 1.15 Property rights 1-7 (best) 4.5 75.9 41 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 6.0 18.7 136 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 17.7 137 Multiple (2) 1.20 Shareholder governance 0-10 (best) 84.0 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.4 Singapore 55.7 27.6 125 United States 2.02 Quality of roads 1-7 (best) 3.9 50.0 47 Singapore 2.03 Railroad density km of roads/square km 616,580.8 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 55.9 71 Switzerland 2.05 Airport connectivity score 4.8 2.06 Efficiency of air transport services 1-7 (best) 62.5 59.4 46 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 4.5 88.3 = 11 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 58.2 79 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 6.0 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 1.6 57.0 = 65 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 60.0 = 56 3.01 Mobile-cellular telephone subscriptions /100 pop. 141.3 83.1 21 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 87.9 84.0 = 22 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 27.9 Korea, Rep. 3.05 Internet users % pop. 56.4 54 Pillar 4: Macroeconomic stability 0-100 (best) 61.3 100.0 = 14 4.01 Inflation annual % change - 48.3 49 Multiple (74) 4.02 Debt dynamics 0-100 (best) 0.6 Multiple (36) 70.0 97.1 11 Pillar 5: Health 0-100 (best) Multiple (4)
- 63.0 57 Multiple (4)
5.01 Healthy life expectancy years 71.8 62.5 19 Finland Pillar 6: Skills 0-100 (best) - Finland 10.2 59.0 47 Switzerland 6.01 Mean years of schooling Years Switzerland 6.02 Extent of staff training 1-7 (best) 3.6 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.4 Sweden 6.04 Skillset of graduates 1-7 (best) 4.1 97.9 30 United States 6.05 Digital skills among population 1-7 (best) 4.3 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 4.5 100.0 = 23 United States 6.07 School life expectancy Years 16.3 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 3.6 81.5 38 6.09 Pupil-to-teacher ratio in primary education Ratio 12.0 60.3 52 301 | The Global Competitiveness Report 2018 100.0 = 25
55.9 32
61.3 64
99.2 6
99.2 5
70.1 40
67.7 = 56
42.6 104
57.3 44
52.3 60
55.0 64
58.0 48
90.4 = 30
43.5 56
94.9 = 25 Italy Economy Profiles
31st /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 62.6 30 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 5.5 39.7 97 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.0 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.8 74.6 5 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 66.9 60 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.5 Germany 7.07 Efficiency of the clearance process 15 (best) 26.9 62.5 35 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 28
Pillar 8: Labour market 0-100 (best) 4.5 United States 3.0 33.7 112 Multiple (8) 8.01 Redundancy costs weeks of salary 3.9 8.02 Hiring and firing practices 1-7 (best) 3.3 61.8 23 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 2.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 97.9 73.1 = 58 8.05 Active Labour policies 1-7 (best) 4.3 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.9 58.1 79 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.7 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.1 98.9 = 12 Albania 8.09 Reliance on professional management 1-7 (best) 0.77 Guinea 8.10 Pay and productivity 1-7 (best) 23.2 33.4 125 Finland 8.12 Labour tax rate % - 47.7 114 United States 87.4 Multiple (4) Pillar 9: Financial system 0-100 (best) 38.8 135 9.01 Domestic credit to private sector % GDP 2.3 30.2 97 9.02 Financing of SMEs 1-7 (best) 26.5 United States 9.03 Venture capital availability 1-7 (best) 8.1 97.9 6 Multiple (29) 9.04 Market capitalization % GDP 3.7 9.05 Insurance premium % GDP 17.1 54.7 51 United States 9.06 Soundness of banks 1-7 (best) -9.8 United States 9.07 Non-performing loans % loan portfolio value 14.2 65.6 25 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 45.8 100 Multiple (16) 2,105 Pillar 10: Market size 0-100 (best) 35.0 127 Finland 29.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 71.1 60 Multiple (97) 10.02 Imports % GDP - Multiple (72) 13.7 78.9 100 Pillar 11: Business dynamism 0-100 (best) China 6.5 64.3 49 China 11.01 Cost of starting a business % GNI per capita 64.6 Hong Kong SAR 11.02 Time to start a business days 13.5 92.0 35 11.03 Insolvency recovery rate cents/$ United States 11.04 Insolvency regulatory framework 0-16 (best) 4.0 33.6 123 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.9 11.06 Willingness to delegate authority 1-7 (best) 3.9 21.0 118 New Zealand 11.07 Growth of innovative companies 1-7 (best) 3.2 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 26.5 = 62 Pillar 12: Innovation capability 0-100 (best) 3.1 100.0 = 9 Israel 12.01 Diversity of workforce 1-7 (best) 4.06 44.9 115 Denmark 12.02 State of cluster development 1-7 (best) 3.7 Israel 12.03 International co-inventions applications/million pop. 858.7 66.4 124 12.04 Multi-stakeholder collaboration 1-7 (best) 62.91 United States 12.05 Scientific publications H Index 1.3 100.0 = 19 12.06 Patent applications applications/million pop. 0.38 Germany 12.07 R&D expenditures % GDP 3.9 94.1 = 100 Canada 12.08 Quality of research institutions index 6,012.54 12.09 Buyer sophistication 1-7 (best) 79.1 12 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 108 Multiple (7) 65.4 42 Multiple (7) 93.2 90
69.5 34
49.6 71
48.1 104
47.8 83
36.6 104
65.8 22
34.4 137
74.5 4
49.8 29
45.4 58
76.4 22
44.5 27
90.8 9
48.2 39
93.6 19
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 301 303 | The Global Competitiveness Report 2018 Jamaica Economy Profiles
79th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 78th/135
Performance Key Previous edition Upper middle income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 79
70 70 67 68
63 61 64
60 58 56
40 36
0
Rank /140 79th 82nd 82nd 91st 97th 75th 76th 72nd 27th 50th 123rd 32nd 76th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 2.8 GDP (PPP) % world GDP 0.02 GDP per capita US$ 5,048.0 Unemployment rate % 12.5 -0.1 5-year average FDI inward flow % GDP 5.0
Social and environmental performance 1.8 Income Gini 0 (perfect equality) -100 (perfect inequality) 45.5
The Global Competitiveness Report 2018 | 303 Economy Profiles 79th /140
Jamaica Value Score * Rank/140 Best Performer
Index Component - 50.9 82 New Zealand 3.0 Finland Pillar 1: Institutions 0-100 (best) 47.0 33.5 134 1.01 Organized crime 1-7 (best) 3.7 0.0 137 Multiple (24) 1.02 Homicide rate /100,000 pop. 56.5 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 34.6 99.9 52 Finland 1.04 Reliability of police services 1-7 (best) 4.8 Australia 1.05 Social capital 0-100 (high) 3.4 44.5 103 Multiple (2) 1.06 Budget transparency 0-100 (best) 11.3 1.07 Judicial independence 1-7 (best) 3.3 56.5 31 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.6 Finland 1.09 Freedom of the press 0-100 (worst) 0.31 34.6 = 116 Norway 1.10 Burden of government regulation 1-7 (best) 3.9 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 44.0 63.6 40 Singapore 1.12 E-Participation Index 0-1 (best) 4.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.4 39.8 63 Singapore 1.14 Incidence of corruption 0-100 (best) 14.0 New Zealand 1.15 Property rights 1-7 (best) 5.3 88.7 6 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 5.3 37.8 80 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 42.9 75 Multiple (2) 1.20 Shareholder governance 0-10 (best) 37.1 Kazakhstan 31.5 123 Pillar 2: Infrastructure 0-100 (best) 3.9 Singapore n/a 47.5 58 United States 2.01 Road connectivity index 0-100 (best) 2.7 2.02 Quality of roads 1-7 (best) 32,568.7 44.0 59 Singapore 2.03 Railroad density km of roads/square km 5.2 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 30.3 58.9 57 Switzerland 2.05 Airport connectivity score 4.5 2.06 Efficiency of air transport services 1-7 (best) 99.5 56.2 59 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 27.6 Singapore 2.08 Efficiency of seaport services 1-7 (best) 20.0 46.7 = 78 Multiple (4) 2.09 Electrification rate % pop. 4.5 Singapore 2.10 Electric power transmission and distribution losses % output 72.5 31 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 107.0 57.0 = 65 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 48.9 53.0 = 76 8.3 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 1.6 63.5 82 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 44.4 37.1 = 117 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 48.4 72 3.4 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 40.0 n/a n/a 4.01 Inflation annual % change - 29.1 85 Multiple (74) 4.02 Debt dynamics 0-100 (best) 65.3 Multiple (36) Pillar 5: Health 0-100 (best) - Multiple (4) 9.5 69.4 41 Multiple (4) 5.01 Healthy life expectancy years 4.3 4.7 30.3 57 Finland Pillar 6: Skills 0-100 (best) 4.5 Finland 3.9 57.9 52 Switzerland 6.01 Mean years of schooling Years 4.5 Switzerland 6.02 Extent of staff training 1-7 (best) 12.8 99.5 76 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.7 Sweden 6.04 Skillset of graduates 1-7 (best) 25.6 75.4 121 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 81.7 94 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 58.6 82 44.4 91 305 | The Global Competitiveness Report 2018 89.1 89
16.5 78
79.2 75
60.9 76
55.2 42
62.0 29
57.6 42
48.8 79
57.9 50
71.1 = 87
44.6 50
61.0 94 Jamaica Economy Profiles
79th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 55.7 72 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.8 46.5 62 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.1 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.8 45.9 61 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.07 Hong Kong SAR 7.05 Trade tariffs % duty 5.4 68.9 56 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 63.9 33 7.08 Services trade openness 0-100 (worst) Ecuador
- 32.9 99
Pillar 8: Labour market 0-100 (best) 14.0 United States 73.1 = 76 Multiple (8) 8.01 Redundancy costs weeks of salary 4.0 8.02 Hiring and firing practices 1-7 (best) 4.4 35.4 101 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.3 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.1 82.4 n/a 8.05 Active Labour policies 1-7 (best) 84.5 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.7 67.2 27 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.9 79.2 = 57 Albania 8.09 Reliance on professional management 1-7 (best) 3.7 Guinea 8.10 Pay and productivity 1-7 (best) 0.89 49.8 55 Finland 8.11 Female participation in Labour force ratio 13.4 8.12 Labour tax rate % 57.4 58 United States Pillar 9: Financial system 0-100 (best) 30.5 71.0 40 9.01 Domestic credit to private sector % GDP 3.7 34.8 76 9.02 Financing of SMEs 1-7 (best) 2.4 United States 9.03 Venture capital availability 1-7 (best) 34.7 84.5 28 Multiple (29) 9.04 Market capitalization % GDP 4.2 9.05 Insurance premium % GDP 5.7 61.0 25 United States 9.06 Soundness of banks 1-7 (best) 4.1 United States 9.07 Non-performing loans % loan portfolio value -0.1 60.1 60 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 65.3 32 Multiple (16) - Pillar 10: Market size 0-100 (best) 24 44.9 83 Finland 55.1 Multiple (2) 10.01 Gross domestic product PPP $ billions 85.8 33 Multiple (97) 10.02 Imports % GDP - Multiple (72) 4.8 92.5 = 53 Pillar 11: Business dynamism 0-100 (best) 3.0 China 64.9 64.0 50 China 11.01 Cost of starting a business % GNI per capita 11.0 Hong Kong SAR 11.02 Time to start a business days 4.5 32.1 100 11.03 Insolvency recovery rate cents/$ 4.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.0 44.7 83 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.4 11.06 Willingness to delegate authority 1-7 (best) 23.9 106 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.0 34.7 = 53 Pillar 12: Innovation capability 0-100 (best) 0.10 70.5 = 30 Israel 12.01 Diversity of workforce 1-7 (best) 85.3 77.6 29 Denmark 12.02 State of cluster development 1-7 (best) 0.46 Israel 12.03 International co-inventions applications/million pop. 0.0 92.7 = 64 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 3.4 100.0 = 72 12.06 Patent applications applications/million pop. 463.40 Germany 12.07 R&D expenditures % GDP 100.0 = n/a Canada 12.09 Buyer sophistication 1-7 (best) 36.1 123 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 122 n/a 45 Multiple (7) 68.5 32 Multiple (7) 97.5 7 Multiple (7)
69.9 32
59.0 25
65.8 29
50.2 63
39.2 86
34.3 76
66.0 27
48.2 57
2.9 83
46.1 54
6.9 75
0.7 = 118
39.6 71
66.1 72
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 305 307 | The Global Competitiveness Report 2018 Japan Economy Profiles
5th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 8th/135
Performance Overview 2018 Key Previous edition High income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 100
91 94
90 87 86 87
82 74 76 79
80 73 71
0
Rank /140 5th 20th 5th 3rd 41st 1st 26th 5th 18th 10th 4th 14th 6th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 126.8 GDP (PPP) % world GDP 4.27 GDP per capita US$ 38,439.5 Unemployment rate % 2.8 10-year average annual GDP growth % 0.1 0.5 5-year average FDI inward flow % GDP
Social and environmental performance 4.7 Global Gender Gap Index 0-1 (gender parity) 0.7 4.5 Income Gini 0 (perfect equality) -100 (perfect inequality) 32.1
The Global Competitiveness Report 2018 | 307 Economy Profiles 5th /140
Japan Value Score * Rank/140 Best Performer
Index Component - 71.1 20 New Zealand Pillar 1: Institutions 0-100 (best) 0.3 77.8 20 99.6 Multiple (9) 1.01 Organized crime 1-7 (best) 6.2 100.0 = 1 Multiple (24) 1.02 Homicide rate /100,000 pop. 47.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 53.8 99.6 83 Finland 1.04 Reliability of police services 1-7 (best) 6.1 Australia 1.05 Social capital 0-100 (high) 4.6 86.1 9 Multiple (2) 1.06 Budget transparency 0-100 (best) 28.6 1.07 Judicial independence 1-7 (best) 4.0 47.8 95 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.98 53.8 = 67 Norway 1.10 Burden of government regulation 1-7 (best) 4.6 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 73.0 84.7 10 Singapore 1.12 E-Participation Index 0-1 (best) 6.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.9 60.8 16 Singapore 1.14 Incidence of corruption 0-100 (best) 24.5 New Zealand 1.15 Property rights 1-7 (best) 5.8 71.4 54 Finland 1.16 Intellectual property protection 1-7 (best) 7.0 Finland 1.17 Quality of land administration 0-30 (best) 4.7 50.4 32 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 72.5 8 Multiple (2) 1.20 Shareholder governance 0-10 (best) 70.0 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 6.0 Singapore 40.0 60.8 22 United States 2.02 Quality of roads 1-7 (best) 6.6 73.0 20 Singapore 2.03 Railroad density km of roads/square km 1,610,558.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 83.8 9 Switzerland 2.05 Airport connectivity score 6.1 2.06 Efficiency of air transport services 1-7 (best) 66.4 81.3 11 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 5.6 81.7 = 21 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 80.5 16 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 4.1 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 2.3 70.0 = 23 Multiple (23) 6.6 Switzerland Pillar 3: ICT adoption 0-100 (best) 47.0 = 90 3.01 Mobile-cellular telephone subscriptions /100 pop. 133.5 91.5 5 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 133.2 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 70.0 = 57 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 31.7 Korea, Rep. 3.05 Internet users % pop. 23.0 83.7 6 93.2 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 99.9 = 21 4.01 Inflation annual % change 0.2 94.1 2 Multiple (74) 4.02 Debt dynamics 0-100 (best) 88.6 Multiple (36) Pillar 5: Health 0-100 (best) - Multiple (4) 73.2 85.0 6 Multiple (4)
- 66.4 17 Finland
Pillar 6: Skills 0-100 (best) 12.8 Finland 77.3 8 Switzerland 6.01 Mean years of schooling Years 5.2 Switzerland 6.02 Extent of staff training 1-7 (best) 5.0 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.5 Sweden 6.04 Skillset of graduates 1-7 (best) 4.6 99.9 10 United States 6.05 Digital skills among population 1-7 (best) 4.6 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 15.2 99.7 27 United States 6.07 School life expectancy Years 3.3 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 16.2 93.9 17 87.4 3 309 | The Global Competitiveness Report 2018 100.0 = 34
63.4 22
93.2 8
93.9 41
99.1 79
88.6 41
73.7 26
85.3 = 12
67.2 16
58.6 40
59.8 49
60.0 43
84.6 = 48
39.0 70
84.6 = 50 Japan Economy Profiles
5th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 72.9 5 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 5.9 63.7 12 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.7 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.9 81.6 2 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 2.05 Hong Kong SAR 7.05 Trade tariffs % duty 4.2 79.1 5 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 4.0 Germany 7.07 Efficiency of the clearance process 15 (best) 23.4 64.3 29 7.08 Services trade openness 0-100 (worst) Ecuador
- 86.4 39
Pillar 8: Labour market 0-100 (best) 4.3 United States 3.5 52.5 105 Multiple (8) 8.01 Redundancy costs weeks of salary 5.7 8.02 Hiring and firing practices 1-7 (best) 5.7 74.8 3 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 89.7 76.6 = 48 8.05 Active Labour policies 1-7 (best) 4.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.4 71.1 18 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.5 99.4 = 9 Albania 8.09 Reliance on professional management 1-7 (best) 0.75 Guinea 8.10 Pay and productivity 1-7 (best) 18.5 41.9 99 Finland 8.12 Labour tax rate % - 79.1 5 United States 162.2 Multiple (4) Pillar 9: Financial system 0-100 (best) 78.8 11 4.8 Multiple (26) 9.01 Domestic credit to private sector % GDP 4.1 61.5 23 9.02 Financing of SMEs 1-7 (best) 100.6 United States 9.03 Venture capital availability 1-7 (best) 8.9 89.7 18 Multiple (29) 9.04 Market capitalization % GDP 5.8 9.05 Insurance premium % GDP 1.4 50.5 77 United States 9.06 Soundness of banks 1-7 (best) 6.5 United States 9.07 Non-performing loans % loan portfolio value 15.5 56.6 77 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 76.8 16 Multiple (16) 4,945 Pillar 10: Market size 0-100 (best) 58.8 33 Finland 17.7 Multiple (2) 10.01 Gross domestic product PPP $ billions 68.7 64 Multiple (97) 10.02 Imports % GDP - Multiple (72) 7.5 85.4 82 Pillar 11: Business dynamism 0-100 (best) 12.2 China 92.4 86.4 10 China 11.01 Cost of starting a business % GNI per capita 14.0 Hong Kong SAR 11.02 Time to start a business days 4.2 100.0 = 7 11.03 Insolvency recovery rate cents/$ 5.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 5.0 63.4 14 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.9 11.06 Willingness to delegate authority 1-7 (best) 51.5 17 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.3 100.0 12 Pillar 12: Innovation capability 0-100 (best) 5.39 100.0 = 7 Israel 12.01 Diversity of workforce 1-7 (best) 887.3 79.7 20 Denmark 12.02 State of cluster development 1-7 (best) 496.46 Israel 12.03 International co-inventions applications/million pop. 3.3 98.2 18 12.04 Multi-stakeholder collaboration 1-7 (best) 0.52 United States 12.05 Scientific publications H Index 4.9 88.3 122 12.06 Patent applications applications/million pop. 1,814.71 Germany 12.07 R&D expenditures % GDP 96.9 = 79 Canada 12.09 Buyer sophistication 1-7 (best) 86.7 4 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 133 Multiple (7) 75.7 14 Multiple (7) 96.3 = 72 88.2 = 76 Multiple (7)
99.5 2
53.6 47
66.7 25
66.3 13
47.8 38
79.3 6
54.6 81
56.9 24
62.6 18
65.7 7
80.7 40
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 309 311 | The Global Competitiveness Report 2018 Jordan Economy Profiles
73rd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 71st/135
Performance Key Previous edition Upper middle income group average Middle East and North Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 78
70 67 70 71 59 60 58 56
52 54 54
40 39
0
Rank /140 73rd 50th 73rd 75th 101st 78th 61st 88th 91st 32nd 81st 94th 59th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 7.1 GDP (PPP) % world GDP 0.07 GDP per capita US$ 5,677.6 Unemployment rate % 14.9 3.2 5-year average FDI inward flow % GDP 4.9
Social and environmental performance 2.1 Global Gender Gap Index 0-1 (gender parity) 0.6 3.4 Income Gini 0 (perfect equality) -100 (perfect inequality) 33.7
The Global Competitiveness Report 2018 | 311 Economy Profiles 73rd /140
Jordan Value Score * Rank/140 Best Performer
Index Component - 57.7 50 New Zealand Pillar 1: Institutions 0-100 (best) 1.5 69.4 48 98.8 Multiple (9) 1.01 Organized crime 1-7 (best) 5.8 96.4 50 Multiple (24) 1.02 Homicide rate /100,000 pop. 49.7 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 50.0 98.8 95 Finland 1.04 Reliability of police services 1-7 (best) 4.9 Australia 1.05 Social capital 0-100 (high) 3.9 80.6 20 Multiple (2) 1.06 Budget transparency 0-100 (best) 41.7 1.07 Judicial independence 1-7 (best) 3.6 49.7 75 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.4 Finland 1.09 Freedom of the press 0-100 (worst) 0.48 50.0 = 77 Norway 1.10 Burden of government regulation 1-7 (best) 3.9 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 48.0 65.8 35 Singapore 1.12 E-Participation Index 0-1 (best) 4.8 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.6 47.7 42 Singapore 1.14 Incidence of corruption 0-100 (best) 22.5 New Zealand 1.15 Property rights 1-7 (best) 5.0 58.3 108 Finland 1.16 Intellectual property protection 1-7 (best) 3.3 Finland 1.17 Quality of land administration 0-30 (best) 4.7 42.9 60 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 56.3 37 Multiple (2) 1.20 Shareholder governance 0-10 (best) 71.6 Kazakhstan 48.3 104 Pillar 2: Infrastructure 0-100 (best) 3.9 Singapore 5.7 49.1 51 United States 2.01 Road connectivity index 0-100 (best) 2.4 2.02 Quality of roads 1-7 (best) 46,927.5 48.0 = 52 Singapore 2.03 Railroad density km of roads/square km 5.2 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 29.7 64.0 42 Switzerland 2.05 Airport connectivity score 4.2 2.06 Efficiency of air transport services 1-7 (best) 100.0 60.7 42 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 11.2 Singapore 2.08 Efficiency of seaport services 1-7 (best) 9.5 75.0 = 31 Multiple (4) 2.09 Electrification rate % pop. 5.0 Singapore 2.10 Electric power transmission and distribution losses % output 66.1 49 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 103.8 33.0 = 131 Multiple (23) 103.8 Switzerland Pillar 3: ICT adoption 0-100 (best) 47.0 = 90 4.8 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.1 66.6 73 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 62.3 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 71.6 = 53 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 1.3 48.9 70 39.8 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 14.2 = 65 4.01 Inflation annual % change 65.1 24.1 99 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 51.0 65
Pillar 5: Health 0-100 (best) 10.3 Multiple (4) 69.5 40 Multiple (4) 5.01 Healthy life expectancy years 4.1 4.1 29.7 58 Finland Pillar 6: Skills 0-100 (best) 3.9 Finland 4.7 53.8 64 Switzerland 6.01 Mean years of schooling Years 4.5 Switzerland 6.02 Extent of staff training 1-7 (best) 13.1 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.7 Sweden 6.04 Skillset of graduates 1-7 (best) 18.4 92.5 72 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 92.3 62 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 66.3 62 52.3 75 313 | The Global Competitiveness Report 2018 86.5 = 96
9.7 = 89
62.3 63
69.9 101
39.8 122
78.4 77
64.4 61
68.7 = 52
51.6 60
51.0 69
48.7 76
62.1 40
58.5 47
72.8 = 82
44.6 49
79.1 69 Jordan Economy Profiles
73rd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 53.8 88 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.1 43.1 76 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.3 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.1 51.1 44 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 7.29 Hong Kong SAR 7.05 Trade tariffs % duty 4.8 71.5 36 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.5 Germany 7.07 Efficiency of the clearance process 15 (best) 42.3 51.6 102 7.08 Services trade openness 0-100 (worst) Ecuador
- 51.4 88
Pillar 8: Labour market 0-100 (best) 4.3 United States 4.2 63.9 95 Multiple (8) 8.01 Redundancy costs weeks of salary 4.7 8.02 Hiring and firing practices 1-7 (best) 5.2 37.3 89 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 3.1 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 74.2 57.7 = 79 8.05 Active Labour policies 1-7 (best) 3.5 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.8 55.6 91 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.0 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.2 99.3 = 11 Albania 8.09 Reliance on professional management 1-7 (best) 0.22 Guinea 8.10 Pay and productivity 1-7 (best) 15.5 53.2 40 Finland 8.12 Labour tax rate % - 62.3 39 United States 71.9 Multiple (4) Pillar 9: Financial system 0-100 (best) 70.6 43 4.5 Multiple (26) 9.01 Domestic credit to private sector % GDP 3.7 35.6 72 9.02 Financing of SMEs 1-7 (best) 67.6 United States 9.03 Venture capital availability 1-7 (best) 1.5 74.2 52 Multiple (29) 9.04 Market capitalization % GDP 5.4 9.05 Insurance premium % GDP 4.4 41.0 118 United States 9.06 Soundness of banks 1-7 (best) 2.1 United States 9.07 Non-performing loans % loan portfolio value 18.6 62.6 47 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 49.3 86 Multiple (16) Pillar 10: Market size 0-100 (best) 60.8 53.7 51 Finland 10.01 Gross domestic product PPP $ billions - 2.6 133 Multiple (97) 10.02 Imports % GDP 24.2 Multiple (72) 12.5 89.6 66 Pillar 11: Business dynamism 0-100 (best) 27.7 China 70.7 32 China 11.01 Cost of starting a business % GNI per capita 5.0 Hong Kong SAR 11.02 Time to start a business days 3.7 75.6 40 11.03 Insolvency recovery rate cents/$ 4.2 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.3 58.0 29 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.7 11.06 Willingness to delegate authority 1-7 (best) 44.3 32 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.7 67.6 28 Pillar 12: Innovation capability 0-100 (best) 0.30 25.2 = 78 Israel 12.01 Diversity of workforce 1-7 (best) 134.0 74.0 43 Denmark 12.02 State of cluster development 1-7 (best) 1.05 Israel 12.03 International co-inventions applications/million pop. 0.4 92.1 66 12.04 Multi-stakeholder collaboration 1-7 (best) 0.01 United States 12.05 Scientific publications H Index 3.5 99.6 100 12.06 Patent applications applications/million pop. 695.04 Germany 12.07 R&D expenditures % GDP 100.0 = 32 Canada 12.09 Buyer sophistication 1-7 (best) 48.7 81 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 33 Multiple (7) 54.4 94 Multiple (7) 87.9 110 87.9 = 77 Multiple (7)
29.8 100
52.8 78
55.3 43
44.8 51
38.9 59
61.1 49
57.7 32
8.0 63
46.2 53
72.6 78
13.1 65
14.5 = 71
2.6 63
42.4 60
70.4 57
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 313 315 | The Global Competitiveness Report 2018 Kazakhstan Economy Profiles
59th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 59th/135
Performance Overview 2018 Key Previous edition Upper middle income group average Eurasia average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 80
70 67 71 67 66 66
62 65 63
60 57
0
Rank /140 59th 61st 69th 44th 62nd 97th 57th 57th 30th 100th 45th 37th 87th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 18.2 GDP (PPP) % world GDP 0.38 GDP per capita US$ 8,840.9 Unemployment rate % 4.9 10-year average annual GDP growth % 4.3
Social and environmental performance 5.8 Global Gender Gap Index 0-1 (gender parity) 0.7 4.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 26.9
The Global Competitiveness Report 2018 | 315 Economy Profiles 59th /140
Kazakhstan Value Score * Rank/140 Best Performer
Index Component - 54.9 61 New Zealand Pillar 1: Institutions 0-100 (best) 4.8 67.7 58 1.01 Organized crime 1-7 (best) 4.1 85.4 = 87 Multiple (24) 1.02 Homicide rate /100,000 pop. 49.2 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 46.2 99.8 75 Finland 1.04 Reliability of police services 1-7 (best) 3.7 Australia 1.05 Social capital 0-100 (high) 3.4 52.3 84 Multiple (2) 1.06 Budget transparency 0-100 (best) 54.4 1.07 Judicial independence 1-7 (best) 3.7 49.2 81 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.84 46.2 = 90 Norway 1.10 Burden of government regulation 1-7 (best) 4.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 31.0 45.8 73 Singapore 1.12 E-Participation Index 0-1 (best) 4.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.0 39.5 65 Singapore 1.14 Incidence of corruption 0-100 (best) 17.0 New Zealand 1.15 Property rights 1-7 (best) 4.1 45.6 130 Finland 1.16 Intellectual property protection 1-7 (best) 8.0 Finland 1.17 Quality of land administration 0-30 (best) 9.0 45.3 48 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 45.0 70 Multiple (2) 1.20 Shareholder governance 0-10 (best) 69.0 Kazakhstan 83.7 41 Pillar 2: Infrastructure 0-100 (best) 3.2 Singapore 5.7 52.1 39 United States 2.01 Road connectivity index 0-100 (best) 4.3 2.02 Quality of roads 1-7 (best) 33,808.6 31.0 102 Singapore 2.03 Railroad density km of roads/square km 4.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 51.9 83 Switzerland 2.05 Airport connectivity score 3.5 2.06 Efficiency of air transport services 1-7 (best) 100.0 49.9 74 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 4.9 Singapore 2.08 Efficiency of seaport services 1-7 (best) 8.8 56.7 60 Multiple (4) 2.09 Electrification rate % pop. 4.7 Singapore 2.10 Electric power transmission and distribution losses % output 52.4 100 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 145.4 80.0 11 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 75.1 90.0 1 14.1 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 67.3 69 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 6.7 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 74.6 69.0 = 59 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 37.1 106 11.0 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 80.0 14.2 = 64 4.01 Inflation annual % change - 55.5 34 Multiple (74) 4.02 Debt dynamics 0-100 (best) 62.7 Multiple (36) 46.4 72 Pillar 5: Health 0-100 (best) - Multiple (4) 11.0 55.9 82 Multiple (4) 5.01 Healthy life expectancy years 3.8 3.7 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.7 Finland 4.6 41.1 92 Switzerland 6.01 Mean years of schooling Years 3.9 Switzerland 6.02 Extent of staff training 1-7 (best) 15.0 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.7 Sweden 6.04 Skillset of graduates 1-7 (best) 18.6 99.1 19 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 93.0 = 56 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 61.0 73 64.9 44 317 | The Global Competitiveness Report 2018 100.0 = 21
28.3 61
74.6 45
80.3 62
80.6 124
70.8 97
70.8 96
67.0 57
46.4 76
45.8 92
45.4 93
60.8 47
48.3 87
83.5 53
45.3 45
78.6 73 Kazakhstan Economy Profiles
59th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 57.3 57 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.6 52.8 41 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.8 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.5 42.5 84 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 4.43 Hong Kong SAR 7.05 Trade tariffs % duty 4.3 63.2 81 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.7 Germany 7.07 Efficiency of the clearance process 15 (best) 17.0 58.9 52 7.08 Services trade openness 0-100 (worst) Ecuador
- 70.5 56
Pillar 8: Labour market 0-100 (best) 8.7 United States 4.0 54.7 103 Multiple (8) 8.01 Redundancy costs weeks of salary 4.4 8.02 Hiring and firing practices 1-7 (best) 4.8 41.6 64 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.0 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 61.9 83.0 = 24 8.05 Active Labour policies 1-7 (best) 4.2 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.6 65.8 30 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.7 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.3 90.3 = 20 Albania 8.09 Reliance on professional management 1-7 (best) 0.90 Guinea 8.10 Pay and productivity 1-7 (best) 11.2 49.7 56 Finland 8.12 Labour tax rate % - 56.1 67 United States 34.8 Multiple (4) Pillar 9: Financial system 0-100 (best) 63.9 77 3.6 Multiple (26) 9.01 Domestic credit to private sector % GDP 2.7 50.2 43 9.02 Financing of SMEs 1-7 (best) 19.5 United States 9.03 Venture capital availability 1-7 (best) 0.7 61.9 97 Multiple (29) 9.04 Market capitalization % GDP 3.6 9.05 Insurance premium % GDP 6.7 54.1 55 United States 9.06 Soundness of banks 1-7 (best) -8.1 United States 9.07 Non-performing loans % loan portfolio value 17.2 60.7 54 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 45.3 102 Multiple (16) 435 Pillar 10: Market size 0-100 (best) 24.9 54.2 49 Finland 10.01 Gross domestic product PPP $ billions - 87.7 27 Multiple (97) 10.02 Imports % GDP 0.3 Multiple (72) 9.0 95.6 = 36 Pillar 11: Business dynamism 0-100 (best) 38.3 China 15.0 52.2 100 China 11.01 Cost of starting a business % GNI per capita 4.8 Hong Kong SAR 11.02 Time to start a business days 4.2 36.6 91 11.03 Insolvency recovery rate cents/$ 3.6 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.6 43.3 93 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 28.3 90 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.7 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.1 19.5 82 0.09 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 3.7 10.9 = 111 Israel 77.0 12.01 Diversity of workforce 1-7 (best) 0.39 43.8 120 Denmark 12.02 State of cluster development 1-7 (best) 0.2 Israel 12.03 International co-inventions applications/million pop. 0.00 87.4 82 12.04 Multi-stakeholder collaboration 1-7 (best) 3.7 United States 12.05 Scientific publications H Index 183.00 100.0 = 24 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 100.0 = 49 Canada 12.09 Buyer sophistication 1-7 (best) 63.0 45 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 117 Multiple (7) 66.0 37 Multiple (7) 91.5 = 55 Multiple (7)
41.2 64
62.6 16
53.5 73
43.1 103
42.8 63
32.1 87
61.0 50
2.6 85
45.2 60
64.5 110
6.1 77
5.6 94
0.8 84
44.7 53
56.1 94
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 317 319 | The Global Competitiveness Report 2018 Kenya Economy Profiles
93rd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 93rd/135
Performance Overview Key Previous edition Lower middle income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 70
60 55 55 58 55 55 60 58 60
54 52
40 37
30 30
0
Rank /140 93rd 64th 105th 113rd 104th 110th 95th 79th 60th 73rd 71st 63rd 69th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 46.7 GDP (PPP) % world GDP 0.13 GDP per capita US$ 1,701.6 Unemployment rate % 11.5 10-year average annual GDP growth % 1.4 4.9 5-year average FDI inward flow % GDP
Social and environmental performance 1.0 Income Gini 0 (perfect equality) -100 (perfect inequality) 40.8
The Global Competitiveness Report 2018 | 319 Economy Profiles 93rd /140
Kenya Value Score * Rank/140 Best Performer
Index Component - 54.6 64 New Zealand Pillar 1: Institutions 0-100 (best) 4.9 48.1 114 87.0 Multiple (9) 1.01 Organized crime 1-7 (best) 4.2 85.2 89 Multiple (24) 1.02 Homicide rate /100,000 pop. 61.6 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 50.0 87.0 125 Finland 1.04 Reliability of police services 1-7 (best) 4.3 Australia 1.05 Social capital 0-100 (high) 3.7 52.9 81 Multiple (2) 1.06 Budget transparency 0-100 (best) 30.8 1.07 Judicial independence 1-7 (best) 4.1 61.6 14 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.1 Finland 1.09 Freedom of the press 0-100 (worst) 0.53 50.0 = 77 Norway 1.10 Burden of government regulation 1-7 (best) 4.5 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 28.0 55.6 51 Singapore 1.12 E-Participation Index 0-1 (best) 4.7 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.4 45.5 47 Singapore 1.14 Incidence of corruption 0-100 (best) 16.0 New Zealand 1.15 Property rights 1-7 (best) 4.6 69.2 77 Finland 1.16 Intellectual property protection 1-7 (best) 6.7 Finland 1.17 Quality of land administration 0-30 (best) 5.0 50.9 28 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 52.2 44 Multiple (2) 1.20 Shareholder governance 0-10 (best) 57.6 Kazakhstan 53.4 100 Pillar 2: Infrastructure 0-100 (best) 4.2 Singapore 6.6 57.6 28 United States 2.01 Road connectivity index 0-100 (best) 3.7 2.02 Quality of roads 1-7 (best) 28,294.2 28.0 120 Singapore 2.03 Railroad density km of roads/square km 5.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 14.9 61.0 50 Switzerland 2.05 Airport connectivity score 4.3 2.06 Efficiency of air transport services 1-7 (best) 64.5 56.4 58 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 19.7 Singapore 2.08 Efficiency of seaport services 1-7 (best) 35.0 53.3 = 67 Multiple (4) 2.09 Electrification rate % pop. 3.8 Singapore 2.10 Electric power transmission and distribution losses % output 59.3 74 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 86.1 67.0 = 32 Multiple (23) 35.7 Switzerland Pillar 3: ICT adoption 0-100 (best) 50.0 = 81 0.6 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.1 54.8 105 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 16.6 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 57.6 = 80 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 7.2 53.6 61 47.8 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 16.4 = 63 4.01 Inflation annual % change 58.6 44.4 54 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 44.1 74
Pillar 5: Health 0-100 (best) 8.4 Multiple (4) 4.3 66.8 47 Multiple (4) 5.01 Healthy life expectancy years 4.2 4.2 14.9 72 Finland Pillar 6: Skills 0-100 (best) 4.7 Finland 4.9 55.5 58 Switzerland 6.01 Mean years of schooling Years 11.1 Switzerland 6.02 Extent of staff training 1-7 (best) 3.7 64.5 110 Switzerland 6.03 Quality of vocational training 1-7 (best) 30.7 Sweden 6.04 Skillset of graduates 1-7 (best) 83.7 115 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 66.4 115 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 46.9 108 30.2 113 321 | The Global Competitiveness Report 2018 71.8 113
1.2 114
n/a 91
16.6 = 125
69.5 104
91.2 114
47.8 97
58.1 110
58.1 109
55.4 95
56.0 = 87
54.7 46
53.1 57
53.3 56
61.3 43
64.7 21
61.7 = 113
45.0 47
48.4 = 110 Kenya Economy Profiles
93rd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 54.8 79 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.7 46.0 67 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 45.6 64 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 11.13 Hong Kong SAR 7.05 Trade tariffs % duty 6.2 69.9 48 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.7 Germany 7.07 Efficiency of the clearance process 15 (best) 29.5 54.1 85 7.08 Services trade openness 0-100 (worst) Ecuador
- 25.8 116
Pillar 8: Labour market 0-100 (best) 6.5 United States 4.4 86.7 58 Multiple (8) 8.01 Redundancy costs weeks of salary 4.3 8.02 Hiring and firing practices 1-7 (best) 4.8 41.3 66 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 3.1 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 64.9 70.5 = 66 8.05 Active Labour policies 1-7 (best) 4.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 5.1 59.9 60 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.5 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.5 94.8 = 15 Albania 8.09 Reliance on professional management 1-7 (best) 0.35 Guinea 8.10 Pay and productivity 1-7 (best) 1.9 56.0 31 Finland 8.12 Labour tax rate % - 55.6 72 United States 33.8 Multiple (4) Pillar 9: Financial system 0-100 (best) 62.7 84 4.0 Multiple (26) 9.01 Domestic credit to private sector % GDP 3.0 35.8 71 9.02 Financing of SMEs 1-7 (best) 28.3 United States 9.03 Venture capital availability 1-7 (best) 2.3 64.9 91 Multiple (29) 9.04 Market capitalization % GDP 4.4 9.05 Insurance premium % GDP 11.7 51.3 70 United States 9.06 Soundness of banks 1-7 (best) -0.1 United States 9.07 Non-performing loans % loan portfolio value 21.3 68.1 16 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 58.6 50 Multiple (16) 149 Pillar 10: Market size 0-100 (best) 24.8 57.6 39 Finland 10.01 Gross domestic product PPP $ billions - 18.6 118 Multiple (97) 10.02 Imports % GDP 26.3 Multiple (72) 25.0 100.0 = 8 Pillar 11: Business dynamism 0-100 (best) 27.9 China 57.8 73 China 11.01 Cost of starting a business % GNI per capita 9.0 Hong Kong SAR 11.02 Time to start a business days 4.7 35.6 95 11.03 Insolvency recovery rate cents/$ 4.7 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.7 50.7 44 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) 33.0 64 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.5 28.3 = 59 Pillar 12: Innovation capability 0-100 (best) 0.04 38.4 = 51 Israel 12.01 Diversity of workforce 1-7 (best) 206.0 56.5 93 Denmark 12.02 State of cluster development 1-7 (best) 0.16 Israel 12.03 International co-inventions applications/million pop. 0.8 77.5 110 12.04 Multi-stakeholder collaboration 1-7 (best) 0.01 United States 12.05 Scientific publications H Index 3.2 100.0 73 12.06 Patent applications applications/million pop. 87.52 Germany 12.07 R&D expenditures % GDP 100.0 = 15 Canada 12.09 Buyer sophistication 1-7 (best) 52.2 71 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 118 Multiple (7) 60.2 63 Multiple (7) 86.9 112 75.4 111 Multiple (7)
62.1 18
60.9 42
47.8 37
36.5 69
59.1 56
55.4 35
1.3 96
54.4 33
79.0 52
2.7 94
26.2 = 46
2.3 66
36.5 85
48.2 106
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 321 323 | The Global Competitiveness Report 2018 Korea, Rep. Economy Profiles
15th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 17th/135
Performance Overview 2018 Key Previous edition High income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
91 91
80 79 81 79 78
74 72
70 62
0
Rank /140 15th 27th 6th 1st 1st 19th 27th 67th 48th 19th 14th 22nd 8th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 51.5 GDP (PPP) % world GDP 1.60 GDP per capita US$ 29,891.3 Unemployment rate % 3.7 10-year average annual GDP growth % 0.8
Social and environmental performance 5.8 Global Gender Gap Index 0-1 (gender parity) 0.7 5.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 31.6
The Global Competitiveness Report 2018 | 323 Economy Profiles 15th /140
Korea, Rep. Value Score * Rank/140 Best Performer
Index Component - 65.4 27 New Zealand Pillar 1: Institutions 0-100 (best) 0.7 71.6 40 1.01 Organized crime 1-7 (best) 5.5 99.3 22 Multiple (24) 1.02 Homicide rate /100,000 pop. 48.4 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 100.0 100.0 44 Finland 1.04 Reliability of police services 1-7 (best) 4.0 Australia 1.05 Social capital 0-100 (high) 3.5 74.6 35 Multiple (2) 1.06 Budget transparency 0-100 (best) 23.5 1.07 Judicial independence 1-7 (best) 3.3 48.4 89 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.0 Finland 1.09 Freedom of the press 0-100 (worst) 1.00 100.0 = 1 Norway 1.10 Burden of government regulation 1-7 (best) 4.0 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 54.0 49.9 63 Singapore 1.12 E-Participation Index 0-1 (best) 5.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.6 41.3 57 Singapore 1.14 Incidence of corruption 0-100 (best) 27.5 New Zealand 1.15 Property rights 1-7 (best) 4.9 76.5 38 Finland 1.16 Intellectual property protection 1-7 (best) 7.0 Finland 1.17 Quality of land administration 0-30 (best) 7.3 37.9 79 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 50.7 50 Multiple (2) 1.20 Shareholder governance 0-10 (best) n/a Kazakhstan 5.7 100.0 1 Pillar 2: Infrastructure 0-100 (best) 40.6 Singapore 5.9 50.2 49 United States 2.01 Road connectivity index 0-100 (best) 481,087.8 2.02 Quality of roads 1-7 (best) 5.8 54.0 45 Singapore 2.03 Railroad density km of roads/square km 109.9 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 5.4 68.5 35 Switzerland 2.05 Airport connectivity score 100.0 2.06 Efficiency of air transport services 1-7 (best) 3.3 59.3 47 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 2.3 Singapore 2.08 Efficiency of seaport services 1-7 (best) 6.3 91.7 = 6 Multiple (4) 2.09 Electrification rate % pop. Singapore 2.10 Electric power transmission and distribution losses % output - 65.6 50 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 124.9 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 112.8 70.0 = 23 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 41.6 73.0 = 15 30.0 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 92.8 91.3 6 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. - n/a n/a Switzerland 3.04 Fibre Internet subscriptions /100 pop. 1.5 Korea, Rep. 3.05 Internet users % pop. 100.0 78.8 12 Pillar 4: Macroeconomic stability 0-100 (best) - 100.0 = 20 70.8 Multiple (31) 4.01 Inflation annual % change 81.4 4 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 12.3 91.7 16 Pillar 5: Health 0-100 (best) Multiple (4) 4.5 80.6 9 Multiple (4) 5.01 Healthy life expectancy years 4.6 4.4 100.0 = 3 Finland Pillar 6: Skills 0-100 (best) 5.0 Finland 4.8 72.8 14 Switzerland 6.01 Mean years of schooling Years 16.5 Switzerland 6.02 Extent of staff training 1-7 (best) 3.1 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 16.6 Sweden 6.04 Skillset of graduates 1-7 (best) 100.0 = 8 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 99.7 = 26 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 88.9 23 91.3 1 325 | The Global Competitiveness Report 2018 100.0 = 52
83.2 6
92.8 9
96.1 19
96.1 18
73.6 27
58.1 36
60.7 32
57.2 43
66.3 29
63.3 27
91.7 = 21
35.5 90
83.6 = 53 Korea, Rep. Economy Profiles
15th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 56.2 67 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.5 46.9 59 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.4 41.3 93 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 9.04 Hong Kong SAR 7.05 Trade tariffs % duty 4.9 69.5 51 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.4 Germany 7.07 Efficiency of the clearance process 15 (best) 23.1 56.7 66 7.08 Services trade openness 0-100 (worst) Ecuador
- 39.7 96
Pillar 8: Labour market 0-100 (best) 27.4 United States 65.4 85 Multiple (8) 8.01 Redundancy costs weeks of salary 3.7 8.02 Hiring and firing practices 1-7 (best) 3.6 60.1 25 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.0 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.5 76.9 = 47 8.05 Active Labour policies 1-7 (best) 58.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.7 62.4 48 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.4 51.3 = 114 Albania 8.09 Reliance on professional management 1-7 (best) 4.8 Guinea 8.10 Pay and productivity 1-7 (best) 0.81 44.2 87 Finland 8.11 Female participation in Labour force ratio 13.5 8.12 Labour tax rate % 43.5 124 United States Pillar 9: Financial system 0-100 (best) 140.6 66.1 63 9.01 Domestic credit to private sector % GDP 4.0 58.0 30 9.02 Financing of SMEs 1-7 (best) 3.2 United States 9.03 Venture capital availability 1-7 (best) 88.0 58.8 108 Multiple (29) 9.04 Market capitalization % GDP 11.3 9.05 Insurance premium % GDP 4.8 45.2 104 United States 9.06 Soundness of banks 1-7 (best) 0.5 United States 9.07 Non-performing loans % loan portfolio value -5.2 56.7 75 9.08 Credit gap percentage points 14.3 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 55.9 61 Multiple (16) - Pillar 10: Market size 0-100 (best) 1,848 63.4 16 Finland 10.01 Gross domestic product PPP $ billions 38.9 75.7 53 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 92.4 56
Pillar 11: Business dynamism 0-100 (best) 14.6 China 81.4 19 China 11.01 Cost of starting a business % GNI per capita 4.0 Hong Kong SAR 11.02 Time to start a business days 84.7 100.0 = 13 11.03 Insolvency recovery rate cents/$ 14.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 49.7 45 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.9 11.06 Willingness to delegate authority 1-7 (best) 4.1 36.0 53 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.5 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.9 88.0 19 Pillar 12: Innovation capability 0-100 (best) - 100.0 = 4 Israel 12.01 Diversity of workforce 1-7 (best) 4.6 64.1 74 Denmark 12.02 State of cluster development 1-7 (best) 15.46 Israel 12.03 International co-inventions applications/million pop. 4.3 100.0 = 2 12.04 Multi-stakeholder collaboration 1-7 (best) 549.3 United States 12.05 Scientific publications H Index 444.63 100.0 = 37 12.06 Patent applications applications/million pop. 4.2 Germany 12.07 R&D expenditures % GDP 0.29 94.4 = 97 Canada 12.08 Quality of research institutions index 5.3 12.09 Buyer sophistication 1-7 (best) 4,378.73 78.5 14 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 84 Multiple (7) 71.6 22 Multiple (7) 92.7 = 93
91.2 12
47.5 77
51.1 88
57.6 37
49.1 35
78.2 8
54.5 = 82
59.6 30
86.0 15
55.7 31
93.5 18
70.4 11
72.4 2
90.2 23
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 325 327 | The Global Competitiveness Report 2018 Kuwait Economy Profiles
54th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 56th/135
Performance Overview Key Previous edition High income group average Middle East and North Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 88
70 69 65
60 62 57 60 60
56 56 54
50 50
0
Rank /140 54th 57th 61st 62nd 1st 38th 79th 69th 120th 48th 54th 96th 103rd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 4.4 GDP (PPP) % world GDP 0.23 GDP per capita US$ 27,318.5 Unemployment rate % 2.1 10-year average annual GDP growth % 0.7 1.0 5-year average FDI inward flow % GDP
Environmental footprint gha/capita 7.7 Global Gender Gap Index 0-1 (gender parity) 0.6
The Global Competitiveness Report 2018 | 327 Economy Profiles 54th /140
Kuwait Value Score * Rank/140 Best Performer
Index Component - 56.0 57 New Zealand Pillar 1: Institutions 0-100 (best) 1.8 68.7 52 1.01 Organized crime 1-7 (best) 5.1 95.6 = 57 Multiple (24) 1.02 Homicide rate /100,000 pop. 54.3 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 26.9 99.3 87 Finland 1.04 Reliability of police services 1-7 (best) 4.6 Australia 1.05 Social capital 0-100 (high) 4.1 68.2 44 Multiple (2) 1.06 Budget transparency 0-100 (best) 31.9 1.07 Judicial independence 1-7 (best) 3.7 54.3 43 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.69 26.9 = 127 Norway 1.10 Burden of government regulation 1-7 (best) 3.7 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 39.0 60.6 42 Singapore 1.12 E-Participation Index 0-1 (best) 4.6 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.0 51.7 33 Singapore 1.14 Incidence of corruption 0-100 (best) 17.0 New Zealand 1.15 Property rights 1-7 (best) 4.4 68.1 86 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 5.3 44.4 52 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 53.1 42 Multiple (2) 1.20 Shareholder governance 0-10 (best) 74.9 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.2 Singapore n/a 45.6 68 United States 2.01 Road connectivity index 0-100 (best) 2.5 2.02 Quality of roads 1-7 (best) 84,589.8 39.0 73 Singapore 2.03 Railroad density km of roads/square km 3.8 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 11.8 59.5 54 Switzerland 2.05 Airport connectivity score 3.7 2.06 Efficiency of air transport services 1-7 (best) 100.0 50.6 72 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 14.3 Singapore 2.08 Efficiency of seaport services 1-7 (best) 7.7 56.7 60 Multiple (4) 2.09 Electrification rate % pop. 5.6 Singapore 2.10 Electric power transmission and distribution losses % output 56.2 86 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 124.2 57.0 = 65 Multiple (23) 227.9 Switzerland Pillar 3: ICT adoption 0-100 (best) 53.0 = 76 2.7 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 69.3 61 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 78.4 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 74.9 = 47 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 2.5 52.5 62 Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 68.2 24.6 98 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 59.8 45
Pillar 5: Health 0-100 (best) 7.1 Multiple (4) 3.8 47.3 103 Multiple (4) 5.01 Healthy life expectancy years 3.8 3.6 11.8 79 Finland Pillar 6: Skills 0-100 (best) 4.2 Finland 4.0 44.8 82 Switzerland 6.01 Mean years of schooling Years 13.6 Switzerland 6.02 Extent of staff training 1-7 (best) 3.3 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 8.9 Sweden 6.04 Skillset of graduates 1-7 (best) 89.2 93 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 94.2 48 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 77.2 46 56.8 62 329 | The Global Competitiveness Report 2018 100.0 = 54
5.5 100
78.4 35
88.2 38
88.2 37
60.1 79
47.4 = 101
47.5 69
46.2 89
43.2 106
54.0 67
49.4 82
75.5 = 76
38.6 72
Kuwait Economy Profiles
54th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 55.9 69 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.6 51.1 49 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 43.4 78 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 5.00 Hong Kong SAR 7.05 Trade tariffs % duty 6.4 60.1 99 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.7 Germany 7.07 Efficiency of the clearance process 15 (best) 51.8 52.7 98 7.08 Services trade openness 0-100 (worst) Ecuador
- 66.6 64
Pillar 8: Labour market 0-100 (best) 28.1 United States 90.8 37 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 4.5 43.1 57 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.6 48.2 = 92 8.05 Active Labour policies 1-7 (best) 0.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.0 50.0 120 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.3 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.6 49.8 = 120 Albania 8.09 Reliance on professional management 1-7 (best) 3.7 Guinea 8.10 Pay and productivity 1-7 (best) 0.54 50.7 49 Finland 8.11 Female participation in Labour force ratio 13.0 8.12 Labour tax rate % 57.9 56 United States Pillar 9: Financial system 0-100 (best) 90.0 61.4 93 9.01 Domestic credit to private sector % GDP 4.2 43.7 58 9.02 Financing of SMEs 1-7 (best) 4.0 United States 9.03 Venture capital availability 1-7 (best) 55.8 0.0 116 Multiple (29) 9.05 Insurance premium % GDP 5.3 50.7 75 United States 9.06 Soundness of banks 1-7 (best) 2.2 United States 9.07 Non-performing loans % loan portfolio value 19.6 39.1 131 9.08 Credit gap percentage points 17.6 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 43.1 107 Multiple (16) - Pillar 10: Market size 0-100 (best) 265 44.7 84 Finland 50.7 Multiple (2) 10.01 Gross domestic product PPP $ billions 42.3 90 Multiple (97) 10.02 Imports % GDP - Multiple (72) 1.7 93.1 = 51 Pillar 11: Business dynamism 0-100 (best) 38.4 China 32.6 64.8 48 China 11.01 Cost of starting a business % GNI per capita 7.0 Hong Kong SAR 11.02 Time to start a business days 4.1 94.7 33 11.03 Insolvency recovery rate cents/$ 4.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.0 53.6 34 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) 49.6 20 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.6 55.8 36 Pillar 12: Innovation capability 0-100 (best) 0.17 7.8 = 126 Israel 12.01 Diversity of workforce 1-7 (best) 126.0 71.3 53 Denmark 12.02 State of cluster development 1-7 (best) 1.40 Israel 12.03 International co-inventions applications/million pop. 0.3 96.6 36 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 3.9 53.7 140 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 100.0 = 45 Canada 12.09 Buyer sophistication 1-7 (best) 59.9 54 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 57 Multiple (7) 54.2 96 Multiple (7) 99.2 36 61.9 126 Multiple (7)
51.1 60
50.5 92
49.4 68
42.7 65
30.5 103
59.7 55
49.9 50
4.7 74
44.3 61
71.7 82
16.1 63
10.1 = 84
1.3 81
47.5 40
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 329 331 | The Global Competitiveness Report 2018 Kyrgyz Republic Economy Profiles
97th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 100th/135
Performance Overview 2018 Key Previous edition Lower middle income group average Eurasia average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 70
60 59 58
53 50 54 53 52 49 54
40 36
30 27
0
Rank /140 97th 88th 107th 73rd 64th 98th 82nd 105th 85th 118th 124th 93rd 125th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 6.3 GDP (PPP) % world GDP 0.02 GDP per capita US$ 1,143.7 Unemployment rate % 7.3 10-year average annual GDP growth % 7.4
Social and environmental performance 1.8 Global Gender Gap Index 0-1 (gender parity) 0.7 3.4 Income Gini 0 (perfect equality) -100 (perfect inequality) 26.8
The Global Competitiveness Report 2018 | 331 Economy Profiles 97th /140
Kyrgyz Republic Value Score * Rank/140 Best Performer
Index Component - 50.4 88 New Zealand Pillar 1: Institutions 0-100 (best) 4.5 52.3 105 1.01 Organized crime 1-7 (best) 3.5 86.5 86 Multiple (24) 1.02 Homicide rate /100,000 pop. 50.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 61.5 99.8 77 Finland 1.04 Reliability of police services 1-7 (best) 3.1 Australia 1.05 Social capital 0-100 (high) 3.0 41.7 108 Multiple (2) 1.06 Budget transparency 0-100 (best) 31.0 1.07 Judicial independence 1-7 (best) 3.3 50.1 71 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.1 Finland 1.09 Freedom of the press 0-100 (worst) 0.69 61.5 = 49 Norway 1.10 Burden of government regulation 1-7 (best) 3.2 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 29.0 34.8 99 Singapore 1.12 E-Participation Index 0-1 (best) 3.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.4 33.0 88 Singapore 1.14 Incidence of corruption 0-100 (best) 24.0 New Zealand 1.15 Property rights 1-7 (best) 3.6 69.0 79 Finland 1.16 Intellectual property protection 1-7 (best) 6.7 Finland 1.17 Quality of land administration 0-30 (best) 5.7 37.7 82 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 34.3 98 Multiple (2) 1.20 Shareholder governance 0-10 (best) 37.8 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 2.8 Singapore 2.1 36.0 105 United States 2.01 Road connectivity index 0-100 (best) 2.7 2.02 Quality of roads 1-7 (best) 8,251.2 29.0 113 Singapore 2.03 Railroad density km of roads/square km 3.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 42.5 121 Switzerland 2.05 Airport connectivity score 1.4 2.06 Efficiency of air transport services 1-7 (best) 100.0 40.3 111 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 19.7 Singapore 2.08 Efficiency of seaport services 1-7 (best) 13.3 80.0 25 Multiple (4) 2.09 Electrification rate % pop. 4.1 Singapore 2.10 Electric power transmission and distribution losses % output 43.8 125 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 121.9 67.0 = 32 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 73.7 57.0 = 69 4.3 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 2.0 54.3 107 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 34.5 37.8 = 116 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 30.2 118 1.8 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 50.0 5.3 = 84 4.01 Inflation annual % change - 27.9 89 Multiple (74) 4.02 Debt dynamics 0-100 (best) 62.5 Multiple (36) 30.0 104 Pillar 5: Health 0-100 (best) - Multiple (4) 10.6 33.7 129 Multiple (4) 3.3 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.5 Finland 3.3 6.0 138 Switzerland 6.01 Mean years of schooling Years 3.9 Switzerland 6.02 Extent of staff training 1-7 (best) 3.5 100.0 67 Switzerland 6.03 Quality of vocational training 1-7 (best) 13.4 Sweden 6.04 Skillset of graduates 1-7 (best) 3.0 83.7 114 United States 6.05 Digital skills among population 1-7 (best) 25.0 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 88.4 = 77 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 52.5 99 52.8 73 333 | The Global Competitiveness Report 2018 100.0 = 62
8.5 91
34.5 98
70.2 98
70.2 97
58.8 82
37.9 127
38.5 129
48.2 83
42.3 113
74.5 79
33.9 99
62.4 92 Kyrgyz Republic Economy Profiles
97th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 51.6 105 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.4 39.3 100 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.3 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.1 40.6 102 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 4.69 Hong Kong SAR 7.05 Trade tariffs % duty 3.6 54.5 120 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.8 Germany 7.07 Efficiency of the clearance process 15 (best) 15.2 51.4 103 7.08 Services trade openness 0-100 (worst) Ecuador
- 68.7 59
Pillar 8: Labour market 0-100 (best) 17.3 United States 43.1 109 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 4.1 43.8 56 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.2 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.8 84.8 = 16 8.05 Active Labour policies 1-7 (best) n/a Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.9 57.5 85 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.5 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.2 72.2 = 74 Albania 8.09 Reliance on professional management 1-7 (best) 4.2 Guinea 8.10 Pay and productivity 1-7 (best) 0.72 45.2 80 Finland 8.11 Female participation in Labour force ratio 19.5 8.12 Labour tax rate % 51.5 96 United States Pillar 9: Financial system 0-100 (best) 21.1 69.2 50 9.01 Domestic credit to private sector % GDP 3.6 30.4 95 9.02 Financing of SMEs 1-7 (best) 2.7 United States 9.03 Venture capital availability 1-7 (best) 3.9 68.7 n/a Multiple (29) 9.04 Market capitalization % GDP 0.2 9.05 Insurance premium % GDP 4.2 47.9 89 United States 9.06 Soundness of banks 1-7 (best) 8.5 United States 9.07 Non-performing loans % loan portfolio value 0.0 57.6 70 9.08 Credit gap percentage points 23.1 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 37.4 128 Multiple (16) - Pillar 10: Market size 0-100 (best) 21 52.8 54 Finland 74.6 Multiple (2) 10.01 Gross domestic product PPP $ billions 64.8 71 Multiple (97) 10.02 Imports % GDP - Multiple (72) 2.1 84.0 = 89 Pillar 11: Business dynamism 0-100 (best) 10.0 China 35.2 48.5 118 China 11.01 Cost of starting a business % GNI per capita 6.0 Hong Kong SAR 11.02 Time to start a business days 4.6 22.3 117 11.03 Insolvency recovery rate cents/$ 3.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 2.9 43.4 91 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.2 11.06 Willingness to delegate authority 1-7 (best) 27.6 94 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.4 3.9 106 2.7 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 0.03 3.3 = 133 Israel 12.01 Diversity of workforce 1-7 (best) 52.3 52.6 104 Denmark 12.02 State of cluster development 1-7 (best) 0.08 Israel 12.03 International co-inventions applications/million pop. 0.1 83.8 94 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 3.4 100.0 76 12.06 Patent applications applications/million pop. 44.37 Germany 12.07 R&D expenditures % GDP 100.0 = 9 Canada 12.09 Buyer sophistication 1-7 (best) 36.0 124 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 125 n/a 20 Multiple (7) 54.5 93 Multiple (7) 99.0 43
37.9 76
60.6 23
42.3 125
31.9 134
36.2 107
26.7 125
56.2 76
29.1 135
36.0 111
58.9 128
1.5 98
4.0 104
39.5 73
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 333 335 | The Global Competitiveness Report 2018 Lao PDR Economy Profiles
112nd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 110th/135
Performance Overview Key Previous edition Lower middle income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 58 60 55
49 50 54 51
43 41 40
30 27
0
Rank /140 112nd 119th 99th 96th 110th 107th 105th 91st 94th 106th 100th 134th 117th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 6.7 GDP (PPP) % world GDP 0.04 GDP per capita US$ 2,542.5 Unemployment rate % 0.7 10-year average annual GDP growth % 5.1 7.3 5-year average FDI inward flow % GDP
Social and environmental performance 1.8 Global Gender Gap Index 0-1 (gender parity) 0.7 3.2 Income Gini 0 (perfect equality) -100 (perfect inequality) 36.4
The Global Competitiveness Report 2018 | 335 Economy Profiles 112nd /140
Lao PDR Value Score * Rank/140 Best Performer
Index Component - 44.5 119 New Zealand 4.7 Finland Pillar 1: Institutions 0-100 (best) 7.0 62.4 77 1.01 Organized crime 1-7 (best) 4.1 77.9 = 103 Multiple (24) 1.02 Homicide rate /100,000 pop. 50.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 26.9 99.7 81 Finland 1.04 Reliability of police services 1-7 (best) 3.8 Australia 1.05 Social capital 0-100 (high) 3.3 52.2 87 Multiple (2) 1.06 Budget transparency 0-100 (best) 66.4 1.07 Judicial independence 1-7 (best) 3.8 50.8 67 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.1 Finland 1.09 Freedom of the press 0-100 (worst) 0.17 26.9 = 127 Norway 1.10 Burden of government regulation 1-7 (best) 4.2 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 29.0 47.2 69 Singapore 1.12 E-Participation Index 0-1 (best) 3.9 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.8 38.0 70 Singapore 1.14 Incidence of corruption 0-100 (best) 10.5 New Zealand 1.15 Property rights 1-7 (best) 3.9 33.6 = 138 Finland 1.16 Intellectual property protection 1-7 (best) 3.3 Finland 1.17 Quality of land administration 0-30 (best) 3.0 45.9 47 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 51.1 49 Multiple (2) 1.20 Shareholder governance 0-10 (best) 20.5 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.2 Singapore n/a 52.7 36 United States 2.01 Road connectivity index 0-100 (best) 2.3 2.02 Quality of roads 1-7 (best) 14,364.3 29.0 113 Singapore 2.03 Railroad density km of roads/square km 3.9 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 48.4 102 Switzerland 2.05 Airport connectivity score 2.7 2.06 Efficiency of air transport services 1-7 (best) 91.4 47.0 87 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) n/a Singapore 2.08 Efficiency of seaport services 1-7 (best) 25.0 35.0 = 99 Multiple (4) 2.09 Electrification rate % pop. 4.3 Singapore 2.10 Electric power transmission and distribution losses % output 48.4 111 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 54.1 33.0 = 131 Multiple (23) 40.0 Switzerland Pillar 3: ICT adoption 0-100 (best) 30.0 = 131 0.4 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.2 57.5 99 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 21.9 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 20.5 = 130 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 1.2 37.0 107 37.1 Iceland Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 59.1 21.4 105 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 35.9 88
Pillar 5: Health 0-100 (best) 5.6 Multiple (4) 3.7 48.3 98 Multiple (4) 5.01 Healthy life expectancy years 3.6 3.9 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.9 Finland 3.8 28.6 115 Switzerland 6.01 Mean years of schooling Years 11.2 Switzerland 6.02 Extent of staff training 1-7 (best) 3.2 91.4 97 Switzerland 6.03 Quality of vocational training 1-7 (best) 23.0 Sweden 6.04 Skillset of graduates 1-7 (best) 95.0 n/a United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 76.5 = 100 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 55.3 91 42.7 96 337 | The Global Competitiveness Report 2018 45.1 135
0.8 117
21.9 117
68.5 110
37.1 129
59.6 107
59.6 106
49.5 105
37.3 = 117
45.7 82
43.5 100
48.8 74
48.5 81
47.1 96
62.3 111
35.9 87
67.6 85 Lao PDR Economy Profiles
112nd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 53.5 91 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.0 43.6 74 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.1 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 50.4 46 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 6.69 Hong Kong SAR 7.05 Trade tariffs % duty 6.3 51.6 127 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 53.1 91 7.08 Services trade openness 0-100 (worst) Ecuador
- 55.4 85
Pillar 8: Labour market 0-100 (best) 34.2 United States 88.3 46 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 4.6 40.3 73 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.0 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.9 55.4 n/a 8.05 Active Labour policies 1-7 (best) 60.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.1 55.4 94 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.9 37.2 = 127 Albania 8.09 Reliance on professional management 1-7 (best) 4.3 Guinea 8.10 Pay and productivity 1-7 (best) 0.49 43.9 90 Finland 8.11 Female participation in Labour force ratio 6.8 8.12 Labour tax rate % 59.2 54 United States Pillar 9: Financial system 0-100 (best) 19.1 67.2 60 9.01 Domestic credit to private sector % GDP 3.8 31.5 86 9.02 Financing of SMEs 1-7 (best) 3.2 United States 9.03 Venture capital availability 1-7 (best) 0.0 60.8 101 Multiple (29) 9.05 Insurance premium % GDP 4.3 52.5 62 United States 9.06 Soundness of banks 1-7 (best) 3.0 United States 9.07 Non-performing loans % loan portfolio value 2.7 57.1 73 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 48.1 92 Multiple (16) - Pillar 10: Market size 0-100 (best) 45 54.2 50 Finland 35.9 Multiple (2) 10.01 Gross domestic product PPP $ billions 36.4 99 Multiple (97) 10.02 Imports % GDP - Multiple (72) 3.5 100.0 = 24 Pillar 11: Business dynamism 0-100 (best) 67.0 China 0.0 51.3 106 China 11.01 Cost of starting a business % GNI per capita 0.0 Hong Kong SAR 11.02 Time to start a business days 3.5 20.1 = 124 11.03 Insolvency recovery rate cents/$ 4.2 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.9 46.9 64 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.8 11.06 Willingness to delegate authority 1-7 (best) 37.1 49 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.5 0.0 121 Pillar 12: Innovation capability 0-100 (best) 0.05 8.7 = 120 Israel 12.01 Diversity of workforce 1-7 (best) 69.0 55.6 95 Denmark 12.02 State of cluster development 1-7 (best) 0.20 Israel 12.03 International co-inventions applications/million pop. n/a 94.9 = 50 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 3.7 98.2 109 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 100.0 = n/a Canada 12.09 Buyer sophistication 1-7 (best) 41.1 100 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 86 Multiple (7) 40.1 134 Multiple (7) 98.3 51 33.2 = 136 Multiple (7)
41.3 114
52.7 79
48.1 78
47.1 42
27.4 117
57.9 65
47.7 58
1.4 95
46.9 52
62.9 115
3.4 90
44.9 52
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 337 339 | The Global Competitiveness Report 2018 Latvia Economy Profiles
42nd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 42nd/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 80 79 73 74
70 66 67
60 64
44 42
0
Rank /140 42nd 49th 47th 11th 1st 76th 23rd 49th 29th 94th 94th 47th 52nd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 2.0 GDP (PPP) % world GDP 0.04 GDP per capita US$ 15,547.2 Unemployment rate % 8.7 10-year average annual GDP growth % 2.5 0.1 5-year average FDI inward flow % GDP
Social and environmental performance 5.6 Income Gini 0 (perfect equality) -100 (perfect inequality) 34.2 0.8
The Global Competitiveness Report 2018 | 339 Economy Profiles 42nd /140
Latvia Value Score * Rank/140 Best Performer
Index Component - 57.9 49 New Zealand Pillar 1: Institutions 0-100 (best) 3.4 71.5 42 1.01 Organized crime 1-7 (best) 4.5 90.3 = 78 Multiple (24) 1.02 Homicide rate /100,000 pop. 46.7 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 50.0 100.0 41 Finland 1.04 Reliability of police services 1-7 (best) 3.7 Australia 1.05 Social capital 0-100 (high) 2.8 58.8 67 Multiple (2) 1.06 Budget transparency 0-100 (best) 19.6 1.07 Judicial independence 1-7 (best) 3.3 46.7 99 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.9 Finland 1.09 Freedom of the press 0-100 (worst) 0.69 50.0 = 77 Norway 1.10 Burden of government regulation 1-7 (best) 3.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 58.0 44.9 75 Singapore 1.12 E-Participation Index 0-1 (best) 4.4 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.4 30.8 99 Singapore 1.14 Incidence of corruption 0-100 (best) 22.0 New Zealand 1.15 Property rights 1-7 (best) 4.7 80.4 22 Finland 1.16 Intellectual property protection 1-7 (best) 6.0 Finland 1.17 Quality of land administration 0-30 (best) 6.7 37.7 81 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 32.0 109 Multiple (2) 1.20 Shareholder governance 0-10 (best) 81.6 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.5 Singapore 28.8 34.7 111 United States 2.02 Quality of roads 1-7 (best) 4.5 58.0 37 Singapore 2.03 Railroad density km of roads/square km 20,522.6 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 57.1 66 Switzerland 2.05 Airport connectivity score 5.5 2.06 Efficiency of air transport services 1-7 (best) 7.6 56.9 55 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 4.8 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 73.3 = 36 Multiple (4) 2.09 Electrification rate % pop. 6.1 Singapore 2.10 Electric power transmission and distribution losses % output 8.0 62.5 60 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 5.4 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 60.0 = 54 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 126.4 67.0 = 32 117.9 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 73.1 47 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 27.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 16.5 81.6 = 25 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 79.8 Korea, Rep. 3.05 Internet users % pop. 40.8 92 Pillar 4: Macroeconomic stability 0-100 (best) 1.5 72.1 = 28 100.0 Multiple (31) 4.01 Inflation annual % change 57.8 28 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 65.2 40.1 82 Pillar 5: Health 0-100 (best) Multiple (4)
- 75.0 23 Multiple (4)
5.01 Healthy life expectancy years 13.2 7.6 96 Finland Pillar 6: Skills 0-100 (best) 4.2 Finland 3.9 63.8 31 Switzerland 6.01 Mean years of schooling Years 4.1 Switzerland 6.02 Extent of staff training 1-7 (best) 4.7 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.8 Sweden 6.04 Skillset of graduates 1-7 (best) 15.8 97.8 31 United States 6.05 Digital skills among population 1-7 (best) 3.5 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 11.1 93.9 = 51 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 73.8 51 80.4 11 341 | The Global Competitiveness Report 2018 100.0 = 48
53.9 35
79.8 29
78.8 75
74.5 23
88.2 = 6
53.4 53
48.0 82
51.2 68
62.0 41
47.0 97
87.5 = 40
42.3 59
97.2 = 15 Latvia Economy Profiles
42nd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 59.8 49 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.8 43.2 75 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.2 46.3 58 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 73.4 23 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.8 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 70.3 11 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 31
Pillar 8: Labour market 0-100 (best) 13.0 United States 8.01 Redundancy costs weeks of salary 3.5 8.02 Hiring and firing practices 1-7 (best) 4.7 44.9 50 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.9 85.3 n/a 8.05 Active Labour policies 1-7 (best) 85.6 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.7 66.8 29 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.5 81.3 = 47 Albania 8.09 Reliance on professional management 1-7 (best) 4.4 Guinea 8.10 Pay and productivity 1-7 (best) 0.94 42.0 98 Finland 8.11 Female participation in Labour force ratio 26.6 8.12 Labour tax rate % 62.0 42 United States Pillar 9: Financial system 0-100 (best) 55.9 82.0 8 9.01 Domestic credit to private sector % GDP 3.4 48.4 48 9.02 Financing of SMEs 1-7 (best) 3.0 United States 9.03 Venture capital availability 1-7 (best) 4.7 85.6 25 Multiple (29) 9.04 Market capitalization % GDP 1.4 9.05 Insurance premium % GDP 5.1 44.7 107 United States 9.06 Soundness of banks 1-7 (best) 3.7 United States 9.07 Non-performing loans % loan portfolio value 17.9 60.1 63 9.08 Credit gap percentage points 19.9 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 58.3 53 Multiple (16) - Pillar 10: Market size 0-100 (best) 49 56.2 46 Finland 65.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 92.6 16 Multiple (97) 10.02 Imports % GDP - Multiple (72) 1.8 74.2 = 116 Pillar 11: Business dynamism 0-100 (best) 5.5 China 40.1 53.5 94 China 11.01 Cost of starting a business % GNI per capita 12.0 Hong Kong SAR 11.02 Time to start a business days 3.7 58.9 61 11.03 Insolvency recovery rate cents/$ 4.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.2 40.8 101 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.7 11.06 Willingness to delegate authority 1-7 (best) 33.7 61 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.1 4.7 102 Pillar 12: Innovation capability 0-100 (best) 1.31 23.5 = 81 Israel 12.01 Diversity of workforce 1-7 (best) 133.3 67.9 66 Denmark 12.02 State of cluster development 1-7 (best) 7.64 Israel 12.03 International co-inventions applications/million pop. 0.6 93.6 59 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 3.0 58.2 138 12.06 Patent applications applications/million pop. 3,427.97 Germany 12.07 R&D expenditures % GDP 100.0 = 24 Canada 12.09 Buyer sophistication 1-7 (best) 44.0 94 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 29 Multiple (7) 64.3 47 Multiple (7) 99.1 = 38
43.2 60
44.3 95
58.7 49
53.5 52
45.7 50
42.0 52
51.6 97
25.7 38
41.0 80
72.6 79
39.6 41
20.8 55
1.3 79
33.7 99
87.6 30
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 341 343 | The Global Competitiveness Report 2018 Lebanon Economy Profiles
80th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 75th/135
Performance Key Previous edition Upper middle income group average Middle East and North Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 68 67
59 64
60 58 57
51 54 49 52
40 39
0
Rank /140 80th 113rd 95th 59th 114th 37th 64th 108th 101st 43rd 80th 109th 61st
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 4.5 GDP (PPP) % world GDP 0.07 GDP per capita US$ 11,408.8 Unemployment rate % 6.6 10-year average annual GDP growth % 5.7
Social and environmental performance 3.4 Income Gini 0 (perfect equality) -100 (perfect inequality) 31.8
The Global Competitiveness Report 2018 | 343 Economy Profiles 80th /140
Lebanon Value Score * Rank/140 Best Performer
Index Component - 45.2 113 New Zealand 4.2 Finland Pillar 1: Institutions 0-100 (best) 4.0 53.2 102 92.5 Multiple (9) 1.01 Organized crime 1-7 (best) 3.7 88.2 81 Multiple (24) 1.02 Homicide rate /100,000 pop. 45.6 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 50.0 92.5 119 Finland 1.04 Reliability of police services 1-7 (best) 3.1 Australia 1.05 Social capital 0-100 (high) 2.5 44.8 102 Multiple (2) 1.06 Budget transparency 0-100 (best) 31.2 1.07 Judicial independence 1-7 (best) 3.0 45.6 106 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.44 50.0 = 77 Norway 1.10 Burden of government regulation 1-7 (best) 2.6 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 28.0 34.4 102 Singapore 1.12 E-Participation Index 0-1 (best) 4.2 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.3 24.7 122 Singapore 1.14 Incidence of corruption 0-100 (best) 16.0 New Zealand 1.15 Property rights 1-7 (best) 4.3 68.9 81 Finland 1.16 Intellectual property protection 1-7 (best) 5.0 Finland 1.17 Quality of land administration 0-30 (best) 3.3 33.8 102 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 33.7 104 Multiple (2) 1.20 Shareholder governance 0-10 (best) 48.7 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 2.6 Singapore n/a 27.1 126 United States 2.01 Road connectivity index 0-100 (best) 1.7 2.02 Quality of roads 1-7 (best) 48,359.6 28.0 = 120 Singapore 2.03 Railroad density km of roads/square km 4.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 44.5 52.7 80 Switzerland 2.05 Airport connectivity score 3.2 2.06 Efficiency of air transport services 1-7 (best) 100.0 39.1 120 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 10.3 Singapore 2.08 Efficiency of seaport services 1-7 (best) 17.0 53.3 = 67 Multiple (4) 2.09 Electrification rate % pop. 2.1 Singapore 2.10 Electric power transmission and distribution losses % output 54.7 91 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 81.4 50.0 = 95 Multiple (23) 56.8 Switzerland Pillar 3: ICT adoption 0-100 (best) 21.6 33.0 = 124 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 58.5 95 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 76.1 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 48.7 = 94 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 1.8 26.9 127 35.8 Iceland Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 68.3 11.1 129 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 51.4 64
Pillar 5: Health 0-100 (best) 9.3 Multiple (4) 3.7 49.5 95 Multiple (4) 5.01 Healthy life expectancy years 3.6 4.9 44.5 35 Finland Pillar 6: Skills 0-100 (best) 5.1 Finland 4.8 36.0 101 Switzerland 6.01 Mean years of schooling Years 10.8 Switzerland 6.02 Extent of staff training 1-7 (best) 4.3 100.0 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 12.2 Sweden 6.04 Skillset of graduates 1-7 (best) 93.4 65 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 84.7 87 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 18.8 136 57.0 59 345 | The Global Competitiveness Report 2018 67.8 = 120
43.3 = 45
76.1 41
67.9 114
35.8 130
88.4 37
88.4 36
63.6 64
62.0 = 72
45.4 84
42.6 104
64.6 25
69.2 22
64.1 23
60.2 115
55.7 25
94.6 30 Lebanon Economy Profiles
80th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 51.2 108 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.7 34.7 117 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.8 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.9 45.6 62 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 4.89 Hong Kong SAR 7.05 Trade tariffs % duty 4.8 63.1 83 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) 42.3 49.0 114 7.08 Services trade openness 0-100 (worst) Ecuador
- 67.4 62
Pillar 8: Labour market 0-100 (best) 8.7 United States 3.9 64.1 94 Multiple (8) 8.01 Redundancy costs weeks of salary 4.1 8.02 Hiring and firing practices 1-7 (best) 4.8 34.6 106 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 2.0 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 71.1 57.7 = 79 8.05 Active Labour policies 1-7 (best) 3.9 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.6 54.2 101 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.0 90.3 = 20 Albania 8.09 Reliance on professional management 1-7 (best) 0.47 Guinea 8.10 Pay and productivity 1-7 (best) 23.8 48.3 65 Finland 8.12 Labour tax rate % - 51.8 95 United States 102.5 Multiple (4) Pillar 9: Financial system 0-100 (best) 64.2 74 4.1 Multiple (26) 9.01 Domestic credit to private sector % GDP 3.3 17.5 128 9.02 Financing of SMEs 1-7 (best) 23.7 United States 9.03 Venture capital availability 1-7 (best) 1.8 71.1 60 Multiple (29) 9.04 Market capitalization % GDP 5.2 9.05 Insurance premium % GDP 4.9 47.5 92 United States 9.06 Soundness of banks 1-7 (best) -3.3 United States 9.07 Non-performing loans % loan portfolio value 14.9 60.3 59 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 46.2 98 Multiple (16) Pillar 10: Market size 0-100 (best) 65.9 50.4 62 Finland 10.01 Gross domestic product PPP $ billions - 33.2 103 Multiple (97) 10.02 Imports % GDP 42.0 Multiple (72) 15.0 78.1 = 105 Pillar 11: Business dynamism 0-100 (best) 31.4 China 66.7 43 China 11.01 Cost of starting a business % GNI per capita 4.0 Hong Kong SAR 11.02 Time to start a business days 4.2 100.0 = 26 11.03 Insolvency recovery rate cents/$ 3.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.0 51.5 43 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.7 11.06 Willingness to delegate authority 1-7 (best) 37.9 47 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.0 23.7 71 Pillar 12: Innovation capability 0-100 (best) 0.87 30.6 = 67 Israel 12.01 Diversity of workforce 1-7 (best) 161.3 69.9 59 Denmark 12.02 State of cluster development 1-7 (best) 1.70 Israel 12.03 International co-inventions applications/million pop. n/a 91.2 71 12.04 Multi-stakeholder collaboration 1-7 (best) 0.01 United States 12.05 Scientific publications H Index 3.5 100.0 = 44 12.06 Patent applications applications/million pop. 706.80 Germany 12.07 R&D expenditures % GDP 95.6 = 89 Canada 12.09 Buyer sophistication 1-7 (best) 48.9 80 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 28 Multiple (7) 52.4 109 Multiple (7) 79.0 124 85.4 = 88 Multiple (7)
33.8 85
54.0 46
47.8 107
49.8 66
44.4 53
38.6 61
50.7 100
47.4 59
19.2 47
42.5 74
75.4 62
18.2 58
17.6 n/a
1.9 70
42.2 62
70.6 54
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 345 347 | The Global Competitiveness Report 2018 Lesotho Economy Profiles
130th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 126th/135
Performance Overview Key Previous edition Lower middle income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 60
50 47 53 48 50
40 42
36 34
30 25
10 12
0
Rank /140 130th 107th 134th 107th 90th 140th 110th 93rd 61st 120th 135th 118th 132nd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 1.9 GDP (PPP) % world GDP 0.01 GDP per capita US$ 1,425.3 Unemployment rate % 27.3 3.9 5-year average FDI inward flow % GDP 5.6
Social and environmental performance 1.5 Global Gender Gap Index 0-1 (gender parity) 0.7 2.6 Income Gini 0 (perfect equality) -100 (perfect inequality) 54.2
The Global Competitiveness Report 2018 | 347 Economy Profiles 130th /140
Lesotho Value Score * Rank/140 Best Performer
Index Component - 46.5 107 New Zealand Pillar 1: Institutions 0-100 (best) 41.2 83.6 9 1.01 Organized crime 1-7 (best) 5.5 0.0 136 Multiple (24) 1.02 Homicide rate /100,000 pop. 51.4 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 42.3 100.0 38 Finland 1.04 Reliability of police services 1-7 (best) 3.7 Australia 1.05 Social capital 0-100 (high) 3.5 75.5 32 Multiple (2) 1.06 Budget transparency 0-100 (best) 28.8 1.07 Judicial independence 1-7 (best) 4.0 51.4 62 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.5 Finland 1.09 Freedom of the press 0-100 (worst) 0.08 42.3 = 103 Norway 1.10 Burden of government regulation 1-7 (best) 3.6 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 42.0 44.5 77 Singapore 1.12 E-Participation Index 0-1 (best) 3.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.6 41.0 58 Singapore 1.14 Incidence of corruption 0-100 (best) 9.5 New Zealand 1.15 Property rights 1-7 (best) 2.8 71.2 = 55 Finland 1.16 Intellectual property protection 1-7 (best) 5.3 Finland 1.17 Quality of land administration 0-30 (best) 4.7 49.6 35 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 41.9 79 Multiple (2) 1.20 Shareholder governance 0-10 (best) 45.4 Kazakhstan 7.9 138 Pillar 2: Infrastructure 0-100 (best) 2.4 Singapore n/a 43.8 76 United States 2.01 Road connectivity index 0-100 (best) 1.0 2.02 Quality of roads 1-7 (best) 182.5 42.0 63 Singapore 2.03 Railroad density km of roads/square km 1.2 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 41.7 124 Switzerland 2.05 Airport connectivity score n/a 2.06 Efficiency of air transport services 1-7 (best) 34.4 43.1 104 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) n/a Singapore 2.08 Efficiency of seaport services 1-7 (best) 38.2 31.7 107 Multiple (4) 2.09 Electrification rate % pop. 2.7 Singapore 2.10 Electric power transmission and distribution losses % output 29.9 136 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 106.6 53.0 = 84 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 49.0 47.0 = 90 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 35.6 134 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 27.4 45.4 = 104 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 23.6 131 5.9 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 50.0 n/a n/a 4.01 Inflation annual % change - 0.0 140 Multiple (74) 4.02 Debt dynamics 0-100 (best) 43.8 Multiple (36) 5.8 138 Pillar 5: Health 0-100 (best) - Multiple (4) 7.1 2.6 140 Multiple (4) Pillar 6: Skills 0-100 (best) 3.9 Finland 3.5 n/a n/a Switzerland 6.01 Mean years of schooling Years 3.4 Switzerland 6.02 Extent of staff training 1-7 (best) 10.6 34.4 123 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.7 Sweden 6.04 Skillset of graduates 1-7 (best) 33.8 82.6 n/a United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 63.1 119 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 27.6 127 33.5 107 349 | The Global Competitiveness Report 2018 88.8 90
n/a 97
0.4 123
27.4 106
72.4 90
94.7 107
11.9 140
11.9 139
47.8 110
47.3 = 102
41.6 108
47.7 83
41.2 114
40.4 118
58.7 = 117
45.0 46
40.6 113 Lesotho Economy Profiles
130th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 53.2 93 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.9 39.0 102 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 2.9 48.3 49 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 6.52 Hong Kong SAR 7.05 Trade tariffs % duty 4.9 76.2 10 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) 27.3 31.8 140 7.08 Services trade openness 0-100 (worst) Ecuador
- 56.5 82
Pillar 8: Labour market 0-100 (best) 15.0 United States 64.2 91 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 3.3 34.0 110 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 3.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.9 72.7 = 61 8.05 Active Labour policies 1-7 (best) 77.3 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.5 59.9 61 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.7 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.3 77.1 = 63 Albania 8.09 Reliance on professional management 1-7 (best) 3.5 Guinea 8.10 Pay and productivity 1-7 (best) 0.93 42.3 95 Finland 8.11 Female participation in Labour force ratio 0.0 8.12 Labour tax rate % 38.7 137 United States Pillar 9: Financial system 0-100 (best) 17.4 45.0 134 9.01 Domestic credit to private sector % GDP 2.7 48.4 47 9.02 Financing of SMEs 1-7 (best) 1.6 United States 9.03 Venture capital availability 1-7 (best) 0.0 77.3 44 Multiple (29) 9.04 Market capitalization % GDP 4.8 9.05 Insurance premium % GDP 1.7 42.0 112 United States 9.06 Soundness of banks 1-7 (best) 3.6 United States 9.07 Non-performing loans % loan portfolio value -0.6 45.6 125 9.08 Credit gap percentage points 13.7 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 39.0 126 Multiple (16) - Pillar 10: Market size 0-100 (best) 6 40.9 107 Finland 88.3 Multiple (2) 10.01 Gross domestic product PPP $ billions 91.1 20 Multiple (97) 10.02 Imports % GDP - Multiple (72) 7.7 100.0 = 1 Pillar 11: Business dynamism 0-100 (best) 29.0 China 27.9 48.5 120 China 11.01 Cost of starting a business % GNI per capita 7.0 Hong Kong SAR 11.02 Time to start a business days 3.5 18.3 127 11.03 Insolvency recovery rate cents/$ 3.3 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.4 29.1 131 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.3 11.06 Willingness to delegate authority 1-7 (best) 9.8 139 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.4 0.0 121 3.5 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 0.00 80.3 = 24 Israel 12.01 Diversity of workforce 1-7 (best) 32.0 12.0 140 Denmark 12.02 State of cluster development 1-7 (best) 0.17 Israel 12.03 International co-inventions applications/million pop. 0.1 93.8 57 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 4.6 100.0 = 67 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 93.0 = 104 Canada 12.09 Buyer sophistication 1-7 (best) 24.8 135 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 136 n/a 11 Multiple (7) 50.0 118 Multiple (7) 71.4 = 117 Multiple (7)
38.8 132
39.3 118
39.0 89
23.7 132
39.2 132
41.6 92
38.4 94
51.8 138
3.0 93
1.8 116
60.8 15
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 349 351 | The Global Competitiveness Report 2018 Liberia Economy Profiles
132nd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 130th/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 52 55 48 47 46 41 38
30 21 22
0
Rank /140 132nd 115th 136th 139th 124th 123rd 129th 124th 108th 127th 137th 85th 135th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 4.5 GDP (PPP) % world GDP 0.01 GDP per capita US$ 729.3 Unemployment rate % 2.4 4.3 5-year average FDI inward flow % GDP 20.1
Social and environmental performance 1.2 Income Gini 0 (perfect equality) -100 (perfect inequality) 33.2
The Global Competitiveness Report 2018 | 351 Economy Profiles 132nd /140
Liberia Value Score * Rank/140 Best Performer
Index Component - 45.1 115 New Zealand Pillar 1: Institutions 0-100 (best) 3.2 63.8 71 1.01 Organized crime 1-7 (best) 3.7 90.8 = 76 Multiple (24) 1.02 Homicide rate /100,000 pop. 52.6 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 42.3 100.0 45 Finland 1.04 Reliability of police services 1-7 (best) 3.4 Australia 1.05 Social capital 0-100 (high) 3.2 44.9 101 Multiple (2) 1.06 Budget transparency 0-100 (best) 30.3 1.07 Judicial independence 1-7 (best) 3.8 52.6 56 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.43 42.3 = 103 Norway 1.10 Burden of government regulation 1-7 (best) 3.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 31.0 40.7 87 Singapore 1.12 E-Participation Index 0-1 (best) 3.8 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.4 36.1 78 Singapore 1.14 Incidence of corruption 0-100 (best) 3.5 New Zealand 1.15 Property rights 1-7 (best) 3.8 69.7 72 Finland 1.16 Intellectual property protection 1-7 (best) 3.7 Finland 1.17 Quality of land administration 0-30 (best) 1.7 46.9 42 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 45.3 67 Multiple (2) 1.20 Shareholder governance 0-10 (best) 43.2 Kazakhstan 42.7 111 Pillar 2: Infrastructure 0-100 (best) 2.8 Singapore n/a 39.9 91 United States 2.01 Road connectivity index 0-100 (best) 1.3 2.02 Quality of roads 1-7 (best) 812.0 31.0 102 Singapore 2.03 Railroad density km of roads/square km 3.3 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 8.0 46.4 110 Switzerland 2.05 Airport connectivity score 2.7 2.06 Efficiency of air transport services 1-7 (best) 12.2 39.5 116 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) n/a Singapore 2.08 Efficiency of seaport services 1-7 (best) 44.1 11.7 = 138 Multiple (4) 2.09 Electrification rate % pop. 2.5 Singapore 2.10 Electric power transmission and distribution losses % output 47.4 114 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 67.6 37.0 = 129 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 5.2 17.0 = 139 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 34.8 136 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 7.3 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 43.2 = 110 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 10.6 30.1 119 45.2 Iceland Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 55.3 4.7 138 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 12.3 133
Pillar 5: Health 0-100 (best) 1.9 Multiple (4) 3.7 37.8 120 Multiple (4) 5.01 Healthy life expectancy years 3.3 3.5 8.0 94 Finland Pillar 6: Skills 0-100 (best) 3.2 Finland 3.7 27.8 116 Switzerland 6.01 Mean years of schooling Years 9.9 Switzerland 6.02 Extent of staff training 1-7 (best) 3.1 12.2 136 Switzerland 6.03 Quality of vocational training 1-7 (best) 30.4 Sweden 6.04 Skillset of graduates 1-7 (best) 77.4 n/a United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 57.1 134 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 25.7 128 14.9 139 353 | The Global Competitiveness Report 2018 56.3 = 129
n/a 140
0.3 = 129
7.3 137
63.4 124
81.6 123
45.2 108
47.7 123
47.7 122
37.8 129
12.7 = 139
45.3 85
39.0 124
42.1 110
37.3 124
45.2 101
55.0 = 122
34.7 95
48.9 = 108 Liberia Economy Profiles
132nd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 47.2 124 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.3 41.0 88 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.9 38.7 105 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 12.08 Hong Kong SAR 7.05 Trade tariffs % duty 6.3 53.1 125 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 1.9 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 47.8 123 7.08 Services trade openness 0-100 (worst) Ecuador
- 19.5 123
Pillar 8: Labour market 0-100 (best) 25.7 United States 88.1 48 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 4.0 22.6 133 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.7 72.3 n/a 8.05 Active Labour policies 1-7 (best) 77.3 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.2 51.8 108 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.3 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.1 54.9 = 109 Albania 8.09 Reliance on professional management 1-7 (best) 3.7 Guinea 8.10 Pay and productivity 1-7 (best) 0.28 46.8 70 Finland 8.11 Female participation in Labour force ratio 5.4 8.12 Labour tax rate % 49.6 106 United States Pillar 9: Financial system 0-100 (best) 19.6 65.6 66 9.01 Domestic credit to private sector % GDP 3.3 27.7 104 9.02 Financing of SMEs 1-7 (best) 2.4 United States 9.03 Venture capital availability 1-7 (best) 0.0 77.3 44 Multiple (29) 9.05 Insurance premium % GDP 4.0 53.9 57 United States 9.06 Soundness of banks 1-7 (best) 13.6 United States 9.07 Non-performing loans % loan portfolio value 0.0 39.1 132 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 52.2 74 Multiple (16) - Pillar 10: Market size 0-100 (best) 6 44.5 86 Finland 44.1 Multiple (2) 10.01 Gross domestic product PPP $ billions 10.0 126 Multiple (97) 10.02 Imports % GDP - Multiple (72) 15.7 100.0 = 18 Pillar 11: Business dynamism 0-100 (best) China 6.0 45.8 127 China 11.01 Cost of starting a business % GNI per capita 17.1 Hong Kong SAR 11.02 Time to start a business days 10.0 20.6 = 123 11.03 Insolvency recovery rate cents/$ United States 11.04 Insolvency regulatory framework 0-16 (best) 3.3 38.7 109 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.1 11.06 Willingness to delegate authority 1-7 (best) 3.9 23.3 108 New Zealand 11.07 Growth of innovative companies 1-7 (best) 3.2 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 0.0 121 Pillar 12: Innovation capability 0-100 (best) 4.5 6.1 = n/a Israel 12.01 Diversity of workforce 1-7 (best) 0.00 49.8 108 Denmark 12.02 State of cluster development 1-7 (best) 3.3 Israel 12.03 International co-inventions applications/million pop. 29.7 73.5 = 116 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index n/a 100.0 = 75 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 2.9 100.0 = n/a Canada 12.08 Quality of research institutions index 0.00 12.09 Buyer sophistication 1-7 (best) 20.8 137 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 137 n/a 69 Multiple (7) 55.3 85 Multiple (7) 92.2 96
18.4 120
62.5 62
38.9 124
51.8 85
48.0 81
36.3 106
22.0 135
58.9 58
41.0 97
38.4 96
50.7 139
0.0 n/a
31.1 109
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 353 355 | The Global Competitiveness Report 2018 Lithuania Economy Profiles
40th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 38th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 75 76 79
70 67 65 65
61 58 57
50 50 47
0
Rank /140 40th 41st 44th 18th 1st 77th 31st 53rd 32nd 76th 76th 44th 42nd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 2.8 GDP (PPP) % world GDP 0.07 GDP per capita US$ 16,730.2 Unemployment rate % 7.1 10-year average annual GDP growth % 1.1 1.3 5-year average FDI inward flow % GDP
Social and environmental performance 5.8 Global Gender Gap Index 0-1 (gender parity) 0.7 4.9 Income Gini 0 (perfect equality) -100 (perfect inequality) 37.4
The Global Competitiveness Report 2018 | 355 Economy Profiles 40th /140
Lithuania Value Score * Rank/140 Best Performer
Index Component - 60.9 41 New Zealand Pillar 1: Institutions 0-100 (best) 5.2 77.8 21 1.01 Organized crime 1-7 (best) 5.0 83.9 90 Multiple (24) 1.02 Homicide rate /100,000 pop. 42.2 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 73.1 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 4.3 Australia 1.05 Social capital 0-100 (high) 2.9 67.1 47 Multiple (2) 1.06 Budget transparency 0-100 (best) 22.2 1.07 Judicial independence 1-7 (best) 3.0 42.2 121 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.8 Finland 1.09 Freedom of the press 0-100 (worst) 0.80 73.1 = 27 Norway 1.10 Burden of government regulation 1-7 (best) 3.5 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 59.0 54.3 55 Singapore 1.12 E-Participation Index 0-1 (best) 4.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.3 31.6 93 Singapore 1.14 Incidence of corruption 0-100 (best) 28.5 New Zealand 1.15 Property rights 1-7 (best) 4.9 77.8 32 Finland 1.16 Intellectual property protection 1-7 (best) 6.0 Finland 1.17 Quality of land administration 0-30 (best) 6.7 32.8 106 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 47.0 60 Multiple (2) 1.20 Shareholder governance 0-10 (best) 84.6 Kazakhstan 80.3 50 Pillar 2: Infrastructure 0-100 (best) 4.7 Singapore 29.3 41.0 86 United States 2.02 Quality of roads 1-7 (best) 4.5 59.0 = 35 Singapore 2.03 Railroad density km of roads/square km 14,559.2 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 57.7 62 Switzerland 2.05 Airport connectivity score 4.6 2.06 Efficiency of air transport services 1-7 (best) 13.2 55.6 61 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 4.6 95.0 = 2 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 65.0 54 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 6.5 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 7.8 60.0 = 54 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 67.0 32 3.01 Mobile-cellular telephone subscriptions /100 pop. 150.9 74.7 44 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 79.8 84.6 = 21 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 27.6 Korea, Rep. 3.05 Internet users % pop. 18.8 61.7 37 74.4 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 73.2 = 27 4.01 Inflation annual % change 2.2 57.8 27 Multiple (74) 4.02 Debt dynamics 0-100 (best) 100.0 Multiple (36) 36.1 87 Pillar 5: Health 0-100 (best) - Multiple (4) 65.2 60.7 62 Multiple (4)
- 13.2 74 Finland
Pillar 6: Skills 0-100 (best) 12.8 Finland 59.7 46 Switzerland 6.01 Mean years of schooling Years 4.6 Switzerland 6.02 Extent of staff training 1-7 (best) 4.0 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.6 Sweden 6.04 Skillset of graduates 1-7 (best) 4.8 97.4 36 United States 6.05 Digital skills among population 1-7 (best) 3.3 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 16.1 94.1 = 50 United States 6.07 School life expectancy Years 3.5 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 13.2 82.7 34 75.8 18 357 | The Global Competitiveness Report 2018 100.0 = 13
55.3 33
74.4 46
78.8 77
73.3 31
85.6 = 11
60.2 31
50.1 74
43.0 107
64.0 33
38.7 123
89.5 32
42.2 60
91.9 35 Lithuania Economy Profiles
40th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 57.7 53 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.5 40.9 89 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.5 42.1 87 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 73.0 25 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.8 Germany 7.07 Efficiency of the clearance process 15 (best) 12.6 57.7 59 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 9
Pillar 8: Labour market 0-100 (best) 24.6 United States 8.01 Redundancy costs weeks of salary 3.6 8.02 Hiring and firing practices 1-7 (best) 4.6 46.2 47 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 6.0 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.1 87.4 = 10 8.05 Active Labour policies 1-7 (best) 90.7 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.1 65.2 32 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.8 57.2 = 106 Albania 8.09 Reliance on professional management 1-7 (best) 4.4 Guinea 8.10 Pay and productivity 1-7 (best) 0.96 43.7 92 Finland 8.11 Female participation in Labour force ratio 35.2 8.12 Labour tax rate % 60.3 48 United States Pillar 9: Financial system 0-100 (best) 41.7 83.9 5 9.01 Domestic credit to private sector % GDP 3.7 51.2 41 9.02 Financing of SMEs 1-7 (best) 3.0 United States 9.03 Venture capital availability 1-7 (best) 9.0 90.7 14 Multiple (29) 9.04 Market capitalization % GDP 1.6 9.05 Insurance premium % GDP 5.0 35.3 133 United States 9.06 Soundness of banks 1-7 (best) 3.7 United States 9.07 Non-performing loans % loan portfolio value 4.1 64.4 32 9.08 Credit gap percentage points 21.2 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 64.0 36 Multiple (16) - Pillar 10: Market size 0-100 (best) 83 57.5 40 Finland 81.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 94.9 12 Multiple (97) 10.02 Imports % GDP - Multiple (72) 0.6 62.2 = 130 Pillar 11: Business dynamism 0-100 (best) 5.5 China 45.3 56.9 76 China 11.01 Cost of starting a business % GNI per capita 8.0 Hong Kong SAR 11.02 Time to start a business days 4.1 43.9 82 11.03 Insolvency recovery rate cents/$ 4.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.5 44.4 87 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.0 11.06 Willingness to delegate authority 1-7 (best) 33.9 59 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.9 9.0 93 3.5 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 1.41 26.0 = 75 Israel 4.1 12.01 Diversity of workforce 1-7 (best) 169.7 67.2 67 Denmark 12.02 State of cluster development 1-7 (best) 11.99 Israel 12.03 International co-inventions applications/million pop. 1.0 93.6 60 12.04 Multi-stakeholder collaboration 1-7 (best) 0.01 United States 12.05 Scientific publications H Index 3.3 94.4 114 12.06 Patent applications applications/million pop. 3,671.91 Germany 12.07 R&D expenditures % GDP 100.0 = 16 Canada 12.09 Buyer sophistication 1-7 (best) 50.1 76 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 17 Multiple (7) 64.5 44 Multiple (7) 99.7 = 13
48.8 46
51.5 57
63.8 32
57.7 36
49.7 34
47.4 42
64.9 35
41.3 96
27.1 36
51.4 37
76.1 60
47.1 33
34.7 37
4.0 55
38.5 78
88.3 28
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 357 359 | The Global Competitiveness Report 2018 Luxembourg Economy Profiles
19th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 22nd/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 85 87
80 77 75 75 75
69 74
70 66 68
50 50
0
Rank /140 19th 12th 16th 20th 1st 14th 22nd 9th 13th 9th 77th 38th 19th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 0.6 GDP (PPP) % world GDP 0.05 GDP per capita US$ 105,803.1 Unemployment rate % 5.5 2.0 5-year average FDI inward flow % GDP 70.9
Social and environmental performance 12.3 Global Gender Gap Index 0-1 (gender parity) 0.7 6.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 33.8
The Global Competitiveness Report 2018 | 359 Economy Profiles 19th /140
Luxembourg Value Score * Rank/140 Best Performer
Index Component - 75.2 12 New Zealand Pillar 1: Institutions 0-100 (best) 0.7 83.9 8 1.01 Organized crime 1-7 (best) 6.1 99.3 = 23 Multiple (24) 1.02 Homicide rate /100,000 pop. 59.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 34.6 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 6.2 Australia 1.05 Social capital 0-100 (high) 5.3 85.3 11 Multiple (2) 1.06 Budget transparency 0-100 (best) 14.7 1.07 Judicial independence 1-7 (best) 4.3 59.1 22 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.4 Finland 1.09 Freedom of the press 0-100 (worst) 0.94 34.6 = 116 Norway 1.10 Burden of government regulation 1-7 (best) 5.7 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 82.0 87.5 5 Singapore 1.12 E-Participation Index 0-1 (best) 6.2 Multiple (3) 1.13 Future orientation of government 1-7 (best) 6.2 71.6 5 Singapore 1.14 Incidence of corruption 0-100 (best) 25.5 New Zealand 1.15 Property rights 1-7 (best) 6.3 85.3 = 17 Finland 1.16 Intellectual property protection 1-7 (best) 5.0 Finland 1.17 Quality of land administration 0-30 (best) 4.7 55.6 21 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 73.5 7 Multiple (2) 1.20 Shareholder governance 0-10 (best) n/a Kazakhstan 5.3 93.8 19 Pillar 2: Infrastructure 0-100 (best) 106.2 Singapore 4.9 79.0 2 United States 2.01 Road connectivity index 0-100 (best) 16,936.4 2.02 Quality of roads 1-7 (best) 5.5 82.0 8 Singapore 2.03 Railroad density km of roads/square km n/a Multiple (20) 2.04 Efficiency of train services 1-7 (best) 4.4 86.7 4 Switzerland 2.05 Airport connectivity score 100.0 2.06 Efficiency of air transport services 1-7 (best) 1.9 87.1 4 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 0.6 Singapore 2.08 Efficiency of seaport services 1-7 (best) 6.7 85.0 = 18 Multiple (4) 2.09 Electrification rate % pop. Singapore 2.10 Electric power transmission and distribution losses % output - 88.1 3 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 136.1 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 50.0 95 Multiple (23) 88.1 Switzerland Pillar 3: ICT adoption 0-100 (best) 36.5 47.0 = 90 3.01 Mobile-cellular telephone subscriptions /100 pop. 7.1 84.7 16 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 98.1 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. n/a n/a Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 1.0 72.3 21 Pillar 4: Macroeconomic stability 0-100 (best) 100.0 = 3 4.01 Inflation annual % change 71.0 64.6 16 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 37.8 85
Pillar 5: Health 0-100 (best) 11.6 Multiple (4) 5.5 75.4 21 Multiple (4) 5.01 Healthy life expectancy years 5.2 5.0 n/a n/a Finland Pillar 6: Skills 0-100 (best) 5.2 Finland 4.3 57.2 55 Switzerland 6.01 Mean years of schooling Years 14.0 Switzerland 6.02 Extent of staff training 1-7 (best) 4.2 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 8.5 Sweden 6.04 Skillset of graduates 1-7 (best) 100.0 = 2 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 100.0 = 7 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 95.8 11 74.8 20 361 | The Global Competitiveness Report 2018 100.0 = 29
73.0 14
98.1 2
96.8 14
96.8 13
74.7 22
77.3 = 33
75.6 3
66.9 19
69.5 21
54.2 62
77.9 = 70
52.8 30
Luxembourg Economy Profiles
19th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 69.3 9 Singapore 5.5 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.8 74.2 2 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.1 63.0 17 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 70.1 46 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.5 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 68.4 15 7.08 Services trade openness 0-100 (worst) Ecuador Pillar 8: Labour market 0-100 (best) 21.7 United States 8.01 Redundancy costs weeks of salary 3.9 8.02 Hiring and firing practices 1-7 (best) 5.7 63.2 20 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.1 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 5.4 89.5 n/a 8.05 Active Labour policies 1-7 (best) n/a Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 5.6 73.7 13 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.8 63.2 = 96 Albania 8.09 Reliance on professional management 1-7 (best) 4.7 Guinea 8.10 Pay and productivity 1-7 (best) 0.85 49.1 57 Finland 8.11 Female participation in Labour force ratio 15.5 8.12 Labour tax rate % 77.6 7 United States Pillar 9: Financial system 0-100 (best) 95.8 69.1 52 9.01 Domestic credit to private sector % GDP 4.9 73.0 5 9.02 Financing of SMEs 1-7 (best) 4.3 United States 9.03 Venture capital availability 1-7 (best) 93.6 87.0 n/a Multiple (29) 9.04 Market capitalization % GDP 4.8 9.05 Insurance premium % GDP 6.3 77.1 2 United States 9.06 Soundness of banks 1-7 (best) 1.7 United States 9.07 Non-performing loans % loan portfolio value 2.4 59.4 65 9.08 Credit gap percentage points 21.0 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 79.4 13 Multiple (16) - Pillar 10: Market size 0-100 (best) 57 61.6 20 Finland 158.4 Multiple (2) 10.01 Gross domestic product PPP $ billions 81.1 42 Multiple (97) 10.02 Imports % GDP - Multiple (72) 1.7 89.6 66 Pillar 11: Business dynamism 0-100 (best) 16.5 China 43.8 86.5 9 China 11.01 Cost of starting a business % GNI per capita 7.0 Hong Kong SAR 11.02 Time to start a business days 4.1 100.0 28 11.03 Insolvency recovery rate cents/$ 5.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 5.1 65.4 11 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.4 11.06 Willingness to delegate authority 1-7 (best) 54.9 14 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.7 93.6 17 5.0 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 53.17 80.7 = 23 Israel 12.01 Diversity of workforce 1-7 (best) 141.0 87.9 7 Denmark 12.02 State of cluster development 1-7 (best) 120.44 Israel 12.03 International co-inventions applications/million pop. 1.3 97.6 24 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 5.0 98.8 106 12.06 Patent applications applications/million pop. 85,136.77 Germany 12.07 R&D expenditures % GDP 100.0 = 19 Canada 12.09 Buyer sophistication 1-7 (best) 50.0 77 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 2 Multiple (7) 65.8 38 Multiple (7) 99.2 = 36
47.1 48
52.3 53
74.7 16
68.5 9
56.9 18
68.2 19
77.7 4
67.0 14
65.6 10
73.4 75
88.2 15
42.9 29
0.5 87
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 361 363 | The Global Competitiveness Report 2018 Macedonia, FYR Economy Profiles
84th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: n/a
Performance Key Previous edition Upper middle income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 75 80
70 59 61
60 57 58 56
51 54 51
40 39
0
Rank /140 84th 85th 80th 70th 70th 71st 81st 107th 78th 80th 109th 57th 98th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 2.1 GDP (PPP) % world GDP 0.02 GDP per capita US$ 5,474.4 Unemployment rate % 22.4 2.3 5-year average FDI inward flow % GDP 2.5
Social and environmental performance 3.1 Global Gender Gap Index 0-1 (gender parity) 0.7 4.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 35.6
The Global Competitiveness Report 2018 | 363 Economy Profiles 84th /140
Macedonia, FYR Value Score * Rank/140 Best Performer
Index Component - 50.6 85 New Zealand 3.2 Finland Pillar 1: Institutions 0-100 (best) 1.6 37.0 131 1.01 Organized crime 1-7 (best) 3.5 96.3 = 51 Multiple (24) 1.02 Homicide rate /100,000 pop. 48.2 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 61.5 99.9 60 Finland 1.04 Reliability of police services 1-7 (best) 2.3 Australia 1.05 Social capital 0-100 (high) 2.2 41.3 110 Multiple (2) 1.06 Budget transparency 0-100 (best) 32.4 1.07 Judicial independence 1-7 (best) 2.9 48.2 90 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.70 61.5 = 49 Norway 1.10 Burden of government regulation 1-7 (best) 2.9 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 35.0 22.3 128 Singapore 1.12 E-Participation Index 0-1 (best) 3.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.0 20.7 129 Singapore 1.14 Incidence of corruption 0-100 (best) 25.0 New Zealand 1.15 Property rights 1-7 (best) 3.7 67.6 89 Finland 1.16 Intellectual property protection 1-7 (best) 8.0 Finland 1.17 Quality of land administration 0-30 (best) 8.0 31.3 109 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 21.3 129 Multiple (2) 1.20 Shareholder governance 0-10 (best) 47.8 Kazakhstan 70.2 68 Pillar 2: Infrastructure 0-100 (best) 3.4 Singapore 26.6 31.3 120 United States 2.02 Quality of roads 1-7 (best) 2.0 35.0 91 Singapore 2.03 Railroad density km of roads/square km 5,203.2 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 41.1 126 Switzerland 2.05 Airport connectivity score 4.3 2.06 Efficiency of air transport services 1-7 (best) n/a 33.7 133 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 2.2 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 83.3 19 Multiple (4) 2.09 Electrification rate % pop. 12.7 Singapore 2.10 Electric power transmission and distribution losses % output 6.0 45.0 122 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 4.7 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 80.0 = 11 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 101.9 80.0 = 5 3.01 Mobile-cellular telephone subscriptions /100 pop. 63.9 64.5 80 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 18.6 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 47.8 = 98 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 1.0 Korea, Rep. 3.05 Internet users % pop. 72.2 39.3 97 Pillar 4: Macroeconomic stability 0-100 (best) - 66.4 = 31 0.6 Multiple (31) 4.01 Inflation annual % change 49.3 17.1 116 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 25.7 115
Pillar 5: Health 0-100 (best) 65.6 Multiple (4) 54.5 85 Multiple (4) 5.01 Healthy life expectancy years - 9.8 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.0 Finland 3.1 19.2 133 Switzerland 6.01 Mean years of schooling Years 3.5 Switzerland 6.02 Extent of staff training 1-7 (best) 3.6 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.3 Sweden 6.04 Skillset of graduates 1-7 (best) 13.3 91.0 84 United States 6.05 Digital skills among population 1-7 (best) 2.7 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 14.4 95.9 = 33 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 62.0 72 54.0 70 365 | The Global Competitiveness Report 2018 84.9 100
37.1 51
72.2 51
74.6 70
80.0 71
59.0 81
33.2 134
35.3 130
41.4 114
43.6 106
38.2 129
74.0 = 81
27.5 121
89.0 = 42 Macedonia, FYR Economy Profiles
84th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 51.5 107 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.0 37.8 109 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.3 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.1 32.9 124 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 4.96 Hong Kong SAR 7.05 Trade tariffs % duty 4.9 55.8 119 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.5 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 52.2 99 7.08 Services trade openness 0-100 (worst) Ecuador
- 66.9 63
Pillar 8: Labour market 0-100 (best) 13.0 United States 65.4 86 Multiple (8) 8.01 Redundancy costs weeks of salary 3.7 8.02 Hiring and firing practices 1-7 (best) 3.6 36.3 93 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.3 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.1 83.2 n/a 8.05 Active Labour policies 1-7 (best) 73.2 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.7 58.1 78 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.4 81.3 = 47 Albania 8.09 Reliance on professional management 1-7 (best) 3.6 Guinea 8.10 Pay and productivity 1-7 (best) 0.73 44.6 85 Finland 8.11 Female participation in Labour force ratio 0.0 8.12 Labour tax rate % 42.7 126 United States Pillar 9: Financial system 0-100 (best) 49.3 55.5 114 9.01 Domestic credit to private sector % GDP 3.2 35.0 74 9.02 Financing of SMEs 1-7 (best) 2.2 United States 9.03 Venture capital availability 1-7 (best) 22.0 73.2 54 Multiple (29) 9.04 Market capitalization % GDP 1.3 9.05 Insurance premium % GDP 4.6 44.2 108 United States 9.06 Soundness of banks 1-7 (best) 6.3 United States 9.07 Non-performing loans % loan portfolio value -6.9 52.8 98 9.08 Credit gap percentage points 16.0 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 40.5 120 Multiple (16) - Pillar 10: Market size 0-100 (best) 28 44.1 88 Finland 78.3 Multiple (2) 10.01 Gross domestic product PPP $ billions 65.7 70 Multiple (97) 10.02 Imports % GDP - Multiple (72) 0.1 100.0 = 1 Pillar 11: Business dynamism 0-100 (best) 7.0 China 47.7 55.6 80 China 11.01 Cost of starting a business % GNI per capita 15.0 Hong Kong SAR 11.02 Time to start a business days 2.9 51.9 75 11.03 Insolvency recovery rate cents/$ 3.7 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.5 37.3 114 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 2.9 11.06 Willingness to delegate authority 1-7 (best) 20.6 120 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.9 22.0 72 Pillar 12: Innovation capability 0-100 (best) 0.13 22.4 = 85 Israel 12.01 Diversity of workforce 1-7 (best) 93.0 59.9 85 Denmark 12.02 State of cluster development 1-7 (best) 0.46 Israel 12.03 International co-inventions applications/million pop. 0.4 88.3 80 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 2.7 100.0 = 27 12.06 Patent applications applications/million pop. 783.55 Germany 12.07 R&D expenditures % GDP 98.0 = 73 Canada 12.09 Buyer sophistication 1-7 (best) 39.2 109 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 115 n/a 18 Multiple (7) 61.2 57 Multiple (7)
51.3 42
45.6 118
31.1 133
31.1 98
48.6 110
37.0 108
3.9 77
32.6 126
67.3 98
6.9 74
14.8 69
0.4 98
28.0 119
71.7 51
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 365 367 | The Global Competitiveness Report 2018 Malawi Economy Profiles
129th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 129th/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 57 58
50 48 49 48 47
40 42 38 40 38
30 34
0
Rank /140 129th 103rd 129th 128th 128th 131st 127th 116th 76th 123rd 127th 127th 112nd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 19.2 GDP (PPP) % world GDP 0.02 GDP per capita US$ 323.7 Unemployment rate % 5.9 10-year average annual GDP growth % 5.9
Social and environmental performance 0.8 Global Gender Gap Index 0-1 (gender parity) 0.7 2.8 Income Gini 0 (perfect equality) -100 (perfect inequality) 45.5
The Global Competitiveness Report 2018 | 367 Economy Profiles 129th /140
Malawi Value Score * Rank/140 Best Performer
Index Component - 48.0 103 New Zealand Pillar 1: Institutions 0-100 (best) 1.7 65.0 66 1.01 Organized crime 1-7 (best) 3.8 95.8 = 56 Multiple (24) 1.02 Homicide rate /100,000 pop. 46.9 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 46.2 100.0 41 Finland 1.04 Reliability of police services 1-7 (best) 3.9 Australia 1.05 Social capital 0-100 (high) 3.0 47.4 95 Multiple (2) 1.06 Budget transparency 0-100 (best) 27.4 1.07 Judicial independence 1-7 (best) 3.7 46.9 98 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.4 Finland 1.09 Freedom of the press 0-100 (worst) 0.20 46.2 = 90 Norway 1.10 Burden of government regulation 1-7 (best) 3.2 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 31.0 48.1 67 Singapore 1.12 E-Participation Index 0-1 (best) 4.2 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.4 33.0 86 Singapore 1.14 Incidence of corruption 0-100 (best) 10.5 New Zealand 1.15 Property rights 1-7 (best) 4.4 72.6 51 Finland 1.16 Intellectual property protection 1-7 (best) 6.0 Finland 1.17 Quality of land administration 0-30 (best) 4.3 44.4 51 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 39.2 85 Multiple (2) 1.20 Shareholder governance 0-10 (best) 65.0 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 2.9 Singapore 6.7 35.9 107 United States 2.02 Quality of roads 1-7 (best) 883.0 31.0 = 102 Singapore 2.03 Railroad density km of roads/square km 3.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 52.7 79 Switzerland 2.05 Airport connectivity score 2.2 2.06 Efficiency of air transport services 1-7 (best) 11.3 40.5 108 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) n/a Singapore 2.08 Efficiency of seaport services 1-7 (best) 40.3 35.0 = 99 Multiple (4) 2.09 Electrification rate % pop. 2.8 Singapore 2.10 Electric power transmission and distribution losses % output 56.5 84 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 41.7 60.0 = 54 Multiple (23) 25.5 Switzerland Pillar 3: ICT adoption 0-100 (best) 43.0 = 100 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 37.8 129 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 11.5 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 65.0 = 70 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 16.6 31.1 115 Pillar 4: Macroeconomic stability 0-100 (best) 16.8 = 60 4.01 Inflation annual % change 52.7 19.0 110 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 12.8 131
Pillar 5: Health 0-100 (best) 5.7 Multiple (4) 3.6 39.4 117 Multiple (4) 5.01 Healthy life expectancy years 3.4 Pillar 6: Skills 0-100 (best) 3.0 Finland 3.9 20.0 131 Switzerland 6.01 Mean years of schooling Years 10.4 Switzerland 6.02 Extent of staff training 1-7 (best) 2.9 11.3 137 Switzerland 6.03 Quality of vocational training 1-7 (best) 69.5 Sweden 6.04 Skillset of graduates 1-7 (best) 77.9 n/a United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 60.9 122 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 29.8 121 23.0 128 369 | The Global Competitiveness Report 2018 34.8 138
n/a 118
0.1 135
11.5 134
57.5 128
64.9 134
39.7 131
38.1 127
38.0 = 116
43.7 98
40.1 120
39.6 125
33.7 132
47.7 91
57.8 = 118
31.5 111
0.0 138 Malawi Economy Profiles
129th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 49.2 116 Singapore 3.2 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.0 37.3 110 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.3 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.4 33.6 121 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.11 Hong Kong SAR 7.05 Trade tariffs % duty 6.5 54.2 122 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) 34.2 56.7 67 7.08 Services trade openness 0-100 (worst) Ecuador
- 32.6 103
Pillar 8: Labour market 0-100 (best) 16.7 United States 92.5 = 31 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 3.9 35.6 96 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.4 65.8 = 69 8.05 Active Labour policies 1-7 (best) n/a Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.1 58.2 76 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.1 73.6 = 71 Albania 8.09 Reliance on professional management 1-7 (best) 3.5 Guinea 8.10 Pay and productivity 1-7 (best) 0.66 44.7 83 Finland 8.12 Labour tax rate % 48.4 111 United States Pillar 9: Financial system 0-100 (best) 11.4 65.2 67 2.8 Multiple (26) 9.01 Domestic credit to private sector % GDP 1.9 22.9 115 9.02 Financing of SMEs 1-7 (best) 21.3 United States 9.03 Venture capital availability 1-7 (best) 1.8 76.2 n/a Multiple (29) 9.04 Market capitalization % GDP 4.2 9.05 Insurance premium % GDP 17.0 50.9 74 United States 9.06 Soundness of banks 1-7 (best) -3.3 United States 9.07 Non-performing loans % loan portfolio value n/a 60.1 61 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 51.3 80 Multiple (16) Pillar 10: Market size 0-100 (best) 49.3 42.2 99 Finland 10.01 Gross domestic product PPP $ billions - 57.2 81 Multiple (97) 10.02 Imports % GDP 44.6 Multiple (72) 37.0 93.9 = 44 Pillar 11: Business dynamism 0-100 (best) 12.5 China 47.7 123 China 11.01 Cost of starting a business % GNI per capita 8.5 Hong Kong SAR 11.02 Time to start a business days 3.5 12.0 136 11.03 Insolvency recovery rate cents/$ 4.1 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.6 30.8 128 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.1 11.06 Willingness to delegate authority 1-7 (best) 14.9 132 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.1 21.3 75 Pillar 12: Innovation capability 0-100 (best) 0.00 30.3 = 68 Israel 12.01 Diversity of workforce 1-7 (best) 119.7 53.0 103 Denmark 12.02 State of cluster development 1-7 (best) 0.00 Israel 12.03 International co-inventions applications/million pop. 1.1 66.7 = 123 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 2.6 100.0 = 45 12.06 Patent applications applications/million pop. 24.53 Germany 12.07 R&D expenditures % GDP 100.0 = n/a Canada 12.09 Buyer sophistication 1-7 (best) 34.2 127 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 126 n/a 60 Multiple (7) 47.4 127 Multiple (7) 63.3 = 124 Multiple (7)
13.5 127
41.8 112
51.8 84
43.6 99
34.2 121
28.6 112
51.0 98
35.2 115
0.1 121
31.3 132
71.0 84
0.1 125
35.3 = 36
0.4 96
26.5 123
34.9 119
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 369 371 | The Global Competitiveness Report 2018 Malaysia Economy Profiles
25th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 26th/135
Performance Overview Key Previous edition Upper middle income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
83 84
80 78
74 69 69 74 73 74
60 55
0
Rank /140 25th 24th 32nd 32nd 1st 62nd 24th 24th 20th 15th 23rd 19th 30th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 32.1 GDP (PPP) % world GDP 0.73 GDP per capita US$ 9,812.8 Unemployment rate % 3.4 10-year average annual GDP growth % 3.4 4.6 5-year average FDI inward flow % GDP
Social and environmental performance 4.4 Global Gender Gap Index 0-1 (gender parity) 0.7 4.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 41.0
The Global Competitiveness Report 2018 | 371 Economy Profiles 25th /140
Malaysia Value Score * Rank/140 Best Performer
Index Component - 68.7 24 New Zealand Pillar 1: Institutions 0-100 (best) 2.1 71.1 44 1.01 Organized crime 1-7 (best) 5.6 94.5 = 62 Multiple (24) 1.02 Homicide rate /100,000 pop. 56.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 50.0 99.3 86 Finland 1.04 Reliability of police services 1-7 (best) 5.0 Australia 1.05 Social capital 0-100 (high) 4.8 76.3 29 Multiple (2) 1.06 Budget transparency 0-100 (best) 47.4 1.07 Judicial independence 1-7 (best) 5.0 56.8 = 30 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.89 50.0 = 77 Norway 1.10 Burden of government regulation 1-7 (best) 5.2 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 47.0 66.7 33 Singapore 1.12 E-Participation Index 0-1 (best) 5.6 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.4 62.7 12 Singapore 1.14 Incidence of corruption 0-100 (best) 27.5 New Zealand 1.15 Property rights 1-7 (best) 5.6 52.6 118 Finland 1.16 Intellectual property protection 1-7 (best) 8.7 Finland 1.17 Quality of land administration 0-30 (best) 7.3 66.8 5 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 70.3 15 Multiple (2) 1.20 Shareholder governance 0-10 (best) 26.8 Kazakhstan 88.8 32 Pillar 2: Infrastructure 0-100 (best) 5.5 Singapore 6.8 70.6 9 United States 2.01 Road connectivity index 0-100 (best) 5.2 2.02 Quality of roads 1-7 (best) 420,239.6 47.0 55 Singapore 2.03 Railroad density km of roads/square km 5.6 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 98.1 76.6 22 Switzerland 2.05 Airport connectivity score 5.3 2.06 Efficiency of air transport services 1-7 (best) 98.6 73.7 24 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 5.9 Singapore 2.08 Efficiency of seaport services 1-7 (best) 10.7 91.7 = 6 Multiple (4) 2.09 Electrification rate % pop. 5.4 Singapore 2.10 Electric power transmission and distribution losses % output 77.2 23 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 133.9 87.0 = 4 Multiple (23) 111.5 Switzerland Pillar 3: ICT adoption 0-100 (best) 73.0 15 8.5 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 3.8 77.9 32 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 78.8 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 26.8 = 128 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 2.9 74.2 20 Pillar 4: Macroeconomic stability 0-100 (best) 17.0 = 59 4.01 Inflation annual % change 66.4 69.5 13 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 88.9 20
Pillar 5: Health 0-100 (best) 10.5 Multiple (4) 76.4 19 Multiple (4) 5.01 Healthy life expectancy years 5.4 5.3 98.1 5 Finland Pillar 6: Skills 0-100 (best) 5.3 Finland 5.4 71.5 17 Switzerland 6.01 Mean years of schooling Years 5.3 Switzerland 6.02 Extent of staff training 1-7 (best) 13.7 98.6 85 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.7 Sweden 6.04 Skillset of graduates 1-7 (best) 11.6 98.0 28 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 91.1 = 69 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 74.2 50 69.1 32 373 | The Global Competitiveness Report 2018 100.0 = 32
17.0 77
78.8 34
82.6 62
82.6 61
74.2 24
70.0 = 49
72.6 4
70.8 9
73.1 11
71.4 4
76.0 74
61.8 16
96.0 18 Malaysia Economy Profiles
25th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 63.6 24 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 5.0 60.7 18 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.5 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.1 67.4 9 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 5.11 Hong Kong SAR 7.05 Trade tariffs % duty 4.4 75.2 13 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.9 Germany 7.07 Efficiency of the clearance process 15 (best) 42.3 68.3 16 7.08 Services trade openness 0-100 (worst) Ecuador
- 65.9 68
Pillar 8: Labour market 0-100 (best) 23.9 United States 57.3 99 Multiple (8) 8.01 Redundancy costs weeks of salary 5.0 8.02 Hiring and firing practices 1-7 (best) 5.4 47.5 44 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.5 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 5.0 57.7 = 79 8.05 Active Labour policies 1-7 (best) 70.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.6 70.2 20 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.3 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.6 58.6 = 105 Albania 8.09 Reliance on professional management 1-7 (best) 5.3 Guinea 8.10 Pay and productivity 1-7 (best) 0.64 66.3 9 Finland 8.11 Female participation in Labour force ratio 16.4 8.12 Labour tax rate % 73.2 15 United States Pillar 9: Financial system 0-100 (best) 123.2 75.3 21 9.01 Domestic credit to private sector % GDP 5.2 66.0 11 9.02 Financing of SMEs 1-7 (best) 4.7 United States 9.03 Venture capital availability 1-7 (best) 128.8 70.1 71 Multiple (29) 9.04 Market capitalization % GDP 4.2 9.05 Insurance premium % GDP 5.5 59.6 29 United States 9.06 Soundness of banks 1-7 (best) 1.6 United States 9.07 Non-performing loans % loan portfolio value 7.4 72.3 8 9.08 Credit gap percentage points 15.4 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 76.1 17 Multiple (16) - Pillar 10: Market size 0-100 (best) 848 71.7 5 Finland 75.3 Multiple (2) 10.01 Gross domestic product PPP $ billions 54.7 85 Multiple (97) 10.02 Imports % GDP - Multiple (72) 5.4 88.3 = 70 Pillar 11: Business dynamism 0-100 (best) 18.5 China 81.3 84.1 15 China 11.01 Cost of starting a business % GNI per capita 6.0 Hong Kong SAR 11.02 Time to start a business days 5.2 100.0 = 19 11.03 Insolvency recovery rate cents/$ 5.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 5.3 69.8 5 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 5.2 11.06 Willingness to delegate authority 1-7 (best) 61.6 5 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.3 100.0 = 9 Pillar 12: Innovation capability 0-100 (best) 1.85 69.7 = 32 Israel 12.01 Diversity of workforce 1-7 (best) 232.3 75.7 38 Denmark 12.02 State of cluster development 1-7 (best) 6.29 Israel 12.03 International co-inventions applications/million pop. 1.3 97.8 23 12.04 Multi-stakeholder collaboration 1-7 (best) 0.05 United States 12.05 Scientific publications H Index 4.8 85.7 126 12.06 Patent applications applications/million pop. 699.91 Germany 12.07 R&D expenditures % GDP 96.8 = 83 Canada 12.09 Buyer sophistication 1-7 (best) 73.0 23 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 19 Multiple (7) 73.8 19 Multiple (7) 81.9 = 98 Multiple (7)
87.5 19
69.7 3
75.0 15
71.5 5
69.9 2
55.5 30
71.0 17
71.1 9
32.1 33
80.8 44
36.5 42
43.3 28
14.7 34
62.9 8
70.5 55
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 373 375 | The Global Competitiveness Report 2018 Mali Economy Profiles
125th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 121st/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
50 50 47 52
44 43 43 46
40 40 40
30 27 34
0
Rank /140 125th 132nd 123rd 121st 82nd 126th 133rd 113rd 127th 129th 106th 110th 108th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 18.9 GDP (PPP) % world GDP 0.03 GDP per capita US$ 810.8 Unemployment rate % 7.9 10-year average annual GDP growth % 2.2 4.3 5-year average FDI inward flow % GDP
Social and environmental performance 1.5 Global Gender Gap Index 0-1 (gender parity) 0.6 3.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 33.0
The Global Competitiveness Report 2018 | 375 Economy Profiles 125th /140
Mali Value Score * Rank/140 Best Performer
Index Component - 40.3 132 New Zealand 3.0 Finland Pillar 1: Institutions 0-100 (best) 10.9 33.5 133 77.3 Multiple (9) 1.01 Organized crime 1-7 (best) 3.1 64.7 = 118 Multiple (24) 1.02 Homicide rate /100,000 pop. 47.6 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 23.1 77.3 130 Finland 1.04 Reliability of police services 1-7 (best) 3.1 Australia 1.05 Social capital 0-100 (high) 3.3 35.0 121 Multiple (2) 1.06 Budget transparency 0-100 (best) 36.2 1.07 Judicial independence 1-7 (best) 3.4 47.6 96 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.24 23.1 = 130 Norway 1.10 Burden of government regulation 1-7 (best) 3.3 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 31.0 34.7 100 Singapore 1.12 E-Participation Index 0-1 (best) 3.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.4 39.0 66 Singapore 1.14 Incidence of corruption 0-100 (best) 8.0 New Zealand 1.15 Property rights 1-7 (best) 3.3 63.9 93 Finland 1.16 Intellectual property protection 1-7 (best) 4.3 Finland 1.17 Quality of land administration 0-30 (best) 3.7 40.1 71 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 37.4 91 Multiple (2) 1.20 Shareholder governance 0-10 (best) 55.9 Kazakhstan 24.2 127 Pillar 2: Infrastructure 0-100 (best) 3.4 Singapore 0.5 38.4 95 United States 2.01 Road connectivity index 0-100 (best) 2.1 2.02 Quality of roads 1-7 (best) 2,524.9 31.0 102 Singapore 2.03 Railroad density km of roads/square km 3.8 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 42.2 123 Switzerland 2.05 Airport connectivity score 2.3 2.06 Efficiency of air transport services 1-7 (best) 40.5 40.4 110 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 11.4 Singapore 2.08 Efficiency of seaport services 1-7 (best) 42.7 26.7 = 113 Multiple (4) 2.09 Electrification rate % pop. 2.7 Singapore 2.10 Electric power transmission and distribution losses % output 38.6 132 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 112.4 43.0 = 112 Multiple (23) 23.2 Switzerland Pillar 3: ICT adoption 0-100 (best) 37.0 = 112 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 42.7 123 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 11.1 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 55.9 = 85 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 0.0 40.5 94 48.8 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 1.2 = 99 4.01 Inflation annual % change 53.7 18.8 112 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 19.7 124
Pillar 5: Health 0-100 (best) 1.9 Multiple (4) 3.7 47.2 104 Multiple (4) 5.01 Healthy life expectancy years 3.9 Pillar 6: Skills 0-100 (best) 3.8 Finland 4.0 21.9 127 Switzerland 6.01 Mean years of schooling Years 7.3 Switzerland 6.02 Extent of staff training 1-7 (best) 3.6 40.5 120 Switzerland 6.03 Quality of vocational training 1-7 (best) 39.1 Sweden 6.04 Skillset of graduates 1-7 (best) 92.3 = 76 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 58.5 130 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 28.5 124 26.7 121 377 | The Global Competitiveness Report 2018 93.6 = 82
n/a 122
0.2 = 131
11.1 135
73.7 82
98.6 88
48.8 90
42.8 126
42.8 125
34.1 133
12.7 = 138
44.8 89
48.7 79
47.8 80
46.8 89
50.5 72
40.8 = 140
43.4 57
27.3 121 Mali Economy Profiles
125th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 50.4 113 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.9 35.7 113 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.7 48.9 48 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.14 Hong Kong SAR 7.05 Trade tariffs % duty 6.7 54.1 123 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.2 Germany 7.07 Efficiency of the clearance process 15 (best) 28.6 45.5 129 7.08 Services trade openness 0-100 (worst) Ecuador
- 32.4 105
Pillar 8: Labour market 0-100 (best) 13.6 United States 8.02 Hiring and firing practices 1-7 (best) 3.8 28.8 124 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.0 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.1 71.4 = 64 8.05 Active Labour policies 1-7 (best) 71.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.9 46.6 127 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.4 79.9 = 56 Albania 8.09 Reliance on professional management 1-7 (best) 3.4 Guinea 8.10 Pay and productivity 1-7 (best) 0.29 48.8 60 Finland 8.11 Female participation in Labour force ratio 34.3 8.12 Labour tax rate % 45.9 119 United States Pillar 9: Financial system 0-100 (best) 23.0 50.5 126 9.01 Domestic credit to private sector % GDP 3.5 35.0 73 9.02 Financing of SMEs 1-7 (best) 2.7 United States 9.03 Venture capital availability 1-7 (best) 0.0 71.1 60 Multiple (29) 9.05 Insurance premium % GDP 3.5 48.1 87 United States 9.06 Soundness of banks 1-7 (best) 15.8 United States 9.07 Non-performing loans % loan portfolio value 3.1 56.7 74 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 39.8 123 Multiple (16) - Pillar 10: Market size 0-100 (best) 37 40.5 110 Finland 42.7 Multiple (2) 10.01 Gross domestic product PPP $ billions 10.6 125 Multiple (97) 10.02 Imports % GDP - Multiple (72) 58.4 63.5 = 128 Pillar 11: Business dynamism 0-100 (best) China 8.5 45.6 129 China 11.01 Cost of starting a business % GNI per capita 28.0 Hong Kong SAR 11.02 Time to start a business days 24.2 111 11.03 Insolvency recovery rate cents/$ 9.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.5 41.3 99 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) 3.5 28.6 87 New Zealand 11.07 Growth of innovative companies 1-7 (best) 3.3 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 0.0 121 Pillar 12: Innovation capability 0-100 (best) 3.6 8.0 = 124 Israel 12.01 Diversity of workforce 1-7 (best) 0.02 41.8 123 Denmark 12.02 State of cluster development 1-7 (best) 3.5 Israel 12.03 International co-inventions applications/million pop. 84.0 69.1 = 121 12.04 Multi-stakeholder collaboration 1-7 (best) 0.04 United States 12.05 Scientific publications H Index 0.6 97.1 111 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 2.5 100.0 = n/a Canada 12.08 Quality of research institutions index 97.42 12.09 Buyer sophistication 1-7 (best) 39.8 106 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 72 Multiple (7) 51.6 110 Multiple (7) 70.8 132
41.9 111
43.0 121
41.2 114
37.8 94
29.3 108
43.6 127
46.5 69
0.6 110
42.3 77
65.8 104
19.4 = 59
49.4 105
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 377 379 | The Global Competitiveness Report 2018 Malta Economy Profiles
36th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 36th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 69 72 72 72 68 72
63 61 59
40 37
0
Rank /140 36th 33rd 52nd 24th 1st 16th 35th 36th 24th 29th 119th 66th 34th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 0.5 GDP (PPP) % world GDP 0.02 GDP per capita US$ 27,250.4 Unemployment rate % 4.0 4.2 5-year average FDI inward flow % GDP 79.4
Social and environmental performance 4.9 Income Gini 0 (perfect equality) -100 (perfect inequality) 29.4
The Global Competitiveness Report 2018 | 379 Economy Profiles 36th /140
Malta Value Score * Rank/140 Best Performer
Index Component - 63.5 33 New Zealand Pillar 1: Institutions 0-100 (best) 0.9 78.8 17 1.01 Organized crime 1-7 (best) 4.3 98.5 = 28 Multiple (24) 1.02 Homicide rate /100,000 pop. 63.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 50.0 99.9 68 Finland 1.04 Reliability of police services 1-7 (best) 4.2 Australia 1.05 Social capital 0-100 (high) 3.8 55.7 74 Multiple (2) 1.06 Budget transparency 0-100 (best) 27.4 1.07 Judicial independence 1-7 (best) 3.9 63.8 = 7 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.85 50.0 = 77 Norway 1.10 Burden of government regulation 1-7 (best) 4.6 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 56.0 54.0 56 Singapore 1.12 E-Participation Index 0-1 (best) 5.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.9 46.4 45 Singapore 1.14 Incidence of corruption 0-100 (best) 12.5 New Zealand 1.15 Property rights 1-7 (best) 5.6 72.6 52 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 6.7 48.4 37 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 45.6 65 Multiple (2) 1.20 Shareholder governance 0-10 (best) n/a Kazakhstan 3.2 84.8 38 Pillar 2: Infrastructure 0-100 (best) n/a Singapore 4.4 60.2 23 United States 2.01 Road connectivity index 0-100 (best) 23,551.5 2.02 Quality of roads 1-7 (best) 5.4 56.0 41 Singapore 2.03 Railroad density km of roads/square km 48.2 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 4.7 68.6 34 Switzerland 2.05 Airport connectivity score 100.0 2.06 Efficiency of air transport services 1-7 (best) 7.6 65.5 34 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 0.6 Singapore 2.08 Efficiency of seaport services 1-7 (best) 5.7 41.7 = 89 Multiple (4) 2.09 Electrification rate % pop. Singapore 2.10 Electric power transmission and distribution losses % output - 77.4 22 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 130.0 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 102.5 57.0 = 65 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 42.1 67.0 = 32 2.2 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 71.7 52 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 77.3 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. n/a n/a Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 1.1 37.3 105 Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 70.9 56.1 32 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 41.8 80
Pillar 5: Health 0-100 (best) 10.9 Multiple (4) 73.2 31 Multiple (4) 5.01 Healthy life expectancy years 4.3 4.5 48.2 31 Finland Pillar 6: Skills 0-100 (best) 4.9 Finland 4.8 61.8 35 Switzerland 6.01 Mean years of schooling Years 3.7 Switzerland 6.02 Extent of staff training 1-7 (best) 15.9 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.0 Sweden 6.04 Skillset of graduates 1-7 (best) 13.0 96.3 48 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 100.0 = 13 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 77.9 45 72.4 24 381 | The Global Competitiveness Report 2018 100.0 = 41
84.2 5
77.3 37
96.6 16
96.6 15
72.4 35
72.6 = 43
54.8 45
58.3 41
64.5 26
63.4 38
45.3 100
88.3 37
50.1 37
92.4 33 Malta Economy Profiles
36th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 61.5 36 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.4 56.3 29 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.3 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.3 56.1 27 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 72.0 34 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.7 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 71.0 8 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 25
Pillar 8: Labour market 0-100 (best) 7.3 United States 4.1 33.7 112 Multiple (8) 8.01 Redundancy costs weeks of salary 5.1 8.02 Hiring and firing practices 1-7 (best) 5.6 42.4 60 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) n/a 67.8 n/a 8.05 Active Labour policies 1-7 (best) 4.6 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.8 67.8 24 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.4 93.1 = 16 Albania 8.09 Reliance on professional management 1-7 (best) 0.73 Guinea 8.10 Pay and productivity 1-7 (best) 11.1 52.3 42 Finland 8.12 Labour tax rate % - 68.4 26 United States 92.7 Multiple (4) Pillar 9: Financial system 0-100 (best) 76.1 17 4.2 Multiple (26) 9.01 Domestic credit to private sector % GDP 3.0 62.9 19 9.02 Financing of SMEs 1-7 (best) 38.5 United States 9.03 Venture capital availability 1-7 (best) 4.0 62.4 n/a Multiple (29) 9.04 Market capitalization % GDP 5.5 9.05 Insurance premium % GDP 5.4 60.5 26 United States 9.06 Soundness of banks 1-7 (best) -12.3 United States 9.07 Non-performing loans % loan portfolio value 15.4 45.9 124 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 62.7 39 Multiple (16) 18 Pillar 10: Market size 0-100 (best) 124.1 56.9 42 Finland 10.01 Gross domestic product PPP $ billions - 66.1 69 Multiple (97) 10.02 Imports % GDP 7.3 Multiple (72) 16.1 95.7 35 Pillar 11: Business dynamism 0-100 (best) 38.8 China 5.5 72.2 29 China 11.01 Cost of starting a business % GNI per capita 4.4 Hong Kong SAR 11.02 Time to start a business days 4.7 97.6 31 11.03 Insolvency recovery rate cents/$ 4.1 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.8 53.1 37 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 32.9 65 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.7 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.2 38.5 47 3.72 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 3.9 66.2 = 34 Israel 97.0 12.01 Diversity of workforce 1-7 (best) 22.36 74.6 41 Denmark 12.02 State of cluster development 1-7 (best) 0.8 Israel 12.03 International co-inventions applications/million pop. 0.00 90.0 75 12.04 Multi-stakeholder collaboration 1-7 (best) 3.8 United States 12.05 Scientific publications H Index 32,163.76 100.0 = 15 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 96.8 = 82 Canada 12.09 Buyer sophistication 1-7 (best) 36.7 119 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 129 n/a 4 Multiple (7) 59.2 66 Multiple (7) 96.4 70 84.3 90 Multiple (7)
34.4 = 120
57.5 29
61.3 40
52.3 55
45.9 48
51.0 34
62.2 45
53.8 42
47.6 30
48.0 48
67.9 96
57.9 30
25.6 47
0.4 93
46.2 45
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 381 383 | The Global Competitiveness Report 2018 Mauritania Economy Profiles
131st / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 128th/135
Performance Overview Key Previous edition Lower middle income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 70
41 38 39 43 39 39
40 35 35
30 28 32
25
0
Rank /140 131st 133rd 135th 118th 97th 103rd 131st 136th 137th 138th 130th 135th 129th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 3.9 GDP (PPP) % world GDP 0.01 GDP per capita US$ 1,317.9 Unemployment rate % 9.9 3.2 5-year average FDI inward flow % GDP 13.0
Social and environmental performance 2.3 Global Gender Gap Index 0-1 (gender parity) 0.6 3.0 Income Gini 0 (perfect equality) -100 (perfect inequality) 32.6
The Global Competitiveness Report 2018 | 383 Economy Profiles 131st /140
Mauritania Value Score * Rank/140 Best Performer
Index Component - 38.4 133 New Zealand Pillar 1: Institutions 0-100 (best) 9.9 69.3 50 1.01 Organized crime 1-7 (best) 4.7 68.0 = 115 Multiple (24) 1.02 Homicide rate /100,000 pop. 40.0 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 38.5 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 2.1 Australia 1.05 Social capital 0-100 (high) 2.1 62.3 52 Multiple (2) 1.06 Budget transparency 0-100 (best) 29.1 1.07 Judicial independence 1-7 (best) 2.5 40.0 128 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.18 38.5 = 110 Norway 1.10 Burden of government regulation 1-7 (best) 2.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 28.0 18.7 134 Singapore 1.12 E-Participation Index 0-1 (best) 2.2 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.4 18.3 132 Singapore 1.14 Incidence of corruption 0-100 (best) 8.0 New Zealand 1.15 Property rights 1-7 (best) 2.2 70.9 59 Finland 1.16 Intellectual property protection 1-7 (best) 5.3 Finland 1.17 Quality of land administration 0-30 (best) 4.7 25.4 127 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 20.2 131 Multiple (2) 1.20 Shareholder governance 0-10 (best) 50.0 Kazakhstan 18.0 131 Pillar 2: Infrastructure 0-100 (best) 2.0 Singapore 0.7 18.7 136 United States 2.02 Quality of roads 1-7 (best) 999.5 28.0 120 Singapore 2.03 Railroad density km of roads/square km 2.3 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 9.4 20.7 139 Switzerland 2.05 Airport connectivity score 2.3 2.06 Efficiency of air transport services 1-7 (best) 31.3 39.3 117 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) n/a Singapore 2.08 Efficiency of seaport services 1-7 (best) 33.6 26.7 113 Multiple (4) 2.09 Electrification rate % pop. 2.5 Singapore 2.10 Electric power transmission and distribution losses % output 19.9 139 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 92.2 53.0 = 84 Multiple (23) 30.3 Switzerland Pillar 3: ICT adoption 0-100 (best) 47.0 = 90 0.3 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 35.4 135 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 18.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 50.0 = 91 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 1.9 17.1 140 Pillar 4: Macroeconomic stability 0-100 (best) 1.8 = 96 4.01 Inflation annual % change 61.0 18.9 111 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 13.5 129
Pillar 5: Health 0-100 (best) 3.8 Multiple (4) 2.4 21.1 138 Multiple (4) 2.9 9.4 85 Finland Pillar 6: Skills 0-100 (best) 3.9 Finland 3.7 21.9 128 Switzerland 6.01 Mean years of schooling Years 8.3 Switzerland 6.02 Extent of staff training 1-7 (best) 2.4 31.3 129 Switzerland 6.03 Quality of vocational training 1-7 (best) 36.4 Sweden 6.04 Skillset of graduates 1-7 (best) 82.4 n/a United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 67.7 111 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 24.8 130 27.7 118 385 | The Global Competitiveness Report 2018 76.8 106
0.6 120
18.0 123
65.6 103
65.6 102
34.6 131
25.1 = 128
24.1 140
32.2 134
48.1 84
44.7 103
46.4 137
23.6 132
34.1 116 Mauritania Economy Profiles
131st /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 39.4 136 Singapore 2.3 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 2.2 21.4 138 Switzerland 7.02 Extent of market dominance 1-7 (best) 3.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.0 19.8 138 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.25 Hong Kong SAR 7.05 Trade tariffs % duty 6.7 39.2 137 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.2 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 33.0 139 7.08 Services trade openness 0-100 (worst) Ecuador
- 31.7 110
Pillar 8: Labour market 0-100 (best) 10.5 United States 95.0 = 7 Multiple (8) 8.01 Redundancy costs weeks of salary 3.1 8.02 Hiring and firing practices 1-7 (best) 4.2 30.0 120 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.6 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.2 70.7 n/a 8.05 Active Labour policies 1-7 (best) 61.9 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.6 42.8 137 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 2.5 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 2.2 86.5 = 36 Albania 8.09 Reliance on professional management 1-7 (best) 2.7 Guinea 8.10 Pay and productivity 1-7 (best) 0.38 34.5 122 Finland 8.11 Female participation in Labour force ratio 23.2 8.12 Labour tax rate % 53.9 84 United States Pillar 9: Financial system 0-100 (best) 22.8 60.2 100 9.01 Domestic credit to private sector % GDP 2.3 19.9 117 9.02 Financing of SMEs 1-7 (best) 2.1 United States 9.03 Venture capital availability 1-7 (best) 0.0 61.9 97 Multiple (29) 9.04 Market capitalization % GDP 0.6 9.05 Insurance premium % GDP 2.2 44.1 109 United States 9.06 Soundness of banks 1-7 (best) 22.0 United States 9.07 Non-performing loans % loan portfolio value -0.3 24.3 139 9.08 Credit gap percentage points 27.9 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 20.6 138 Multiple (16) - Pillar 10: Market size 0-100 (best) 16 28.1 135 Finland 59.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 22.5 114 Multiple (97) 10.02 Imports % GDP - Multiple (72) 19.3 78.9 = 100 Pillar 11: Business dynamism 0-100 (best) China 6.0 38.9 138 China 11.01 Cost of starting a business % GNI per capita 0.0 Hong Kong SAR 11.02 Time to start a business days 0.0 24.1 = 112 11.03 Insolvency recovery rate cents/$ 2.4 United States 11.04 Insolvency regulatory framework 0-16 (best) 2.7 21.4 138 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 2.9 11.06 Willingness to delegate authority 1-7 (best) 3.5 18.5 126 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 0.0 121 Pillar 12: Innovation capability 0-100 (best) 3.6 9.6 = 117 Israel 12.01 Diversity of workforce 1-7 (best) 2.8 20.4 139 Denmark 12.02 State of cluster development 1-7 (best) 38.7 Israel 12.03 International co-inventions applications/million pop. 0.00 56.6 132 12.04 Multi-stakeholder collaboration 1-7 (best) n/a United States 12.05 Scientific publications H Index 0.00 100.0 = 70 12.06 Patent applications applications/million pop. 2.2 Germany 12.07 R&D expenditures % GDP 175.88 100.0 = 3 Canada 12.09 Buyer sophistication 1-7 (best) 32.2 130 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 131 n/a 36 Multiple (7) 38.7 135 Multiple (7) 94.5 31 Multiple (7)
23.3 140
28.7 140
31.2 136
41.3 72
25.5 129
48.5 113
43.7 83
30.5 135
54.5 134
2.2 n/a
19.6 135
55.7 95
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 385 387 | The Global Competitiveness Report 2018 Mauritius Economy Profiles
49th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 49th/135
Performance Overview Key Previous edition Upper middle income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 78 78
70 68 66 66
64 63 62 61
60 58
40 37 38
0
Rank /140 49th 38th 67th 47th 43rd 83rd 74th 19th 74th 25th 117th 35th 62nd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 1.3 GDP (PPP) % world GDP 0.02 GDP per capita US$ 9,794.1 Unemployment rate % 7.1 10-year average annual GDP growth % 3.0
Social and environmental performance 3.5 Income Gini 0 (perfect equality) -100 (perfect inequality) 35.8
The Global Competitiveness Report 2018 | 387 Economy Profiles 49th /140
Mauritius Value Score * Rank/140 Best Performer
Index Component - 62.8 38 New Zealand Pillar 1: Institutions 0-100 (best) 1.8 74.5 30 1.01 Organized crime 1-7 (best) 4.6 95.5 58 Multiple (24) 1.02 Homicide rate /100,000 pop. 55.3 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 69.2 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 5.1 Australia 1.05 Social capital 0-100 (high) 4.3 60.0 61 Multiple (2) 1.06 Budget transparency 0-100 (best) 26.5 1.07 Judicial independence 1-7 (best) 3.7 55.3 38 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.6 Finland 1.09 Freedom of the press 0-100 (worst) 0.69 69.2 = 36 Norway 1.10 Burden of government regulation 1-7 (best) 4.0 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 50.0 67.7 32 Singapore 1.12 E-Participation Index 0-1 (best) 5.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.5 55.2 23 Singapore 1.14 Incidence of corruption 0-100 (best) 17.0 New Zealand 1.15 Property rights 1-7 (best) 5.3 73.6 45 Finland 1.16 Intellectual property protection 1-7 (best) 7.7 Finland 1.17 Quality of land administration 0-30 (best) 5.7 44.6 50 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 59.6 29 Multiple (2) 1.20 Shareholder governance 0-10 (best) n/a Kazakhstan 4.5 69.1 69 Pillar 2: Infrastructure 0-100 (best) n/a Singapore 4.2 50.2 48 United States 2.01 Road connectivity index 0-100 (best) 16,860.2 2.02 Quality of roads 1-7 (best) 4.8 50.0 47 Singapore 2.03 Railroad density km of roads/square km 32.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 4.2 68.9 33 Switzerland 2.05 Airport connectivity score 99.9 2.06 Efficiency of air transport services 1-7 (best) 5.9 57.5 51 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 13.7 Singapore 2.08 Efficiency of seaport services 1-7 (best) 4.4 56.7 60 Multiple (4) 2.09 Electrification rate % pop. Singapore 2.10 Electric power transmission and distribution losses % output - 71.6 36 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 145.4 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 77.0 = 16 Multiple (23) 59.0 Switzerland Pillar 3: ICT adoption 0-100 (best) 19.4 57.0 = 69 11.3 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 52.2 68.0 67 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. - n/a n/a Switzerland 3.04 Fibre Internet subscriptions /100 pop. 2.3 Korea, Rep. 3.05 Internet users % pop. 80.0 57.8 50 Pillar 4: Macroeconomic stability 0-100 (best) - n/a n/a 64.9 Multiple (31) 4.01 Inflation annual % change 53.7 39 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 6.8 37.8 86 Pillar 5: Health 0-100 (best) 4.4 Multiple (4) 4.4 64.0 54 Multiple (4) 5.01 Healthy life expectancy years 4.3 4.5 32.0 55 Finland Pillar 6: Skills 0-100 (best) 4.0 Finland 15.1 53.7 65 Switzerland 6.01 Mean years of schooling Years 3.4 Switzerland 6.02 Extent of staff training 1-7 (best) 17.8 99.9 69 Switzerland 6.03 Quality of vocational training 1-7 (best) Sweden 6.04 Skillset of graduates 1-7 (best) 98.0 27 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 88.1 78 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 56.2 87 62.1 47 389 | The Global Competitiveness Report 2018 100.0 = 23
38.9 49
52.2 84
77.7 83
77.7 82
61.0 74
45.3 = 106
56.6 40
56.8 47
54.5 52
57.6 52
49.6 80
83.7 = 51
39.6 68
80.5 64 Mauritius Economy Profiles
49th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 65.6 19 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.7 62.5 16 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.8 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.7 45.0 72 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 0.61 Hong Kong SAR 7.05 Trade tariffs % duty 6.3 63.6 78 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.7 Germany 7.07 Efficiency of the clearance process 15 (best) 16.9 61.4 40 7.08 Services trade openness 0-100 (worst) Ecuador
- 95.9 4
Pillar 8: Labour market 0-100 (best) 73.6 United States 87.6 53 Multiple (8) 8.01 Redundancy costs weeks of salary 4.4 8.02 Hiring and firing practices 1-7 (best) 4.7 42.6 59 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.7 83.1 = 23 8.05 Active Labour policies 1-7 (best) 71.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.1 58.3 74 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.3 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.5 0.0 136 Albania 8.09 Reliance on professional management 1-7 (best) 3.9 Guinea 8.10 Pay and productivity 1-7 (best) 0.65 57.1 26 Finland 8.11 Female participation in Labour force ratio 7.9 8.12 Labour tax rate % 61.9 44 United States Pillar 9: Financial system 0-100 (best) 99.3 64.2 73 9.01 Domestic credit to private sector % GDP 3.9 45.3 54 9.02 Financing of SMEs 1-7 (best) 3.0 United States 9.03 Venture capital availability 1-7 (best) 64.2 71.1 60 Multiple (29) 9.04 Market capitalization % GDP 5.5 9.05 Insurance premium % GDP 5.6 51.7 68 United States 9.06 Soundness of banks 1-7 (best) 7.8 United States 9.07 Non-performing loans % loan portfolio value -8.3 54.8 88 9.08 Credit gap percentage points 17.6 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 57.9 54 Multiple (16) - Pillar 10: Market size 0-100 (best) 25 48.8 69 Finland 60.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 56.8 83 Multiple (97) 10.02 Imports % GDP - Multiple (72) 1.0 100.0 = 25 Pillar 11: Business dynamism 0-100 (best) 5.5 China 67.4 77.7 25 China 11.01 Cost of starting a business % GNI per capita 10.5 Hong Kong SAR 11.02 Time to start a business days 4.0 100.0 = 27 11.03 Insolvency recovery rate cents/$ 4.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.8 48.1 55 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.5 11.06 Willingness to delegate authority 1-7 (best) 32.7 67 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.1 64.2 32 Pillar 12: Innovation capability 0-100 (best) 0.55 92.5 = 20 Israel 12.01 Diversity of workforce 1-7 (best) 63.3 76.7 31 Denmark 12.02 State of cluster development 1-7 (best) 0.81 Israel 12.03 International co-inventions applications/million pop. 0.2 85.3 91 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 3.7 100.0 = 23 12.06 Patent applications applications/million pop. 2,926.08 Germany 12.07 R&D expenditures % GDP 100.0 = 44 Canada 12.09 Buyer sophistication 1-7 (best) 36.9 117 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 34 Multiple (7) 66.5 35 Multiple (7) 95.0 25 Multiple (7)
72.6 28
50.8 61
59.0 47
47.3 88
42.1 68
38.3 62
68.8 22
51.2 46
13.4 54
40.2 88
10.9 70
5.9 = 93
0.4 105
44.4 55
85.9 32
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 389 391 | The Global Competitiveness Report 2018 Mexico Economy Profiles
46th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 44th/135
Performance Key Previous edition Upper middle income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 99
70 65 66 60 58 57 61
51 54
0
Rank /140 46th 105th 49th 76th 35th 56th 86th 54th 100th 61st 11th 41st 50th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 123.5 GDP (PPP) % world GDP 1.94 GDP per capita US$ 9,304.2 Unemployment rate % 3.4 10-year average annual GDP growth % 2.7 2.0 5-year average FDI inward flow % GDP
Social and environmental performance 2.6 Global Gender Gap Index 0-1 (gender parity) 0.7 4.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 43.4
The Global Competitiveness Report 2018 | 391 Economy Profiles 46th /140
Mexico Value Score * Rank/140 Best Performer
Index Component - 47.7 105 New Zealand 2.5 Finland Pillar 1: Institutions 0-100 (best) 19.3 25.8 139 98.1 Multiple (9) 1.01 Organized crime 1-7 (best) 2.4 36.4 130 Multiple (24) 1.02 Homicide rate /100,000 pop. 45.5 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 92.3 98.1 102 Finland 1.04 Reliability of police services 1-7 (best) 2.9 Australia 1.05 Social capital 0-100 (high) 2.9 23.6 138 Multiple (2) 1.06 Budget transparency 0-100 (best) 48.9 1.07 Judicial independence 1-7 (best) 2.7 45.5 108 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.8 Finland 1.09 Freedom of the press 0-100 (worst) 0.94 92.3 = 4 Norway 1.10 Burden of government regulation 1-7 (best) 3.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 29.0 31.2 110 Singapore 1.12 E-Participation Index 0-1 (best) 4.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.1 31.5 95 Singapore 1.14 Incidence of corruption 0-100 (best) 16.3 New Zealand 1.15 Property rights 1-7 (best) 5.0 51.1 120 Finland 1.16 Intellectual property protection 1-7 (best) 6.0 Finland 1.17 Quality of land administration 0-30 (best) 5.7 29.0 117 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 30.5 115 Multiple (2) 1.20 Shareholder governance 0-10 (best) 93.5 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.5 Singapore 13.6 39.7 92 United States 2.02 Quality of roads 1-7 (best) 3.1 29.0 113 Singapore 2.03 Railroad density km of roads/square km 497,154.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 51.4 85 Switzerland 2.05 Airport connectivity score 4.5 2.06 Efficiency of air transport services 1-7 (best) 43.7 52.3 65 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 4.3 54.3 = 66 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 66.2 48 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 13.1 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 6.3 60.0 = 54 Multiple (23) 4.7 Switzerland Pillar 3: ICT adoption 0-100 (best) 57.0 = 69 3.01 Mobile-cellular telephone subscriptions /100 pop. 88.5 72.9 49 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 63.6 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 13.3 93.5 = 7 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. 2.0 58.3 47 59.5 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 34.0 = 50 4.01 Inflation annual % change 4.4 34.5 74 Multiple (74) 4.02 Debt dynamics 0-100 (best) 100.0 Multiple (36) 92.4 15 Pillar 5: Health 0-100 (best) - Multiple (4) 67.1 58.7 70 Multiple (4)
- 43.7 36 Finland
Pillar 6: Skills 0-100 (best) 8.6 Finland 3.8 54.5 60 Switzerland 6.01 Mean years of schooling Years 4.2 Switzerland 6.02 Extent of staff training 1-7 (best) 4.1 100.0 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.8 Sweden 6.04 Skillset of graduates 1-7 (best) 4.3 90.5 85 United States 6.05 Digital skills among population 1-7 (best) 14.1 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 3.0 95.7 36 United States 6.07 School life expectancy Years 26.7 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 62.4 71 51.3 76 393 | The Global Competitiveness Report 2018 73.8 109
26.5 64
59.5 69
99.4 35
98.8 82
84.6 56
84.6 55
57.9 86
57.3 = 82
46.3 77
52.9 59
51.8 63
54.5 60
78.4 69
32.7 104
58.1 96 Mexico Economy Profiles
46th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 57.5 54 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.5 39.4 98 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.0 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.6 41.3 91 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 5.03 Hong Kong SAR 7.05 Trade tariffs % duty 6.3 66.5 65 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.8 Germany 7.07 Efficiency of the clearance process 15 (best) 29.5 59.3 50 7.08 Services trade openness 0-100 (worst) Ecuador
- 66.5 65
Pillar 8: Labour market 0-100 (best) 22.0 United States 88.9 45 Multiple (8) 8.01 Redundancy costs weeks of salary 3.4 8.02 Hiring and firing practices 1-7 (best) 4.4 44.2 54 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.1 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.5 70.5 = 66 8.05 Active Labour policies 1-7 (best) 56.7 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.3 54.4 100 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.0 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.2 62.5 = 99 Albania 8.09 Reliance on professional management 1-7 (best) 3.7 Guinea 8.10 Pay and productivity 1-7 (best) 0.56 40.2 105 Finland 8.11 Female participation in Labour force ratio 25.6 8.12 Labour tax rate % 57.0 61 United States Pillar 9: Financial system 0-100 (best) 32.4 68.6 55 9.01 Domestic credit to private sector % GDP 3.6 25.3 109 9.02 Financing of SMEs 1-7 (best) 3.2 United States 9.03 Venture capital availability 1-7 (best) 35.1 56.7 112 Multiple (29) 9.04 Market capitalization % GDP 1.8 9.05 Insurance premium % GDP 5.5 55.3 48 United States 9.06 Soundness of banks 1-7 (best) 2.3 United States 9.07 Non-performing loans % loan portfolio value 2.2 66.4 22 9.08 Credit gap percentage points 15.4 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 53.8 67 Multiple (16) - Pillar 10: Market size 0-100 (best) 2,239 45.1 82 Finland 10.01 Gross domestic product PPP $ billions 40.8 44.6 89 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 75.6 112
Pillar 11: Business dynamism 0-100 (best) 17.0 China 60.8 61 China 11.01 Cost of starting a business % GNI per capita 8.4 Hong Kong SAR 11.02 Time to start a business days 67.6 34.1 97 11.03 Insolvency recovery rate cents/$ 11.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 43.2 94 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.0 11.06 Willingness to delegate authority 1-7 (best) 4.4 35.9 54 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.0 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.4 35.1 51 Pillar 12: Innovation capability 0-100 (best) - 30.8 = 65 Israel 12.01 Diversity of workforce 1-7 (best) 4.2 75.4 39 Denmark 12.02 State of cluster development 1-7 (best) 0.30 Israel 12.03 International co-inventions applications/million pop. 3.6 96.4 37 12.04 Multi-stakeholder collaboration 1-7 (best) 360.7 United States 12.05 Scientific publications H Index 1.65 99.5 102 12.06 Patent applications applications/million pop. 0.6 Germany 12.07 R&D expenditures % GDP 0.11 96.9 = 81 Canada 12.08 Quality of research institutions index 3.6 12.09 Buyer sophistication 1-7 (best) 882.81 80.6 11 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 11 n/a 77 Multiple (7) 65.5 41 Multiple (7) 91.5 100 92.1 = 50 Multiple (7)
72.8 27
71.9 = 38
49.9 67
55.9 65
50.7 62
39.4 83
42.7 50
53.5 86
53.8 40
8.1 62
43.9 64
87.2 35
17.9 59
18.4 61
28.2 22
43.0 58
73.0 50
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 393 395 | The Global Competitiveness Report 2018 Moldova Economy Profiles
88th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 87th/135
Performance Overview 2018 Key Previous edition Lower middle income group average Eurasia average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
72 73
70 65
60 62 61 59 58
56 51 56
50 46
34 30
0
Rank /140 88th 84th 79th 48th 95th 92nd 73rd 70th 71st 128th 126th 69th 105th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 3.6 GDP (PPP) % world GDP 0.02 GDP per capita US$ 2,279.7 Unemployment rate % 4.5 10-year average annual GDP growth % 3.0
Social and environmental performance 1.9 Global Gender Gap Index 0-1 (gender parity) 0.7 4.0 Income Gini 0 (perfect equality) -100 (perfect inequality) 26.3
The Global Competitiveness Report 2018 | 395 Economy Profiles 88th /140
Moldova Value Score * Rank/140 Best Performer
Index Component - 50.8 84 New Zealand 4.5 Finland Pillar 1: Institutions 0-100 (best) 3.2 58.3 88 1.01 Organized crime 1-7 (best) 3.6 90.9 = 74 Multiple (24) 1.02 Homicide rate /100,000 pop. 44.4 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 69.2 100.0 32 Finland 1.04 Reliability of police services 1-7 (best) 2.3 Australia 1.05 Social capital 0-100 (high) 2.5 43.5 104 Multiple (2) 1.06 Budget transparency 0-100 (best) 30.0 1.07 Judicial independence 1-7 (best) 3.1 44.4 115 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.86 69.2 = 36 Norway 1.10 Burden of government regulation 1-7 (best) 3.0 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 31.0 21.2 130 Singapore 1.12 E-Participation Index 0-1 (best) 3.6 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.6 25.6 120 Singapore 1.14 Incidence of corruption 0-100 (best) 22.0 New Zealand 1.15 Property rights 1-7 (best) 4.0 70.0 66 Finland 1.16 Intellectual property protection 1-7 (best) 6.3 Finland 1.17 Quality of land administration 0-30 (best) 7.0 34.8 93 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 28.9 120 Multiple (2) 1.20 Shareholder governance 0-10 (best) 62.1 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 2.4 Singapore 34.0 33.1 114 United States 2.02 Quality of roads 1-7 (best) 3.1 31.0 102 Singapore 2.03 Railroad density km of roads/square km 10,407.5 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 43.8 116 Switzerland 2.05 Airport connectivity score 4.4 2.06 Efficiency of air transport services 1-7 (best) n/a 43.6 102 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 2.5 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 73.3 = 36 Multiple (4) 2.09 Electrification rate % pop. 18.8 Singapore 2.10 Electric power transmission and distribution losses % output 18.3 50.4 107 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 4.3 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 63.0 = 45 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 90.4 70.0 = 24 60.0 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 14.4 65.0 79 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 7.8 62.1 = 75 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 71.0 Korea, Rep. 3.05 Internet users % pop. 23.6 130 Pillar 4: Macroeconomic stability 0-100 (best) 6.5 85.0 = 24 50.0 Multiple (31) 4.01 Inflation annual % change 35.3 72 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 63.3 32.4 95 Pillar 5: Health 0-100 (best) Multiple (4)
- 56.6 79 Multiple (4)
5.01 Healthy life expectancy years 11.6 3.4 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.4 Finland 3.5 24.4 125 Switzerland 6.01 Mean years of schooling Years 4.4 Switzerland 6.02 Extent of staff training 1-7 (best) 3.2 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 11.6 Sweden 6.04 Skillset of graduates 1-7 (best) 3.3 84.6 111 United States 6.05 Digital skills among population 1-7 (best) 17.4 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 83.3 = 89 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 55.2 94 61.7 48 397 | The Global Competitiveness Report 2018 75.3 107
28.8 59
71.0 52
71.6 95
93.1 112
72.7 92
72.7 91
61.2 73
77.3 = 34
40.2 117
40.5 117
57.1 57
35.9 135
64.6 = 107
38.4 74
81.4 60 Moldova Economy Profiles
88th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 55.7 70 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.0 42.8 78 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.8 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.4 33.9 119 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 3.47 Hong Kong SAR 7.05 Trade tariffs % duty 5.5 63.1 82 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.3 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 56.1 71 7.08 Services trade openness 0-100 (worst) Ecuador
- 76.9 49
Pillar 8: Labour market 0-100 (best) 23.7 United States 74.2 75 Multiple (8) 8.01 Redundancy costs weeks of salary 3.5 8.02 Hiring and firing practices 1-7 (best) 4.3 31.3 117 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.9 85.4 n/a 8.05 Active Labour policies 1-7 (best) 79.4 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.8 59.1 71 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.7 59.0 = 103 Albania 8.09 Reliance on professional management 1-7 (best) 3.9 Guinea 8.10 Pay and productivity 1-7 (best) 1.14 42.4 94 Finland 8.11 Female participation in Labour force ratio 31.3 8.12 Labour tax rate % 55.8 70 United States Pillar 9: Financial system 0-100 (best) 34.1 61.1 96 9.01 Domestic credit to private sector % GDP 3.3 31.9 85 9.02 Financing of SMEs 1-7 (best) 2.2 United States 9.03 Venture capital availability 1-7 (best) 0.3 79.4 39 Multiple (29) 9.04 Market capitalization % GDP 1.0 9.05 Insurance premium % GDP 2.9 46.4 99 United States 9.06 Soundness of banks 1-7 (best) 16.4 United States 9.07 Non-performing loans % loan portfolio value -10.1 48.9 109 9.08 Credit gap percentage points 20.5 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 44.3 103 Multiple (16) - Pillar 10: Market size 0-100 (best) 18 48.6 71 Finland 71.0 Multiple (2) 10.01 Gross domestic product PPP $ billions 100.0 = 2 Multiple (97) 10.02 Imports % GDP - Multiple (72) 5.6 67.6 125 Pillar 11: Business dynamism 0-100 (best) 5.0 China 28.0 45.6 128 China 11.01 Cost of starting a business % GNI per capita 12.0 Hong Kong SAR 11.02 Time to start a business days 3.7 35.9 92 11.03 Insolvency recovery rate cents/$ 3.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.2 38.3 111 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.3 11.06 Willingness to delegate authority 1-7 (best) 20.4 121 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.0 0.3 = 116 2.7 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 0.12 16.9 = 100 Israel 12.01 Diversity of workforce 1-7 (best) 92.3 31.1 134 Denmark 12.02 State of cluster development 1-7 (best) 0.31 Israel 12.03 International co-inventions applications/million pop. 0.4 67.9 122 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 2.9 100.0 = 17 12.06 Patent applications applications/million pop. 584.29 Germany 12.07 R&D expenditures % GDP 100.0 = 21 Canada 12.09 Buyer sophistication 1-7 (best) 34.4 126 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 23 Multiple (7) 58.3 69 Multiple (7) 95.5 21 Multiple (7)
48.1 103
38.6 91
30.2 105
49.7 106
28.2 136
3.6 79
34.7 117
67.2 99
5.0 81
12.3 77
0.4 106
31.9 107
68.5 65
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 397 399 | The Global Competitiveness Report 2018 Mongolia Economy Profiles
99th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 95th/135
Performance Overview Key Previous edition Lower middle income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 65
62 63
60 53 51 56 57 55 50 52 49 50
40 40
0
Rank /140 99th 80th 103rd 78th 121st 105th 89th 100th 41st 109th 103rd 89th 99th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 3.1 GDP (PPP) % world GDP 0.03 GDP per capita US$ 3,639.9 Unemployment rate % 7.0 10-year average annual GDP growth % 5.1 6.7 5-year average FDI inward flow % GDP
Social and environmental performance 9.5 Global Gender Gap Index 0-1 (gender parity) 0.7 3.7 Income Gini 0 (perfect equality) -100 (perfect inequality) 32.3
The Global Competitiveness Report 2018 | 399 Economy Profiles 99th /140
Mongolia Value Score * Rank/140 Best Performer
Index Component - 51.1 80 New Zealand 5.1 Finland Pillar 1: Institutions 0-100 (best) 5.7 67.6 59 1.01 Organized crime 1-7 (best) 4.1 82.5 93 Multiple (24) 1.02 Homicide rate /100,000 pop. 57.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 46.2 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 2.8 Australia 1.05 Social capital 0-100 (high) 3.3 52.5 82 Multiple (2) 1.06 Budget transparency 0-100 (best) 29.1 1.07 Judicial independence 1-7 (best) 3.0 57.1 28 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.9 Finland 1.09 Freedom of the press 0-100 (worst) 0.74 46.2 = 90 Norway 1.10 Burden of government regulation 1-7 (best) 2.5 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 36.0 30.0 113 Singapore 1.12 E-Participation Index 0-1 (best) 3.6 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.2 38.9 67 Singapore 1.14 Incidence of corruption 0-100 (best) 14.5 New Zealand 1.15 Property rights 1-7 (best) 3.6 71.0 58 Finland 1.16 Intellectual property protection 1-7 (best) 7.3 Finland 1.17 Quality of land administration 0-30 (best) 6.0 33.3 104 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 31.7 112 Multiple (2) 1.20 Shareholder governance 0-10 (best) 45.2 Kazakhstan 73.6 62 Pillar 2: Infrastructure 0-100 (best) 3.1 Singapore 1.2 25.6 128 United States 2.01 Road connectivity index 0-100 (best) 3.3 2.02 Quality of roads 1-7 (best) 9,490.1 36.0 87 Singapore 2.03 Railroad density km of roads/square km 3.6 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 43.2 120 Switzerland 2.05 Airport connectivity score 1.6 2.06 Efficiency of air transport services 1-7 (best) 91.0 36.1 127 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 11.4 Singapore 2.08 Efficiency of seaport services 1-7 (best) 19.8 48.3 = 74 Multiple (4) 2.09 Electrification rate % pop. 4.1 Singapore 2.10 Electric power transmission and distribution losses % output 43.8 126 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 126.4 73.0 = 20 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 80.8 60.0 = 56 9.3 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 2.3 56.2 103 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 22.3 45.2 = 105 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 35.7 110 2.6 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 30.0 2.9 = 94 4.01 Inflation annual % change - 39.0 62 Multiple (74) 4.02 Debt dynamics 0-100 (best) 59.9 Multiple (36) 31.5 97 Pillar 5: Health 0-100 (best) - Multiple (4) 9.5 43.2 113 Multiple (4) 5.01 Healthy life expectancy years 3.6 3.5 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.4 Finland 3.7 10.7 137 Switzerland 6.01 Mean years of schooling Years 2.6 Switzerland 6.02 Extent of staff training 1-7 (best) 15.5 91.0 99 Switzerland 6.03 Quality of vocational training 1-7 (best) 2.8 Sweden 6.04 Skillset of graduates 1-7 (best) 29.7 92.3 75 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 81.9 = 93 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 52.4 100 48.7 78 401 | The Global Competitiveness Report 2018 100.0 49
18.5 76
22.3 115
65.0 121
30.0 137
62.2 105
62.2 104
57.4 89
43.8 95
40.2 120
27.3 139
85.9 42
30.2 116
50.8 102 Mongolia Economy Profiles
99th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 52.3 100 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 2.3 33.8 121 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.5 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.0 21.5 137 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 4.60 Hong Kong SAR 7.05 Trade tariffs % duty 6.8 59.1 108 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.2 Germany 7.07 Efficiency of the clearance process 15 (best) 13.7 50.1 108 7.08 Services trade openness 0-100 (worst) Ecuador
- 69.3 58
Pillar 8: Labour market 0-100 (best) 8.7 United States 3.7 96.1 5 Multiple (8) 8.01 Redundancy costs weeks of salary 4.2 8.02 Hiring and firing practices 1-7 (best) 5.8 30.6 119 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 2.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) n/a 86.3 = 12 8.05 Active Labour policies 1-7 (best) 3.2 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.3 63.5 41 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.6 90.3 = 20 Albania 8.09 Reliance on professional management 1-7 (best) 0.92 Guinea 8.10 Pay and productivity 1-7 (best) 12.4 44.3 86 Finland 8.12 Labour tax rate % - 54.1 83 United States 57.5 Multiple (4) Pillar 9: Financial system 0-100 (best) 79.8 10 9.01 Domestic credit to private sector % GDP 1.9 30.4 94 9.02 Financing of SMEs 1-7 (best) 6.2 United States 9.03 Venture capital availability 1-7 (best) 0.5 75.2 n/a Multiple (29) 9.04 Market capitalization % GDP 3.5 9.05 Insurance premium % GDP 7.2 36.6 128 United States 9.06 Soundness of banks 1-7 (best) -3.6 United States 9.07 Non-performing loans % loan portfolio value n/a 55.1 85 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 48.9 87 Multiple (16) Pillar 10: Market size 0-100 (best) 58.5 42.6 94 Finland 10.01 Gross domestic product PPP $ billions - 89.5 23 Multiple (97) 10.02 Imports % GDP 1.4 Multiple (72) 10.0 93.9 = 44 Pillar 11: Business dynamism 0-100 (best) 17.0 China 11.0 50.2 109 China 11.01 Cost of starting a business % GNI per capita 3.5 Hong Kong SAR 11.02 Time to start a business days 3.2 60.5 59 11.03 Insolvency recovery rate cents/$ 3.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.2 33.7 122 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 15.4 130 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.9 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 2.8 6.2 99 0.11 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 3.1 7.8 = 126 Israel 80.0 12.01 Diversity of workforce 1-7 (best) 0.45 41.8 122 Denmark 12.02 State of cluster development 1-7 (best) 0.2 Israel 12.03 International co-inventions applications/million pop. 0.00 86.5 = 87 12.04 Multi-stakeholder collaboration 1-7 (best) 3.0 United States 12.05 Scientific publications H Index 414.30 100.0 = 43 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 100.0 = n/a Canada 12.09 Buyer sophistication 1-7 (best) 40.5 103 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 39 Multiple (7) 55.0 89 Multiple (7) 99.3 33
18.3 121
36.8 134
47.9 82
36.7 102
31.0 99
65.2 32
30.2 131
3.3 81
65.1 107
6.9 76
5.2 96
33.3 101
64.9 74
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 401 403 | The Global Competitiveness Report 2018 Montenegro Economy Profiles
71st / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 73rd/135
Performance Key Previous edition Upper middle income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 70 68 68
60 62 61 64 63
60 55 57
40 35
30 28
0
Rank /140 71st 63rd 86th 58th 102nd 55th 52nd 45th 25th 51st 132nd 50th 74th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 0.6 GDP (PPP) % world GDP 0.01 GDP per capita US$ 7,647.0 Unemployment rate % 16.1 10-year average annual GDP growth % 11.6 2.0 5-year average FDI inward flow % GDP
Social and environmental performance 3.4 Income Gini 0 (perfect equality) -100 (perfect inequality) 31.9
The Global Competitiveness Report 2018 | 403 Economy Profiles 71st /140
Montenegro Value Score * Rank/140 Best Performer
Index Component - 54.7 63 New Zealand Pillar 1: Institutions 0-100 (best) 4.5 63.8 70 1.01 Organized crime 1-7 (best) 4.3 86.6 85 Multiple (24) 1.02 Homicide rate /100,000 pop. 48.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 23.1 100.0 29 Finland 1.04 Reliability of police services 1-7 (best) 3.8 Australia 1.05 Social capital 0-100 (high) 3.6 54.8 77 Multiple (2) 1.06 Budget transparency 0-100 (best) 31.2 1.07 Judicial independence 1-7 (best) 3.9 48.8 84 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.8 Finland 1.09 Freedom of the press 0-100 (worst) 0.74 23.1 = 130 Norway 1.10 Burden of government regulation 1-7 (best) 3.9 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 46.0 47.3 68 Singapore 1.12 E-Participation Index 0-1 (best) 4.2 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.8 43.6 55 Singapore 1.14 Incidence of corruption 0-100 (best) 17.5 New Zealand 1.15 Property rights 1-7 (best) 4.2 68.8 84 Finland 1.16 Intellectual property protection 1-7 (best) 6.3 Finland 1.17 Quality of land administration 0-30 (best) 6.0 47.7 38 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 46.8 61 Multiple (2) 1.20 Shareholder governance 0-10 (best) 27.7 Kazakhstan 74.2 61 Pillar 2: Infrastructure 0-100 (best) 3.8 Singapore 18.1 49.1 50 United States 2.02 Quality of roads 1-7 (best) 3.0 46.0 56 Singapore 2.03 Railroad density km of roads/square km 9,813.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 53.6 75 Switzerland 2.05 Airport connectivity score 4.4 2.06 Efficiency of air transport services 1-7 (best) 6.5 46.6 89 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 4.1 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 58.3 = 56 Multiple (4) 2.09 Electrification rate % pop. 16.6 Singapore 2.10 Electric power transmission and distribution losses % output 8.1 53.1 96 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 5.0 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 63.0 = 45 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 166.1 60.0 = 56 3.01 Mobile-cellular telephone subscriptions /100 pop. 66.5 62.2 86 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 21.8 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 27.7 = 126 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 2.1 Korea, Rep. 3.05 Internet users % pop. 69.9 46.8 78 Pillar 4: Macroeconomic stability 0-100 (best) - 45.3 = 41 1.1 Multiple (31) 4.01 Inflation annual % change 39.5 33.5 78 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 31.8 96
Pillar 5: Health 0-100 (best) 67.1 Multiple (4) 57.1 76 Multiple (4) 5.01 Healthy life expectancy years - 11.2 6.5 104 Finland Pillar 6: Skills 0-100 (best) 3.8 Finland 3.9 51.3 70 Switzerland 6.01 Mean years of schooling Years 3.9 Switzerland 6.02 Extent of staff training 1-7 (best) 4.1 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.0 Sweden 6.04 Skillset of graduates 1-7 (best) 14.9 86.9 100 United States 6.05 Digital skills among population 1-7 (best) 3.7 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) n/a 93.8 = 52 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 67.1 61 57.1 58 405 | The Global Competitiveness Report 2018
43.7 44
69.9 55
69.7 102
39.5 123
84.8 55
84.8 54
68.1 52
46.9 71
48.8 78
48.7 75
82.8 = 56
44.5 51
86.6 n/a Montenegro Economy Profiles
71st /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 60.9 45 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.7 51.1 48 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.9 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.5 45.1 69 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 2.02 Hong Kong SAR 7.05 Trade tariffs % duty 5.4 64.3 76 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 57.5 60 7.08 Services trade openness 0-100 (worst) Ecuador
- 86.5 38
Pillar 8: Labour market 0-100 (best) 11.2 United States 3.9 72.7 78 Multiple (8) 8.01 Redundancy costs weeks of salary 4.3 8.02 Hiring and firing practices 1-7 (best) 5.2 39.0 84 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.0 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 88.7 85.3 n/a 8.05 Active Labour policies 1-7 (best) 4.2 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 5.4 67.5 25 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.9 85.0 = 39 Albania 8.09 Reliance on professional management 1-7 (best) 0.90 Guinea 8.10 Pay and productivity 1-7 (best) 13.4 48.9 59 Finland 8.12 Labour tax rate % - 54.7 77 United States 50.0 Multiple (4) Pillar 9: Financial system 0-100 (best) 69.5 48 4.0 Multiple (26) 9.01 Domestic credit to private sector % GDP 3.2 50.4 42 9.02 Financing of SMEs 1-7 (best) 82.6 United States 9.03 Venture capital availability 1-7 (best) n/a 88.7 21 Multiple (29) 9.04 Market capitalization % GDP 4.7 9.05 Insurance premium % GDP n/a 54.0 56 United States 9.06 Soundness of banks 1-7 (best) -15.7 United States 9.07 Non-performing loans % loan portfolio value n/a 74.1 4 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 48.6 89 Multiple (16) Pillar 10: Market size 0-100 (best) 67.1 48.8 70 Finland 10.01 Gross domestic product PPP $ billions - 87.5 28 Multiple (97) 10.02 Imports % GDP 1.5 Multiple (72) 10.0 92.5 53 Pillar 11: Business dynamism 0-100 (best) 49.3 China 13.5 63.9 51 China 11.01 Cost of starting a business % GNI per capita 3.6 Hong Kong SAR 11.02 Time to start a business days 3.8 52.7 74 11.03 Insolvency recovery rate cents/$ 3.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.5 49.5 48 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 37.2 48 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.5 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.5 82.6 = 23 0.27 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 3.7 21.6 = n/a Israel 41.7 12.01 Diversity of workforce 1-7 (best) 1.88 61.3 80 Denmark 12.02 State of cluster development 1-7 (best) 0.4 Israel 12.03 International co-inventions applications/million pop. 0.00 69.9 n/a 12.04 Multi-stakeholder collaboration 1-7 (best) 3.4 United States 12.05 Scientific publications H Index 622.39 100.0 = 12 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 100.0 = n/a Canada 12.09 Buyer sophistication 1-7 (best) 28.2 132 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 27 Multiple (7) 63.4 50 Multiple (7) 99.3 = 35
53.1 40
43.6 100
46.5 115
48.2 76
42.1 67
34.9 74
57.6 67
41.8 91
7.3 68
45.3 59
19.4 55
12.7 74
39.6 72
69.2 62
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 405 407 | The Global Competitiveness Report 2018 Morocco Economy Profiles
75th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 77th/135
Performance Key Previous edition Lower middle income group average Middle East and North Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 75
72 66
60 58 57 55 60
50 54
50 45
0
Rank /140 75th 54th 53rd 93rd 47th 88th 114th 75th 119th 44th 53rd 99th 78th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 34.9 GDP (PPP) % world GDP 0.24 GDP per capita US$ 3,151.2 Unemployment rate % 9.3 10-year average annual GDP growth % 2.8 3.9 5-year average FDI inward flow % GDP
Social and environmental performance 1.8 Income Gini 0 (perfect equality) -100 (perfect inequality) 39.5
The Global Competitiveness Report 2018 | 407 Economy Profiles 75th /140
Morocco Value Score * Rank/140 Best Performer
Index Component - 56.6 54 New Zealand Pillar 1: Institutions 0-100 (best) 1.2 73.0 35 1.01 Organized crime 1-7 (best) 5.5 97.5 = 40 Multiple (24) 1.02 Homicide rate /100,000 pop. 39.7 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 50.0 100.0 28 Finland 1.04 Reliability of police services 1-7 (best) 3.9 Australia 1.05 Social capital 0-100 (high) 4.0 75.5 34 Multiple (2) 1.06 Budget transparency 0-100 (best) 43.1 1.07 Judicial independence 1-7 (best) 4.1 39.7 129 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.78 50.0 = 77 Norway 1.10 Burden of government regulation 1-7 (best) 4.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 40.0 48.6 65 Singapore 1.12 E-Participation Index 0-1 (best) 4.9 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.6 49.7 39 Singapore 1.14 Incidence of corruption 0-100 (best) 15.5 New Zealand 1.15 Property rights 1-7 (best) 5.1 56.9 110 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 6.0 52.3 25 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 49.9 55 Multiple (2) 1.20 Shareholder governance 0-10 (best) 79.1 Kazakhstan 77.5 55 Pillar 2: Infrastructure 0-100 (best) 4.5 Singapore 4.7 51.2 46 United States 2.01 Road connectivity index 0-100 (best) 3.7 2.02 Quality of roads 1-7 (best) 71,958.0 40.0 69 Singapore 2.03 Railroad density km of roads/square km 5.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 67.0 65.8 39 Switzerland 2.05 Airport connectivity score 4.9 2.06 Efficiency of air transport services 1-7 (best) 99.1 60.3 43 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 15.2 Singapore 2.08 Efficiency of seaport services 1-7 (best) 20.1 51.7 = 70 Multiple (4) 2.09 Electrification rate % pop. 5.7 Singapore 2.10 Electric power transmission and distribution losses % output 67.5 47 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 122.9 57.0 = 65 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 58.3 60.0 = 56 3.9 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 71.5 53 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 58.3 79.1 = 33 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 58.0 48 1.2 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 80.0 11.8 = 72 4.01 Inflation annual % change - 44.3 55 Multiple (74) 4.02 Debt dynamics 0-100 (best) 64.0 Multiple (36) 57.3 52 Pillar 5: Health 0-100 (best) - Multiple (4) 4.8 67.1 46 Multiple (4) 5.01 Healthy life expectancy years 3.6 3.6 67.0 16 Finland Pillar 6: Skills 0-100 (best) 3.5 Finland 3.7 64.7 28 Switzerland 6.01 Mean years of schooling Years 3.8 Switzerland 6.02 Extent of staff training 1-7 (best) 11.8 99.1 81 Switzerland 6.03 Quality of vocational training 1-7 (best) 2.2 Sweden 6.04 Skillset of graduates 1-7 (best) 26.6 88.3 97 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 81.5 96 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 78.8 43 44.2 93 409 | The Global Competitiveness Report 2018 100.0 58
7.7 93
58.3 73
90.0 47
80.0 52
74.9 88
74.9 87
45.2 114
32.0 = 123
43.4 101
41.0 117
45.6 96
46.2 99
65.5 = 102
19.9 138
58.5 95 Morocco Economy Profiles
75th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 55.2 75 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.7 52.6 43 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.0 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.3 45.3 67 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.10 Hong Kong SAR 7.05 Trade tariffs % duty 5.6 67.0 59 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.3 Germany 7.07 Efficiency of the clearance process 15 (best) 21.0 55.0 76 7.08 Services trade openness 0-100 (worst) Ecuador
- 32.6 102
Pillar 8: Labour market 0-100 (best) 20.7 United States 77.4 71 Multiple (8) 8.01 Redundancy costs weeks of salary 3.4 8.02 Hiring and firing practices 1-7 (best) 3.9 33.2 112 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.5 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.1 79.0 = 39 8.05 Active Labour policies 1-7 (best) 74.2 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.1 50.0 119 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.2 65.2 = 91 Albania 8.09 Reliance on professional management 1-7 (best) 3.6 Guinea 8.10 Pay and productivity 1-7 (best) 0.24 40.6 103 Finland 8.11 Female participation in Labour force ratio 23.3 8.12 Labour tax rate % 48.7 109 United States Pillar 9: Financial system 0-100 (best) 65.3 74.4 27 9.01 Domestic credit to private sector % GDP 3.9 18.7 124 9.02 Financing of SMEs 1-7 (best) 2.8 United States 9.03 Venture capital availability 1-7 (best) 49.6 74.2 52 Multiple (29) 9.04 Market capitalization % GDP 2.7 9.05 Insurance premium % GDP 5.7 51.5 69 United States 9.06 Soundness of banks 1-7 (best) 7.6 United States 9.07 Non-performing loans % loan portfolio value -7.8 63.8 36 9.08 Credit gap percentage points 13.1 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 53.8 66 Multiple (16) - Pillar 10: Market size 0-100 (best) 272 44.1 87 Finland 48.8 Multiple (2) 10.01 Gross domestic product PPP $ billions 4.8 129 Multiple (97) 10.02 Imports % GDP - Multiple (72) 8.0 78.8 102 Pillar 11: Business dynamism 0-100 (best) 9.0 China 28.4 66.3 44 China 11.01 Cost of starting a business % GNI per capita 6.0 Hong Kong SAR 11.02 Time to start a business days 3.6 68.8 46 11.03 Insolvency recovery rate cents/$ 4.1 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.6 48.0 56 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.2 11.06 Willingness to delegate authority 1-7 (best) 29.4 81 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.9 49.6 39 Pillar 12: Innovation capability 0-100 (best) 0.07 44.8 = 45 Israel 12.01 Diversity of workforce 1-7 (best) 154.7 78.8 23 Denmark 12.02 State of cluster development 1-7 (best) 0.13 Israel 12.03 International co-inventions applications/million pop. 0.7 85.7 90 12.04 Multi-stakeholder collaboration 1-7 (best) 0.02 United States 12.05 Scientific publications H Index 3.4 100.0 = 25 12.06 Patent applications applications/million pop. 287.18 Germany 12.07 R&D expenditures % GDP 91.6 = 106 Canada 12.09 Buyer sophistication 1-7 (best) 60.0 53 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 61 Multiple (7) 53.9 99 Multiple (7) 96.0 76 91.5 55 Multiple (7)
30.6 92
52.4 80
43.3 100
37.4 95
34.0 78
48.5 112
45.9 74
2.2 90
37.0 102
74.8 69
2.3 97
23.8 = 51
5.8 50
39.2 75
60.9 85
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 409 411 | The Global Competitiveness Report 2018 Mozambique Economy Profiles
133rd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 125th/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
50 50 53
40 40 41 37 44 42 40
30 26 28 27
0
Rank /140 133rd 130th 130th 122nd 137th 135th 140th 115th 138th 113rd 104th 104th 120th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 29.5 GDP (PPP) % world GDP 0.03 GDP per capita US$ 429.3 Unemployment rate % 25.0 10-year average annual GDP growth % 29.4 6.0 5-year average FDI inward flow % GDP
Social and environmental performance 0.9 Global Gender Gap Index 0-1 (gender parity) 0.7 2.5 Income Gini 0 (perfect equality) -100 (perfect inequality) 54.0
The Global Competitiveness Report 2018 | 411 Economy Profiles 133rd /140
Mozambique Value Score * Rank/140 Best Performer
Index Component - 41.2 130 New Zealand 3.2 Finland Pillar 1: Institutions 0-100 (best) 3.4 36.9 132 96.1 Multiple (9) 1.01 Organized crime 1-7 (best) 2.7 90.2 = 79 Multiple (24) 1.02 Homicide rate /100,000 pop. 48.2 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 42.3 96.1 114 Finland 1.04 Reliability of police services 1-7 (best) 2.5 Australia 1.05 Social capital 0-100 (high) 2.6 28.7 133 Multiple (2) 1.06 Budget transparency 0-100 (best) 31.1 1.07 Judicial independence 1-7 (best) 3.1 48.2 = 91 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.8 Finland 1.09 Freedom of the press 0-100 (worst) 0.44 42.3 = 103 Norway 1.10 Burden of government regulation 1-7 (best) 2.9 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 25.0 25.8 119 Singapore 1.12 E-Participation Index 0-1 (best) 3.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.1 25.9 119 Singapore 1.14 Incidence of corruption 0-100 (best) 9.5 New Zealand 1.15 Property rights 1-7 (best) 3.3 68.9 80 Finland 1.16 Intellectual property protection 1-7 (best) 5.3 Finland 1.17 Quality of land administration 0-30 (best) 3.0 34.2 100 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 29.8 117 Multiple (2) 1.20 Shareholder governance 0-10 (best) 56.2 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 2.4 Singapore 3.9 32.4 117 United States 2.01 Road connectivity index 0-100 (best) 2.5 2.02 Quality of roads 1-7 (best) 2,267.5 25.0 129 Singapore 2.03 Railroad density km of roads/square km 2.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 9.3 41.4 125 Switzerland 2.05 Airport connectivity score 2.9 2.06 Efficiency of air transport services 1-7 (best) 28.6 34.5 132 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 19.3 Singapore 2.08 Efficiency of seaport services 1-7 (best) 44.7 31.7 = 107 Multiple (4) 2.09 Electrification rate % pop. 2.7 Singapore 2.10 Electric power transmission and distribution losses % output 38.2 133 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 40.0 53.0 = 84 Multiple (23) 25.7 Switzerland Pillar 3: ICT adoption 0-100 (best) 30.0 = 131 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 37.3 130 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 17.5 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 56.2 = 84 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 17.3 22.8 133 25.9 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 9.7 = 77 4.01 Inflation annual % change 52.1 24.8 96 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 18.9 125
Pillar 5: Health 0-100 (best) 2.1 Multiple (4) 2.9 29.0 136 Multiple (4) 5.01 Healthy life expectancy years 3.0 2.8 9.3 87 Finland Pillar 6: Skills 0-100 (best) 2.8 Finland 3.3 31.7 112 Switzerland 6.01 Mean years of schooling Years 9.7 Switzerland 6.02 Extent of staff training 1-7 (best) 2.5 28.6 131 Switzerland 6.03 Quality of vocational training 1-7 (best) 54.7 Sweden 6.04 Skillset of graduates 1-7 (best) 84.1 113 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 56.4 135 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 28.1 125 26.3 122 413 | The Global Competitiveness Report 2018 33.4 139
n/a 117
0.3 130
n/a 102
17.5 124
44.5 137
63.1 136
25.9 139
37.7 135
28.2 140
14.0 = 136
31.6 136
33.7 135
30.4 138
29.8 137
38.4 128
53.7 = 123
24.9 128
0.0 134 Mozambique Economy Profiles
133rd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 49.6 115 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 2.8 34.5 119 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.1 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.5 29.9 130 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 7.81 Hong Kong SAR 7.05 Trade tariffs % duty 6.7 51.0 130 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.5 Germany 7.07 Efficiency of the clearance process 15 (best) 18.6 42.2 133 7.08 Services trade openness 0-100 (worst) Ecuador
- 47.9 89
Pillar 8: Labour market 0-100 (best) 37.5 United States 94.7 = 9 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 3.5 37.3 = 88 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.0 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.1 81.4 = 34 8.05 Active Labour policies 1-7 (best) 81.4 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.2 42.5 138 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.1 30.2 = 130 Albania 8.09 Reliance on professional management 1-7 (best) 2.8 Guinea 8.10 Pay and productivity 1-7 (best) 0.21 36.5 119 Finland 8.11 Female participation in Labour force ratio 4.5 8.12 Labour tax rate % 42.4 129 United States Pillar 9: Financial system 0-100 (best) 33.9 50.5 127 9.01 Domestic credit to private sector % GDP 3.0 17.5 127 9.02 Financing of SMEs 1-7 (best) 2.0 United States 9.03 Venture capital availability 1-7 (best) 8.9 81.4 35 Multiple (29) 9.04 Market capitalization % GDP 1.4 9.05 Insurance premium % GDP 3.4 35.9 130 United States 9.06 Soundness of banks 1-7 (best) 6.1 United States 9.07 Non-performing loans % loan portfolio value 0.8 53.8 93 9.08 Credit gap percentage points 16.4 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 35.3 132 Multiple (16) - Pillar 10: Market size 0-100 (best) 33 29.3 134 Finland 69.0 Multiple (2) 10.01 Gross domestic product PPP $ billions 0.8 137 Multiple (97) 10.02 Imports % GDP - Multiple (72) 18.1 100.0 = 15 Pillar 11: Business dynamism 0-100 (best) 19.0 China 31.5 49.5 113 China 11.01 Cost of starting a business % GNI per capita 10.0 Hong Kong SAR 11.02 Time to start a business days 35.7 94 11.03 Insolvency recovery rate cents/$ 3.2 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.4 33.9 121 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.5 11.06 Willingness to delegate authority 1-7 (best) 3.1 17.3 128 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 8.9 = 94 Pillar 12: Innovation capability 0-100 (best) 3.2 23.0 = 82 Israel 12.01 Diversity of workforce 1-7 (best) 3.2 39.6 125 Denmark 12.02 State of cluster development 1-7 (best) 83.7 Israel 12.03 International co-inventions applications/million pop. 0.00 88.7 79 12.04 Multi-stakeholder collaboration 1-7 (best) 0.3 United States 12.05 Scientific publications H Index 0.00 100.0 88 12.06 Patent applications applications/million pop. 2.6 Germany 12.07 R&D expenditures % GDP 46.33 98.8 = 65 Canada 12.09 Buyer sophistication 1-7 (best) 40.3 104 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 108 n/a 25 Multiple (7) 52.8 104 Multiple (7) 91.0 103 81.4 = 100 Multiple (7)
33.9 84
37.4 127
40.3 127
27.1 120
53.0 90
36.5 111
36.5 104
65.7 105
11.2 78
0.4 97
26.0 126
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 413 415 | The Global Competitiveness Report 2018 Namibia Economy Profiles
100th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 99th/135
Performance Overview Key Previous edition Upper middle income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 70 66
60 64
53 51 53 54 50
40 37 36
0
Rank /140 100th 51st 91st 105th 100th 117th 100th 80th 39th 47th 121st 121st 77th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 2.3 GDP (PPP) % world GDP 0.02 GDP per capita US$ 5,413.1 Unemployment rate % 23.3 3.6 5-year average FDI inward flow % GDP 5.9
Social and environmental performance 2.1 Global Gender Gap Index 0-1 (gender parity) 0.8 3.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 59.1
The Global Competitiveness Report 2018 | 415 Economy Profiles 100th /140
Namibia Value Score * Rank/140 Best Performer
Index Component - 57.2 51 New Zealand 4.7 Finland Pillar 1: Institutions 0-100 (best) 17.1 61.2 79 1.01 Organized crime 1-7 (best) 4.3 43.6 = 128 Multiple (24) 1.02 Homicide rate /100,000 pop. 53.0 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 73.1 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 5.3 Australia 1.05 Social capital 0-100 (high) 4.3 55.3 75 Multiple (2) 1.06 Budget transparency 0-100 (best) 20.2 1.07 Judicial independence 1-7 (best) 3.9 53.0 = 55 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.5 Finland 1.09 Freedom of the press 0-100 (worst) 0.39 73.1 = 27 Norway 1.10 Burden of government regulation 1-7 (best) 4.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 51.0 71.1 27 Singapore 1.12 E-Participation Index 0-1 (best) 5.2 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.7 54.9 24 Singapore 1.14 Incidence of corruption 0-100 (best) 8.5 New Zealand 1.15 Property rights 1-7 (best) 5.1 79.8 24 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 5.0 47.6 39 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 59.0 30 Multiple (2) 1.20 Shareholder governance 0-10 (best) 92.8 Kazakhstan 39.3 116 Pillar 2: Infrastructure 0-100 (best) 5.1 Singapore 3.2 51.7 40 United States 2.01 Road connectivity index 0-100 (best) 2.9 2.02 Quality of roads 1-7 (best) 4,338.9 51.0 46 Singapore 2.03 Railroad density km of roads/square km 4.9 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 15.4 69.8 31 Switzerland 2.05 Airport connectivity score 4.6 2.06 Efficiency of air transport services 1-7 (best) 55.9 62.1 40 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 7.0 Singapore 2.08 Efficiency of seaport services 1-7 (best) 28.8 28.3 = 110 Multiple (4) 2.09 Electrification rate % pop. 5.1 Singapore 2.10 Electric power transmission and distribution losses % output 68.7 44 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 104.5 57.0 = 65 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 59.3 50.0 = 81 2.5 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 59.7 91 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 31.0 92.8 = 10 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 68.2 28 6.4 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 46.7 8.0 = 80 4.01 Inflation annual % change - 31.4 80 Multiple (74) 4.02 Debt dynamics 0-100 (best) 56.5 Multiple (36) 24.1 119 Pillar 5: Health 0-100 (best) - Multiple (4) 8.5 65.8 50 Multiple (4) 5.01 Healthy life expectancy years 4.3 3.8 15.4 71 Finland Pillar 6: Skills 0-100 (best) 3.7 Finland 3.4 60.4 41 Switzerland 6.01 Mean years of schooling Years 3.5 Switzerland 6.02 Extent of staff training 1-7 (best) 11.7 55.9 116 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.2 Sweden 6.04 Skillset of graduates 1-7 (best) 29.8 96.9 41 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 72.6 103 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 68.9 57 37.3 105 417 | The Global Competitiveness Report 2018 87.1 95
5.0 102
31.0 101
69.9 100
93.2 111
46.7 102
51.5 117
51.5 116
52.7 100
56.7 = 85
55.2 43
47.0 86
44.8 99
39.6 119
41.9 114
36.6 82
50.6 = 104 Namibia Economy Profiles
100th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 54.4 80 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.5 55.7 35 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.7 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.3 41.3 95 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 6.49 Hong Kong SAR 7.05 Trade tariffs % duty 4.9 61.4 94 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) 37.0 55.1 75 7.08 Services trade openness 0-100 (worst) Ecuador
- 56.8 81
Pillar 8: Labour market 0-100 (best) 9.7 United States 3.7 64.3 89 Multiple (8) 8.01 Redundancy costs weeks of salary 4.5 8.02 Hiring and firing practices 1-7 (best) 4.8 41.2 = 67 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 2.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 82.5 63.0 = 75 8.05 Active Labour policies 1-7 (best) 3.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.9 63.7 39 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.0 88.2 = 29 Albania 8.09 Reliance on professional management 1-7 (best) 0.77 Guinea 8.10 Pay and productivity 1-7 (best) 1.9 45.3 79 Finland 8.12 Labour tax rate % - 57.8 57 United States 60.7 Multiple (4) Pillar 9: Financial system 0-100 (best) 63.2 80 9.01 Domestic credit to private sector % GDP 2.9 30.5 93 9.02 Financing of SMEs 1-7 (best) 3.0 United States 9.03 Venture capital availability 1-7 (best) 6.6 82.5 32 Multiple (29) 9.04 Market capitalization % GDP 5.4 9.05 Insurance premium % GDP 1.5 32.8 136 United States 9.06 Soundness of banks 1-7 (best) 8.7 United States 9.07 Non-performing loans % loan portfolio value 14.5 64.3 35 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 57.2 56 Multiple (16) Pillar 10: Market size 0-100 (best) 54.6 49.4 65 Finland 10.01 Gross domestic product PPP $ billions - 70.8 61 Multiple (97) 10.02 Imports % GDP 11.3 Multiple (72) 66.0 100.0 = 8 Pillar 11: Business dynamism 0-100 (best) 34.0 China 6.0 65.7 47 China 11.01 Cost of starting a business % GNI per capita 4.0 Hong Kong SAR 11.02 Time to start a business days 4.5 63.9 54 11.03 Insolvency recovery rate cents/$ 3.7 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.4 45.2 78 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 31.7 69 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.6 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.5 3.0 = 108 0.22 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 3.5 100.0 = 13 Israel 80.7 12.01 Diversity of workforce 1-7 (best) 0.36 72.9 48 Denmark 12.02 State of cluster development 1-7 (best) 0.3 Israel 12.03 International co-inventions applications/million pop. 0.00 97.9 19 12.04 Multi-stakeholder collaboration 1-7 (best) 3.5 United States 12.05 Scientific publications H Index 476.55 82.4 130 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 94.7 = 95 Canada 12.09 Buyer sophistication 1-7 (best) 36.2 121 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 46 Multiple (7) 49.7 121 Multiple (7) 94.4 83 34.2 = 135 Multiple (7)
50.3 65
59.1 45
39.4 81
34.1 77
60.6 52
42.2 89
6.0 72
41.0 81
65.2 106
5.7 78
11.2 = 79
0.4 111
41.8 63
66.4 71
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 417 419 | The Global Competitiveness Report 2018 Nepal Economy Profiles
109th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 108th/135
Performance Overview 2018 Key Previous edition Low income group average South Asia average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 70 67
50 51 49 48 48 49 54 47
30 29
0
Rank /140 109th 98th 117th 101st 96th 102nd 106th 130th 125th 58th 84th 98th 110th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 29.3 GDP (PPP) % world GDP 0.06 GDP per capita US$ 834.2 Unemployment rate % 2.7 10-year average annual GDP growth % 0.4
Social and environmental performance 1.0 Global Gender Gap Index 0-1 (gender parity) 0.7 4.2 Income Gini 0 (perfect equality) -100 (perfect inequality) 32.8
The Global Competitiveness Report 2018 | 419 Economy Profiles 109th /140
Nepal Value Score * Rank/140 Best Performer
Index Component - 48.5 98 New Zealand Pillar 1: Institutions 0-100 (best) 2.2 51.8 107 89.6 Multiple (9) 1.01 Organized crime 1-7 (best) 4.2 94.4 64 Multiple (24) 1.02 Homicide rate /100,000 pop. 49.5 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 57.7 89.6 122 Finland 1.04 Reliability of police services 1-7 (best) 3.4 Australia 1.05 Social capital 0-100 (high) 3.0 53.0 80 Multiple (2) 1.06 Budget transparency 0-100 (best) 32.1 1.07 Judicial independence 1-7 (best) 3.2 49.5 79 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.78 57.7 = 61 Norway 1.10 Burden of government regulation 1-7 (best) 2.9 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 31.0 40.3 88 Singapore 1.12 E-Participation Index 0-1 (best) 4.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.3 33.0 87 Singapore 1.14 Incidence of corruption 0-100 (best) 5.5 New Zealand 1.15 Property rights 1-7 (best) 4.1 68.0 87 Finland 1.16 Intellectual property protection 1-7 (best) 5.3 Finland 1.17 Quality of land administration 0-30 (best) 6.3 36.0 90 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 36.7 92 Multiple (2) 1.20 Shareholder governance 0-10 (best) 34.3 Kazakhstan 78.1 54 Pillar 2: Infrastructure 0-100 (best) 2.6 Singapore n/a 31.6 118 United States 2.01 Road connectivity index 0-100 (best) 1.3 2.02 Quality of roads 1-7 (best) 27,598.5 31.0 102 Singapore 2.03 Railroad density km of roads/square km 3.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 51.3 87 Switzerland 2.05 Airport connectivity score 1.8 2.06 Efficiency of air transport services 1-7 (best) 77.3 38.7 122 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 25.0 Singapore 2.08 Efficiency of seaport services 1-7 (best) 35.1 18.3 = 133 Multiple (4) 2.09 Electrification rate % pop. 2.7 Singapore 2.10 Electric power transmission and distribution losses % output 51.0 105 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 123.2 53.0 = 84 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 52.4 63.0 45 0.8 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.2 48.5 117 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 19.7 34.3 = 122 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 27.0 126 7.2 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 49.4 n/a n/a 4.01 Inflation annual % change - 5.2 134 Multiple (74) 4.02 Debt dynamics 0-100 (best) 61.4 Multiple (36) 43.8 75 Pillar 5: Health 0-100 (best) - Multiple (4) 4.7 33.4 130 Multiple (4) 5.01 Healthy life expectancy years 3.4 3.3 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.8 Finland 3.7 13.1 136 Switzerland 6.01 Mean years of schooling Years 3.8 Switzerland 6.02 Extent of staff training 1-7 (best) 12.2 77.3 106 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.1 Sweden 6.04 Skillset of graduates 1-7 (best) 22.4 78.1 119 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 66.2 116 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 27.7 126 40.5 101 421 | The Global Competitiveness Report 2018 100.0 57
n/a 93
1.5 = 111
19.7 120
70.3 96
91.1 116
49.4 82
66.8 102
66.8 101
48.4 106
31.3 = 124
39.3 122
37.8 125
46.1 92
44.2 102
47.3 95
67.8 98
34.3 96
68.9 83 Nepal Economy Profiles
109th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 44.8 130 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 2.9 42.6 79 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 30.9 128 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 17.18 Hong Kong SAR 7.05 Trade tariffs % duty 6.3 56.6 116 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.3 Germany 7.07 Efficiency of the clearance process 15 (best) 42.9 53.9 86 7.08 Services trade openness 0-100 (worst) Ecuador
- 0.0 139
Pillar 8: Labour market 0-100 (best) 27.2 United States 88.1 49 Multiple (8) 8.01 Redundancy costs weeks of salary 3.3 8.02 Hiring and firing practices 1-7 (best) 3.5 32.2 116 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.3 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.8 57.1 = 83 8.05 Active Labour policies 1-7 (best) 75.3 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.5 49.1 125 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.5 51.7 = 112 Albania 8.09 Reliance on professional management 1-7 (best) 3.5 Guinea 8.10 Pay and productivity 1-7 (best) 0.34 37.5 114 Finland 8.11 Female participation in Labour force ratio 11.3 8.12 Labour tax rate % 41.4 134 United States Pillar 9: Financial system 0-100 (best) 69.2 54.3 119 9.01 Domestic credit to private sector % GDP 3.9 30.3 96 9.02 Financing of SMEs 1-7 (best) 2.8 United States 9.03 Venture capital availability 1-7 (best) 62.2 75.3 50 Multiple (29) 9.04 Market capitalization % GDP 1.6 9.05 Insurance premium % GDP 4.2 41.0 117 United States 9.06 Soundness of banks 1-7 (best) 2.5 United States 9.07 Non-performing loans % loan portfolio value 9.4 64.3 34 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 41.5 113 Multiple (16) - Pillar 10: Market size 0-100 (best) 72 41.0 106 Finland 49.4 Multiple (2) 10.01 Gross domestic product PPP $ billions 17.2 119 Multiple (97) 10.02 Imports % GDP - Multiple (72) 24.9 95.4 = 37 Pillar 11: Business dynamism 0-100 (best) 16.5 China 43.0 62.9 58 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 8.0 72.9 42 11.03 Insolvency recovery rate cents/$ 3.4 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.8 48.2 54 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.4 11.06 Willingness to delegate authority 1-7 (best) 3.2 30.0 80 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 62.2 34 Pillar 12: Innovation capability 0-100 (best) 3.3 26.1 = 74 Israel 12.01 Diversity of workforce 1-7 (best) 3.1 53.3 102 Denmark 12.02 State of cluster development 1-7 (best) 109.3 Israel 12.03 International co-inventions applications/million pop. 0.03 96.0 = 40 12.04 Multi-stakeholder collaboration 1-7 (best) 0.3 United States 12.05 Scientific publications H Index 0.00 80.6 131 12.06 Patent applications applications/million pop. 3.1 Germany 12.07 R&D expenditures % GDP 102.55 96.4 n/a Canada 12.09 Buyer sophistication 1-7 (best) 46.7 84 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 59 Multiple (7) 54.0 98 Multiple (7) 87.6 111 83.9 91 Multiple (7)
46.3 50
40.6 118
47.1 111
39.7 117
36.6 103
29.0 110
49.5 108
38.0 104
1.0 100
34.9 115
69.7 88
0.6 110
10.1 = 83
0.4 102
35.6 93
49.9 104
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 421 423 | The Global Competitiveness Report 2018 Netherlands Economy Profiles
6th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 5th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
85 82 84 80
80 78 75 75 78
72 74
0
Rank /140 6th 4th 4th 19th 1st 20th 6th 6th 10th 16th 21st 3rd 9th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 17.1 GDP (PPP) % world GDP 0.72 GDP per capita US$ 48,345.7 Unemployment rate % 4.8 10-year average annual GDP growth % 6.9
Social and environmental performance 5.9 Global Gender Gap Index 0-1 (gender parity) 0.7 5.6 Income Gini 0 (perfect equality) -100 (perfect inequality) 28.2
The Global Competitiveness Report 2018 | 423 Economy Profiles 6th /140
Netherlands Value Score * Rank/140 Best Performer
Index Component - 77.9 4 New Zealand Pillar 1: Institutions 0-100 (best) 0.6 74.8 29 1.01 Organized crime 1-7 (best) 6.0 99.8 13 Multiple (24) 1.02 Homicide rate /100,000 pop. 62.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 76.9 99.8 73 Finland 1.04 Reliability of police services 1-7 (best) 6.3 Australia 1.05 Social capital 0-100 (high) 5.1 83.3 16 Multiple (2) 1.06 Budget transparency 0-100 (best) 10.0 1.07 Judicial independence 1-7 (best) 4.4 62.8 11 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.4 Finland 1.09 Freedom of the press 0-100 (worst) 0.99 76.9 = 21 Norway 1.10 Burden of government regulation 1-7 (best) 5.0 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 82.0 88.6 4 Singapore 1.12 E-Participation Index 0-1 (best) 6.1 Multiple (3) 1.13 Future orientation of government 1-7 (best) 6.1 67.7 8 Singapore 1.14 Incidence of corruption 0-100 (best) 28.5 New Zealand 1.15 Property rights 1-7 (best) 6.3 90.0 3 Finland 1.16 Intellectual property protection 1-7 (best) 4.7 Finland 1.17 Quality of land administration 0-30 (best) 7.0 56.8 17 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 74.1 6 Multiple (2) 1.20 Shareholder governance 0-10 (best) 82.1 Kazakhstan 98.9 4 Pillar 2: Infrastructure 0-100 (best) 6.2 Singapore 72.6 66.5 14 United States 2.02 Quality of roads 1-7 (best) 5.5 82.0 8 Singapore 2.03 Railroad density km of roads/square km 228,866.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 84.3 7 Switzerland 2.05 Airport connectivity score 6.3 2.06 Efficiency of air transport services 1-7 (best) 86.4 85.3 5 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 6.3 95.0 = 2 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 87.7 5 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 4.4 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 0.6 47.0 = 106 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 70.0 = 24 3.01 Mobile-cellular telephone subscriptions /100 pop. 120.5 92.4 4 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 90.8 82.1 = 24 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 42.3 Korea, Rep. 3.05 Internet users % pop. 86.3 3 6.2 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 90.4 100.0 = 8 4.01 Inflation annual % change - 75.6 7 Multiple (74) 4.02 Debt dynamics 0-100 (best) 0.7 Multiple (36) 100.0 77.0 28 Pillar 5: Health 0-100 (best) Multiple (4)
- 88.3 3 Multiple (4)
5.01 Healthy life expectancy years 70.7 86.4 6 Finland Pillar 6: Skills 0-100 (best) - Finland 12.1 88.4 2 Switzerland 6.01 Mean years of schooling Years Switzerland 6.02 Extent of staff training 1-7 (best) 5.4 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 5.5 Sweden 6.04 Skillset of graduates 1-7 (best) 5.5 99.6 15 United States 6.05 Digital skills among population 1-7 (best) 5.7 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 5.0 100.0 = 3 United States 6.07 School life expectancy Years 18.0 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 5.3 97.5 4 6.09 Pupil-to-teacher ratio in primary education Ratio 11.7 75.1 19 425 | The Global Competitiveness Report 2018 100.0 = 67
84.7 4
90.4 12
96.0 20
96.0 19
84.5 6
80.9 = 27
75.7 3
75.0 3
78.9 4
66.6 15
70.9 7
Netherlands Economy Profiles
6th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 72.3 6 Singapore 4.9 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 5.3 65.1 11 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.9 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.3 71.3 6 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 82.2 2 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.9 Germany 7.07 Efficiency of the clearance process 15 (best) 12.2 71.6 6 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 10
Pillar 8: Labour market 0-100 (best) 15.8 United States 8.01 Redundancy costs weeks of salary 4.6 8.02 Hiring and firing practices 1-7 (best) 5.9 72.9 5 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.1 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 5.2 87.8 = 7 8.05 Active Labour policies 1-7 (best) 93.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.7 74.9 10 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 6.2 75.3 = 68 Albania 8.09 Reliance on professional management 1-7 (best) 4.9 Guinea 8.10 Pay and productivity 1-7 (best) 0.91 60.4 15 Finland 8.11 Female participation in Labour force ratio 19.8 8.12 Labour tax rate % 80.9 3 United States Pillar 9: Financial system 0-100 (best) 113.9 52.5 122 9.01 Domestic credit to private sector % GDP 4.7 69.2 10 9.02 Financing of SMEs 1-7 (best) 4.1 United States 9.03 Venture capital availability 1-7 (best) 96.4 93.8 12 Multiple (29) 9.04 Market capitalization % GDP 4.3 9.05 Insurance premium % GDP 5.6 61.0 24 United States 9.06 Soundness of banks 1-7 (best) 2.5 United States 9.07 Non-performing loans % loan portfolio value -5.0 59.4 66 9.08 Credit gap percentage points 17.7 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 86.4 2 Multiple (16) - Pillar 10: Market size 0-100 (best) 834 64.2 13 Finland 95.1 Multiple (2) 10.01 Gross domestic product PPP $ billions 88.8 25 Multiple (97) 10.02 Imports % GDP - Multiple (72) 4.4 83.6 90 Pillar 11: Business dynamism 0-100 (best) 3.5 China 89.7 83.7 16 China 11.01 Cost of starting a business % GNI per capita 11.5 Hong Kong SAR 11.02 Time to start a business days 5.0 100.0 = 22 11.03 Insolvency recovery rate cents/$ 5.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 5.3 61.6 20 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.7 11.06 Willingness to delegate authority 1-7 (best) 51.4 18 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.4 96.4 15 5.4 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 20.59 72.1 = 29 Israel 12.01 Diversity of workforce 1-7 (best) 854.3 76.5 33 Denmark 12.02 State of cluster development 1-7 (best) 183.37 Israel 12.03 International co-inventions applications/million pop. 2.0 95.9 42 12.04 Multi-stakeholder collaboration 1-7 (best) 0.16 United States 12.05 Scientific publications H Index 4.6 100.0 = 39 12.06 Patent applications applications/million pop. 10,568.62 Germany 12.07 R&D expenditures % GDP 100.0 = 43 Canada 12.09 Buyer sophistication 1-7 (best) 73.9 21 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 9 Multiple (7) 80.3 3 Multiple (7) 97.8 54
96.6 3
66.6 7
79.7 5
71.5 6
61.3 9
77.5 9
72.7 14
72.8 6
94.3 12
72.3 5
95.9 11
67.1 19
40.7 17
59.7 17
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 425 427 | The Global Competitiveness Report 2018 New Zealand Economy Profiles
18th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 16th/135
Performance Overview 2018 Key Previous edition High income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
78 82 83 78
80 76 76 76
73 73
60 61
0
Rank /140 18th 1st 39th 23rd 1st 18th 10th 4th 4th 26th 67th 12th 27th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 4.8 GDP (PPP) % world GDP 0.15 GDP per capita US$ 41,593.1 Unemployment rate % 4.9 10-year average annual GDP growth % 1.2 2.3 5-year average FDI inward flow % GDP
Environmental footprint gha/capita 5.1 Global Gender Gap Index 0-1 (gender parity) 0.8
The Global Competitiveness Report 2018 | 427 Economy Profiles 18th /140
New Zealand Value Score * Rank/140 Best Performer
Index Component - 81.6 1 New Zealand 6.1 Finland Pillar 1: Institutions 0-100 (best) 1.0 84.3 7 1.01 Organized crime 1-7 (best) 6.2 98.4 = 31 Multiple (24) 1.02 Homicide rate /100,000 pop. 66.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 88.5 100.0 36 Finland 1.04 Reliability of police services 1-7 (best) 6.3 Australia 1.05 Social capital 0-100 (high) 5.2 86.9 8 Multiple (2) 1.06 Budget transparency 0-100 (best) 13.6 1.07 Judicial independence 1-7 (best) 4.4 66.1 2 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.98 88.5 = 8 Norway 1.10 Burden of government regulation 1-7 (best) 5.0 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 89.0 89.0 3 Singapore 1.12 E-Participation Index 0-1 (best) 6.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 6.0 69.9 6 Singapore 1.14 Incidence of corruption 0-100 (best) 26.0 New Zealand 1.15 Property rights 1-7 (best) 6.0 86.4 8 Finland 1.16 Intellectual property protection 1-7 (best) 9.3 Finland 1.17 Quality of land administration 0-30 (best) 7.0 56.2 19 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 72.4 10 Multiple (2) 1.20 Shareholder governance 0-10 (best) 70.1 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.7 Singapore 15.4 65.9 15 United States 2.02 Quality of roads 1-7 (best) 3.9 89.0 1 Singapore 2.03 Railroad density km of roads/square km 96,703.9 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 83.6 10 Switzerland 2.05 Airport connectivity score 5.5 2.06 Efficiency of air transport services 1-7 (best) 33.1 83.2 8 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 5.1 86.7 = 15 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 83.9 9 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 6.4 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 2.4 93.0 = 1 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 70.0 = 24 3.01 Mobile-cellular telephone subscriptions /100 pop. 136.0 76.1 39 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 101.6 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 70.1 = 56 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 33.6 Korea, Rep. 3.05 Internet users % pop. 5.2 61.3 39 Pillar 4: Macroeconomic stability 0-100 (best) 88.5 38.5 = 47 4.01 Inflation annual % change - 48.3 48 Multiple (74) 4.02 Debt dynamics 0-100 (best) 1.2 Multiple (36) 100.0 62.0 43 Pillar 5: Health 0-100 (best) Multiple (4)
- 74.3 26 Multiple (4)
5.01 Healthy life expectancy years 70.8 33.1 50 Finland Pillar 6: Skills 0-100 (best) - Finland 13.1 68.8 23 Switzerland 6.01 Mean years of schooling Years Switzerland 6.02 Extent of staff training 1-7 (best) 4.9 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 5.0 Sweden 6.04 Skillset of graduates 1-7 (best) 5.0 97.5 35 United States 6.05 Digital skills among population 1-7 (best) 5.2 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 4.4 99.6 = 29 United States 6.07 School life expectancy Years 18.9 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 5.3 83.7 30 6.09 Pupil-to-teacher ratio in primary education Ratio 14.5 73.4 23 429 | The Global Competitiveness Report 2018 100.0 = 30
67.2 20
96.2 18
96.2 17
83.2 10
87.3 = 7
64.5 21
66.7 18
66.9 17
70.0 20
56.6 51
72.4 5
88.8 = 44 New Zealand Economy Profiles
18th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 73.5 4 Singapore 5.2 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.2 70.6 5 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.3 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.4 53.7 34 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.60 Hong Kong SAR 7.05 Trade tariffs % duty 6.3 72.2 33 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.7 Germany 7.07 Efficiency of the clearance process 15 (best) 11.0 73.2 4 7.08 Services trade openness 0-100 (worst) Ecuador
- 89.3 35
Pillar 8: Labour market 0-100 (best) 0.0 United States 4.5 88.2 47 Multiple (8) 8.01 Redundancy costs weeks of salary 5.4 8.02 Hiring and firing practices 1-7 (best) 5.5 67.7 13 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 84.5 89.0 = 3 8.05 Active Labour policies 1-7 (best) 4.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 5.3 78.4 4 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 6.0 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.7 100.0 = 1 Albania 8.09 Reliance on professional management 1-7 (best) 0.94 Guinea 8.10 Pay and productivity 1-7 (best) 2.8 58.5 20 Finland 8.12 Labour tax rate % - 73.9 13 United States 154.8 Multiple (4) Pillar 9: Financial system 0-100 (best) 75.6 19 5.0 Multiple (26) 9.01 Domestic credit to private sector % GDP 4.2 62.9 20 9.02 Financing of SMEs 1-7 (best) 40.9 United States 9.03 Venture capital availability 1-7 (best) 3.0 84.5 28 Multiple (29) 9.04 Market capitalization % GDP 6.1 9.05 Insurance premium % GDP 0.5 51.1 72 United States 9.06 Soundness of banks 1-7 (best) -8.4 United States 9.07 Non-performing loans % loan portfolio value 12.8 71.5 11 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 83.4 6 Multiple (16) 172 Pillar 10: Market size 0-100 (best) 26.3 62.5 17 Finland 10.01 Gross domestic product PPP $ billions - 92.2 19 Multiple (97) 10.02 Imports % GDP 0.3 Multiple (72) 0.5 100.0 = 11 Pillar 11: Business dynamism 0-100 (best) 84.2 China 8.5 76.1 26 China 11.01 Cost of starting a business % GNI per capita 4.8 Hong Kong SAR 11.02 Time to start a business days 5.7 100.0 = 8 11.03 Insolvency recovery rate cents/$ 4.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.7 66.1 10 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 52.5 15 New Zealand 11.07 Growth of innovative companies 1-7 (best) 5.5 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.3 40.9 46 7.21 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 4.8 49.7 = 41 Israel 438.3 12.01 Diversity of workforce 1-7 (best) 58.15 85.2 9 Denmark 12.02 State of cluster development 1-7 (best) 1.2 Israel 12.03 International co-inventions applications/million pop. 0.03 99.9 3 12.04 Multi-stakeholder collaboration 1-7 (best) 4.2 United States 12.05 Scientific publications H Index 4,326.40 100.0 = 22 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 90.8 = 110 Canada 12.09 Buyer sophistication 1-7 (best) 53.8 67 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 116 Multiple (7) 76.4 12 Multiple (7) 100.0 = 1 Multiple (7)
90.6 15
63.2 15
77.6 9
64.9 16
62.3 6
61.4 27
74.8 10
55.2 36
64.6 21
62.6 19
90.1 27
75.0 23
38.4 = 34
9.0 47
53.7 24
90.1 24
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 429 431 | The Global Competitiveness Report 2018 Nicaragua Economy Profiles
104th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 101st/135
Performance Key Previous edition Lower middle income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 90
60 55 54 53 54 50
46
32 27
0
Rank /140 104th 122nd 104th 111th 79th 36th 113rd 89th 103rd 90th 107th 122nd 121st
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 6.2 GDP (PPP) % world GDP 0.03 GDP per capita US$ 2,206.6 Unemployment rate % 4.4 10-year average annual GDP growth % 7.2
Social and environmental performance 1.5 Global Gender Gap Index 0-1 (gender parity) 0.8 4.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 46.2
The Global Competitiveness Report 2018 | 431 Economy Profiles 104th /140
Nicaragua Value Score * Rank/140 Best Performer
Index Component - 43.9 122 New Zealand 5.6 Finland Pillar 1: Institutions 0-100 (best) 7.4 76.3 25 1.01 Organized crime 1-7 (best) 4.1 76.7 104 Multiple (24) 1.02 Homicide rate /100,000 pop. 49.9 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 92.3 99.9 49 Finland 1.04 Reliability of police services 1-7 (best) 1.6 Australia 1.05 Social capital 0-100 (high) 2.1 50.9 91 Multiple (2) 1.06 Budget transparency 0-100 (best) 30.4 1.07 Judicial independence 1-7 (best) 3.0 49.9 73 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.39 92.3 = 4 Norway 1.10 Burden of government regulation 1-7 (best) 3.0 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 26.0 10.6 138 Singapore 1.12 E-Participation Index 0-1 (best) 3.6 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.2 18.3 133 Singapore 1.14 Incidence of corruption 0-100 (best) 6.5 New Zealand 1.15 Property rights 1-7 (best) 4.5 69.6 73 Finland 1.16 Intellectual property protection 1-7 (best) 4.0 Finland 1.17 Quality of land administration 0-30 (best) 3.0 33.2 105 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 21.0 130 Multiple (2) 1.20 Shareholder governance 0-10 (best) 48.6 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.2 Singapore n/a 32.7 116 United States 2.01 Road connectivity index 0-100 (best) 2.0 2.02 Quality of roads 1-7 (best) 5,604.7 26.0 = 127 Singapore 2.03 Railroad density km of roads/square km 3.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 8.7 43.2 119 Switzerland 2.05 Airport connectivity score 3.2 2.06 Efficiency of air transport services 1-7 (best) 89.0 37.2 125 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 18.2 Singapore 2.08 Efficiency of seaport services 1-7 (best) 21.0 21.7 = 128 Multiple (4) 2.09 Electrification rate % pop. 3.5 Singapore 2.10 Electric power transmission and distribution losses % output 57.7 80 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 131.6 40.0 = 121 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 30.4 30.0 = 131 3.4 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 55.2 104 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 24.6 48.6 = 95 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 53.8 60 3.7 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 48.1 n/a n/a 4.01 Inflation annual % change - 16.4 120 Multiple (74) 4.02 Debt dynamics 0-100 (best) 68.9 Multiple (36) 26.3 113 Pillar 5: Health 0-100 (best) - Multiple (4) 6.3 45.1 110 Multiple (4) 5.01 Healthy life expectancy years 3.4 3.1 8.7 89 Finland Pillar 6: Skills 0-100 (best) 3.3 Finland 3.2 36.4 99 Switzerland 6.01 Mean years of schooling Years 3.3 Switzerland 6.02 Extent of staff training 1-7 (best) 11.7 89.0 101 Switzerland 6.03 Quality of vocational training 1-7 (best) 2.6 Sweden 6.04 Skillset of graduates 1-7 (best) 30.2 85.2 109 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 80.6 = 97 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 41.2 115 32.0 111 433 | The Global Competitiveness Report 2018 100.0 = 37
6.8 94
24.6 113
74.0 79
48.1 96
90.4 36
90.4 35
45.5 113
42.0 = 111
40.4 115
34.3 134
37.8 132
36.4 127
38.6 126
25.9 124
49.5 = 105 Nicaragua Economy Profiles
104th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 53.8 89 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 2.7 35.2 116 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.0 29.1 133 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 3.85 Hong Kong SAR 7.05 Trade tariffs % duty 6.6 53.0 126 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.5 Germany 7.07 Efficiency of the clearance process 15 (best) 12.8 50.6 106 7.08 Services trade openness 0-100 (worst) Ecuador
- 74.3 53
Pillar 8: Labour market 0-100 (best) 14.9 United States 92.8 28 Multiple (8) 8.01 Redundancy costs weeks of salary 4.0 8.02 Hiring and firing practices 1-7 (best) 4.6 37.0 = 91 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.3 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 1.7 87.2 = 11 8.05 Active Labour policies 1-7 (best) n/a Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.7 52.8 103 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.4 77.2 = 62 Albania 8.09 Reliance on professional management 1-7 (best) 3.3 Guinea 8.10 Pay and productivity 1-7 (best) 0.53 49.8 54 Finland 8.11 Female participation in Labour force ratio 23.1 8.12 Labour tax rate % 59.7 51 United States Pillar 9: Financial system 0-100 (best) 36.5 55.3 117 9.01 Domestic credit to private sector % GDP 3.3 11.4 137 9.02 Financing of SMEs 1-7 (best) 2.2 United States 9.03 Venture capital availability 1-7 (best) 0.8 65.2 n/a Multiple (29) 9.04 Market capitalization % GDP 1.4 9.05 Insurance premium % GDP 5.0 62.3 19 United States 9.06 Soundness of banks 1-7 (best) 1.0 United States 9.07 Non-performing loans % loan portfolio value 2.0 65.2 30 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 40.5 119 Multiple (16) - Pillar 10: Market size 0-100 (best) 33 38.5 118 Finland 59.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 41.2 91 Multiple (97) 10.02 Imports % GDP - Multiple (72) 65.4 79.0 99 Pillar 11: Business dynamism 0-100 (best) 14.0 China 35.3 54.0 90 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 7.0 38.4 88 11.03 Insolvency recovery rate cents/$ 3.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.8 38.9 107 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.3 11.06 Willingness to delegate authority 1-7 (best) 2.9 19.6 122 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 0.8 = 114 Pillar 12: Innovation capability 0-100 (best) 3.0 22.7 = 83 Israel 12.01 Diversity of workforce 1-7 (best) 2.9 66.6 68 Denmark 12.02 State of cluster development 1-7 (best) 71.3 Israel 12.03 International co-inventions applications/million pop. 0.02 99.0 11 12.04 Multi-stakeholder collaboration 1-7 (best) 0.1 United States 12.05 Scientific publications H Index 0.00 100.0 98 12.06 Patent applications applications/million pop. 2.7 Germany 12.07 R&D expenditures % GDP 220.82 100.0 = n/a Canada 12.09 Buyer sophistication 1-7 (best) 39.7 107 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 109 n/a 37 Multiple (7) 49.6 122 Multiple (7) 67.3 133
38.0 75
46.2 83
46.2 117
37.8 124
27.0 121
50.5 101
33.7 123
0.6 111
31.2 133
63.4 113
3.6 108
29.0 114
58.1 89
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 433 435 | The Global Competitiveness Report 2018 Nigeria Economy Profiles
115th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 112nd/135
Performance Overview Key Previous edition Lower middle income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 56 59 55 51 52 31 50 48
40 42 42 44
30 26
0
Rank /140 115th 127th 124th 123rd 130th 119th 124th 99th 73rd 131st 30th 83rd 93rd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 188.7 GDP (PPP) % world GDP 0.88 GDP per capita US$ 1,994.2 Unemployment rate % 7.0 10-year average annual GDP growth % 1.0
Social and environmental performance 1.1 Global Gender Gap Index 0-1 (gender parity) 0.6 3.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 43.0
The Global Competitiveness Report 2018 | 435 Economy Profiles 115th /140
Nigeria Value Score * Rank/140 Best Performer
Index Component - 41.7 127 New Zealand Pillar 1: Institutions 0-100 (best) 9.8 47.5 115 0.0 Multiple (9) 1.01 Organized crime 1-7 (best) 2.9 68.3 = 114 Multiple (24) 1.02 Homicide rate /100,000 pop. 54.2 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 38.5 0.0 139 Finland 1.04 Reliability of police services 1-7 (best) 3.1 Australia 1.05 Social capital 0-100 (high) 2.5 31.2 129 Multiple (2) 1.06 Budget transparency 0-100 (best) 37.4 1.07 Judicial independence 1-7 (best) 2.7 54.2 46 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.9 Finland 1.09 Freedom of the press 0-100 (worst) 0.48 38.5 = 110 Norway 1.10 Burden of government regulation 1-7 (best) 2.8 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 27.0 35.4 97 Singapore 1.12 E-Participation Index 0-1 (best) 3.7 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.1 25.2 121 Singapore 1.14 Incidence of corruption 0-100 (best) 7.4 New Zealand 1.15 Property rights 1-7 (best) 4.5 62.6 96 Finland 1.16 Intellectual property protection 1-7 (best) 7.0 Finland 1.17 Quality of land administration 0-30 (best) 6.3 28.6 119 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 31.7 111 Multiple (2) 1.20 Shareholder governance 0-10 (best) 66.6 Kazakhstan 48.3 104 Pillar 2: Infrastructure 0-100 (best) 2.4 Singapore 4.1 30.3 121 United States 2.01 Road connectivity index 0-100 (best) 1.7 2.02 Quality of roads 1-7 (best) 26,395.1 27.0 125 Singapore 2.03 Railroad density km of roads/square km 3.1 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 20.0 45.3 113 Switzerland 2.05 Airport connectivity score 2.5 2.06 Efficiency of air transport services 1-7 (best) 60.6 35.3 129 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 16.7 Singapore 2.08 Efficiency of seaport services 1-7 (best) 43.4 24.7 121 Multiple (4) 2.09 Electrification rate % pop. 2.0 Singapore 2.10 Electric power transmission and distribution losses % output 59.0 77 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 75.9 70.0 = 23 Multiple (23) 19.9 Switzerland Pillar 3: ICT adoption 0-100 (best) 63.0 = 45 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 42.3 124 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 25.7 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 66.6 = 64 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 16.1 23.4 132 46.4 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 10.3 = 75 4.01 Inflation annual % change 56.3 11.3 127 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 43.2 78
Pillar 5: Health 0-100 (best) 6.9 Multiple (4) 3.7 34.5 128 Multiple (4) 5.01 Healthy life expectancy years 2.9 2.9 20.0 64 Finland Pillar 6: Skills 0-100 (best) 3.3 Finland 3.8 25.3 124 Switzerland 6.01 Mean years of schooling Years 8.7 Switzerland 6.02 Extent of staff training 1-7 (best) 2.5 60.6 114 Switzerland 6.03 Quality of vocational training 1-7 (best) 37.6 Sweden 6.04 Skillset of graduates 1-7 (best) 86.7 102 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 57.8 131 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 16.1 137 26.2 123 437 | The Global Competitiveness Report 2018 63.3 124
n/a 126
0.1 136
n/a 105
25.7 107
56.4 130
66.4 133
46.4 103
50.9 119
40.2 124
46.0 = 105
44.2 91
32.2 137
32.1 135
38.4 121
46.7 98
48.2 = 133
24.3 131
31.1 = 119 Nigeria Economy Profiles
115th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 52.4 99 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.4 35.3 115 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.6 40.8 98 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.51 Hong Kong SAR 7.05 Trade tariffs % duty 6.7 69.4 52 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.0 Germany 7.07 Efficiency of the clearance process 15 (best) 27.1 59.6 48 7.08 Services trade openness 0-100 (worst) Ecuador
- 29.9 111
Pillar 8: Labour market 0-100 (best) 3.2 United States 4.6 94.5 = 18 Multiple (8) 8.01 Redundancy costs weeks of salary 3.9 8.02 Hiring and firing practices 1-7 (best) 5.5 24.2 131 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 2.1 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 60.8 72.9 = 59 8.05 Active Labour policies 1-7 (best) 4.5 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 5.0 58.5 73 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.6 100.0 = 7 Albania 8.09 Reliance on professional management 1-7 (best) 0.45 Guinea 8.10 Pay and productivity 1-7 (best) 13.5 60.0 16 Finland 8.12 Labour tax rate % - 48.0 112 United States 14.8 Multiple (4) Pillar 9: Financial system 0-100 (best) 74.6 26 2.7 Multiple (26) 9.01 Domestic credit to private sector % GDP 1.7 18.9 121 9.02 Financing of SMEs 1-7 (best) 9.6 United States 9.03 Venture capital availability 1-7 (best) 0.3 60.8 101 Multiple (29) 9.04 Market capitalization % GDP 4.1 9.05 Insurance premium % GDP 12.8 58.9 32 United States 9.06 Soundness of banks 1-7 (best) -0.6 United States 9.07 Non-performing loans % loan portfolio value 16.8 66.6 21 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 57.0 57 Multiple (16) 1,019 Pillar 10: Market size 0-100 (best) 44.0 89 Finland 16.7 Multiple (2) 10.01 Gross domestic product PPP $ billions 30.8 108 Multiple (97) 10.02 Imports % GDP - Multiple (72) 28.8 92.4 = 56 Pillar 11: Business dynamism 0-100 (best) 18.9 China 27.8 44.1 131 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 5.0 15.6 132 11.03 Insolvency recovery rate cents/$ 4.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.6 28.9 132 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.1 11.06 Willingness to delegate authority 1-7 (best) 3.4 11.2 138 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 9.6 92 Pillar 12: Innovation capability 0-100 (best) 3.5 5.3 = 131 Israel 12.01 Diversity of workforce 1-7 (best) 3.1 51.3 107 Denmark 12.02 State of cluster development 1-7 (best) 157.3 Israel 12.03 International co-inventions applications/million pop. 0.01 75.1 113 12.04 Multi-stakeholder collaboration 1-7 (best) n/a United States 12.05 Scientific publications H Index 0.02 100.0 = 68 12.06 Patent applications applications/million pop. 3.2 Germany 12.07 R&D expenditures % GDP 111.52 99.7 = 58 Canada 12.09 Buyer sophistication 1-7 (best) 70.8 30 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 134 Multiple (7) 55.4 83 Multiple (7) 85.6 114 81.5 99 Multiple (7)
29.9 99
64.0 13
59.2 44
51.3 61
40.7 77
31.4 93
58.3 64
41.5 94
0.2 119
75.0 65
6.5 49
37.4 82
50.8 103
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 437 439 | The Global Competitiveness Report 2018 Norway Economy Profiles
16th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 14th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 100 98
82 84 80
80 78 77 75 77
73 68
63 61
0
Rank /140 16th 8th 45th 10th 1st 9th 8th 29th 14th 23rd 50th 9th 20th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 5.3 GDP (PPP) % world GDP 0.30 GDP per capita US$ 74,940.6 Unemployment rate % 4.2 10-year average annual GDP growth % 0.4
Social and environmental performance 6.0 Global Gender Gap Index 0-1 (gender parity) 0.8 6.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 27.5
The Global Competitiveness Report 2018 | 439 Economy Profiles 16th /140
Norway Value Score * Rank/140 Best Performer
Index Component - 76.7 8 New Zealand Pillar 1: Institutions 0-100 (best) 0.5 83.4 10 1.01 Organized crime 1-7 (best) 5.8 100.0 10 Multiple (24) 1.02 Homicide rate /100,000 pop. 64.0 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 76.9 100.0 41 Finland 1.04 Reliability of police services 1-7 (best) 6.0 Australia 1.05 Social capital 0-100 (high) 4.4 79.8 22 Multiple (2) 1.06 Budget transparency 0-100 (best) 7.6 1.07 Judicial independence 1-7 (best) 3.8 64.0 5 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.98 76.9 = 21 Norway 1.10 Burden of government regulation 1-7 (best) 4.8 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 85.0 83.5 11 Singapore 1.12 E-Participation Index 0-1 (best) 5.8 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.5 56.9 21 Singapore 1.14 Incidence of corruption 0-100 (best) 20.0 New Zealand 1.15 Property rights 1-7 (best) 6.0 92.4 1 Finland 1.16 Intellectual property protection 1-7 (best) 6.7 Finland 1.17 Quality of land administration 0-30 (best) 8.3 47.5 40 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 66.1 20 Multiple (2) 1.20 Shareholder governance 0-10 (best) 50.4 Kazakhstan 97.8 11 Pillar 2: Infrastructure 0-100 (best) 4.5 Singapore 10.9 63.0 18 United States 2.02 Quality of roads 1-7 (best) 4.5 85.0 = 3 Singapore 2.03 Railroad density km of roads/square km 135,535.8 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 79.3 17 Switzerland 2.05 Airport connectivity score 5.6 2.06 Efficiency of air transport services 1-7 (best) 5.8 74.6 22 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 5.1 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 66.7 = 47 Multiple (4) 2.09 Electrification rate % pop. 6.8 Singapore 2.10 Electric power transmission and distribution losses % output 0.6 83.0 12 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 6.6 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 67.0 = 32 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 107.8 83.0 = 3 3.01 Mobile-cellular telephone subscriptions /100 pop. 95.1 74.7 45 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 40.2 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 15.4 50.4 = 90 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 97.3 Korea, Rep. 3.05 Internet users % pop. 59.2 43 Pillar 4: Macroeconomic stability 0-100 (best) 2.7 27.3 = 53 100.0 Multiple (31) 4.01 Inflation annual % change 57.6 29 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 71.5 67.6 34 Pillar 5: Health 0-100 (best) Multiple (4)
- 75.9 20 Multiple (4)
5.01 Healthy life expectancy years 12.8 5.8 105 Finland Pillar 6: Skills 0-100 (best) 5.1 Finland 5.2 69.0 22 Switzerland 6.01 Mean years of schooling Years 5.0 Switzerland 6.02 Extent of staff training 1-7 (best) 5.3 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 5.2 Sweden 6.04 Skillset of graduates 1-7 (best) 17.9 97.1 39 United States 6.05 Digital skills among population 1-7 (best) 4.8 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 8.9 100.0 = 6 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 93.9 16 81.6 10 441 | The Global Competitiveness Report 2018 89.9 86
80.5 8
97.3 4
98.4 8
83.9 8
85.2 = 13
68.2 14
66.1 22
71.6 13
70.6 5
99.2 11
64.0 15
Norway Economy Profiles
16th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 62.8 29 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.8 58.7 23 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 63.4 15 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 2.80 Hong Kong SAR 7.05 Trade tariffs % duty 3.2 70.4 43 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.5 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 54.1 83 7.08 Services trade openness 0-100 (worst) Ecuador
- 81.3 45
Pillar 8: Labour market 0-100 (best) 8.7 United States 3.7 36.4 111 Multiple (8) 8.01 Redundancy costs weeks of salary 5.7 8.02 Hiring and firing practices 1-7 (best) 3.8 63.0 21 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.2 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 97.9 72.8 n/a 8.05 Active Labour policies 1-7 (best) 4.2 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.1 73.5 14 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.5 90.3 = 20 Albania 8.09 Reliance on professional management 1-7 (best) 0.96 Guinea 8.10 Pay and productivity 1-7 (best) 15.9 45.4 78 Finland 8.12 Labour tax rate % - 77.5 8 United States 137.4 Multiple (4) Pillar 9: Financial system 0-100 (best) 47.3 131 4.9 Multiple (26) 9.01 Domestic credit to private sector % GDP 3.9 69.5 9 9.02 Financing of SMEs 1-7 (best) 52.1 United States 9.03 Venture capital availability 1-7 (best) 4.6 97.9 6 Multiple (29) 9.04 Market capitalization % GDP 6.1 9.05 Insurance premium % GDP 1.2 53.7 58 United States 9.06 Soundness of banks 1-7 (best) 3.5 United States 9.07 Non-performing loans % loan portfolio value 17.0 52.5 101 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 77.2 15 Multiple (16) 346 Pillar 10: Market size 0-100 (best) 33.2 58.8 35 Finland 10.01 Gross domestic product PPP $ billions - 95.6 11 Multiple (97) 10.02 Imports % GDP 0.9 Multiple (72) 4.0 89.0 = 69 Pillar 11: Business dynamism 0-100 (best) 93.1 China 11.5 80.1 23 China 11.01 Cost of starting a business % GNI per capita 4.2 Hong Kong SAR 11.02 Time to start a business days 5.8 100.0 = 14 11.03 Insolvency recovery rate cents/$ 4.4 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.5 65.0 13 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 48.4 21 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.8 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.9 52.1 38 14.25 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 4.7 76.3 = 26 Israel 502.7 12.01 Diversity of workforce 1-7 (best) 115.24 84.5 11 Denmark 12.02 State of cluster development 1-7 (best) 1.9 Israel 12.03 International co-inventions applications/million pop. 0.07 98.6 13 12.04 Multi-stakeholder collaboration 1-7 (best) 4.3 United States 12.05 Scientific publications H Index 3,457.38 95.9 113 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 100.0 = 54 Canada 12.09 Buyer sophistication 1-7 (best) 61.3 50 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 93 Multiple (7) 77.0 9 Multiple (7)
53.4 49
79.9 4
57.2 38
57.7 15
67.8 20
63.1 40
64.6 19
83.6 17
62.4 20
92.1 20
87.4 16
64.4 21
18.1 27
54.3 23
87.7 29
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 441 443 | The Global Competitiveness Report 2018 Oman Economy Profiles
47th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 61st/135
Performance Overview Key Previous edition High income group average Middle East and North Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 82 82
70 72
64 63 62 63 63
60 57 56 56
0
Rank /140 47th 36th 24th 61st 58th 65th 36th 33rd 93rd 56th 62nd 52nd 86th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 4.1 GDP (PPP) % world GDP 0.15 GDP per capita US$ 17,972.9 Unemployment rate % 3.3 10-year average annual GDP growth % 1.2 3.9 5-year average FDI inward flow % GDP
Environmental footprint gha/capita 6.3
The Global Competitiveness Report 2018 | 443 Economy Profiles 47th /140
Oman Value Score * Rank/140 Best Performer
Index Component - 63.1 36 New Zealand 6.4 Finland Pillar 1: Institutions 0-100 (best) 0.7 89.9 4 1.01 Organized crime 1-7 (best) 6.3 99.5 = 19 Multiple (24) 1.02 Homicide rate /100,000 pop. 51.2 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 42.3 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 5.7 Australia 1.05 Social capital 0-100 (high) 4.5 89.0 5 Multiple (2) 1.06 Budget transparency 0-100 (best) 40.7 1.07 Judicial independence 1-7 (best) 4.5 51.2 65 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.83 42.3 = 103 Norway 1.10 Burden of government regulation 1-7 (best) 5.3 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 44.0 78.5 18 Singapore 1.12 E-Participation Index 0-1 (best) 5.7 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.6 58.1 19 Singapore 1.14 Incidence of corruption 0-100 (best) 13.0 New Zealand 1.15 Property rights 1-7 (best) 5.2 59.3 103 Finland 1.16 Intellectual property protection 1-7 (best) 5.3 Finland 1.17 Quality of land administration 0-30 (best) 4.0 59.0 15 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 71.7 13 Multiple (2) 1.20 Shareholder governance 0-10 (best) 92.4 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 6.0 Singapore n/a 71.1 7 United States 2.01 Road connectivity index 0-100 (best) 4.1 2.02 Quality of roads 1-7 (best) 81,119.1 44.0 59 Singapore 2.03 Railroad density km of roads/square km 5.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 63.6 78.4 20 Switzerland 2.05 Airport connectivity score 5.3 2.06 Efficiency of air transport services 1-7 (best) 99.6 77.4 17 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 9.7 Singapore 2.08 Efficiency of seaport services 1-7 (best) 14.6 43.3 = 87 Multiple (4) 2.09 Electrification rate % pop. 5.7 Singapore 2.10 Electric power transmission and distribution losses % output 70.4 37 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 149.8 53.0 = 84 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 93.9 40.0 = 106 7.5 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.4 81.8 24 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 76.8 92.4 = 12 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 82.6 8 1.4 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 70.0 n/a n/a 4.01 Inflation annual % change - 51.1 43 Multiple (74) 4.02 Debt dynamics 0-100 (best) 66.2 Multiple (36) 59.2 47 Pillar 5: Health 0-100 (best) - Multiple (4) 9.6 73.9 28 Multiple (4) 5.01 Healthy life expectancy years 4.4 4.7 63.6 18 Finland Pillar 6: Skills 0-100 (best) 4.5 Finland 4.9 71.5 18 Switzerland 6.01 Mean years of schooling Years 4.3 Switzerland 6.02 Extent of staff training 1-7 (best) 14.7 99.6 73 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.9 Sweden 6.04 Skillset of graduates 1-7 (best) 11.0 94.1 59 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 87.1 = 80 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 78.4 44 56.9 61 445 | The Global Competitiveness Report 2018 100.0 = 14
15.1 82
76.8 38
70.0 60
81.9 65
81.9 64
71.6 36
63.9 = 68
57.5 37
62.2 26
65.7 30
55.8 56
81.5 60
64.3 14
97.5 = 14 Oman Economy Profiles
47th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 62.5 33 Singapore 5.0 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.3 66.5 9 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.9 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.7 55.1 31 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 5.20 Hong Kong SAR 7.05 Trade tariffs % duty 6.3 64.7 75 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.9 Germany 7.07 Efficiency of the clearance process 15 (best) 47.4 61.5 39 7.08 Services trade openness 0-100 (worst) Ecuador
- 65.3 71
Pillar 8: Labour market 0-100 (best) N/Appl. United States 87.9 51 Multiple (8) 8.01 Redundancy costs weeks of salary 4.3 8.02 Hiring and firing practices 1-7 (best) 5.4 46.7 45 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.5 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.5 52.6 = 87 8.05 Active Labour policies 1-7 (best) 71.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.9 55.6 93 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.0 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.1 0.0 138 Albania 8.09 Reliance on professional management 1-7 (best) 4.4 Guinea 8.10 Pay and productivity 1-7 (best) 0.23 54.9 34 Finland 8.11 Female participation in Labour force ratio 13.0 8.12 Labour tax rate % 73.7 14 United States Pillar 9: Financial system 0-100 (best) 62.7 74.3 28 9.01 Domestic credit to private sector % GDP 4.7 58.1 29 9.02 Financing of SMEs 1-7 (best) 4.0 United States 9.03 Venture capital availability 1-7 (best) 46.9 71.1 60 Multiple (29) 9.04 Market capitalization % GDP 1.1 9.05 Insurance premium % GDP 5.4 47.9 90 United States 9.06 Soundness of banks 1-7 (best) 1.8 United States 9.07 Non-performing loans % loan portfolio value 17.8 65.9 23 9.08 Credit gap percentage points 15.9 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 67.8 29 Multiple (16) - Pillar 10: Market size 0-100 (best) 170 57.3 41 Finland 55.5 Multiple (2) 10.01 Gross domestic product PPP $ billions 3.4 132 Multiple (97) 10.02 Imports % GDP - Multiple (72) 4.0 93.1 = 51 Pillar 11: Business dynamism 0-100 (best) 6.3 China 38.1 63.4 56 China 11.01 Cost of starting a business % GNI per capita 7.0 Hong Kong SAR 11.02 Time to start a business days 4.3 66.0 51 11.03 Insolvency recovery rate cents/$ 4.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.6 62.0 17 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.7 11.06 Willingness to delegate authority 1-7 (best) 49.8 19 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.5 46.9 41 Pillar 12: Innovation capability 0-100 (best) 0.09 18.5 = 96 Israel 12.01 Diversity of workforce 1-7 (best) 108.0 73.4 45 Denmark 12.02 State of cluster development 1-7 (best) 0.18 Israel 12.03 International co-inventions applications/million pop. 0.2 97.4 30 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 4.1 58.4 137 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 97.9 = 75 Canada 12.09 Buyer sophistication 1-7 (best) 55.8 62 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 65 n/a 43 Multiple (7) 62.7 52 Multiple (7) 98.0 = 53 94.2 = 36 Multiple (7)
41.0 65
55.1 39
64.8 31
59.4 31
45.8 49
32.6 86
75.0 9
60.5 25
2.7 84
54.4 34
69.5 91
3.1 92
8.2 87
1.3 80
51.7 30
0.0 124
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 445 447 | The Global Competitiveness Report 2018 Pakistan Economy Profiles
107th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 106th/135
Performance Overview 2018 Key Previous edition Lower middle income group average South Asia average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 70 71
60 59 58 59 51 50 54
50 46 48
40 40
0
Rank /140 107th 109th 93rd 127th 103rd 109th 125th 122nd 121st 89th 31st 67th 75th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 197.3 GDP (PPP) % world GDP 0.83 GDP per capita US$ 1,541.1 Unemployment rate % 4.0 10-year average annual GDP growth % 0.7 3.6 5-year average FDI inward flow % GDP
Social and environmental performance 0.8 Global Gender Gap Index 0-1 (gender parity) 0.6 3.6 Income Gini 0 (perfect equality) -100 (perfect inequality) 33.5
The Global Competitiveness Report 2018 | 447 Economy Profiles 107th /140
Pakistan Value Score * Rank/140 Best Performer
Index Component - 46.3 109 New Zealand Pillar 1: Institutions 0-100 (best) 4.4 45.9 121 0.0 Multiple (9) 1.01 Organized crime 1-7 (best) 3.7 86.8 84 Multiple (24) 1.02 Homicide rate /100,000 pop. 45.9 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 50.0 0.0 140 Finland 1.04 Reliability of police services 1-7 (best) 3.8 Australia 1.05 Social capital 0-100 (high) 3.8 45.2 100 Multiple (2) 1.06 Budget transparency 0-100 (best) 43.2 1.07 Judicial independence 1-7 (best) 3.8 45.9 105 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.8 Finland 1.09 Freedom of the press 0-100 (worst) 0.50 50.0 = 77 Norway 1.10 Burden of government regulation 1-7 (best) 3.9 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 32.0 46.7 70 Singapore 1.12 E-Participation Index 0-1 (best) 3.9 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.9 46.3 46 Singapore 1.14 Incidence of corruption 0-100 (best) 7.6 New Zealand 1.15 Property rights 1-7 (best) 3.9 56.8 112 Finland 1.16 Intellectual property protection 1-7 (best) 6.3 Finland 1.17 Quality of land administration 0-30 (best) 8.0 45.9 46 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 46.5 62 Multiple (2) 1.20 Shareholder governance 0-10 (best) 66.9 Kazakhstan 50.0 103 Pillar 2: Infrastructure 0-100 (best) 3.9 Singapore 11.6 47.9 53 United States 2.01 Road connectivity index 0-100 (best) 3.8 2.02 Quality of roads 1-7 (best) 98,082.1 32.0 = 99 Singapore 2.03 Railroad density km of roads/square km 4.1 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 33.4 47.8 105 Switzerland 2.05 Airport connectivity score 4.1 2.06 Efficiency of air transport services 1-7 (best) 73.6 47.8 83 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 17.1 Singapore 2.08 Efficiency of seaport services 1-7 (best) 34.3 25.3 117 Multiple (4) 2.09 Electrification rate % pop. 4.0 Singapore 2.10 Electric power transmission and distribution losses % output 47.8 113 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 73.4 63.0 45 Multiple (23) 24.7 Switzerland Pillar 3: ICT adoption 0-100 (best) 80.0 = 5 0.9 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 59.0 93 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 15.5 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 66.9 = 62 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 3.5 49.1 69 39.1 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 29.1 = 52 4.01 Inflation annual % change 58.6 46.4 52 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 62.2 41
Pillar 5: Health 0-100 (best) 5.2 Multiple (4) 4.0 52.3 89 Multiple (4) 5.01 Healthy life expectancy years 3.8 4.3 33.4 49 Finland Pillar 6: Skills 0-100 (best) 4.1 Finland 4.2 51.3 69 Switzerland 6.01 Mean years of schooling Years 8.6 Switzerland 6.02 Extent of staff training 1-7 (best) 3.8 73.6 109 Switzerland 6.03 Quality of vocational training 1-7 (best) 47.6 Sweden 6.04 Skillset of graduates 1-7 (best) 86.3 105 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 67.0 112 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 49.7 102 23.6 127 449 | The Global Competitiveness Report 2018 61.1 126
1.9 109
15.5 126
69.6 103
39.1 124
58.2 109
58.2 108
39.9 125
34.6 = 121
49.3 64
46.1 90
54.8 51
52.2 75
54.0 63
47.7 134
46.5 42
5.9 131 Pakistan Economy Profiles
107th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 47.9 122 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.8 46.1 66 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.1 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.0 47.0 53 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 16.85 Hong Kong SAR 7.05 Trade tariffs % duty 6.4 51.5 128 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.1 Germany 7.07 Efficiency of the clearance process 15 (best) 28.3 49.4 110 7.08 Services trade openness 0-100 (worst) Ecuador
- 0.0 138
Pillar 8: Labour market 0-100 (best) 27.2 United States 89.2 43 Multiple (8) 8.01 Redundancy costs weeks of salary 4.1 8.02 Hiring and firing practices 1-7 (best) 3.9 28.1 127 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.1 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.9 71.7 = 62 8.05 Active Labour policies 1-7 (best) 59.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.9 49.7 121 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.9 51.7 = 112 Albania 8.09 Reliance on professional management 1-7 (best) 4.0 Guinea 8.10 Pay and productivity 1-7 (best) 0.17 51.9 44 Finland 8.11 Female participation in Labour force ratio 14.5 8.12 Labour tax rate % 48.9 108 United States Pillar 9: Financial system 0-100 (best) 15.8 52.1 123 9.01 Domestic credit to private sector % GDP 3.8 48.8 46 9.02 Financing of SMEs 1-7 (best) 3.8 United States 9.03 Venture capital availability 1-7 (best) 29.1 59.8 105 Multiple (29) 9.04 Market capitalization % GDP 0.7 9.05 Insurance premium % GDP 4.3 48.0 88 United States 9.06 Soundness of banks 1-7 (best) 10.1 United States 9.07 Non-performing loans % loan portfolio value 0.5 56.2 79 9.08 Credit gap percentage points 16.4 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 47.5 94 Multiple (16) - Pillar 10: Market size 0-100 (best) 963 50.6 61 Finland 22.0 Multiple (2) 10.01 Gross domestic product PPP $ billions 0.0 138 Multiple (97) 10.02 Imports % GDP - Multiple (72) 7.6 91.0 64 Pillar 11: Business dynamism 0-100 (best) 17.5 China 44.5 54.1 89 China 11.01 Cost of starting a business % GNI per capita 7.0 Hong Kong SAR 11.02 Time to start a business days 4.1 16.7 129 11.03 Insolvency recovery rate cents/$ 3.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.1 47.3 62 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.0 11.06 Willingness to delegate authority 1-7 (best) 46.8 28 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.0 29.1 58 Pillar 12: Innovation capability 0-100 (best) 0.03 11.4 = 109 Israel 12.01 Diversity of workforce 1-7 (best) 203.7 55.7 94 Denmark 12.02 State of cluster development 1-7 (best) 0.05 Israel 12.03 International co-inventions applications/million pop. 0.2 80.7 104 12.04 Multi-stakeholder collaboration 1-7 (best) 0.04 United States 12.05 Scientific publications H Index 4.0 100.0 = 82 12.06 Patent applications applications/million pop. 131.02 Germany 12.07 R&D expenditures % GDP 98.9 = 63 Canada 12.09 Buyer sophistication 1-7 (best) 70.7 31 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 126 Multiple (7) 59.1 67 Multiple (7) 96.2 73 82.9 96 Multiple (7)
47.9 47
51.1 58
49.0 98
51.9 56
50.2 32
34.9 75
49.6 107
49.2 54
0.9 102
47.1 50
78.8 54
8.2 88
10.8 41
50.6 33
52.5 100
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 449 451 | The Global Competitiveness Report 2018 Panama Economy Profiles
64th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 55th/135
Performance Key Previous edition High income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 90 92
70 68 67
61 58 58 56 58
50 51 48
40 37
0
Rank /140 64th 83rd 66th 81st 50th 33rd 85th 52nd 87th 41st 79th 71st 66th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 4.1 GDP (PPP) % world GDP 0.08 GDP per capita US$ 15,089.4 Unemployment rate % 4.5 10-year average annual GDP growth % 8.3 6.3 5-year average FDI inward flow % GDP
Social and environmental performance 2.3 Global Gender Gap Index 0-1 (gender parity) 0.7 4.5 Income Gini 0 (perfect equality) -100 (perfect inequality) 50.4
The Global Competitiveness Report 2018 | 451 Economy Profiles 64th /140
Panama Value Score * Rank/140 Best Performer
Index Component - 50.9 83 New Zealand Pillar 1: Institutions 0-100 (best) 9.7 63.7 72 1.01 Organized crime 1-7 (best) 4.1 68.9 113 Multiple (24) 1.02 Homicide rate /100,000 pop. 53.9 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 34.6 100.0 32 Finland 1.04 Reliability of police services 1-7 (best) 2.6 Australia 1.05 Social capital 0-100 (high) 2.9 52.4 83 Multiple (2) 1.06 Budget transparency 0-100 (best) 30.6 1.07 Judicial independence 1-7 (best) 3.3 53.9 47 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.9 Finland 1.09 Freedom of the press 0-100 (worst) 0.72 34.6 = 116 Norway 1.10 Burden of government regulation 1-7 (best) 3.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 37.0 26.6 118 Singapore 1.12 E-Participation Index 0-1 (best) 4.4 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.4 31.7 91 Singapore 1.14 Incidence of corruption 0-100 (best) 11.0 New Zealand 1.15 Property rights 1-7 (best) 5.2 69.4 74 Finland 1.16 Intellectual property protection 1-7 (best) 5.3 Finland 1.17 Quality of land administration 0-30 (best) 5.0 38.4 76 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 31.4 113 Multiple (2) 1.20 Shareholder governance 0-10 (best) 54.2 Kazakhstan 71.9 63 Pillar 2: Infrastructure 0-100 (best) 4.3 Singapore 1.0 40.1 90 United States 2.01 Road connectivity index 0-100 (best) 4.4 2.02 Quality of roads 1-7 (best) 43,824.3 37.0 80 Singapore 2.03 Railroad density km of roads/square km 5.8 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 52.0 57.4 63 Switzerland 2.05 Airport connectivity score 5.7 2.06 Efficiency of air transport services 1-7 (best) 95.5 57.0 54 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 13.8 Singapore 2.08 Efficiency of seaport services 1-7 (best) 10.2 36.7 = 96 Multiple (4) 2.09 Electrification rate % pop. 4.3 Singapore 2.10 Electric power transmission and distribution losses % output 69.3 40 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 145.8 53.0 = 84 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 60.7 50.0 = 81 10.9 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 68.3 66 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 0.5 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 54.0 54.2 = 88 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 55.8 56 Pillar 4: Macroeconomic stability 0-100 (best) 79.6 2.6 = 95 4.01 Inflation annual % change - 56.7 31 Multiple (74) 4.02 Debt dynamics 0-100 (best) 69.4 Multiple (36) 50.0 68 Pillar 5: Health 0-100 (best) - Multiple (4) 9.8 79.3 13 Multiple (4) 5.01 Healthy life expectancy years 3.7 3.7 52.0 29 Finland Pillar 6: Skills 0-100 (best) 3.8 Finland 3.7 77.6 7 Switzerland 6.01 Mean years of schooling Years 3.4 Switzerland 6.02 Extent of staff training 1-7 (best) 12.7 95.5 93 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.0 Sweden 6.04 Skillset of graduates 1-7 (best) 21.9 89.8 90 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 91.6 = 66 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 55.4 90 47.5 81 453 | The Global Competitiveness Report 2018 100.0 = 20
21.8 70
89.8 50
79.6 54
91.8 33
91.8 32
58.2 85
45.5 83
45.8 91
47.4 86
44.7 97
40.1 119
70.6 = 90
33.9 100
70.3 = 81 Panama Economy Profiles
64th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 58.0 52 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.8 39.9 95 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.6 46.1 59 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 4.78 Hong Kong SAR 7.05 Trade tariffs % duty 6.5 70.8 39 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.9 Germany 7.07 Efficiency of the clearance process 15 (best) 47.8 60.0 45 7.08 Services trade openness 0-100 (worst) Ecuador
- 68.1 61
Pillar 8: Labour market 0-100 (best) 18.1 United States 91.3 = 36 Multiple (8) 8.01 Redundancy costs weeks of salary 3.2 8.02 Hiring and firing practices 1-7 (best) 4.3 46.7 46 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.6 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.9 52.2 = 88 8.05 Active Labour policies 1-7 (best) 71.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.8 56.5 87 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.2 70.6 = 80 Albania 8.09 Reliance on professional management 1-7 (best) 3.3 Guinea 8.10 Pay and productivity 1-7 (best) 0.69 36.3 120 Finland 8.11 Female participation in Labour force ratio 20.0 8.12 Labour tax rate % 54.3 81 United States Pillar 9: Financial system 0-100 (best) 88.0 59.5 102 9.01 Domestic credit to private sector % GDP 4.1 32.2 84 9.02 Financing of SMEs 1-7 (best) 3.4 United States 9.03 Venture capital availability 1-7 (best) 25.9 71.1 = 60 Multiple (29) 9.04 Market capitalization % GDP 2.2 9.05 Insurance premium % GDP 5.8 46.3 101 United States 9.06 Soundness of banks 1-7 (best) 2.5 United States 9.07 Non-performing loans % loan portfolio value 8.6 63.0 41 9.08 Credit gap percentage points 14.8 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 53.1 70 Multiple (16) - Pillar 10: Market size 0-100 (best) 95 37.9 121 Finland 40.3 Multiple (2) 10.01 Gross domestic product PPP $ billions 60.8 77 Multiple (97) 10.02 Imports % GDP - Multiple (72) 5.7 83.3 = 92 Pillar 11: Business dynamism 0-100 (best) 6.0 China 27.1 66.9 41 China 11.01 Cost of starting a business % GNI per capita 8.0 Hong Kong SAR 11.02 Time to start a business days 4.0 92.7 34 11.03 Insolvency recovery rate cents/$ 4.2 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.0 52.2 39 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.5 11.06 Willingness to delegate authority 1-7 (best) 40.2 40 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.7 25.9 66 Pillar 12: Innovation capability 0-100 (best) 0.26 37.2 = 54 Israel 12.01 Diversity of workforce 1-7 (best) 165.7 79.6 21 Denmark 12.02 State of cluster development 1-7 (best) 1.12 Israel 12.03 International co-inventions applications/million pop. 0.1 95.9 41 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 3.7 82.8 129 12.06 Patent applications applications/million pop. 2,096.52 Germany 12.07 R&D expenditures % GDP 95.5 = 91 Canada 12.09 Buyer sophistication 1-7 (best) 48.9 79 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 80 Multiple (7) 58.3 71 Multiple (7) 97.2 64 94.5 = 31 Multiple (7)
29.2 101
50.0 88
50.8 62
53.7 72
50.0 64
41.0 75
37.5 66
61.4 47
46.6 68
7.2 69
40.8 84
75.8 61
13.8 64
2.1 = 115
0.5 90
44.6 54
82.3 37
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 453 455 | The Global Competitiveness Report 2018 Paraguay Economy Profiles
95th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 96th/135
Performance Key Previous edition Upper middle income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 75 78
60 56 56 55 58
53 52 51
50 45 45
40 41
30 29
0
Rank /140 95th 112nd 101st 99th 71st 81st 103rd 68th 97th 72nd 91st 115th 111th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 7.0 GDP (PPP) % world GDP 0.05 GDP per capita US$ 4,259.6 Unemployment rate % 4.6 10-year average annual GDP growth % 1.4 4.6 5-year average FDI inward flow % GDP
Social and environmental performance 3.7 Global Gender Gap Index 0-1 (gender parity) 0.7 4.2 Income Gini 0 (perfect equality) -100 (perfect inequality) 47.9
The Global Competitiveness Report 2018 | 455 Economy Profiles 95th /140
Paraguay Value Score * Rank/140 Best Performer
Index Component - 45.3 112 New Zealand Pillar 1: Institutions 0-100 (best) 9.3 56.8 95 98.9 Multiple (9) 1.01 Organized crime 1-7 (best) 2.8 70.2 = 112 Multiple (24) 1.02 Homicide rate /100,000 pop. 48.5 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 84.6 98.9 92 Finland 1.04 Reliability of police services 1-7 (best) 1.9 Australia 1.05 Social capital 0-100 (high) 2.8 29.3 130 Multiple (2) 1.06 Budget transparency 0-100 (best) 32.3 1.07 Judicial independence 1-7 (best) 3.4 48.5 88 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.57 84.6 = 14 Norway 1.10 Burden of government regulation 1-7 (best) 3.0 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 29.0 14.9 136 Singapore 1.12 E-Participation Index 0-1 (best) 4.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.4 29.3 106 Singapore 1.14 Incidence of corruption 0-100 (best) 12.0 New Zealand 1.15 Property rights 1-7 (best) 4.1 67.7 88 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 2.7 40.4 70 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 19.5 135 Multiple (2) 1.20 Shareholder governance 0-10 (best) 47.3 Kazakhstan 57.3 95 Pillar 2: Infrastructure 0-100 (best) 2.5 Singapore n/a 34.1 113 United States 2.01 Road connectivity index 0-100 (best) 1.7 2.02 Quality of roads 1-7 (best) 4,647.5 29.0 113 Singapore 2.03 Railroad density km of roads/square km 3.3 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 50.2 95 Switzerland 2.05 Airport connectivity score 3.4 2.06 Efficiency of air transport services 1-7 (best) 99.3 40.3 112 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 24.6 Singapore 2.08 Efficiency of seaport services 1-7 (best) 10.1 40.0 = 91 Multiple (4) 2.09 Electrification rate % pop. 3.8 Singapore 2.10 Electric power transmission and distribution losses % output 52.2 101 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 109.6 57.0 = 65 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 47.9 27.0 = 136 4.1 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.2 56.3 101 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 53.4 47.3 = 99 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 24.6 129 3.8 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 49.2 n/a n/a 4.01 Inflation annual % change - 11.2 128 Multiple (74) 4.02 Debt dynamics 0-100 (best) 65.0 Multiple (36) 24.7 118 Pillar 5: Health 0-100 (best) - Multiple (4) 8.4 38.5 119 Multiple (4) 5.01 Healthy life expectancy years 3.5 3.2 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.4 Finland 3.2 39.6 95 Switzerland 6.01 Mean years of schooling Years 3.2 Switzerland 6.02 Extent of staff training 1-7 (best) 12.3 99.3 78 Switzerland 6.03 Quality of vocational training 1-7 (best) 2.5 Sweden 6.04 Skillset of graduates 1-7 (best) 24.2 78.6 118 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 91.8 = 65 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 45.9 110 41.5 99 457 | The Global Competitiveness Report 2018 91.4 85
8.2 92
53.4 80
49.2 86
78.0 80
51.8 103
56.1 = 86
41.2 109
36.1 127
39.3 127
35.8 129
36.4 134
68.3 = 97
25.0 127
64.6 = 88 Paraguay Economy Profiles
95th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 56.1 68 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.1 44.2 72 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.3 34.8 116 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 6.70 Hong Kong SAR 7.05 Trade tariffs % duty 6.7 59.4 106 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) 15.9 54.7 77 7.08 Services trade openness 0-100 (worst) Ecuador
- 55.4 86
Pillar 8: Labour market 0-100 (best) 29.4 United States 94.8 8 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 4.2 41.0 68 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.0 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.2 84.1 = 19 8.05 Active Labour policies 1-7 (best) 72.2 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 5.4 54.6 97 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.5 47.1 = 121 Albania 8.09 Reliance on professional management 1-7 (best) 3.3 Guinea 8.10 Pay and productivity 1-7 (best) 0.64 36.6 118 Finland 8.11 Female participation in Labour force ratio 18.6 8.12 Labour tax rate % 52.5 93 United States Pillar 9: Financial system 0-100 (best) 53.9 66.1 62 9.01 Domestic credit to private sector % GDP 3.7 19.5 119 9.02 Financing of SMEs 1-7 (best) 2.7 United States 9.03 Venture capital availability 1-7 (best) 5.9 72.2 58 Multiple (29) 9.04 Market capitalization % GDP 1.3 9.05 Insurance premium % GDP 5.3 72.9 4 United States 9.06 Soundness of banks 1-7 (best) 2.9 United States 9.07 Non-performing loans % loan portfolio value 1.7 65.4 28 9.08 Credit gap percentage points 15.4 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 41.2 115 Multiple (16) - Pillar 10: Market size 0-100 (best) 62 39.0 115 Finland 44.1 Multiple (2) 10.01 Gross domestic product PPP $ billions 54.9 84 Multiple (97) 10.02 Imports % GDP - Multiple (72) 39.9 85.3 = 83 Pillar 11: Business dynamism 0-100 (best) 35.0 China 21.6 57.9 72 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 9.5 56.8 66 11.03 Insolvency recovery rate cents/$ 4.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.5 45.6 73 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.1 11.06 Willingness to delegate authority 1-7 (best) 3.1 28.8 85 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 5.9 100 Pillar 12: Innovation capability 0-100 (best) 3.1 20.8 = 89 Israel 12.01 Diversity of workforce 1-7 (best) 3.0 71.1 54 Denmark 12.02 State of cluster development 1-7 (best) 71.3 Israel 12.03 International co-inventions applications/million pop. 0.00 95.1 48 12.04 Multi-stakeholder collaboration 1-7 (best) 0.1 United States 12.05 Scientific publications H Index 0.00 100.0 94 12.06 Patent applications applications/million pop. 3.0 Germany 12.07 R&D expenditures % GDP n/a 96.7 = 85 Canada 12.09 Buyer sophistication 1-7 (best) 45.0 91 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 92 n/a 70 Multiple (7) 50.7 115 Multiple (7) 80.1 121 65.3 = 122 Multiple (7)
23.3 110
49.6 72
42.1 126
51.8 58
34.4 119
28.9 111
47.4 117
34.3 121
32.8 124
63.4 113
4.3 102
0.4 110
32.9 102
73.3 n/a
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 457 459 | The Global Competitiveness Report 2018 Peru Economy Profiles
63rd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 60th/135
Performance Key Previous edition Upper middle income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 61 62 59 59 59 60 62
50 55
30 32
0
Rank /140 63rd 90th 85th 94th 1st 32nd 83rd 50th 72nd 63rd 49th 92nd 89th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 31.8 GDP (PPP) % world GDP 0.33 GDP per capita US$ 6,762.2 Unemployment rate % 3.6 10-year average annual GDP growth % 4.1
Social and environmental performance 2.3 Global Gender Gap Index 0-1 (gender parity) 0.7 4.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 43.8
The Global Competitiveness Report 2018 | 459 Economy Profiles 63rd /140
Peru Value Score * Rank/140 Best Performer
Index Component - 50.2 90 New Zealand Pillar 1: Institutions 0-100 (best) 7.7 37.2 129 1.01 Organized crime 1-7 (best) 2.6 75.7 107 Multiple (24) 1.02 Homicide rate /100,000 pop. 49.0 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 92.3 99.1 91 Finland 1.04 Reliability of police services 1-7 (best) 2.8 Australia 1.05 Social capital 0-100 (high) 2.8 27.0 136 Multiple (2) 1.06 Budget transparency 0-100 (best) 30.3 1.07 Judicial independence 1-7 (best) 2.5 49.0 82 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.1 Finland 1.09 Freedom of the press 0-100 (worst) 0.87 92.3 = 4 Norway 1.10 Burden of government regulation 1-7 (best) 3.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 37.0 29.5 115 Singapore 1.12 E-Participation Index 0-1 (best) 3.6 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.3 29.9 103 Singapore 1.14 Incidence of corruption 0-100 (best) 17.5 New Zealand 1.15 Property rights 1-7 (best) 4.7 69.7 71 Finland 1.16 Intellectual property protection 1-7 (best) 7.0 Finland 1.17 Quality of land administration 0-30 (best) 5.3 24.5 128 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 18.8 136 Multiple (2) 1.20 Shareholder governance 0-10 (best) 48.3 Kazakhstan 86.5 35 Pillar 2: Infrastructure 0-100 (best) 3.2 Singapore 1.6 35.4 109 United States 2.01 Road connectivity index 0-100 (best) 2.6 2.02 Quality of roads 1-7 (best) 76,200.0 37.0 80 Singapore 2.03 Railroad density km of roads/square km 4.2 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 42.1 43.6 117 Switzerland 2.05 Airport connectivity score 3.6 2.06 Efficiency of air transport services 1-7 (best) 95.1 38.9 121 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 11.0 Singapore 2.08 Efficiency of seaport services 1-7 (best) 6.6 58.3 56 Multiple (4) 2.09 Electrification rate % pop. 4.6 Singapore 2.10 Electric power transmission and distribution losses % output 62.4 61 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 121.0 70.0 = 23 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 64.2 53.0 = 76 7.2 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 62.4 85 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 45.5 48.3 = 96 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 36.1 108 3.2 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 100.0 3.9 = 89 4.01 Inflation annual % change - 27.1 93 Multiple (74) 4.02 Debt dynamics 0-100 (best) 69.8 Multiple (36) 58.2 50 Pillar 5: Health 0-100 (best) - Multiple (4) 9.1 53.4 86 Multiple (4) 5.01 Healthy life expectancy years 3.3 3.9 42.1 37 Finland Pillar 6: Skills 0-100 (best) 3.7 Finland 3.6 43.7 85 Switzerland 6.01 Mean years of schooling Years 3.6 Switzerland 6.02 Extent of staff training 1-7 (best) 13.4 95.1 94 Switzerland 6.03 Quality of vocational training 1-7 (best) 2.9 Sweden 6.04 Skillset of graduates 1-7 (best) 18.3 92.7 70 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 95.3 = 42 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 59.4 80 461 | The Global Competitiveness Report 2018 100.0 65
14.4 84
45.5 89
93.3 32
93.3 31
58.6 83
60.7 = 73
38.4 124
47.5 83
45.1 95
42.8 111
43.9 106
74.4 = 80
31.8 108
79.2 67 Peru Economy Profiles
63rd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 59.5 50 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.3 41.8 84 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.9 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.5 38.1 108 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.55 Hong Kong SAR 7.05 Trade tariffs % duty 6.0 65.4 68 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.5 Germany 7.07 Efficiency of the clearance process 15 (best) 16.4 58.3 56 7.08 Services trade openness 0-100 (worst) Ecuador
- 89.7 34
Pillar 8: Labour market 0-100 (best) 11.4 United States 2.9 82.7 66 Multiple (8) 8.01 Redundancy costs weeks of salary 4.0 8.02 Hiring and firing practices 1-7 (best) 5.6 38.2 85 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 2.1 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 70.1 83.6 = 21 8.05 Active Labour policies 1-7 (best) 4.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.9 58.8 72 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.1 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.5 84.5 = 40 Albania 8.09 Reliance on professional management 1-7 (best) 0.65 Guinea 8.10 Pay and productivity 1-7 (best) 11.0 31.5 128 Finland 8.12 Labour tax rate % - 50.7 102 United States 40.9 Multiple (4) Pillar 9: Financial system 0-100 (best) 76.3 16 9.01 Domestic credit to private sector % GDP 2.9 17.9 126 9.02 Financing of SMEs 1-7 (best) 37.1 United States 9.03 Venture capital availability 1-7 (best) 1.6 70.1 71 Multiple (29) 9.04 Market capitalization % GDP 5.4 9.05 Insurance premium % GDP 4.3 52.5 63 United States 9.06 Soundness of banks 1-7 (best) 0.5 United States 9.07 Non-performing loans % loan portfolio value 14.2 65.6 24 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 51.1 81 Multiple (16) 387 Pillar 10: Market size 0-100 (best) 22.5 42.5 96 Finland 10.01 Gross domestic product PPP $ billions - 56.9 82 Multiple (97) 10.02 Imports % GDP 10.0 Multiple (72) 26.5 95.8 = 34 Pillar 11: Business dynamism 0-100 (best) 29.7 China 60.5 63 China 11.01 Cost of starting a business % GNI per capita 9.5 Hong Kong SAR 11.02 Time to start a business days 4.0 43.0 84 11.03 Insolvency recovery rate cents/$ 4.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.5 45.0 79 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.0 11.06 Willingness to delegate authority 1-7 (best) 31.5 70 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.1 37.1 50 3.4 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 0.03 26.9 = 73 Israel 12.01 Diversity of workforce 1-7 (best) 184.0 74.1 42 Denmark 12.02 State of cluster development 1-7 (best) 0.21 Israel 12.03 International co-inventions applications/million pop. 0.1 92.3 65 12.04 Multi-stakeholder collaboration 1-7 (best) 0.01 United States 12.05 Scientific publications H Index 3.2 100.0 81 12.06 Patent applications applications/million pop. 615.68 Germany 12.07 R&D expenditures % GDP 94.1 = 101 Canada 12.09 Buyer sophistication 1-7 (best) 61.6 49 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 45 n/a 125 Multiple (7) 54.5 92 Multiple (7) 95.0 78 73.9 = 113 Multiple (7)
32.0 87
50.0 66
49.9 93
42.3 108
33.7 123
31.9 89
51.8 95
39.5 101
0.9 101
34.7 118
77.3 57
3.6 86
3.9 106
2.2 68
36.3 88
69.1 63
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 461 463 | The Global Competitiveness Report 2018 Philippines Economy Profiles
56th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 68th/135
Performance Overview Key Previous edition Lower middle income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 68 68 70 66 62 59 64 60 57
40 37
0
Rank /140 56th 101st 92nd 67th 43rd 101st 67th 60th 36th 39th 32nd 39th 67th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 105.3 GDP (PPP) % world GDP 0.69 GDP per capita US$ 2,976.3 Unemployment rate % 2.4 10-year average annual GDP growth % 1.8
Environmental footprint gha/capita 1.1 Global Gender Gap Index 0-1 (gender parity) 0.8
The Global Competitiveness Report 2018 | 463 Economy Profiles 56th /140
Philippines Value Score * Rank/140 Best Performer
Index Component - 48.3 101 New Zealand Pillar 1: Institutions 0-100 (best) 11.0 46.3 120 26.7 Multiple (9) 1.01 Organized crime 1-7 (best) 3.0 64.3 119 Multiple (24) 1.02 Homicide rate /100,000 pop. 59.4 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 61.5 26.7 136 Finland 1.04 Reliability of police services 1-7 (best) 3.0 Australia 1.05 Social capital 0-100 (high) 3.2 34.0 123 Multiple (2) 1.06 Budget transparency 0-100 (best) 42.5 1.07 Judicial independence 1-7 (best) 3.1 59.4 21 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.94 61.5 = 49 Norway 1.10 Burden of government regulation 1-7 (best) 3.6 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 34.0 33.2 105 Singapore 1.12 E-Participation Index 0-1 (best) 4.4 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.4 36.9 74 Singapore 1.14 Incidence of corruption 0-100 (best) 13.5 New Zealand 1.15 Property rights 1-7 (best) 5.1 57.5 109 Finland 1.16 Intellectual property protection 1-7 (best) 4.0 Finland 1.17 Quality of land administration 0-30 (best) 4.0 35.1 91 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 34.0 100 Multiple (2) 1.20 Shareholder governance 0-10 (best) 22.5 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.5 Singapore 1.6 43.7 77 United States 2.01 Road connectivity index 0-100 (best) 2.4 2.02 Quality of roads 1-7 (best) 306,152.8 34.0 95 Singapore 2.03 Railroad density km of roads/square km 4.1 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 25.0 57.2 65 Switzerland 2.05 Airport connectivity score 3.6 2.06 Efficiency of air transport services 1-7 (best) 89.6 57.5 52 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 9.1 Singapore 2.08 Efficiency of seaport services 1-7 (best) 25.4 45.0 = 83 Multiple (4) 2.09 Electrification rate % pop. 5.0 Singapore 2.10 Electric power transmission and distribution losses % output 69.1 43 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 110.4 40.0 = 121 Multiple (23) 68.6 Switzerland Pillar 3: ICT adoption 0-100 (best) 40.0 = 106 3.2 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 59.4 92 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 55.5 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 22.5 = 129 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 2.5 42.2 88 80.0 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 4.0 = 87 4.01 Inflation annual % change 61.6 23.5 100 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 82.6 26
Pillar 5: Health 0-100 (best) 9.6 Multiple (4) 4.8 51.4 92 Multiple (4) 5.01 Healthy life expectancy years 4.8 4.8 25.0 61 Finland Pillar 6: Skills 0-100 (best) 5.1 Finland 4.9 43.9 84 Switzerland 6.01 Mean years of schooling Years 12.6 Switzerland 6.02 Extent of staff training 1-7 (best) 4.4 89.6 100 Switzerland 6.03 Quality of vocational training 1-7 (best) 30.3 Sweden 6.04 Skillset of graduates 1-7 (best) 94.7 54 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 76.1 = 101 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 67.4 60 465 | The Global Competitiveness Report 2018 92.0 84
6.5 96
55.5 76
90.0 = 43
67.6 101
67.6 100
62.9 67
64.0 = 67
63.3 26
62.8 25
64.1 27
69.0 24
64.8 20
69.9 = 93
56.1 23
49.3 = 106 Philippines Economy Profiles
56th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 56.9 60 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.3 46.2 65 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.6 37.6 112 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 4.39 Hong Kong SAR 7.05 Trade tariffs % duty 6.2 73.9 21 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.5 Germany 7.07 Efficiency of the clearance process 15 (best) 48.6 60.3 42 7.08 Services trade openness 0-100 (worst) Ecuador
- 70.8 55
Pillar 8: Labour market 0-100 (best) 27.4 United States 85.8 60 Multiple (8) 8.01 Redundancy costs weeks of salary 4.2 8.02 Hiring and firing practices 1-7 (best) 5.1 38.2 85 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.2 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.6 51.4 = 90 8.05 Active Labour policies 1-7 (best) 62.9 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.9 64.5 36 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.3 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.9 51.2 = 118 Albania 8.09 Reliance on professional management 1-7 (best) 4.9 Guinea 8.10 Pay and productivity 1-7 (best) 0.61 52.7 41 Finland 8.11 Female participation in Labour force ratio 8.7 8.12 Labour tax rate % 68.8 24 United States Pillar 9: Financial system 0-100 (best) 41.9 69.9 45 9.01 Domestic credit to private sector % GDP 4.0 44.1 57 9.02 Financing of SMEs 1-7 (best) 3.3 United States 9.03 Venture capital availability 1-7 (best) 84.1 62.9 92 Multiple (29) 9.04 Market capitalization % GDP 1.9 9.05 Insurance premium % GDP 5.8 47.9 91 United States 9.06 Soundness of banks 1-7 (best) 1.7 United States 9.07 Non-performing loans % loan portfolio value 6.4 71.8 9 9.08 Credit gap percentage points 16.1 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 65.4 31 Multiple (16) - Pillar 10: Market size 0-100 (best) 798 65.4 10 Finland 39.7 Multiple (2) 10.01 Gross domestic product PPP $ billions 51.3 86 Multiple (97) 10.02 Imports % GDP - Multiple (72) 15.8 99.0 = 27 Pillar 11: Business dynamism 0-100 (best) 28.0 China 21.3 67.9 39 China 11.01 Cost of starting a business % GNI per capita 14.0 Hong Kong SAR 11.02 Time to start a business days 44.1 81 11.03 Insolvency recovery rate cents/$ 4.7 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.9 49.7 46 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.9 11.06 Willingness to delegate authority 1-7 (best) 4.6 38.0 46 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 84.1 22 Pillar 12: Innovation capability 0-100 (best) 4.0 31.0 = 64 Israel 12.01 Diversity of workforce 1-7 (best) 4.6 80.4 16 Denmark 12.02 State of cluster development 1-7 (best) 194.3 Israel 12.03 International co-inventions applications/million pop. 0.33 97.5 27 12.04 Multi-stakeholder collaboration 1-7 (best) 0.1 United States 12.05 Scientific publications H Index 0.01 88.3 121 12.06 Patent applications applications/million pop. 3.6 Germany 12.07 R&D expenditures % GDP 160.02 98.3 = 71 Canada 12.09 Buyer sophistication 1-7 (best) 70.2 32 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 29 n/a 83 Multiple (7) 65.8 39 Multiple (7) 92.1 = 97 72.4 = 115 Multiple (7)
22.9 112
87.5 = 8
61.9 20
64.8 30
65.2 15
59.5 12
37.2 67
72.4 15
50.0 49
2.5 87
59.7 27
78.1 55
5.2 80
4.6 = 99
1.8 71
43.2 57
54.7 98
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 465 467 | The Global Competitiveness Report 2018 Poland Economy Profiles
37th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 37th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 79
68 73 73
61 60 63 61
54 49
0
Rank /140 37th 53rd 27th 68th 1st 49th 32nd 38th 62nd 55th 22nd 55th 38th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 38.0 GDP (PPP) % world GDP 0.88 GDP per capita US$ 13,822.6 Unemployment rate % 4.9 10-year average annual GDP growth % 2.2
Environmental footprint gha/capita 4.4 Global Gender Gap Index 0-1 (gender parity) 0.7
The Global Competitiveness Report 2018 | 467 Economy Profiles 37th /140
Poland Value Score * Rank/140 Best Performer
Index Component - 57.1 53 New Zealand Pillar 1: Institutions 0-100 (best) 0.7 67.9 57 1.01 Organized crime 1-7 (best) 4.0 99.4 20 Multiple (24) 1.02 Homicide rate /100,000 pop. 50.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 61.5 99.9 57 Finland 1.04 Reliability of police services 1-7 (best) 2.8 Australia 1.05 Social capital 0-100 (high) 2.4 50.4 92 Multiple (2) 1.06 Budget transparency 0-100 (best) 26.6 1.07 Judicial independence 1-7 (best) 2.8 50.1 70 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.89 61.5 = 49 Norway 1.10 Burden of government regulation 1-7 (best) 3.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 60.0 29.7 114 Singapore 1.12 E-Participation Index 0-1 (best) 3.9 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.0 23.9 123 Singapore 1.14 Incidence of corruption 0-100 (best) 19.5 New Zealand 1.15 Property rights 1-7 (best) 4.7 73.4 46 Finland 1.16 Intellectual property protection 1-7 (best) 6.0 Finland 1.17 Quality of land administration 0-30 (best) 6.3 30.5 111 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 32.9 106 Multiple (2) 1.20 Shareholder governance 0-10 (best) 78.7 Kazakhstan 89.3 31 Pillar 2: Infrastructure 0-100 (best) 4.1 Singapore 58.9 35.3 110 United States 2.02 Quality of roads 1-7 (best) 4.0 60.0 33 Singapore 2.03 Railroad density km of roads/square km 114,416.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 49.2 98 Switzerland 2.05 Airport connectivity score 4.8 2.06 Efficiency of air transport services 1-7 (best) 55.4 49.9 73 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 4.4 65.0 = 49 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 61.1 67 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 6.4 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 6.5 60.0 = 54 Multiple (23) 5.8 Switzerland Pillar 3: ICT adoption 0-100 (best) 63.0 = 45 3.01 Mobile-cellular telephone subscriptions /100 pop. 130.5 79.3 27 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 57.3 78.7 = 34 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 18.5 Korea, Rep. 3.05 Internet users % pop. 52.3 64 1.5 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 73.3 100.0 = 12 4.01 Inflation annual % change - 49.3 44 Multiple (74) 4.02 Debt dynamics 0-100 (best) 0.7 Multiple (36) 100.0 64.7 38 Pillar 5: Health 0-100 (best) Multiple (4)
- 63.9 55 Multiple (4)
5.01 Healthy life expectancy years 67.6 55.4 25 Finland Pillar 6: Skills 0-100 (best) - Finland 12.7 57.4 54 Switzerland 6.01 Mean years of schooling Years Switzerland 6.02 Extent of staff training 1-7 (best) 3.9 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.5 Sweden 6.04 Skillset of graduates 1-7 (best) 3.5 97.5 33 United States 6.05 Digital skills among population 1-7 (best) 4.2 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 4.1 95.4 = 41 United States 6.07 School life expectancy Years 16.4 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 3.2 80.4 41 6.09 Pupil-to-teacher ratio in primary education Ratio 10.5 54.4 68 469 | The Global Competitiveness Report 2018 100.0 = 40
n/a 86
37.0 52
73.3 47
86.2 49
72.9 32
84.5 = 15
49.0 65
42.4 106
42.4 109
53.8 68
52.4 67
91.3 23
36.5 83
98.8 = 11 Poland Economy Profiles
37th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 61.2 38 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.7 44.2 71 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.9 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.4 60.9 20 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 65.2 69 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.3 Germany 7.07 Efficiency of the clearance process 15 (best) 11.0 56.9 63 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 13
Pillar 8: Labour market 0-100 (best) 18.8 United States 8.01 Redundancy costs weeks of salary 3.3 8.02 Hiring and firing practices 1-7 (best) 4.3 56.3 33 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.5 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.5 89.0 = 3 8.05 Active Labour policies 1-7 (best) 78.4 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.5 59.8 62 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.1 69.2 = 82 Albania 8.09 Reliance on professional management 1-7 (best) 4.1 Guinea 8.10 Pay and productivity 1-7 (best) 0.84 37.6 113 Finland 8.11 Female participation in Labour force ratio 25.0 8.12 Labour tax rate % 54.5 78 United States Pillar 9: Financial system 0-100 (best) 53.5 74.7 25 9.01 Domestic credit to private sector % GDP 3.9 40.9 64 9.02 Financing of SMEs 1-7 (best) 2.7 United States 9.03 Venture capital availability 1-7 (best) 29.8 78.4 41 Multiple (29) 9.04 Market capitalization % GDP 2.8 9.05 Insurance premium % GDP 5.3 41.9 113 United States 9.06 Soundness of banks 1-7 (best) 4.0 United States 9.07 Non-performing loans % loan portfolio value -5.1 39.7 130 9.08 Credit gap percentage points 15.4 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 52.2 73 Multiple (16) - Pillar 10: Market size 0-100 (best) 1,021 52.0 56 Finland 10.01 Gross domestic product PPP $ billions 51.2 79.5 45 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 76.4 109
Pillar 11: Business dynamism 0-100 (best) 12.0 China 37.0 63.4 55 China 11.01 Cost of starting a business % GNI per capita 63.1 Hong Kong SAR 11.02 Time to start a business days 14.0 56.3 68 11.03 Insolvency recovery rate cents/$ United States 11.04 Insolvency regulatory framework 0-16 (best) 3.8 47.7 59 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.1 11.06 Willingness to delegate authority 1-7 (best) 3.8 29.1 83 New Zealand 11.07 Growth of innovative companies 1-7 (best) 3.1 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 29.8 57 Pillar 12: Innovation capability 0-100 (best) 3.3 46.1 = 44 Israel 12.01 Diversity of workforce 1-7 (best) 1.61 71.8 51 Denmark 12.02 State of cluster development 1-7 (best) 3.1 Israel 12.03 International co-inventions applications/million pop. 456.3 92.8 63 12.04 Multi-stakeholder collaboration 1-7 (best) 11.90 United States 12.05 Scientific publications H Index 1.0 100.0 = 38 12.06 Patent applications applications/million pop. 0.15 Germany 12.07 R&D expenditures % GDP 3.4 96.9 = 80 Canada 12.08 Quality of research institutions index 3,033.56 12.09 Buyer sophistication 1-7 (best) 73.4 22 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 55 Multiple (7) 61.5 55 Multiple (7) 63.3 = 124 Multiple (7)
67.9 36
46.7 81
51.0 89
46.0 92
35.5 113
48.7 38
38.9 134
46.6 67
29.4 34
34.9 116
90.7 26
47.0 34
33.4 39
39.8 18
86.3 31
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 469 471 | The Global Competitiveness Report 2018 Portugal Economy Profiles
34th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 33rd/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 95
70 70 67 70 65 68 70
64 62 60
0
Rank /140 34th 30th 19th 37th 58th 23rd 41st 35th 35th 38th 52nd 27th 32nd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 10.3 GDP (PPP) % world GDP 0.25 GDP per capita US$ 21,161.3 Unemployment rate % 8.9 10-year average annual GDP growth % 2.7 -0.1 5-year average FDI inward flow % GDP
Social and environmental performance 3.7 Global Gender Gap Index 0-1 (gender parity) 0.7 4.0 Income Gini 0 (perfect equality) -100 (perfect inequality) 35.5
The Global Competitiveness Report 2018 | 471 Economy Profiles 34th /140
Portugal Value Score * Rank/140 Best Performer
Index Component - 63.9 30 New Zealand Pillar 1: Institutions 0-100 (best) 0.6 83.0 12 1.01 Organized crime 1-7 (best) 5.8 99.5 17 Multiple (24) 1.02 Homicide rate /100,000 pop. 54.2 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 69.2 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 4.8 Australia 1.05 Social capital 0-100 (high) 3.1 79.6 23 Multiple (2) 1.06 Budget transparency 0-100 (best) 14.2 1.07 Judicial independence 1-7 (best) 3.1 54.2 45 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.8 Finland 1.09 Freedom of the press 0-100 (worst) 0.90 69.2 = 36 Norway 1.10 Burden of government regulation 1-7 (best) 3.7 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 63.0 63.8 38 Singapore 1.12 E-Participation Index 0-1 (best) 4.9 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.1 34.9 82 Singapore 1.14 Incidence of corruption 0-100 (best) 21.0 New Zealand 1.15 Property rights 1-7 (best) 4.2 85.8 14 Finland 1.16 Intellectual property protection 1-7 (best) 6.0 Finland 1.17 Quality of land administration 0-30 (best) 6.0 34.8 94 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 30.2 116 Multiple (2) 1.20 Shareholder governance 0-10 (best) 90.1 Kazakhstan 89.9 30 Pillar 2: Infrastructure 0-100 (best) 6.1 Singapore 27.6 45.1 70 United States 2.02 Quality of roads 1-7 (best) 4.6 63.0 26 Singapore 2.03 Railroad density km of roads/square km 174,511.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 65.4 40 Switzerland 2.05 Airport connectivity score 5.4 2.06 Efficiency of air transport services 1-7 (best) 54.1 69.1 28 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 5.0 70.0 = 43 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 53.3 94 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 9.0 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 1.1 60.0 = 54 Multiple (23) 6.2 Switzerland Pillar 3: ICT adoption 0-100 (best) 60.0 = 56 3.01 Mobile-cellular telephone subscriptions /100 pop. 113.9 83.3 19 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 68.9 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 34.6 90.1 = 15 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 10.5 Korea, Rep. 3.05 Internet users % pop. 70.4 84.2 5 Pillar 4: Macroeconomic stability 0-100 (best) - 69.0 = 29 1.1 Multiple (31) 4.01 Inflation annual % change 70.0 59.7 23 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 72.0 30
Pillar 5: Health 0-100 (best) 70.5 Multiple (4) 72.7 33 Multiple (4) 5.01 Healthy life expectancy years - 8.9 54.1 27 Finland Pillar 6: Skills 0-100 (best) 4.1 Finland 4.4 66.2 26 Switzerland 6.01 Mean years of schooling Years 4.8 Switzerland 6.02 Extent of staff training 1-7 (best) 4.6 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.7 Sweden 6.04 Skillset of graduates 1-7 (best) 16.3 94.8 53 United States 6.05 Digital skills among population 1-7 (best) 4.0 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 13.3 100.0 = 22 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 87.3 26 67.1 37 473 | The Global Competitiveness Report 2018 94.9 78
69.2 17
70.4 54
85.0 = 58
95.3 23
95.3 22
69.9 41
59.3 = 75
57.3 45
63.3 29
59.3 50
61.7 32
50.8 36
91.7 = 36 Portugal Economy Profiles
34th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 61.9 35 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.1 46.6 61 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.3 52.5 38 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 73.7 22 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.2 Germany 7.07 Efficiency of the clearance process 15 (best) 21.8 72.4 5 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 21
Pillar 8: Labour market 0-100 (best) 17.0 United States 8.01 Redundancy costs weeks of salary 3.1 8.02 Hiring and firing practices 1-7 (best) 4.6 54.3 35 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.2 78.2 = 44 8.05 Active Labour policies 1-7 (best) 90.7 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 5.0 64.7 35 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.4 72.9 = 73 Albania 8.09 Reliance on professional management 1-7 (best) 3.9 Guinea 8.10 Pay and productivity 1-7 (best) 0.95 35.2 121 Finland 8.11 Female participation in Labour force ratio 26.8 8.12 Labour tax rate % 60.2 49 United States Pillar 9: Financial system 0-100 (best) 120.4 63.1 82 9.01 Domestic credit to private sector % GDP 3.7 52.8 38 9.02 Financing of SMEs 1-7 (best) 3.1 United States 9.03 Venture capital availability 1-7 (best) 27.7 90.7 14 Multiple (29) 9.04 Market capitalization % GDP 7.0 9.05 Insurance premium % GDP 3.3 66.9 9 United States 9.06 Soundness of banks 1-7 (best) 11.8 United States 9.07 Non-performing loans % loan portfolio value -25.7 48.2 116 9.08 Credit gap percentage points 13.0 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 56.2 60 Multiple (16) - Pillar 10: Market size 0-100 (best) 286 49.0 67 Finland 43.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 93.5 13 Multiple (97) 10.02 Imports % GDP - Multiple (72) 2.1 73.9 = 117 Pillar 11: Business dynamism 0-100 (best) 5.0 China 63.8 68.4 38 China 11.01 Cost of starting a business % GNI per capita 14.5 Hong Kong SAR 11.02 Time to start a business days 3.8 100.0 = 20 11.03 Insolvency recovery rate cents/$ 4.3 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.4 45.5 74 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.8 11.06 Willingness to delegate authority 1-7 (best) 35.5 55 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.8 27.7 61 Pillar 12: Innovation capability 0-100 (best) 1.34 100.0 = 11 Israel 12.01 Diversity of workforce 1-7 (best) 391.3 38.7 127 Denmark 12.02 State of cluster development 1-7 (best) 10.89 Israel 12.03 International co-inventions applications/million pop. 1.3 77.1 112 12.04 Multi-stakeholder collaboration 1-7 (best) 0.08 United States 12.05 Scientific publications H Index 3.8 100.0 = 6 12.06 Patent applications applications/million pop. 5,617.63 Germany 12.07 R&D expenditures % GDP 91.2 = 108 Canada 12.09 Buyer sophistication 1-7 (best) 60.1 52 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 71 Multiple (7) 69.7 27 Multiple (7) 99.0 = 43
68.7 35
46.7 80
54.2 70
56.3 41
46.7 46
53.1 32
63.0 41
54.4 38
26.1 37
50.5 41
88.4 31
45.5 35
42.6 30
20.7 26
46.5 43
92.9 20
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 473 475 | The Global Competitiveness Report 2018 Qatar Economy Profiles
30th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 32nd/135
Performance Overview Key Previous edition High income group average Middle East and North Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 97
90 88
80 80 82
71 71 70 66 70 64 61
50 50
0
Rank /140 30th 31st 26th 9th 40th 40th 38th 25th 54th 34th 51st 40th 37th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 2.7 GDP (PPP) % world GDP 0.27 GDP per capita US$ 60,804.3 Unemployment rate % 0.1 10-year average annual GDP growth % 0.3 7.7 5-year average FDI inward flow % GDP
Environmental footprint gha/capita 15.7 Global Gender Gap Index 0-1 (gender parity) 0.6
The Global Competitiveness Report 2018 | 475 Economy Profiles 30th /140
Qatar Value Score * Rank/140 Best Performer
Index Component - 63.8 31 New Zealand 5.8 Finland Pillar 1: Institutions 0-100 (best) 0.4 80.0 16 1.01 Organized crime 1-7 (best) 5.8 100.0 = 5 Multiple (24) 1.02 Homicide rate /100,000 pop. 56.5 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 7.7 100.0 35 Finland 1.04 Reliability of police services 1-7 (best) 5.1 Australia 1.05 Social capital 0-100 (high) 5.0 80.5 21 Multiple (2) 1.06 Budget transparency 0-100 (best) 40.2 1.07 Judicial independence 1-7 (best) 4.6 56.5 = 32 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.71 7.7 = 135 Norway 1.10 Burden of government regulation 1-7 (best) 5.3 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 63.0 68.6 30 Singapore 1.12 E-Participation Index 0-1 (best) 5.3 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.3 65.9 9 Singapore 1.14 Incidence of corruption 0-100 (best) 24.5 New Zealand 1.15 Property rights 1-7 (best) 5.6 59.8 101 Finland 1.16 Intellectual property protection 1-7 (best) 2.0 Finland 1.17 Quality of land administration 0-30 (best) 3.3 59.6 14 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 71.0 14 Multiple (2) 1.20 Shareholder governance 0-10 (best) 75.6 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 5.6 Singapore n/a 71.0 8 United States 2.01 Road connectivity index 0-100 (best) 4.7 2.02 Quality of roads 1-7 (best) 141,531.4 63.0 26 Singapore 2.03 Railroad density km of roads/square km 5.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 32.1 71.3 30 Switzerland 2.05 Airport connectivity score 5.3 2.06 Efficiency of air transport services 1-7 (best) 99.1 72.3 27 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 6.0 Singapore 2.08 Efficiency of seaport services 1-7 (best) 9.0 81.7 = 21 Multiple (4) 2.09 Electrification rate % pop. 5.9 Singapore 2.10 Electric power transmission and distribution losses % output 75.9 25 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 148.3 20.0 = 139 Multiple (23) 117.4 Switzerland Pillar 3: ICT adoption 0-100 (best) 33.0 = 124 9.7 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 8.4 80.0 26 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 94.3 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 75.6 = 45 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 1.5 76.4 14 93.0 Iceland Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 68.2 60.9 21 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 68.3 32
Pillar 5: Health 0-100 (best) 9.8 Multiple (4) 4.7 78.7 14 Multiple (4) 5.01 Healthy life expectancy years 5.0 5.0 32.1 54 Finland Pillar 6: Skills 0-100 (best) 5.2 Finland 5.0 71.2 19 Switzerland 6.01 Mean years of schooling Years 12.2 Switzerland 6.02 Extent of staff training 1-7 (best) 5.2 99.1 81 Switzerland 6.03 Quality of vocational training 1-7 (best) 11.6 Sweden 6.04 Skillset of graduates 1-7 (best) 98.0 29 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 92.9 = 58 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 82.1 35 81.9 9 477 | The Global Competitiveness Report 2018 100.0 = 16
19.4 74
94.3 7
96.5 40
93.0 40
88.0 40
88.0 39
70.7 38
65.4 = 62
62.2 27
66.8 17
67.1 16
70.3 17
67.3 13
67.7 99
69.9 9
95.9 19 Qatar Economy Profiles
30th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 63.6 25 Singapore 5.2 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.6 70.1 6 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.0 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.0 59.6 23 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 5.29 Hong Kong SAR 7.05 Trade tariffs % duty 6.2 66.8 62 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.0 Germany 7.07 Efficiency of the clearance process 15 (best) 60.1 67.2 20 7.08 Services trade openness 0-100 (worst) Ecuador
- 64.7 72
Pillar 8: Labour market 0-100 (best) 23.2 United States 86.2 59 Multiple (8) 8.01 Redundancy costs weeks of salary 5.0 8.02 Hiring and firing practices 1-7 (best) 5.1 50.0 39 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.4 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.7 39.9 = 94 8.05 Active Labour policies 1-7 (best) 0.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.9 61.3 54 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.1 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.2 60.0 = 102 Albania 8.09 Reliance on professional management 1-7 (best) 4.9 Guinea 8.10 Pay and productivity 1-7 (best) 0.49 65.9 10 Finland 8.11 Female participation in Labour force ratio 11.3 8.12 Labour tax rate % 67.9 29 United States Pillar 9: Financial system 0-100 (best) 65.0 74.1 29 9.01 Domestic credit to private sector % GDP 5.0 62.0 21 9.02 Financing of SMEs 1-7 (best) 4.4 United States 9.03 Venture capital availability 1-7 (best) 92.8 0.0 116 Multiple (29) 9.04 Market capitalization % GDP 1.4 9.05 Insurance premium % GDP 5.3 64.5 14 United States 9.06 Soundness of banks 1-7 (best) 1.7 United States 9.07 Non-performing loans % loan portfolio value 18.6 51.6 102 9.08 Credit gap percentage points 16.0 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 70.3 27 Multiple (16) - Pillar 10: Market size 0-100 (best) 310 65.3 11 Finland 35.7 Multiple (2) 10.01 Gross domestic product PPP $ billions 36.2 101 Multiple (97) 10.02 Imports % GDP - Multiple (72) 6.7 95.4 = 37 Pillar 11: Business dynamism 0-100 (best) 8.7 China 30.7 70.1 34 China 11.01 Cost of starting a business % GNI per capita 7.0 Hong Kong SAR 11.02 Time to start a business days 4.9 68.4 48 11.03 Insolvency recovery rate cents/$ 5.2 United States 11.04 Insolvency regulatory framework 0-16 (best) 5.0 66.1 9 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.5 11.06 Willingness to delegate authority 1-7 (best) 57.3 8 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.4 92.8 18 Pillar 12: Innovation capability 0-100 (best) 1.56 22.5 = 84 Israel 12.01 Diversity of workforce 1-7 (best) 110.0 72.2 49 Denmark 12.02 State of cluster development 1-7 (best) 9.09 Israel 12.03 International co-inventions applications/million pop. 0.5 97.6 26 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 4.7 56.4 139 12.06 Patent applications applications/million pop. 1,596.53 Germany 12.07 R&D expenditures % GDP 98.0 = 74 Canada 12.09 Buyer sophistication 1-7 (best) 60.4 51 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 51 n/a 87 Multiple (7) 65.7 40 Multiple (7) 96.7 67 91.8 = 54 Multiple (7)
33.0 86
65.4 10
69.4 22
66.7 10
58.9 14
50.3 37
73.9 12
65.4 16
28.9 35
64.3 14
69.7 87
42.5 37
16.0 = 66
1.4 77
61.4 14
79.4 43
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 477 479 | The Global Competitiveness Report 2018 Romania Economy Profiles
52nd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 52nd/135
Performance Key Previous edition Upper middle income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 89
80 80
70 71 62 65 67 60 58 61 60 57
50 52
40 40
0
Rank /140 52nd 46th 55th 36th 53rd 72nd 69th 56th 56th 101st 41st 64th 57th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 19.6 GDP (PPP) % world GDP 0.38 GDP per capita US$ 10,757.0 Unemployment rate % 4.9 10-year average annual GDP growth % 2.1 2.4 5-year average FDI inward flow % GDP
Social and environmental performance 2.8 Global Gender Gap Index 0-1 (gender parity) 0.7 4.4 Income Gini 0 (perfect equality) -100 (perfect inequality) 35.9
The Global Competitiveness Report 2018 | 479 Economy Profiles 52nd /140
Romania Value Score * Rank/140 Best Performer
Index Component - 58.1 46 New Zealand Pillar 1: Institutions 0-100 (best) 1.2 65.2 65 1.01 Organized crime 1-7 (best) 4.8 97.5 41 Multiple (24) 1.02 Homicide rate /100,000 pop. 49.7 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 61.5 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 4.3 Australia 1.05 Social capital 0-100 (high) 2.8 63.8 50 Multiple (2) 1.06 Budget transparency 0-100 (best) 23.7 1.07 Judicial independence 1-7 (best) 2.9 49.7 77 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.71 61.5 = 49 Norway 1.10 Burden of government regulation 1-7 (best) 3.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 48.0 55.0 54 Singapore 1.12 E-Participation Index 0-1 (best) 4.8 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.0 29.8 104 Singapore 1.14 Incidence of corruption 0-100 (best) 17.0 New Zealand 1.15 Property rights 1-7 (best) 4.9 76.4 39 Finland 1.16 Intellectual property protection 1-7 (best) 6.0 Finland 1.17 Quality of land administration 0-30 (best) 6.0 31.3 108 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 50.3 53 Multiple (2) 1.20 Shareholder governance 0-10 (best) 66.2 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.0 Singapore 45.2 39.4 93 United States 2.02 Quality of roads 1-7 (best) 3.1 48.0 = 52 Singapore 2.03 Railroad density km of roads/square km 59,903.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 63.8 43 Switzerland 2.05 Airport connectivity score 4.7 2.06 Efficiency of air transport services 1-7 (best) 29.2 66.2 32 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 3.9 56.7 60 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 65.2 53 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 12.0 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 8.1 60.0 = 54 Multiple (23) 5.2 Switzerland Pillar 3: ICT adoption 0-100 (best) 60.0 = 56 3.01 Mobile-cellular telephone subscriptions /100 pop. 114.6 71.2 55 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 82.9 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 24.3 66.2 = 66 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. 11.3 32.7 113 59.5 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 100.0 = 18 4.01 Inflation annual % change -0.1 34.4 75 Multiple (74) 4.02 Debt dynamics 0-100 (best) 80.0 Multiple (36) 54.5 57 Pillar 5: Health 0-100 (best) - Multiple (4) 65.5 61.3 61 Multiple (4)
- 29.2 59 Finland
Pillar 6: Skills 0-100 (best) 11.0 Finland 3.4 48.9 73 Switzerland 6.01 Mean years of schooling Years 3.9 Switzerland 6.02 Extent of staff training 1-7 (best) 3.3 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.4 Sweden 6.04 Skillset of graduates 1-7 (best) 3.2 91.6 79 United States 6.05 Digital skills among population 1-7 (best) 14.3 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 2.5 93.8 = 53 United States 6.07 School life expectancy Years 19.3 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 70.8 52 67.1 36 481 | The Global Competitiveness Report 2018 95.5 77
48.6 41
59.5 70
89.2 53
98.3 91
79.8 72
79.8 71
61.8 69
73.3 = 42
40.0 120
48.4 80
57.2 56
37.3 133
79.3 67
76.7 75 Romania Economy Profiles
52nd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 57.3 56 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.5 43.1 77 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.6 41.3 94 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 72.7 28 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) 14.5 60.1 44 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 32
Pillar 8: Labour market 0-100 (best) 4.0 United States 4.7 33.7 112 Multiple (8) 8.01 Redundancy costs weeks of salary 4.4 8.02 Hiring and firing practices 1-7 (best) 5.2 39.5 80 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 3.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 70.1 85.5 = 15 8.05 Active Labour policies 1-7 (best) 5.6 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.1 60.7 56 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.4 100.0 = 8 Albania 8.09 Reliance on professional management 1-7 (best) 0.75 Guinea 8.10 Pay and productivity 1-7 (best) 25.8 61.3 13 Finland 8.12 Labour tax rate % - 56.1 68 United States 29.7 Multiple (4) Pillar 9: Financial system 0-100 (best) 69.7 46 3.3 Multiple (26) 9.01 Domestic credit to private sector % GDP 2.4 45.5 52 9.02 Financing of SMEs 1-7 (best) 8.7 United States 9.03 Venture capital availability 1-7 (best) 1.2 70.1 71 Multiple (29) 9.04 Market capitalization % GDP 4.9 9.05 Insurance premium % GDP 9.6 76.4 3 United States 9.06 Soundness of banks 1-7 (best) -10.0 United States 9.07 Non-performing loans % loan portfolio value 17.4 34.5 135 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 43.4 106 Multiple (16) 439 Pillar 10: Market size 0-100 (best) 47.2 40.8 108 Finland 10.01 Gross domestic product PPP $ billions - 69.0 63 Multiple (97) 10.02 Imports % GDP 0.4 Multiple (72) 12.0 75.3 = 113 Pillar 11: Business dynamism 0-100 (best) 35.6 China 13.0 51.9 101 China 11.01 Cost of starting a business % GNI per capita 3.3 Hong Kong SAR 11.02 Time to start a business days 3.8 31.3 101 11.03 Insolvency recovery rate cents/$ 3.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.3 38.1 112 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 22.6 114 New Zealand 11.07 Growth of innovative companies 1-7 (best) 5.0 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.1 8.7 = 95 0.95 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 3.2 20.3 = 90 Israel 204.3 12.01 Diversity of workforce 1-7 (best) 3.27 64.7 71 Denmark 12.02 State of cluster development 1-7 (best) 0.5 Israel 12.03 International co-inventions applications/million pop. 0.04 81.6 100 12.04 Multi-stakeholder collaboration 1-7 (best) 2.7 United States 12.05 Scientific publications H Index 1,379.68 100.0 = 18 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 100.0 = 46 Canada 12.09 Buyer sophistication 1-7 (best) 64.7 41 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 63 Multiple (7) 60.1 64 Multiple (7) 99.8 9 88.4 = 74 Multiple (7)
38.3 74
38.5 125
47.4 109
47.8 84
39.0 88
39.6 57
66.2 26
20.4 46
36.3 109
78.9 53
26.7 49
16.3 65
10.8 42
28.6 116
77.8 47
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 481 483 | The Global Competitiveness Report 2018 Russian Federation Economy Profiles
43rd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 45th/135
Performance Overview 2018 Key Previous edition Upper middle income group average Eurasia average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 88
70 72 72 68 68
66 63 60 54 59 55
0
Rank /140 43rd 72nd 51st 25th 55th 100th 50th 83rd 67th 86th 6th 51st 36th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 144.0 GDP (PPP) % world GDP 3.16 GDP per capita US$ 10,608.2 Unemployment rate % 5.2 10-year average annual GDP growth % 1.8
Social and environmental performance 5.6 Global Gender Gap Index 0-1 (gender parity) 0.7 4.2 Income Gini 0 (perfect equality) -100 (perfect inequality) 37.7
The Global Competitiveness Report 2018 | 483 Economy Profiles 43rd /140
Russian Federation Value Score * Rank/140 Best Performer
Index Component - 52.7 72 New Zealand 4.7 Finland Pillar 1: Institutions 0-100 (best) 10.8 61.6 78 93.1 Multiple (9) 1.01 Organized crime 1-7 (best) 4.1 65.0 117 Multiple (24) 1.02 Homicide rate /100,000 pop. 43.9 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 88.5 93.1 118 Finland 1.04 Reliability of police services 1-7 (best) 3.3 Australia 1.05 Social capital 0-100 (high) 3.2 51.8 88 Multiple (2) 1.06 Budget transparency 0-100 (best) 50.0 1.07 Judicial independence 1-7 (best) 3.3 43.9 117 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.5 Finland 1.09 Freedom of the press 0-100 (worst) 0.92 88.5 = 8 Norway 1.10 Burden of government regulation 1-7 (best) 3.9 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 29.0 38.4 92 Singapore 1.12 E-Participation Index 0-1 (best) 3.7 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.9 36.1 79 Singapore 1.14 Incidence of corruption 0-100 (best) 26.0 New Zealand 1.15 Property rights 1-7 (best) 4.3 50.0 121 Finland 1.16 Intellectual property protection 1-7 (best) 5.0 Finland 1.17 Quality of land administration 0-30 (best) 7.3 39.1 73 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 42.1 78 Multiple (2) 1.20 Shareholder governance 0-10 (best) 78.0 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.3 Singapore 5.0 47.9 54 United States 2.01 Road connectivity index 0-100 (best) 4.9 2.02 Quality of roads 1-7 (best) 426,396.7 29.0 = 113 Singapore 2.03 Railroad density km of roads/square km 4.9 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 32.2 45.5 112 Switzerland 2.05 Airport connectivity score 4.6 2.06 Efficiency of air transport services 1-7 (best) 100.0 47.7 85 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 10.1 Singapore 2.08 Efficiency of seaport services 1-7 (best) 8.5 86.7 = 15 Multiple (4) 2.09 Electrification rate % pop. 5.2 Singapore 2.10 Electric power transmission and distribution losses % output 55.0 89 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 157.9 50.0 = 95 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 80.8 73.0 = 15 21.4 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 13.5 72.2 51 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 73.1 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 78.0 = 38 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 5.4 37.6 104 78.9 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 12.5 = 69 4.01 Inflation annual % change 61.9 65.4 15 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 89.2 18
Pillar 5: Health 0-100 (best) 10.7 Multiple (4) 65.3 52 Multiple (4) 5.01 Healthy life expectancy years 3.9 4.1 32.2 53 Finland Pillar 6: Skills 0-100 (best) 4.0 Finland 4.8 59.7 45 Switzerland 6.01 Mean years of schooling Years 4.4 Switzerland 6.02 Extent of staff training 1-7 (best) 15.5 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.0 Sweden 6.04 Skillset of graduates 1-7 (best) 20.1 93.7 64 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 93.4 = 54 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 70.3 53 72.1 25 485 | The Global Competitiveness Report 2018 100.0 = 11
42.9 46
73.1 49
87.5 55
96.2 102
78.9 56
68.5 100
68.5 99
68.5 50
48.7 66
51.2 67
49.8 72
63.7 37
56.4 53
86.3 41
49.8 38
74.6 = 77 Russian Federation Economy Profiles
43rd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 54.2 83 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.7 44.2 73 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.9 45.6 63 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 4.57 Hong Kong SAR 7.05 Trade tariffs % duty 3.4 74.1 19 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) 25.7 49.1 113 7.08 Services trade openness 0-100 (worst) Ecuador
- 69.5 57
Pillar 8: Labour market 0-100 (best) 17.3 United States 40.8 110 Multiple (8) 8.01 Redundancy costs weeks of salary 4.1 8.02 Hiring and firing practices 1-7 (best) 4.3 35.5 99 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.6 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.7 74.3 = 54 8.05 Active Labour policies 1-7 (best) 73.2 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.8 59.5 67 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.9 72.2 = 74 Albania 8.09 Reliance on professional management 1-7 (best) 4.5 Guinea 8.10 Pay and productivity 1-7 (best) 0.85 52.0 43 Finland 8.11 Female participation in Labour force ratio 36.3 8.12 Labour tax rate % 54.2 82 United States Pillar 9: Financial system 0-100 (best) 54.5 60.6 = 97 9.01 Domestic credit to private sector % GDP 3.3 45.0 55 9.02 Financing of SMEs 1-7 (best) 2.7 United States 9.03 Venture capital availability 1-7 (best) 32.0 73.2 54 Multiple (29) 9.04 Market capitalization % GDP 1.1 9.05 Insurance premium % GDP 3.7 47.4 93 United States 9.06 Soundness of banks 1-7 (best) 9.4 United States 9.07 Non-performing loans % loan portfolio value -3.8 52.6 99 9.08 Credit gap percentage points 12.9 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 48.1 93 Multiple (16) - Pillar 10: Market size 0-100 (best) 3,651 57.7 37 Finland 10.01 Gross domestic product PPP $ billions 21.3 80.9 43 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 60.7 133
Pillar 11: Business dynamism 0-100 (best) 1.1 China 10.1 54.8 86 China 11.01 Cost of starting a business % GNI per capita 40.7 Hong Kong SAR 11.02 Time to start a business days 11.5 57.3 65 11.03 Insolvency recovery rate cents/$ 4.3 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.2 39.0 106 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.7 11.06 Willingness to delegate authority 1-7 (best) 3.6 27.9 93 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 32.0 55 Pillar 12: Innovation capability 0-100 (best) 3.5 18.7 = 93 Israel 0.75 12.01 Diversity of workforce 1-7 (best) 4.0 45.1 114 Denmark 12.02 State of cluster development 1-7 (best) 479.0 Israel 12.03 International co-inventions applications/million pop. 3.80 81.9 97 12.04 Multi-stakeholder collaboration 1-7 (best) 1.1 United States 12.05 Scientific publications H Index 0.29 100.0 = 42 12.06 Patent applications applications/million pop. 3.5 Germany 12.07 R&D expenditures % GDP 397.29 91.0 = 109 Canada 12.09 Buyer sophistication 1-7 (best) 84.0 6 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 128 Multiple (7) 62.9 51 Multiple (7) 90.4 = 65 Multiple (7)
43.8 57
54.8 41
53.9 71
45.8 93
43.6 57
50.7 36
63.7 39
41.4 95
17.2 50
50.6 40
91.4 22
28.8 47
37.7 35
70.4 12
40.9 66
64.4 75
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 485 487 | The Global Competitiveness Report 2018 Rwanda Economy Profiles
108th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 107th/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 72
64 61 57 62 61
60 55
50 51 51
30 27 27
0
Rank /140 108th 29th 115th 120th 92nd 106th 123rd 65th 49th 84th 128th 60th 118th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 11.8 GDP (PPP) % world GDP 0.02 GDP per capita US$ 771.7 Unemployment rate % 1.3 10-year average annual GDP growth % 4.2 7.2 5-year average FDI inward flow % GDP
Social and environmental performance 0.8 Global Gender Gap Index 0-1 (gender parity) 0.8 3.2 Income Gini 0 (perfect equality) -100 (perfect inequality) 45.1
The Global Competitiveness Report 2018 | 487 Economy Profiles 108th /140
Rwanda Value Score * Rank/140 Best Performer
Index Component - 64.4 29 New Zealand 5.3 Finland Pillar 1: Institutions 0-100 (best) 2.5 72.2 38 1.01 Organized crime 1-7 (best) 5.5 93.2 = 68 Multiple (24) 1.02 Homicide rate /100,000 pop. 49.3 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 34.6 99.7 82 Finland 1.04 Reliability of police services 1-7 (best) 5.0 Australia 1.05 Social capital 0-100 (high) 4.5 75.5 33 Multiple (2) 1.06 Budget transparency 0-100 (best) 52.9 1.07 Judicial independence 1-7 (best) 4.6 49.3 80 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.76 34.6 = 116 Norway 1.10 Burden of government regulation 1-7 (best) 5.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 55.0 66.5 34 Singapore 1.12 E-Participation Index 0-1 (best) 4.8 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.7 57.9 20 Singapore 1.14 Incidence of corruption 0-100 (best) 28.0 New Zealand 1.15 Property rights 1-7 (best) 4.6 47.1 128 Finland 1.16 Intellectual property protection 1-7 (best) 7.0 Finland 1.17 Quality of land administration 0-30 (best) 7.7 59.9 13 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 67.2 19 Multiple (2) 1.20 Shareholder governance 0-10 (best) 27.2 Kazakhstan 75.8 58 Pillar 2: Infrastructure 0-100 (best) 4.7 Singapore n/a 68.6 12 United States 2.01 Road connectivity index 0-100 (best) 3.2 2.02 Quality of roads 1-7 (best) 2,559.9 55.0 43 Singapore 2.03 Railroad density km of roads/square km 4.8 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 63.6 44 Switzerland 2.05 Airport connectivity score 2.9 2.06 Efficiency of air transport services 1-7 (best) 30.0 62.4 37 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) n/a Singapore 2.08 Efficiency of seaport services 1-7 (best) 32.8 93.3 = 5 Multiple (4) 2.09 Electrification rate % pop. 4.2 Singapore 2.10 Electric power transmission and distribution losses % output 60.4 69 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 72.2 70.0 23 Multiple (23) 35.0 Switzerland Pillar 3: ICT adoption 0-100 (best) 77.0 10 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 50.8 115 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 20.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 27.2 = 127 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 5.3 61.2 40 47.2 Iceland Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 59.5 35.9 71 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 19.8 123
Pillar 5: Health 0-100 (best) 4.4 Multiple (4) 3.8 63.7 56 Multiple (4) 5.01 Healthy life expectancy years 4.1 3.8 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.9 Finland 4.2 31.9 111 Switzerland 6.01 Mean years of schooling Years 11.2 Switzerland 6.02 Extent of staff training 1-7 (best) 3.8 30.0 130 Switzerland 6.03 Quality of vocational training 1-7 (best) 58.5 Sweden 6.04 Skillset of graduates 1-7 (best) 82.2 n/a United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 68.6 108 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 53.8 97 27.1 120 489 | The Global Competitiveness Report 2018 60.2 127
0.4 127
20.0 119
71.8 92
96.4 101
47.2 100
60.9 106
60.9 105
40.9 123
29.3 = 126
45.9 80
51.1 68
46.2 91
48.3 82
52.8 65
62.3 109
46.0 43
0.0 137 Rwanda Economy Profiles
108th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 56.6 65 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.1 58.6 24 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 52.1 40 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 11.69 Hong Kong SAR 7.05 Trade tariffs % duty 6.3 60.7 97 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.7 Germany 7.07 Efficiency of the clearance process 15 (best) 25.0 53.9 87 7.08 Services trade openness 0-100 (worst) Ecuador
- 22.1 121
Pillar 8: Labour market 0-100 (best) 13.0 United States 87.9 52 Multiple (8) 8.01 Redundancy costs weeks of salary 4.3 8.02 Hiring and firing practices 1-7 (best) 4.9 41.7 63 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.0 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.5 75.0 = 51 8.05 Active Labour policies 1-7 (best) 86.6 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.4 62.1 49 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.0 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.7 81.3 = 46 Albania 8.09 Reliance on professional management 1-7 (best) 4.1 Guinea 8.10 Pay and productivity 1-7 (best) 0.45 55.5 32 Finland 8.11 Female participation in Labour force ratio 5.9 8.12 Labour tax rate % 65.1 31 United States Pillar 9: Financial system 0-100 (best) 21.0 65.9 64 9.01 Domestic credit to private sector % GDP 4.2 42.5 61 9.02 Financing of SMEs 1-7 (best) 3.4 United States 9.03 Venture capital availability 1-7 (best) 26.0 86.6 24 Multiple (29) 9.05 Insurance premium % GDP 4.3 57.5 39 United States 9.06 Soundness of banks 1-7 (best) 7.1 United States 9.07 Non-performing loans % loan portfolio value 0.4 50.1 106 9.08 Credit gap percentage points 23.2 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 62.1 41 Multiple (16) - Pillar 10: Market size 0-100 (best) 22 51.0 60 Finland 31.4 Multiple (2) 10.01 Gross domestic product PPP $ billions 31.8 106 Multiple (97) 10.02 Imports % GDP - Multiple (72) 44.6 100.0 = 22 Pillar 11: Business dynamism 0-100 (best) China 4.0 54.9 84 China 11.01 Cost of starting a business % GNI per capita 19.1 Hong Kong SAR 11.02 Time to start a business days 12.0 22.1 119 11.03 Insolvency recovery rate cents/$ United States 11.04 Insolvency regulatory framework 0-16 (best) 4.3 53.4 35 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.5 11.06 Willingness to delegate authority 1-7 (best) 4.3 40.8 38 New Zealand 11.07 Growth of innovative companies 1-7 (best) 3.8 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 26.0 = 65 Pillar 12: Innovation capability 0-100 (best) 3.8 10.5 = 114 Israel 12.01 Diversity of workforce 1-7 (best) 0.01 54.3 98 Denmark 12.02 State of cluster development 1-7 (best) 3.9 Israel 12.03 International co-inventions applications/million pop. 64.7 86.7 86 12.04 Multi-stakeholder collaboration 1-7 (best) 0.01 United States 12.05 Scientific publications H Index n/a 100.0 = 79 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 3.0 100.0 = 7 Canada 12.08 Quality of research institutions index 17.17 12.09 Buyer sophistication 1-7 (best) 33.8 128 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 104 Multiple (7) 60.6 60 Multiple (7)
20.6 117
54.5 42
59.1 46
54.4 45
46.9 43
27.3 118
46.4 121
45.8 75
48.7 47
62.0 116
0.2 121
4.0 n/a
34.0 98
31.2 122
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 489 491 | The Global Competitiveness Report 2018 Saudi Arabia Economy Profiles
39th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 41st/135
Performance Overview Key Previous edition High income group average Middle East and North Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 75 82 76 73 66 70 68 62
60 62 60
53 51
50 47
0
Rank /140 39th 39th 40th 54th 1st 64th 30th 32nd 102nd 45th 17th 114th 41st
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 32.4 GDP (PPP) % world GDP 1.40 GDP per capita US$ 21,120.5 Unemployment rate % 5.5 10-year average annual GDP growth % 1.1
Environmental footprint gha/capita 6.0 Global Gender Gap Index 0-1 (gender parity) 0.6
The Global Competitiveness Report 2018 | 491 Economy Profiles 39th /140
Saudi Arabia Value Score * Rank/140 Best Performer
Index Component - 62.2 39 New Zealand Pillar 1: Institutions 0-100 (best) 1.5 78.4 18 89.1 Multiple (9) 1.01 Organized crime 1-7 (best) 6.1 96.6 = 48 Multiple (24) 1.02 Homicide rate /100,000 pop. 53.6 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 26.9 89.1 123 Finland 1.04 Reliability of police services 1-7 (best) 5.4 Australia 1.05 Social capital 0-100 (high) 4.2 84.5 13 Multiple (2) 1.06 Budget transparency 0-100 (best) 63.1 1.07 Judicial independence 1-7 (best) 4.3 53.6 50 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.9 Finland 1.09 Freedom of the press 0-100 (worst) 0.71 26.9 = 127 Norway 1.10 Burden of government regulation 1-7 (best) 5.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 49.0 72.9 24 Singapore 1.12 E-Participation Index 0-1 (best) 5.3 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.0 53.2 29 Singapore 1.14 Incidence of corruption 0-100 (best) 10.0 New Zealand 1.15 Property rights 1-7 (best) 5.3 36.9 137 Finland 1.16 Intellectual property protection 1-7 (best) 7.0 Finland 1.17 Quality of land administration 0-30 (best) 8.0 55.8 20 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 65.5 21 Multiple (2) 1.20 Shareholder governance 0-10 (best) 99.3 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 5.0 Singapore 0.7 72.9 5 United States 2.01 Road connectivity index 0-100 (best) 3.9 2.02 Quality of roads 1-7 (best) 331,405.1 49.0 50 Singapore 2.03 Railroad density km of roads/square km 5.2 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 59.5 72.2 29 Switzerland 2.05 Airport connectivity score 4.6 2.06 Efficiency of air transport services 1-7 (best) 99.1 67.2 31 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 7.5 Singapore 2.08 Efficiency of seaport services 1-7 (best) 13.9 33.3 102 Multiple (4) 2.09 Electrification rate % pop. 5.6 Singapore 2.10 Electric power transmission and distribution losses % output 72.2 33 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 122.1 70.0 23 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 90.0 80.0 5 7.6 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 1.8 75.5 40 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 74.9 99.3 = 2 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 66.2 30 0.6 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 100.0 1.6 = 97 4.01 Inflation annual % change - 47.7 50 Multiple (74) 4.02 Debt dynamics 0-100 (best) 66.4 Multiple (36) 84.1 24 Pillar 5: Health 0-100 (best) - Multiple (4) 10.2 69.8 39 Multiple (4) 4.3 59.5 21 Finland Pillar 6: Skills 0-100 (best) 4.3 Finland 4.3 59.8 44 Switzerland 6.01 Mean years of schooling Years 5.1 Switzerland 6.02 Extent of staff training 1-7 (best) 4.5 99.1 81 Switzerland 6.03 Quality of vocational training 1-7 (best) 16.9 Sweden 6.04 Skillset of graduates 1-7 (best) 4.1 96.4 47 United States 6.05 Digital skills among population 1-7 (best) 11.7 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 87.9 79 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 76.3 47 493 | The Global Competitiveness Report 2018 100.0 = 60
15.2 81
74.9 44
82.4 64
82.4 63
73.4 30
54.3 47
55.3 53
55.2 50
67.6 26
58.6 45
94.0 = 18
51.2 34
95.8 20 Saudi Arabia Economy Profiles
39th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 62.5 32 Singapore 4.7 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.5 62.5 17 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.5 58.0 26 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 5.42 Hong Kong SAR 7.05 Trade tariffs % duty 6.1 70.1 47 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.7 Germany 7.07 Efficiency of the clearance process 15 (best) 42.5 58.7 54 7.08 Services trade openness 0-100 (worst) Ecuador
- 63.9 74
Pillar 8: Labour market 0-100 (best) 23.7 United States 85.5 61 Multiple (8) 8.01 Redundancy costs weeks of salary 4.3 8.02 Hiring and firing practices 1-7 (best) 4.8 41.5 65 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.5 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.7 57.5 = 82 8.05 Active Labour policies 1-7 (best) 0.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.7 53.4 102 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.6 58.9 = 104 Albania 8.09 Reliance on professional management 1-7 (best) 4.6 Guinea 8.10 Pay and productivity 1-7 (best) 0.23 54.4 37 Finland 8.11 Female participation in Labour force ratio 13.5 8.12 Labour tax rate % 62.6 38 United States Pillar 9: Financial system 0-100 (best) 52.8 75.8 18 9.01 Domestic credit to private sector % GDP 4.2 61.5 24 9.02 Financing of SMEs 1-7 (best) 3.8 United States 9.03 Venture capital availability 1-7 (best) 66.0 0.0 116 Multiple (29) 9.04 Market capitalization % GDP 0.6 9.05 Insurance premium % GDP 5.7 44.7 106 United States 9.06 Soundness of banks 1-7 (best) 1.4 United States 9.07 Non-performing loans % loan portfolio value 7.0 63.4 38 9.08 Credit gap percentage points 17.9 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 60.0 43 Multiple (16) - Pillar 10: Market size 0-100 (best) 1,615 60.7 24 Finland 10.01 Gross domestic product PPP $ billions 27.0 3.4 131 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 92.4 = 56
Pillar 11: Business dynamism 0-100 (best) 6.8 China 17.8 65.9 45 China 11.01 Cost of starting a business % GNI per capita 0.0 Hong Kong SAR 11.02 Time to start a business days 0.0 55.6 70 11.03 Insolvency recovery rate cents/$ 4.4 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.7 53.3 36 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.7 11.06 Willingness to delegate authority 1-7 (best) 4.0 46.3 29 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 66.0 29 5.2 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 4.7 9.3 = 118 Israel 0.85 12.01 Diversity of workforce 1-7 (best) 4.1 77.7 28 Denmark 12.02 State of cluster development 1-7 (best) 251.0 Israel 12.03 International co-inventions applications/million pop. 5.34 98.2 17 12.04 Multi-stakeholder collaboration 1-7 (best) 0.8 United States 12.05 Scientific publications H Index 0.04 86.8 124 12.06 Patent applications applications/million pop. 4.1 Germany 12.07 R&D expenditures % GDP 366.16 100.0 = 42 Canada 12.09 Buyer sophistication 1-7 (best) 76.3 17 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 114 Multiple (7) 51.2 114 Multiple (7) 96.6 68 82.6 97 Multiple (7)
56.0 35
62.0 39
62.5 21
50.3 31
47.4 41
70.3 18
62.1 22
18.9 48
52.1 36
81.9 41
33.9 43
27.3 = 45
11.9 37
51.7 29
63.5 77
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 493 495 | The Global Competitiveness Report 2018 Senegal Economy Profiles
113rd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 111th/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 56 56
49 53 52 54 52 54
43 41
30 28 31
0
Rank /140 113rd 73rd 111th 116th 105th 114th 118th 81st 92nd 104th 101st 95th 97th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 15.9 GDP (PPP) % world GDP 0.03 GDP per capita US$ 1,038.1 Unemployment rate % 4.8 10-year average annual GDP growth % 2.7
Social and environmental performance 1.1 Global Gender Gap Index 0-1 (gender parity) 0.7 3.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 40.3
The Global Competitiveness Report 2018 | 495 Economy Profiles 113rd /140
Senegal Value Score * Rank/140 Best Performer
Index Component - 52.5 73 New Zealand Pillar 1: Institutions 0-100 (best) 7.4 56.0 96 1.01 Organized crime 1-7 (best) 5.1 76.7 = 105 Multiple (24) 1.02 Homicide rate /100,000 pop. 53.3 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 38.5 99.9 54 Finland 1.04 Reliability of police services 1-7 (best) 3.5 Australia 1.05 Social capital 0-100 (high) 3.6 67.8 45 Multiple (2) 1.06 Budget transparency 0-100 (best) 25.6 1.07 Judicial independence 1-7 (best) 3.6 53.3 53 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.4 Finland 1.09 Freedom of the press 0-100 (worst) 0.51 38.5 = 110 Norway 1.10 Burden of government regulation 1-7 (best) 4.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 45.0 42.4 84 Singapore 1.12 E-Participation Index 0-1 (best) 4.4 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.4 43.9 52 Singapore 1.14 Incidence of corruption 0-100 (best) 10.0 New Zealand 1.15 Property rights 1-7 (best) 4.1 74.4 43 Finland 1.16 Intellectual property protection 1-7 (best) 4.7 Finland 1.17 Quality of land administration 0-30 (best) 3.7 44.2 55 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 56.3 36 Multiple (2) 1.20 Shareholder governance 0-10 (best) 55.0 Kazakhstan 50.6 102 Pillar 2: Infrastructure 0-100 (best) 3.7 Singapore 4.6 51.3 43 United States 2.01 Road connectivity index 0-100 (best) 2.6 2.02 Quality of roads 1-7 (best) 7,655.2 45.0 = 57 Singapore 2.03 Railroad density km of roads/square km 4.1 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 22.7 56.1 70 Switzerland 2.05 Airport connectivity score 3.6 2.06 Efficiency of air transport services 1-7 (best) 64.0 56.7 56 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 16.7 Singapore 2.08 Efficiency of seaport services 1-7 (best) 29.2 33.3 = 102 Multiple (4) 2.09 Electrification rate % pop. 3.8 Singapore 2.10 Electric power transmission and distribution losses % output 51.6 102 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 99.4 47.0 = 106 Multiple (23) 26.9 Switzerland Pillar 3: ICT adoption 0-100 (best) 37.0 = 112 0.7 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 51.8 111 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 25.7 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 55.0 = 86 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 1.1 45.8 82 38.9 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 11.5 = 73 4.01 Inflation annual % change 57.9 27.3 92 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 29.3 107
Pillar 5: Health 0-100 (best) 3.5 Multiple (4) 3.6 52.3 88 Multiple (4) 5.01 Healthy life expectancy years 4.6 4.1 22.7 63 Finland Pillar 6: Skills 0-100 (best) 4.4 Finland 4.6 44.1 83 Switzerland 6.01 Mean years of schooling Years 9.0 Switzerland 6.02 Extent of staff training 1-7 (best) 3.4 64.0 111 Switzerland 6.03 Quality of vocational training 1-7 (best) 31.7 Sweden 6.04 Skillset of graduates 1-7 (best) 86.8 101 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 72.3 104 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 47.5 107 28.0 116 497 | The Global Competitiveness Report 2018 82.8 101
n/a 115
1.4 112
25.7 108
69.4 105
38.9 125
55.9 114
55.9 113
42.5 118
23.3 = 129
42.6 103
59.7 35
51.1 69
56.4 59
60.2 39
50.0 130
39.9 67
45.6 111 Senegal Economy Profiles
113rd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 54.4 81 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.8 42.5 81 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.8 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.3 46.0 60 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.14 Hong Kong SAR 7.05 Trade tariffs % duty 6.7 62.8 85 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.2 Germany 7.07 Efficiency of the clearance process 15 (best) 19.0 54.4 80 7.08 Services trade openness 0-100 (worst) Ecuador
- 32.4 108
Pillar 8: Labour market 0-100 (best) 14.8 United States 8.01 Redundancy costs weeks of salary 3.5 8.02 Hiring and firing practices 1-7 (best) 4.2 29.2 122 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.5 81.0 = 35 8.05 Active Labour policies 1-7 (best) 67.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.7 55.6 92 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.6 77.5 = 61 Albania 8.09 Reliance on professional management 1-7 (best) 3.4 Guinea 8.10 Pay and productivity 1-7 (best) 0.67 42.1 96 Finland 8.11 Female participation in Labour force ratio 23.6 8.12 Labour tax rate % 53.4 89 United States Pillar 9: Financial system 0-100 (best) 33.2 61.4 91 9.01 Domestic credit to private sector % GDP 3.5 24.9 110 9.02 Financing of SMEs 1-7 (best) 2.6 United States 9.03 Venture capital availability 1-7 (best) 19.8 67.0 84 Multiple (29) 9.04 Market capitalization % GDP 1.0 9.05 Insurance premium % GDP 4.6 62.5 16 United States 9.06 Soundness of banks 1-7 (best) 17.3 United States 9.07 Non-performing loans % loan portfolio value -0.9 60.8 53 9.08 Credit gap percentage points 16.2 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 43.6 104 Multiple (16) - Pillar 10: Market size 0-100 (best) 39 39.6 112 Finland 54.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 58.3 79 Multiple (97) 10.02 Imports % GDP - Multiple (72) 33.8 78.3 = 104 Pillar 11: Business dynamism 0-100 (best) China 6.0 51.7 104 China 11.01 Cost of starting a business % GNI per capita 29.7 Hong Kong SAR 11.02 Time to start a business days 34.9 96 11.03 Insolvency recovery rate cents/$ 9.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.5 42.5 96 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.6 11.06 Willingness to delegate authority 1-7 (best) 3.9 26.9 96 New Zealand 11.07 Growth of innovative companies 1-7 (best) 3.1 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 19.8 = 80 Pillar 12: Innovation capability 0-100 (best) 4.0 17.2 = 99 Israel 12.01 Diversity of workforce 1-7 (best) 0.03 59.2 87 Denmark 12.02 State of cluster development 1-7 (best) 3.6 Israel 12.03 International co-inventions applications/million pop. 107.7 66.1 126 12.04 Multi-stakeholder collaboration 1-7 (best) 0.03 United States 12.05 Scientific publications H Index 0.5 100.0 = 64 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 2.8 98.4 = 70 Canada 12.08 Quality of research institutions index 271.15 12.09 Buyer sophistication 1-7 (best) 41.1 101 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 49 Multiple (7) 54.3 95 Multiple (7) 83.1 116
32.0 87
41.2 115
43.5 120
48.3 73
35.8 110
31.2 97
49.3 109
40.3 99
0.9 103
43.1 70
69.4 92
0.5 111
18.0 = 63
29.4 112
60.3 86
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 497 499 | The Global Competitiveness Report 2018 Serbia Economy Profiles
65th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 70th/135
Performance Key Previous edition Upper middle income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 81
73 75
70 68
60 61 57 62 61
52 56 56 51
40 40
0
Rank /140 65th 76th 48th 60th 64th 67th 56th 66th 52nd 79th 75th 59th 56th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 7.0 GDP (PPP) % world GDP 0.08 GDP per capita US$ 5,899.0 Unemployment rate % 14.1 0.9 5-year average FDI inward flow % GDP 5.3
Environmental footprint gha/capita 2.9 Global Gender Gap Index 0-1 (gender parity) 0.7
The Global Competitiveness Report 2018 | 499 Economy Profiles 65th /140
Serbia Value Score * Rank/140 Best Performer
Index Component - 51.6 76 New Zealand Pillar 1: Institutions 0-100 (best) 1.4 52.3 104 1.01 Organized crime 1-7 (best) 4.1 97.0 46 Multiple (24) 1.02 Homicide rate /100,000 pop. n/a 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 61.5 99.9 55 Finland 1.04 Reliability of police services 1-7 (best) 3.0 Australia 1.05 Social capital 0-100 (high) 2.9 51.8 89 Multiple (2) 1.06 Budget transparency 0-100 (best) 29.6 1.07 Judicial independence 1-7 (best) 2.8 45.6 n/a Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.9 Finland 1.09 Freedom of the press 0-100 (worst) 0.81 61.5 = 49 Norway 1.10 Burden of government regulation 1-7 (best) 3.5 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 41.0 32.9 107 Singapore 1.12 E-Participation Index 0-1 (best) 3.7 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.6 31.0 98 Singapore 1.14 Incidence of corruption 0-100 (best) 18.0 New Zealand 1.15 Property rights 1-7 (best) 4.0 70.4 63 Finland 1.16 Intellectual property protection 1-7 (best) 5.0 Finland 1.17 Quality of land administration 0-30 (best) 6.3 30.0 113 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 32.5 108 Multiple (2) 1.20 Shareholder governance 0-10 (best) 76.1 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.4 Singapore 43.1 42.5 81 United States 2.02 Quality of roads 1-7 (best) 2.7 41.0 66 Singapore 2.03 Railroad density km of roads/square km 27,204.6 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 44.5 115 Switzerland 2.05 Airport connectivity score 4.5 2.06 Efficiency of air transport services 1-7 (best) n/a 43.8 100 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 3.2 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 60.0 52 Multiple (4) 2.09 Electrification rate % pop. 13.8 Singapore 2.10 Electric power transmission and distribution losses % output 9.3 49.9 108 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 5.2 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 50.0 = 95 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 124.1 63.0 = 45 3.01 Mobile-cellular telephone subscriptions /100 pop. 77.1 73.0 48 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 21.2 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 76.1 = 43 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 0.7 Korea, Rep. 3.05 Internet users % pop. 67.1 40.5 95 Pillar 4: Macroeconomic stability 0-100 (best) - 100.0 = 19 2.1 Multiple (31) 4.01 Inflation annual % change 50.0 28.8 87 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 43.6 76
Pillar 5: Health 0-100 (best) 66.1 Multiple (4) 57.6 72 Multiple (4) 5.01 Healthy life expectancy years - 11.0 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.7 Finland 3.9 37.3 98 Switzerland 6.01 Mean years of schooling Years 4.2 Switzerland 6.02 Extent of staff training 1-7 (best) 4.2 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.1 Sweden 6.04 Skillset of graduates 1-7 (best) 14.6 89.8 91 United States 6.05 Digital skills among population 1-7 (best) 3.5 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 14.5 92.5 = 61 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 70.2 54 56.9 60 501 | The Global Competitiveness Report 2018 100.0 = 55
42.4 47
67.1 57
81.5 67
81.5 66
67.5 56
73.4 = 39
44.2 92
48.3 81
53.9 54
52.7 73
51.7 70
81.3 61
41.8 64
88.7 45 Serbia Economy Profiles
65th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 56.5 66 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.3 42.1 83 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.9 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 38.7 106 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 5.33 Hong Kong SAR 7.05 Trade tariffs % duty 6.0 64.9 74 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 53.0 92 7.08 Services trade openness 0-100 (worst) Ecuador
- 64.5 73
Pillar 8: Labour market 0-100 (best) 7.7 United States 3.7 83.2 65 Multiple (8) 8.01 Redundancy costs weeks of salary 4.1 8.02 Hiring and firing practices 1-7 (best) 5.1 39.9 78 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 3.3 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 70.1 81.3 n/a 8.05 Active Labour policies 1-7 (best) 4.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.5 61.5 52 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.1 92.3 = 17 Albania 8.09 Reliance on professional management 1-7 (best) 0.84 Guinea 8.10 Pay and productivity 1-7 (best) 20.2 45.5 77 Finland 8.12 Labour tax rate % - 50.9 100 United States 43.4 Multiple (4) Pillar 9: Financial system 0-100 (best) 68.7 53 3.6 Multiple (26) 9.01 Domestic credit to private sector % GDP 2.8 38.0 68 9.02 Financing of SMEs 1-7 (best) 16.2 United States 9.03 Venture capital availability 1-7 (best) 1.6 70.1 71 Multiple (29) 9.04 Market capitalization % GDP 4.6 9.05 Insurance premium % GDP 9.8 50.5 76 United States 9.06 Soundness of banks 1-7 (best) -4.6 United States 9.07 Non-performing loans % loan portfolio value 20.6 58.2 68 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 40.3 122 Multiple (16) Pillar 10: Market size 0-100 (best) 65.1 51.4 58 Finland 10.01 Gross domestic product PPP $ billions - 80.2 44 Multiple (97) 10.02 Imports % GDP 2.3 Multiple (72) 5.5 83.1 = 93 Pillar 11: Business dynamism 0-100 (best) 34.0 China 13.5 55.9 79 China 11.01 Cost of starting a business % GNI per capita 3.4 Hong Kong SAR 11.02 Time to start a business days 4.0 45.7 80 11.03 Insolvency recovery rate cents/$ 3.7 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.3 42.6 95 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 30.2 77 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.6 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.6 16.2 = 84 1.20 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 3.5 27.4 = 70 Israel 156.7 12.01 Diversity of workforce 1-7 (best) 2.98 59.5 86 Denmark 12.02 State of cluster development 1-7 (best) 0.9 Israel 12.03 International co-inventions applications/million pop. 0.01 81.1 102 12.04 Multi-stakeholder collaboration 1-7 (best) 2.5 United States 12.05 Scientific publications H Index 648.86 100.0 = 40 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 100.0 = 20 Canada 12.09 Buyer sophistication 1-7 (best) 50.7 75 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 31 Multiple (7) 60.9 59 Multiple (7) 98.9 46 95.0 25 Multiple (7)
40.0 119
49.9 94
45.0 98
38.0 93
39.7 56
60.1 53
42.9 86
24.2 41
41.8 79
74.9 66
25.4 52
28.9 42
3.4 59
25.6 127
69.7 61
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 501 503 | The Global Competitiveness Report 2018 Seychelles Economy Profiles
74th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 84th/135
Performance Overview 2018 Key Previous edition High income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 75 78
70 67 69 68
60 58 57 57 60 58 54 44
20 16
0
Rank /140 74th 52nd 70th 63rd 64th 82nd 43rd 48th 23rd 93rd 139th 74th 49th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 0.1 GDP (PPP) % world GDP 0.00 GDP per capita US$ 15,686.0 5-year average FDI inward flow % GDP 15.4
Income Gini 0 (perfect equality) -100 (perfect inequality) 46.8
The Global Competitiveness Report 2018 | 503 Economy Profiles 74th /140
Seychelles Value Score * Rank/140 Best Performer
Index Component - 57.1 52 New Zealand Pillar 1: Institutions 0-100 (best) 12.7 63.9 68 1.01 Organized crime 1-7 (best) 4.6 58.5 124 Multiple (24) 1.02 Homicide rate /100,000 pop. n/a 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 3.8 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 4.3 Australia 1.05 Social capital 0-100 (high) 4.0 59.8 64 Multiple (2) 1.06 Budget transparency 0-100 (best) 30.2 1.07 Judicial independence 1-7 (best) 4.0 n/a n/a Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.1 Finland 1.09 Freedom of the press 0-100 (worst) 0.65 3.8 = 138 Norway 1.10 Burden of government regulation 1-7 (best) 4.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 60.0 55.3 53 Singapore 1.12 E-Participation Index 0-1 (best) 4.6 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.1 49.3 40 Singapore 1.14 Incidence of corruption 0-100 (best) 21.0 New Zealand 1.15 Property rights 1-7 (best) 4.2 69.8 69 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 4.3 50.3 33 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 52.5 43 Multiple (2) 1.20 Shareholder governance 0-10 (best) n/a Kazakhstan 4.5 64.6 81 Pillar 2: Infrastructure 0-100 (best) n/a Singapore 2.9 56.0 33 United States 2.01 Road connectivity index 0-100 (best) 8,777.0 2.02 Quality of roads 1-7 (best) 4.8 60.0 33 Singapore 2.03 Railroad density km of roads/square km 9.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 4.7 59.6 52 Switzerland 2.05 Airport connectivity score 99.0 2.06 Efficiency of air transport services 1-7 (best) n/a 51.8 69 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 14.6 Singapore 2.08 Efficiency of seaport services 1-7 (best) 5.0 70.0 43 Multiple (4) 2.09 Electrification rate % pop. Singapore 2.10 Electric power transmission and distribution losses % output - 54.0 92 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 176.6 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 57.0 = 65 Multiple (23) 76.0 Switzerland Pillar 3: ICT adoption 0-100 (best) 16.1 43.0 = 100 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 67.0 70 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 56.5 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. n/a n/a Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 0.9 58.4 46 Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 64.9 31.0 82 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 30.7 100
Pillar 5: Health 0-100 (best) 9.4 Multiple (4) 4.4 62.7 58 Multiple (4) 5.01 Healthy life expectancy years 4.2 4.7 9.4 86 Finland Pillar 6: Skills 0-100 (best) 4.4 Finland 3.9 60.9 37 Switzerland 6.01 Mean years of schooling Years 15.8 Switzerland 6.02 Extent of staff training 1-7 (best) 4.2 99.0 84 Switzerland 6.03 Quality of vocational training 1-7 (best) 14.0 Sweden 6.04 Skillset of graduates 1-7 (best) 96.9 n/a United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 87.1 = 81 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 65.9 64 56.6 63 505 | The Global Competitiveness Report 2018
32.1 56
56.5 75
78.0 82
69.3 43
62.7 = 71
55.9 41
53.1 58
60.9 34
56.3 60
49.0 85
87.7 39
53.3 28
90.0 41 Seychelles Economy Profiles
74th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 60.1 48 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.4 45.1 68 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.7 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.6 40.6 101 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.67 Hong Kong SAR 7.05 Trade tariffs % duty 5.3 61.6 91 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) n/a Germany 7.07 Efficiency of the clearance process 15 (best) n/a 60.2 43 7.08 Services trade openness 0-100 (worst) Ecuador
- 88.9 37
Pillar 8: Labour market 0-100 (best) 12.0 United States 71.5 79 Multiple (8) 8.01 Redundancy costs weeks of salary 3.9 8.02 Hiring and firing practices 1-7 (best) 4.4 58.6 n/a Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.2 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.1 76.4 n/a 8.05 Active Labour policies 1-7 (best) n/a Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.3 67.8 23 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.8 83.4 = 43 Albania 8.09 Reliance on professional management 1-7 (best) 4.3 Guinea 8.10 Pay and productivity 1-7 (best) 1.23 48.8 61 Finland 8.11 Female participation in Labour force ratio 2.3 8.12 Labour tax rate % 57.4 59 United States Pillar 9: Financial system 0-100 (best) 25.0 53.2 121 9.01 Domestic credit to private sector % GDP 3.8 51.6 40 9.02 Financing of SMEs 1-7 (best) 2.7 United States 9.03 Venture capital availability 1-7 (best) 1.3 88.4 n/a Multiple (29) 9.04 Market capitalization % GDP 1.9 9.05 Insurance premium % GDP 4.7 54.6 54 United States 9.06 Soundness of banks 1-7 (best) 6.8 United States 9.07 Non-performing loans % loan portfolio value 2.6 46.5 121 9.08 Credit gap percentage points 24.4 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 45.9 99 Multiple (16) - Pillar 10: Market size 0-100 (best) 2 54.7 48 Finland 109.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 100.0 = 1 Multiple (97) 10.02 Imports % GDP - Multiple (72) 13.2 100.0 = 10 Pillar 11: Business dynamism 0-100 (best) 32.0 China 38.8 53.6 93 China 11.01 Cost of starting a business % GNI per capita 10.0 Hong Kong SAR 11.02 Time to start a business days 26.3 109 11.03 Insolvency recovery rate cents/$ 4.2 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.2 46.3 66 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.8 11.06 Willingness to delegate authority 1-7 (best) 3.5 28.9 84 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 1.3 = 111 5.1 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 4.0 31.7 = 61 Israel 0.73 12.01 Diversity of workforce 1-7 (best) 3.5 61.8 79 Denmark 12.02 State of cluster development 1-7 (best) 53.0 Israel 12.03 International co-inventions applications/million pop. 8.06 87.4 84 12.04 Multi-stakeholder collaboration 1-7 (best) n/a United States 12.05 Scientific publications H Index 0.00 98.4 108 12.06 Patent applications applications/million pop. 4.0 Germany 12.07 R&D expenditures % GDP 20,352.52 100.0 = 6 Canada 12.09 Buyer sophistication 1-7 (best) 16.4 139 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 140 n/a 5 Multiple (7) 57.6 74 Multiple (7) 93.4 88 68.3 = 120 Multiple (7)
53.5 48
53.0 76
47.3 87
41.1 73
43.5 49
68.1 23
49.8 51
16.9 51
42.3 76
59.1 125
40.5 40
49.9 36
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 505 507 | The Global Competitiveness Report 2018 Sierra Leone Economy Profiles
134th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 131st/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
50 47 52 49
44 45 42
40 39 36 36 38
30 27 27
0
Rank /140 134th 106th 133rd 130th 134th 137th 128th 132nd 132nd 136th 134th 124th 124th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 7.4 GDP (PPP) % world GDP 0.01 GDP per capita US$ 491.5 Unemployment rate % 4.5 4.4 5-year average FDI inward flow % GDP 10.0
Environmental footprint gha/capita 1.2 Income Gini 0 (perfect equality) -100 (perfect inequality) 34.0 Inclusive Development Index 1-7 (best) 3.0
The Global Competitiveness Report 2018 | 507 Economy Profiles 134th /140
Sierra Leone Value Score * Rank/140 Best Performer
Index Component - 46.9 106 New Zealand Pillar 1: Institutions 0-100 (best) 1.7 48.5 113 1.01 Organized crime 1-7 (best) 3.5 95.9 = 55 Multiple (24) 1.02 Homicide rate /100,000 pop. 55.7 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 34.6 99.9 65 Finland 1.04 Reliability of police services 1-7 (best) 3.2 Australia 1.05 Social capital 0-100 (high) 2.9 42.2 106 Multiple (2) 1.06 Budget transparency 0-100 (best) 30.0 1.07 Judicial independence 1-7 (best) 3.4 55.7 34 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.5 Finland 1.09 Freedom of the press 0-100 (worst) 0.41 34.6 = 116 Norway 1.10 Burden of government regulation 1-7 (best) 3.3 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 30.0 36.9 94 Singapore 1.12 E-Participation Index 0-1 (best) 3.8 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.6 31.5 94 Singapore 1.14 Incidence of corruption 0-100 (best) 6.5 New Zealand 1.15 Property rights 1-7 (best) 3.4 70.0 64 Finland 1.16 Intellectual property protection 1-7 (best) 6.7 Finland 1.17 Quality of land administration 0-30 (best) 4.3 40.7 68 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 40.9 83 Multiple (2) 1.20 Shareholder governance 0-10 (best) 57.4 Kazakhstan 41.0 113 Pillar 2: Infrastructure 0-100 (best) 3.6 Singapore n/a 38.4 94 United States 2.01 Road connectivity index 0-100 (best) 2.3 2.02 Quality of roads 1-7 (best) 133.6 30.0 = 109 Singapore 2.03 Railroad density km of roads/square km 2.9 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 8.3 46.5 109 Switzerland 2.05 Airport connectivity score 3.0 2.06 Efficiency of air transport services 1-7 (best) 8.9 43.1 103 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) n/a Singapore 2.08 Efficiency of seaport services 1-7 (best) 45.1 21.7 = 128 Multiple (4) 2.09 Electrification rate % pop. 2.8 Singapore 2.10 Electric power transmission and distribution losses % output 40.3 130 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 84.9 67.0 = 32 Multiple (23) 20.4 Switzerland Pillar 3: ICT adoption 0-100 (best) 43.0 = 100 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 36.3 133 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 11.8 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 57.4 = 82 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 14.8 42.8 87 34.5 Iceland Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 51.6 21.1 106 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 4.8 139
Pillar 5: Health 0-100 (best) 4.0 Multiple (4) 3.3 31.3 133 Multiple (4) 5.01 Healthy life expectancy years 3.2 3.6 8.3 92 Finland Pillar 6: Skills 0-100 (best) 3.2 Finland 3.5 33.9 108 Switzerland 6.01 Mean years of schooling Years 9.5 Switzerland 6.02 Extent of staff training 1-7 (best) 3.2 8.9 139 Switzerland 6.03 Quality of vocational training 1-7 (best) 37.3 Sweden 6.04 Skillset of graduates 1-7 (best) 77.0 n/a United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 56.0 137 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 29.2 122 22.4 130 509 | The Global Competitiveness Report 2018 70.7 = 116
n/a 125
11.8 133
52.3 134
70.1 131
34.5 132
36.3 137
36.3 136
38.1 128
26.7 = 127
38.8 123
36.2 126
43.4 104
35.9 128
41.6 116
52.8 = 126
36.2 85
31.7 118 Sierra Leone Economy Profiles
134th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 44.1 132 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.0 41.2 87 Switzerland 7.02 Extent of market dominance 1-7 (best) 3.9 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.6 33.9 118 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 14.07 Hong Kong SAR 7.05 Trade tariffs % duty 6.6 48.4 133 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 1.8 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 44.0 131 7.08 Services trade openness 0-100 (worst) Ecuador
- 6.2 131
Pillar 8: Labour market 0-100 (best) 75.5 United States 93.4 24 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 3.6 20.5 134 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.3 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.1 71.4 n/a 8.05 Active Labour policies 1-7 (best) 69.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.1 44.7 132 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.4 0.0 137 Albania 8.09 Reliance on professional management 1-7 (best) 3.3 Guinea 8.10 Pay and productivity 1-7 (best) 0.30 41.6 100 Finland 8.11 Female participation in Labour force ratio 11.3 8.12 Labour tax rate % 42.8 125 United States Pillar 9: Financial system 0-100 (best) 5.3 55.6 113 3.2 Multiple (26) 9.01 Domestic credit to private sector % GDP 2.8 34.6 77 9.02 Financing of SMEs 1-7 (best) 0.0 United States 9.03 Venture capital availability 1-7 (best) 0.4 69.1 80 Multiple (29) 9.04 Market capitalization % GDP 3.6 9.05 Insurance premium % GDP 22.7 52.1 65 United States 9.06 Soundness of banks 1-7 (best) -1.1 United States 9.07 Non-performing loans % loan portfolio value 31.4 43.9 128 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 40.7 118 Multiple (16) Pillar 10: Market size 0-100 (best) 40.4 39.0 116 Finland 10.01 Gross domestic product PPP $ billions - 12.8 121 Multiple (97) 10.02 Imports % GDP 36.2 Multiple (72) 11.0 95.4 = 37 Pillar 11: Business dynamism 0-100 (best) 11.1 China 42.0 136 China 11.01 Cost of starting a business % GNI per capita 6.0 Hong Kong SAR 11.02 Time to start a business days 3.3 5.5 139 11.03 Insolvency recovery rate cents/$ 3.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.6 37.0 115 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.2 11.06 Willingness to delegate authority 1-7 (best) 30.3 76 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.8 0.0 121 Pillar 12: Innovation capability 0-100 (best) 0.08 6.4 = 128 Israel 12.01 Diversity of workforce 1-7 (best) 41.7 43.9 117 Denmark 12.02 State of cluster development 1-7 (best) 0.08 Israel 12.03 International co-inventions applications/million pop. n/a 55.3 133 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 2.9 100.0 = 59 12.06 Patent applications applications/million pop. 54.28 Germany 12.07 R&D expenditures % GDP 100.0 = 1 Canada 12.09 Buyer sophistication 1-7 (best) 26.9 134 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 132 n/a 78 Multiple (7) 48.7 124 Multiple (7) 81.9 120 89.4 68 Multiple (7)
11.9 128
39.2 123
49.2 96
43.2 102
37.0 98
26.8 124
46.7 120
35.4 113
2.3 89
37.8 99
1.4 101
13.8 n/a
32.1 106
43.2 112
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 509 511 | The Global Competitiveness Report 2018 Singapore Economy Profiles
2nd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 2nd/135
Performance Overview 2018 Key Previous edition High income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 96 100
93 89
90 85
83 81 81 80
80 76 75 75
70 71
0
Rank /140 2nd 3rd 1st 4th 42nd 1st 20th 1st 3rd 5th 27th 16th 14th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 5.6 GDP (PPP) % world GDP 0.42 GDP per capita US$ 57,713.3 Unemployment rate % 2.0 4.2 5-year average FDI inward flow % GDP 21.3
Environmental footprint gha/capita 5.9 Global Gender Gap Index 0-1 (gender parity) 0.7
The Global Competitiveness Report 2018 | 511 Economy Profiles 2nd /140
Singapore Value Score * Rank/140 Best Performer
Index Component - 80.7 3 New Zealand 6.5 Finland Pillar 1: Institutions 0-100 (best) 0.3 91.1 3 1.01 Organized crime 1-7 (best) 6.5 100.0 = 3 Multiple (24) 1.02 Homicide rate /100,000 pop. 57.6 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 84.6 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 5.7 Australia 1.05 Social capital 0-100 (high) 4.6 91.9 2 Multiple (2) 1.06 Budget transparency 0-100 (best) 51.0 1.07 Judicial independence 1-7 (best) 5.6 57.6 26 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 6.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.97 84.6 = 14 Norway 1.10 Burden of government regulation 1-7 (best) 6.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 84.0 78.0 19 Singapore 1.12 E-Participation Index 0-1 (best) 6.3 Multiple (3) 1.13 Future orientation of government 1-7 (best) 6.3 59.4 17 Singapore 1.14 Incidence of corruption 0-100 (best) 29.0 New Zealand 1.15 Property rights 1-7 (best) 6.3 49.1 124 Finland 1.16 Intellectual property protection 1-7 (best) 9.3 Finland 1.17 Quality of land administration 0-30 (best) 6.7 76.1 1 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 86.1 1 Multiple (2) 1.20 Shareholder governance 0-10 (best) n/a Kazakhstan 6.4 96.6 13 Pillar 2: Infrastructure 0-100 (best) n/a Singapore 5.8 85.6 1 United States 2.01 Road connectivity index 0-100 (best) 352,687.7 2.02 Quality of roads 1-7 (best) 6.7 84.0 = 6 Singapore 2.03 Railroad density km of roads/square km 115.1 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 6.4 89.0 3 Switzerland 2.05 Airport connectivity score 100.0 2.06 Efficiency of air transport services 1-7 (best) 1.8 87.8 3 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 2.3 Singapore 2.08 Efficiency of seaport services 1-7 (best) 6.9 96.7 = 1 Multiple (4) 2.09 Electrification rate % pop. Singapore 2.10 Electric power transmission and distribution losses % output - 88.5 2 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 148.2 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 148.2 93.0 = 1 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 25.8 67.0 = 32 20.9 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 84.5 95.7 1 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. - n/a n/a Switzerland 3.04 Fibre Internet subscriptions /100 pop. 0.0 Korea, Rep. 3.05 Internet users % pop. 86.5 90.8 1 Pillar 4: Macroeconomic stability 0-100 (best) - n/a n/a 73.6 Multiple (31) 4.01 Inflation annual % change 80.5 5 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 11.5 85.4 23 Pillar 5: Health 0-100 (best) 5.3 Multiple (4) 5.3 95.0 1 Multiple (4) 5.01 Healthy life expectancy years 5.4 5.7 100.0 = 2 Finland Pillar 6: Skills 0-100 (best) 5.1 Finland 15.4 90.6 1 Switzerland 6.01 Mean years of schooling Years 4.4 Switzerland 6.02 Extent of staff training 1-7 (best) 17.4 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) Sweden 6.04 Skillset of graduates 1-7 (best) 100.0 = 1 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 99.7 = 25 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 97.5 3 85.2 4 513 | The Global Competitiveness Report 2018 100.0 = 17
51.5 39
84.5 24
92.6 42
98.7 86
86.5 42
76.0 20
76.5 = 35
72.5 6
77.7 6
68.3 9
85.6 = 44
57.4 21
81.4 = 61 Singapore Economy Profiles
2nd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 81.2 1 Singapore 5.8 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.9 79.9 1 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.7 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.9 64.5 12 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 0.02 Hong Kong SAR 7.05 Trade tariffs % duty 6.9 77.5 7 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.9 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 82.2 1 7.08 Services trade openness 0-100 (worst) Ecuador
- 99.8 2
Pillar 8: Labour market 0-100 (best) 3.0 United States 5.6 99.0 3 Multiple (8) 8.01 Redundancy costs weeks of salary 6.1 8.02 Hiring and firing practices 1-7 (best) 6.1 72.2 6 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.6 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 88.7 89.2 n/a 8.05 Active Labour policies 1-7 (best) 3.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.8 80.2 3 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 6.1 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.5 100.0 = 5 Albania 8.09 Reliance on professional management 1-7 (best) 0.88 Guinea 8.10 Pay and productivity 1-7 (best) 17.8 76.4 4 Finland 8.12 Labour tax rate % - 85.2 2 United States 130.3 Multiple (4) Pillar 9: Financial system 0-100 (best) 84.5 4 5.2 Multiple (26) 9.01 Domestic credit to private sector % GDP 4.7 76.9 4 9.02 Financing of SMEs 1-7 (best) 225.2 United States 9.03 Venture capital availability 1-7 (best) 6.0 88.7 21 Multiple (29) 9.04 Market capitalization % GDP 6.4 9.05 Insurance premium % GDP 1.2 46.5 97 United States 9.06 Soundness of banks 1-7 (best) 7.5 United States 9.07 Non-performing loans % loan portfolio value 16.1 62.7 46 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 85.0 3 Multiple (16) 480 Pillar 10: Market size 0-100 (best) 153.8 74.2 3 Finland 10.01 Gross domestic product PPP $ billions - 85.2 34 Multiple (97) 10.02 Imports % GDP 0.5 Multiple (72) 2.5 86.4 75 Pillar 11: Business dynamism 0-100 (best) 88.7 China 8.5 89.3 5 China 11.01 Cost of starting a business % GNI per capita 4.4 Hong Kong SAR 11.02 Time to start a business days 5.4 100.0 = 17 11.03 Insolvency recovery rate cents/$ 4.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.4 70.5 4 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 61.3 6 New Zealand 11.07 Growth of innovative companies 1-7 (best) 5.8 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.1 100.0 = 3 25.27 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 4.9 99.7 = 17 Israel 466.7 12.01 Diversity of workforce 1-7 (best) 121.25 90.4 3 Denmark 12.02 State of cluster development 1-7 (best) 2.2 Israel 12.03 International co-inventions applications/million pop. 0.12 98.5 14 12.04 Multi-stakeholder collaboration 1-7 (best) 4.7 United States 12.05 Scientific publications H Index 4,630.39 85.4 127 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 98.1 = 72 Canada 12.09 Buyer sophistication 1-7 (best) 71.1 27 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 3 Multiple (7) 74.7 16 Multiple (7) 99.8 11 98.0 = 5 Multiple (7)
56.7 30
73.4 18
63.7 20
57.4 16
75.0 14
68.6 12
64.9 12
91.0 24
88.3 14
73.3 = 17
31.0 21
61.8 11
90.8 22
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 513 515 | The Global Competitiveness Report 2018 Slovak Republic Economy Profiles
41st / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 39th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 78
70 67 68 69 65
60 64 60 56 58
50 47
0
Rank /140 41st 55th 33rd 35th 32nd 57th 48th 78th 58th 54th 60th 45th 43rd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 5.4 GDP (PPP) % world GDP 0.14 GDP per capita US$ 17,664.3 Unemployment rate % 8.1 10-year average annual GDP growth % 0.7 2.4 5-year average FDI inward flow % GDP
Social and environmental performance 4.2 Global Gender Gap Index 0-1 (gender parity) 0.7 4.9 Income Gini 0 (perfect equality) -100 (perfect inequality) 26.5
The Global Competitiveness Report 2018 | 515 Economy Profiles 41st /140
Slovak Republic Value Score * Rank/140 Best Performer
Index Component - 56.4 55 New Zealand Pillar 1: Institutions 0-100 (best) 1.0 63.0 74 1.01 Organized crime 1-7 (best) 3.4 98.1 34 Multiple (24) 1.02 Homicide rate /100,000 pop. 51.4 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 65.4 100.0 46 Finland 1.04 Reliability of police services 1-7 (best) 2.8 Australia 1.05 Social capital 0-100 (high) 2.4 40.7 112 Multiple (2) 1.06 Budget transparency 0-100 (best) 20.3 1.07 Judicial independence 1-7 (best) 2.5 51.4 63 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.81 65.4 = 42 Norway 1.10 Burden of government regulation 1-7 (best) 3.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 50.0 29.3 116 Singapore 1.12 E-Participation Index 0-1 (best) 4.4 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.5 22.9 125 Singapore 1.14 Incidence of corruption 0-100 (best) 26.5 New Zealand 1.15 Property rights 1-7 (best) 5.5 79.7 25 Finland 1.16 Intellectual property protection 1-7 (best) 4.7 Finland 1.17 Quality of land administration 0-30 (best) 6.0 24.2 129 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 22.4 128 Multiple (2) 1.20 Shareholder governance 0-10 (best) 76.0 Kazakhstan 80.9 49 Pillar 2: Infrastructure 0-100 (best) 4.0 Singapore 74.0 35.4 108 United States 2.02 Quality of roads 1-7 (best) 4.1 50.0 47 Singapore 2.03 Railroad density km of roads/square km 6,351.2 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 56.6 68 Switzerland 2.05 Airport connectivity score 3.9 2.06 Efficiency of air transport services 1-7 (best) n/a 57.8 50 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 3.3 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 88.3 = 11 Multiple (4) 2.09 Electrification rate % pop. 4.7 Singapore 2.10 Electric power transmission and distribution losses % output 6.4 74.6 27 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 6.4 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 47.0 = 106 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 130.7 60.0 = 56 3.01 Mobile-cellular telephone subscriptions /100 pop. 82.6 77.6 33 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 25.8 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 76.0 = 44 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 7.0 Korea, Rep. 3.05 Internet users % pop. 80.5 49.4 67 Pillar 4: Macroeconomic stability 0-100 (best) - 100.0 = 7 0.4 Multiple (31) 4.01 Inflation annual % change 100.0 52.1 40 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 27.5 111
Pillar 5: Health 0-100 (best) 66.9 Multiple (4) 48.5 97 Multiple (4) 5.01 Healthy life expectancy years - 12.7 n/a n/a Finland Pillar 6: Skills 0-100 (best) Finland 4.2 37.7 97 Switzerland 6.01 Mean years of schooling Years 3.7 Switzerland 6.02 Extent of staff training 1-7 (best) 3.7 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.7 Sweden 6.04 Skillset of graduates 1-7 (best) 3.3 99.3 17 United States 6.05 Digital skills among population 1-7 (best) 14.8 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 2.9 95.5 = 38 United States 6.07 School life expectancy Years 15.2 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 90.1 21 67.8 35 517 | The Global Competitiveness Report 2018 100.0 = 39
51.6 38
80.5 28
99.9 32
99.8 78
84.0 57
84.0 56
68.6 48
84.4 = 16
53.2 54
45.0 96
61.9 42
82.2 = 59
31.6 109
86.9 = 47 Slovak Republic Economy Profiles
41st /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 55.0 78 Singapore 2.5 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.6 24.6 136 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.7 43.0 82 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 74.0 20 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.8 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 61.6 37 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 15
Pillar 8: Labour market 0-100 (best) 18.8 United States 8.01 Redundancy costs weeks of salary 3.2 8.02 Hiring and firing practices 1-7 (best) 4.3 44.7 51 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.0 81.9 n/a 8.05 Active Labour policies 1-7 (best) 100.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.1 60.2 58 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.5 69.2 = 82 Albania 8.09 Reliance on professional management 1-7 (best) 4.3 Guinea 8.10 Pay and productivity 1-7 (best) 0.86 37.3 116 Finland 8.11 Female participation in Labour force ratio 39.7 8.12 Labour tax rate % 55.6 71 United States Pillar 9: Financial system 0-100 (best) 53.4 64.7 70 9.01 Domestic credit to private sector % GDP 4.2 49.9 44 9.02 Financing of SMEs 1-7 (best) 3.3 United States 9.03 Venture capital availability 1-7 (best) 5.1 100.0 = 1 Multiple (29) 9.04 Market capitalization % GDP 2.6 9.05 Insurance premium % GDP 6.1 35.7 131 United States 9.06 Soundness of banks 1-7 (best) 4.4 United States 9.07 Non-performing loans % loan portfolio value 1.5 47.3 118 9.08 Credit gap percentage points 17.2 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 58.7 49 Multiple (16) - Pillar 10: Market size 0-100 (best) 163 55.0 47 Finland 95.8 Multiple (2) 10.01 Gross domestic product PPP $ billions 82.3 38 Multiple (97) 10.02 Imports % GDP - Multiple (72) 1.1 56.0 = 136 Pillar 11: Business dynamism 0-100 (best) 12.5 China 47.3 63.7 54 China 11.01 Cost of starting a business % GNI per capita 13.0 Hong Kong SAR 11.02 Time to start a business days 3.6 56.2 69 11.03 Insolvency recovery rate cents/$ 4.4 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.2 52.9 38 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.5 11.06 Willingness to delegate authority 1-7 (best) 38.9 42 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.9 5.1 = 101 Pillar 12: Innovation capability 0-100 (best) 2.80 43.7 = 46 Israel 12.01 Diversity of workforce 1-7 (best) 228.3 84.6 10 Denmark 12.02 State of cluster development 1-7 (best) 8.90 Israel 12.03 International co-inventions applications/million pop. 1.2 92.0 67 12.04 Multi-stakeholder collaboration 1-7 (best) 0.02 United States 12.05 Scientific publications H Index 3.0 100.0 = 93 12.06 Patent applications applications/million pop. 2,670.29 Germany 12.07 R&D expenditures % GDP 100.0 = 50 Canada 12.09 Buyer sophistication 1-7 (best) 57.7 60 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 8 Multiple (7) 64.5 45 Multiple (7) 87.9 = 77 Multiple (7)
50.9 43
43.6 101
57.2 60
54.0 48
41.9 69
46.6 43
48.6 111
46.6 66
41.0 32
43.9 63
80.5 45
42.1 38
39.3 32
5.8 51
33.7 100
84.9 34
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 517 519 | The Global Competitiveness Report 2018 Slovenia Economy Profiles
35th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 35th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 77
70 73 70 58 70 66
63 63 63 62
50 48
0
Rank /140 35th 35th 35th 43rd 1st 34th 29th 27th 43rd 60th 82nd 24th 28th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 2.1 GDP (PPP) % world GDP 0.06 GDP per capita US$ 23,654.4 Unemployment rate % 6.6 10-year average annual GDP growth % 1.8 0.6 5-year average FDI inward flow % GDP
Social and environmental performance 4.7 Global Gender Gap Index 0-1 (gender parity) 0.8 4.9 Income Gini 0 (perfect equality) -100 (perfect inequality) 25.4
The Global Competitiveness Report 2018 | 519 Economy Profiles 35th /140
Slovenia Value Score * Rank/140 Best Performer
Index Component - 63.1 35 New Zealand 5.5 Finland Pillar 1: Institutions 0-100 (best) 0.5 75.0 28 1.01 Organized crime 1-7 (best) 5.4 100.0 7 Multiple (24) 1.02 Homicide rate /100,000 pop. 58.4 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 76.9 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 3.6 Australia 1.05 Social capital 0-100 (high) 2.7 72.7 36 Multiple (2) 1.06 Budget transparency 0-100 (best) 21.7 1.07 Judicial independence 1-7 (best) 2.6 58.4 24 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.1 Finland 1.09 Freedom of the press 0-100 (worst) 0.81 76.9 = 21 Norway 1.10 Burden of government regulation 1-7 (best) 3.5 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 61.0 42.7 82 Singapore 1.12 E-Participation Index 0-1 (best) 4.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.7 27.7 111 Singapore 1.14 Incidence of corruption 0-100 (best) 23.5 New Zealand 1.15 Property rights 1-7 (best) 4.6 78.3 29 Finland 1.16 Intellectual property protection 1-7 (best) 7.3 Finland 1.17 Quality of land administration 0-30 (best) 6.7 27.1 122 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 34.4 97 Multiple (2) 1.20 Shareholder governance 0-10 (best) 69.7 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.7 Singapore 59.6 41.0 85 United States 2.02 Quality of roads 1-7 (best) 3.2 61.0 = 31 Singapore 2.03 Railroad density km of roads/square km 8,559.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 58.3 59 Switzerland 2.05 Airport connectivity score 4.6 2.06 Efficiency of air transport services 1-7 (best) 37.4 62.3 38 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 4.7 78.3 = 27 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 59.8 73 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 5.7 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 6.3 73.0 = 20 Multiple (23) 6.6 Switzerland Pillar 3: ICT adoption 0-100 (best) 67.0 = 32 3.01 Mobile-cellular telephone subscriptions /100 pop. 117.5 76.9 35 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 70.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 28.9 69.7 = 58 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. 8.0 61.0 41 75.5 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 100.0 = 11 4.01 Inflation annual % change 0.7 36.9 67 Multiple (74) 4.02 Debt dynamics 0-100 (best) 100.0 Multiple (36) 30.4 101 Pillar 5: Health 0-100 (best) - Multiple (4) 69.3 60.6 64 Multiple (4)
- 37.4 44 Finland
Pillar 6: Skills 0-100 (best) 12.4 Finland 61.2 36 Switzerland 6.01 Mean years of schooling Years 4.3 Switzerland 6.02 Extent of staff training 1-7 (best) 4.2 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.3 Sweden 6.04 Skillset of graduates 1-7 (best) 4.8 98.2 25 United States 6.05 Digital skills among population 1-7 (best) 4.3 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 17.2 95.6 = 37 United States 6.07 School life expectancy Years 3.2 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 16.9 92.9 18 65.6 43 521 | The Global Competitiveness Report 2018 97.9 74
75.5 43
91.6 34
91.6 33
73.5 29
82.5 = 21
55.1 44
52.7 61
55.7 48
63.9 34
54.4 61
95.6 = 16
36.0 86
82.7 = 55 Slovenia Economy Profiles
35th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 63.1 27 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.3 47.5 58 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.5 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.8 55.3 30 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 74.4 16 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.4 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 63.8 34 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 20
Pillar 8: Labour market 0-100 (best) 10.7 United States 8.01 Redundancy costs weeks of salary 2.6 8.02 Hiring and firing practices 1-7 (best) 4.5 60.5 24 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.5 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.6 84.9 n/a 8.05 Active Labour policies 1-7 (best) n/a Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.5 63.4 43 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.3 86.1 = 38 Albania 8.09 Reliance on professional management 1-7 (best) 4.0 Guinea 8.10 Pay and productivity 1-7 (best) 0.92 27.1 132 Finland 8.11 Female participation in Labour force ratio 18.2 8.12 Labour tax rate % 58.0 55 United States Pillar 9: Financial system 0-100 (best) 50.4 58.8 104 9.01 Domestic credit to private sector % GDP 3.9 59.2 26 9.02 Financing of SMEs 1-7 (best) 3.1 United States 9.03 Venture capital availability 1-7 (best) 13.6 85.5 n/a Multiple (29) 9.04 Market capitalization % GDP 3.7 9.05 Insurance premium % GDP 4.5 41.3 115 United States 9.06 Soundness of banks 1-7 (best) 5.1 United States 9.07 Non-performing loans % loan portfolio value -20.7 36.7 133 9.08 Credit gap percentage points 16.8 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 55.2 63 Multiple (16) - Pillar 10: Market size 0-100 (best) 65 49.6 63 Finland 84.1 Multiple (2) 10.01 Gross domestic product PPP $ billions 89.9 22 Multiple (97) 10.02 Imports % GDP - Multiple (72) 0.0 85.8 = 79 Pillar 11: Business dynamism 0-100 (best) 7.0 China 88.7 62.3 60 China 11.01 Cost of starting a business % GNI per capita 11.5 Hong Kong SAR 11.02 Time to start a business days 3.6 53.0 72 11.03 Insolvency recovery rate cents/$ 4.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.5 47.7 58 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.5 11.06 Willingness to delegate authority 1-7 (best) 35.0 57 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.4 13.6 89 Pillar 12: Innovation capability 0-100 (best) 5.28 62.1 = 35 Israel 12.01 Diversity of workforce 1-7 (best) 239.0 58.8 89 Denmark 12.02 State of cluster development 1-7 (best) 54.93 Israel 12.03 International co-inventions applications/million pop. 2.2 90.8 72 12.04 Multi-stakeholder collaboration 1-7 (best) 0.01 United States 12.05 Scientific publications H Index 3.5 100.0 = 8 12.06 Patent applications applications/million pop. n/a Germany 12.07 R&D expenditures % GDP 99.7 = 57 Canada 12.09 Buyer sophistication 1-7 (best) 47.8 82 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 14 Multiple (7) 70.3 24 Multiple (7)
42.5 107
58.4 52
58.9 33
41.7 70
56.4 75
47.3 60
56.4 25
48.0 49
81.2 43
73.9 25
73.7 15
4.1 54
41.5 65
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 521 523 | The Global Competitiveness Report 2018 South Africa Economy Profiles
67th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 62nd/135
Performance Overview Key Previous edition Upper middle income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 87
80 82
70 69 68 61 58 61 60 55
50 46
0
Rank /140 67th 69th 64th 85th 57th 125th 84th 74th 55th 18th 35th 56th 46th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 56.5 GDP (PPP) % world GDP 0.60 GDP per capita US$ 6,179.9 Unemployment rate % 27.3 1.7 5-year average FDI inward flow % GDP 1.1
Social and environmental performance 3.4 Global Gender Gap Index 0-1 (gender parity) 0.8 2.9 Income Gini 0 (perfect equality) -100 (perfect inequality) 63.0
The Global Competitiveness Report 2018 | 523 Economy Profiles 67th /140
South Africa Value Score * Rank/140 Best Performer
Index Component - 53.8 69 New Zealand 3.4 Finland Pillar 1: Institutions 0-100 (best) 34.0 40.7 125 97.0 Multiple (9) 1.01 Organized crime 1-7 (best) 3.2 0.0 135 Multiple (24) 1.02 Homicide rate /100,000 pop. 55.4 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 73.1 97.0 108 Finland 1.04 Reliability of police services 1-7 (best) 4.4 Australia 1.05 Social capital 0-100 (high) 3.5 37.0 119 Multiple (2) 1.06 Budget transparency 0-100 (best) 20.4 1.07 Judicial independence 1-7 (best) 3.2 55.4 37 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.2 Finland 1.09 Freedom of the press 0-100 (worst) 0.85 73.1 = 27 Norway 1.10 Burden of government regulation 1-7 (best) 3.2 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 43.0 57.0 48 Singapore 1.12 E-Participation Index 0-1 (best) 4.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.4 42.3 56 Singapore 1.14 Incidence of corruption 0-100 (best) 13.5 New Zealand 1.15 Property rights 1-7 (best) 4.9 79.6 26 Finland 1.16 Intellectual property protection 1-7 (best) 8.0 Finland 1.17 Quality of land administration 0-30 (best) 6.0 37.4 84 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 53.4 40 Multiple (2) 1.20 Shareholder governance 0-10 (best) 94.2 Kazakhstan 84.8 38 Pillar 2: Infrastructure 0-100 (best) 4.3 Singapore 16.8 36.5 102 United States 2.02 Quality of roads 1-7 (best) 3.3 43.0 61 Singapore 2.03 Railroad density km of roads/square km 106,077.2 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 49.2 97 Switzerland 2.05 Airport connectivity score 5.3 2.06 Efficiency of air transport services 1-7 (best) 37.4 56.0 60 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 4.5 45.0 = 83 Multiple (4) 2.09 Electrification rate % pop. 86.3 Singapore 2.10 Electric power transmission and distribution losses % output 64.6 55 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 8.0 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 20.1 80.0 = 11 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 4.3 60.0 = 56 3.01 Mobile-cellular telephone subscriptions /100 pop. - 68.6 64 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 162.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 94.2 = 5 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 70.0 Korea, Rep. 3.05 Internet users % pop. 3.0 54.5 58 0.2 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 42.0 = 46 54.0 Multiple (31) 4.01 Inflation annual % change 38.3 65 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 5.8 63.5 39 Pillar 5: Health 0-100 (best) 78.3 Multiple (4) 71.9 34 Multiple (4) 5.01 Healthy life expectancy years - 53.8 37.4 44 Finland Pillar 6: Skills 0-100 (best) Finland
- 58.3 51 Switzerland
6.01 Mean years of schooling Years 10.3 Switzerland 6.02 Extent of staff training 1-7 (best) 86.3 102 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.2 Sweden 6.04 Skillset of graduates 1-7 (best) 3.7 95.8 50 United States 6.05 Digital skills among population 1-7 (best) 3.8 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 3.5 81.5 95 United States 6.07 School life expectancy Years 4.0 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 13.4 55.2 93 6.09 Pupil-to-teacher ratio in primary education Ratio 3.2 30.3 46.1 85 525 | The Global Competitiveness Report 2018
6.0 99
86.7 57
95.0 106
78.3 58
43.2 125
43.2 124
58.4 84
68.6 = 53
52.8 55
44.5 98
47.5 85
41.0 116
50.3 77
74.5 = 78
37.5 78
49.2 = 107 South Africa Economy Profiles
67th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 55.2 74 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.8 40.0 92 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.2 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 46.9 54 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 6.85 Hong Kong SAR 7.05 Trade tariffs % duty 4.9 69.6 49 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.2 Germany 7.07 Efficiency of the clearance process 15 (best) 34.5 52.8 95 7.08 Services trade openness 0-100 (worst) Ecuador
- 54.4 87
Pillar 8: Labour market 0-100 (best) 9.3 United States 3.3 64.2 93 Multiple (8) 8.01 Redundancy costs weeks of salary 3.3 8.02 Hiring and firing practices 1-7 (best) 3.7 54.4 34 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 2.6 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 85.6 65.5 = 70 8.05 Active Labour policies 1-7 (best) 3.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 5.0 61.0 55 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.6 88.9 = 26 Albania 8.09 Reliance on professional management 1-7 (best) 0.78 Guinea 8.10 Pay and productivity 1-7 (best) 4.0 37.7 111 Finland 8.12 Labour tax rate % - 39.0 136 United States 147.7 Multiple (4) Pillar 9: Financial system 0-100 (best) 45.7 133 9.01 Domestic credit to private sector % GDP 3.0 27.5 106 9.02 Financing of SMEs 1-7 (best) 273.2 United States 9.03 Venture capital availability 1-7 (best) 13.3 85.6 25 Multiple (29) 9.04 Market capitalization % GDP 5.2 9.05 Insurance premium % GDP 2.9 45.9 102 United States 9.06 Soundness of banks 1-7 (best) -7.3 United States 9.07 Non-performing loans % loan portfolio value 14.8 67.2 20 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 53.3 68 Multiple (16) 697 Pillar 10: Market size 0-100 (best) 33.5 43.5 91 Finland 10.01 Gross domestic product PPP $ billions - 72.5 58 Multiple (97) 10.02 Imports % GDP 0.2 Multiple (72) 45.0 100.0 = 14 Pillar 11: Business dynamism 0-100 (best) 34.4 China 12.5 82.1 18 China 11.01 Cost of starting a business % GNI per capita 4.3 Hong Kong SAR 11.02 Time to start a business days 4.8 100.0 = 11 11.03 Insolvency recovery rate cents/$ 4.2 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.9 45.6 72 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) - 33.0 63 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.7 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.4 100.0 = 2 0.38 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 4.1 100.0 = 3 Israel 371.0 12.01 Diversity of workforce 1-7 (best) 3.24 69.3 62 Denmark 12.02 State of cluster development 1-7 (best) 0.7 Israel 12.03 International co-inventions applications/million pop. 0.04 95.2 45 12.04 Multi-stakeholder collaboration 1-7 (best) 3.8 United States 12.05 Scientific publications H Index 535.69 100.0 = 26 12.06 Patent applications applications/million pop. Germany 12.07 R&D expenditures % GDP 95.6 = 90 Canada 12.09 Buyer sophistication 1-7 (best) 68.4 35 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 91 Multiple (7) 61.4 56 Multiple (7) 55.3 = 128 Multiple (7)
37.0 77
55.5 38
63.5 34
54.2 47
47.8 39
44.3 46
62.3 44
56.4 33
9.9 58
51.2 38
87.7 34
26.6 50
24.1 = 49
11.5 39
46.0 46
67.6 68
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 525 527 | The Global Competitiveness Report 2018 Spain Economy Profiles
26th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 25th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 100
90 89 90
80 75 77
74 74 71
70 62 66 63
64 59
0
Rank /140 26th 28th 10th 21st 43rd 1st 37th 34th 68th 27th 16th 36th 25th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 46.3 GDP (PPP) % world GDP 1.40 GDP per capita US$ 28,358.8 Unemployment rate % 17.2 0.3 5-year average FDI inward flow % GDP 1.9
Social and environmental performance 3.8 Global Gender Gap Index 0-1 (gender parity) 0.8 4.4 Income Gini 0 (perfect equality) -100 (perfect inequality) 36.2
The Global Competitiveness Report 2018 | 527 Economy Profiles 26th /140
Spain Value Score * Rank/140 Best Performer
Index Component - 64.5 28 New Zealand Pillar 1: Institutions 0-100 (best) 0.6 73.5 31 1.01 Organized crime 1-7 (best) 6.1 99.5 16 Multiple (24) 1.02 Homicide rate /100,000 pop. 56.9 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 88.5 98.3 99 Finland 1.04 Reliability of police services 1-7 (best) 4.1 Australia 1.05 Social capital 0-100 (high) 3.0 85.6 10 Multiple (2) 1.06 Budget transparency 0-100 (best) 20.5 1.07 Judicial independence 1-7 (best) 2.7 56.9 29 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.5 Finland 1.09 Freedom of the press 0-100 (worst) 0.98 88.5 = 8 Norway 1.10 Burden of government regulation 1-7 (best) 3.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 57.0 51.8 59 Singapore 1.12 E-Participation Index 0-1 (best) 4.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.4 32.7 89 Singapore 1.14 Incidence of corruption 0-100 (best) 22.5 New Zealand 1.15 Property rights 1-7 (best) 5.2 79.5 28 Finland 1.16 Intellectual property protection 1-7 (best) 6.3 Finland 1.17 Quality of land administration 0-30 (best) 7.7 28.5 120 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 41.3 80 Multiple (2) 1.20 Shareholder governance 0-10 (best) 99.0 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 5.6 Singapore 30.9 40.1 89 United States 2.02 Quality of roads 1-7 (best) 5.4 57.0 38 Singapore 2.03 Railroad density km of roads/square km 813,743.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 58.0 60 Switzerland 2.05 Airport connectivity score 5.6 2.06 Efficiency of air transport services 1-7 (best) 82.2 57.0 53 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 5.2 75.0 = 31 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 69.3 41 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 9.4 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 0.7 63.0 = 45 Multiple (23) 6.4 Switzerland Pillar 3: ICT adoption 0-100 (best) 77.0 = 10 3.01 Mobile-cellular telephone subscriptions /100 pop. 113.2 89.1 10 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 95.5 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 31.2 99.0 = 3 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 10.7 Korea, Rep. 3.05 Internet users % pop. 80.6 77.1 13 Pillar 4: Macroeconomic stability 0-100 (best) - 77.3 = 25 0.9 Multiple (31) 4.01 Inflation annual % change 80.0 73.5 10 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 100.0 = 8
Pillar 5: Health 0-100 (best) 72.6 Multiple (4) 76.6 18 Multiple (4) 5.01 Healthy life expectancy years - 9.9 82.2 11 Finland Pillar 6: Skills 0-100 (best) 3.8 Finland 4.4 70.7 20 Switzerland 6.01 Mean years of schooling Years 4.3 Switzerland 6.02 Extent of staff training 1-7 (best) 4.2 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.6 Sweden 6.04 Skillset of graduates 1-7 (best) 17.9 94.3 57 United States 6.05 Digital skills among population 1-7 (best) 3.0 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 13.2 100.0 = 18 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 90.4 20 73.8 21 529 | The Global Competitiveness Report 2018 94.4 79
62.4 23
80.6 27
70.7 37
66.1 = 60
47.1 70
55.9 50
55.8 47
53.7 71
60.2 41
99.3 10
33.5 101
92.0 = 34 Spain Economy Profiles
26th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 62.0 34 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.3 38.3 106 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.5 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.8 55.1 32 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 74.6 15 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.6 Germany 7.07 Efficiency of the clearance process 15 (best) 16.1 64.0 32 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 22
Pillar 8: Labour market 0-100 (best) 17.4 United States 8.01 Redundancy costs weeks of salary 3.0 8.02 Hiring and firing practices 1-7 (best) 4.2 65.5 17 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.5 83.9 = 20 8.05 Active Labour policies 1-7 (best) 81.4 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.3 59.5 68 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.6 72.1 = 77 Albania 8.09 Reliance on professional management 1-7 (best) 3.5 Guinea 8.10 Pay and productivity 1-7 (best) 0.88 33.3 126 Finland 8.11 Female participation in Labour force ratio 35.6 8.12 Labour tax rate % 53.6 88 United States Pillar 9: Financial system 0-100 (best) 120.1 64.1 76 9.01 Domestic credit to private sector % GDP 4.0 42.5 62 9.02 Financing of SMEs 1-7 (best) 3.5 United States 9.03 Venture capital availability 1-7 (best) 64.9 81.4 = 35 Multiple (29) 9.04 Market capitalization % GDP 4.5 9.05 Insurance premium % GDP 4.7 54.7 52 United States 9.06 Soundness of banks 1-7 (best) 5.6 United States 9.07 Non-performing loans % loan portfolio value -34.0 53.9 92 9.08 Credit gap percentage points 13.9 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 59.7 44 Multiple (16) - Pillar 10: Market size 0-100 (best) 1,616 41.5 102 Finland 10.01 Gross domestic product PPP $ billions 32.5 85.0 35 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 61.7 = 132
Pillar 11: Business dynamism 0-100 (best) 4.8 China 13.0 75.1 27 China 11.01 Cost of starting a business % GNI per capita 76.6 Hong Kong SAR 11.02 Time to start a business days 12.0 100.0 = 21 11.03 Insolvency recovery rate cents/$ 3.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.4 49.3 50 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.9 11.06 Willingness to delegate authority 1-7 (best) 3.2 41.6 37 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 64.9 31 Pillar 12: Innovation capability 0-100 (best) 4.3 74.7 = 27 Israel 3.50 12.01 Diversity of workforce 1-7 (best) 3.4 61.9 78 Denmark 12.02 State of cluster development 1-7 (best) 740.3 Israel 12.03 International co-inventions applications/million pop. 27.77 89.6 76 12.04 Multi-stakeholder collaboration 1-7 (best) 1.2 United States 12.05 Scientific publications H Index 0.54 100.0 = 3 12.06 Patent applications applications/million pop. 3.4 Germany 12.07 R&D expenditures % GDP 7,071.78 93.4 = 102 Canada 12.09 Buyer sophistication 1-7 (best) 76.7 16 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 99 Multiple (7) 66.3 36 Multiple (7)
82.5 23
46.0 86
56.4 63
48.0 80
37.2 96
62.9 25
52.1 94
54.4 37
46.2 31
40.5 86
97.9 12
61.7 27
40.7 31
39.8 69
95.4 16
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 529 531 | The Global Competitiveness Report 2018 Sri Lanka Economy Profiles
85th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 81st/135
Performance Overview 2018 Key Previous edition Lower middle income group average South Asia average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 69 68
60 62 57 58 58
56 52 51
50 45
40 34
0
Rank /140 85th 78th 65th 109th 112nd 46th 70th 129th 117th 77th 59th 70th 80th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 21.4 GDP (PPP) % world GDP 0.22 GDP per capita US$ 4,084.6 Unemployment rate % 4.1 10-year average annual GDP growth % 1.2
Social and environmental performance 1.5 Global Gender Gap Index 0-1 (gender parity) 0.7 3.8 Income Gini 0 (perfect equality) -100 (perfect inequality) 39.8
The Global Competitiveness Report 2018 | 531 Economy Profiles 85th /140
Sri Lanka Value Score * Rank/140 Best Performer
Index Component - 51.5 78 New Zealand Pillar 1: Institutions 0-100 (best) 2.5 59.3 85 1.01 Organized crime 1-7 (best) 4.0 93.1 69 Multiple (24) 1.02 Homicide rate /100,000 pop. 61.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 53.8 98.3 97 Finland 1.04 Reliability of police services 1-7 (best) 3.8 Australia 1.05 Social capital 0-100 (high) 2.9 49.3 94 Multiple (2) 1.06 Budget transparency 0-100 (best) 41.4 1.07 Judicial independence 1-7 (best) 2.8 61.8 13 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.6 Finland 1.09 Freedom of the press 0-100 (worst) 0.63 53.8 = 67 Norway 1.10 Burden of government regulation 1-7 (best) 3.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 38.0 46.5 72 Singapore 1.12 E-Participation Index 0-1 (best) 3.9 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.9 31.1 97 Singapore 1.14 Incidence of corruption 0-100 (best) 2.5 New Zealand 1.15 Property rights 1-7 (best) 4.4 58.6 107 Finland 1.16 Intellectual property protection 1-7 (best) 6.7 Finland 1.17 Quality of land administration 0-30 (best) 6.0 29.4 115 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 42.6 77 Multiple (2) 1.20 Shareholder governance 0-10 (best) 45.5 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.8 Singapore 22.3 34.4 112 United States 2.02 Quality of roads 1-7 (best) 3.3 38.0 77 Singapore 2.03 Railroad density km of roads/square km 57,216.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 48.4 101 Switzerland 2.05 Airport connectivity score 4.4 2.06 Efficiency of air transport services 1-7 (best) 69.4 48.0 81 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 4.1 8.3 = 140 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 56.4 85 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 7.0 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 18.7 67.0 = 32 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 4.6 60.0 = 56 3.01 Mobile-cellular telephone subscriptions /100 pop. - 68.6 65 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 135.1 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 45.5 = 103 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 22.4 Korea, Rep. 3.05 Internet users % pop. 5.8 46.7 79 0.0 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 55.7 = 35 32.1 Multiple (31) 4.01 Inflation annual % change 38.6 63 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 5.3 53.8 59 Pillar 5: Health 0-100 (best) 40.0 Multiple (4) 57.3 74 Multiple (4) 5.01 Healthy life expectancy years - 67.8 69.4 15 Finland Pillar 6: Skills 0-100 (best) Finland
- 51.1 71 Switzerland
6.01 Mean years of schooling Years 9.8 Switzerland 6.02 Extent of staff training 1-7 (best) 3.9 100.0 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.2 Sweden 6.04 Skillset of graduates 1-7 (best) 4.4 96.9 42 United States 6.05 Digital skills among population 1-7 (best) 3.9 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 4.3 83.0 = 91 United States 6.07 School life expectancy Years 13.9 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 3.3 59.9 77 6.09 Pupil-to-teacher ratio in primary education Ratio 23.2 32.9 109 533 | The Global Competitiveness Report 2018 100.0 = 31
11.7 87
32.1 100
68.2 112
96.5 100
86.7 46
86.7 45
61.7 70
65.1 = 65
47.5 68
52.9 60
56.9 44
47.6 85
54.8 57
77.0 = 71
38.6 73
67.1 87 Sri Lanka Economy Profiles
85th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 44.9 129 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.5 38.9 103 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.7 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.0 40.9 97 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 12.79 Hong Kong SAR 7.05 Trade tariffs % duty 3.8 62.1 87 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) 38.2 50.1 107 7.08 Services trade openness 0-100 (worst) Ecuador
- 14.7 127
Pillar 8: Labour market 0-100 (best) 58.5 United States 46.7 107 Multiple (8) 8.01 Redundancy costs weeks of salary 3.4 8.02 Hiring and firing practices 1-7 (best) 4.3 39.6 79 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.1 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.0 61.8 = 76 8.05 Active Labour policies 1-7 (best) 73.2 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.5 50.6 117 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.1 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.5 0.0 135 Albania 8.09 Reliance on professional management 1-7 (best) 3.8 Guinea 8.10 Pay and productivity 1-7 (best) 0.45 40.3 104 Finland 8.11 Female participation in Labour force ratio 16.9 8.12 Labour tax rate % 55.3 74 United States Pillar 9: Financial system 0-100 (best) 41.1 68.7 54 9.01 Domestic credit to private sector % GDP 3.9 33.1 80 9.02 Financing of SMEs 1-7 (best) 3.0 United States 9.03 Venture capital availability 1-7 (best) 26.2 73.2 54 Multiple (29) 9.04 Market capitalization % GDP 1.0 9.05 Insurance premium % GDP 4.9 41.1 116 United States 9.06 Soundness of banks 1-7 (best) 2.6 United States 9.07 Non-performing loans % loan portfolio value 6.9 51.0 103 9.08 Credit gap percentage points 15.5 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 57.6 55 Multiple (16) - Pillar 10: Market size 0-100 (best) 250 47.0 76 Finland 31.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 31.1 107 Multiple (97) 10.02 Imports % GDP - Multiple (72) 10.4 87.6 = 71 Pillar 11: Business dynamism 0-100 (best) China 9.0 56.8 77 China 11.01 Cost of starting a business % GNI per capita 42.9 Hong Kong SAR 11.02 Time to start a business days 43.3 83 11.03 Insolvency recovery rate cents/$ 7.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.0 48.5 53 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.3 11.06 Willingness to delegate authority 1-7 (best) 3.8 32.5 68 New Zealand 11.07 Growth of innovative companies 1-7 (best) 3.4 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 26.2 63 Pillar 12: Innovation capability 0-100 (best) 4.5 16.9 = 100 Israel 12.01 Diversity of workforce 1-7 (best) 0.06 64.3 73 Denmark 12.02 State of cluster development 1-7 (best) 3.5 Israel 12.03 International co-inventions applications/million pop. 138.7 95.7 43 12.04 Multi-stakeholder collaboration 1-7 (best) 0.20 United States 12.05 Scientific publications H Index 0.1 87.0 123 12.06 Patent applications applications/million pop. 0.01 Germany 12.07 R&D expenditures % GDP 3.6 96.9 = 78 Canada 12.08 Quality of research institutions index 355.55 12.09 Buyer sophistication 1-7 (best) 57.9 59 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 59 n/a 105 Multiple (7) 58.3 70 Multiple (7) 94.8 79 91.5 = 55 Multiple (7)
46.2 51
49.9 68
54.4 68
46.4 91
39.7 80
33.7 80
58.7 61
47.1 61
1.7 93
42.0 78
73.1 77
3.3 91
3.4 = 110
1.7 74
42.8 59
63.2 78
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 533 535 | The Global Competitiveness Report 2018 Sweden Economy Profiles
9th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 9th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 84 85 84 89
82 80 80 70 69
0
Rank /140 9th 9th 17th 5th 1st 17th 7th 10th 17th 6th 40th 4th 5th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 10.1 GDP (PPP) % world GDP 0.41 GDP per capita US$ 53,217.6 Unemployment rate % 6.7 10-year average annual GDP growth % 1.8
Social and environmental performance 6.6 Global Gender Gap Index 0-1 (gender parity) 0.8 5.8 Income Gini 0 (perfect equality) -100 (perfect inequality) 29.2
The Global Competitiveness Report 2018 | 535 Economy Profiles 9th /140
Sweden Value Score * Rank/140 Best Performer
Index Component - 76.0 9 New Zealand Pillar 1: Institutions 0-100 (best) 1.1 72.2 37 98.5 Multiple (9) 1.01 Organized crime 1-7 (best) 5.2 98.0 35 Multiple (24) 1.02 Homicide rate /100,000 pop. 59.6 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 73.1 98.5 96 Finland 1.04 Reliability of police services 1-7 (best) 5.7 Australia 1.05 Social capital 0-100 (high) 4.7 70.7 39 Multiple (2) 1.06 Budget transparency 0-100 (best) 8.3 1.07 Judicial independence 1-7 (best) 4.3 59.6 19 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.94 73.1 = 27 Norway 1.10 Burden of government regulation 1-7 (best) 4.8 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 84.0 78.7 17 Singapore 1.12 E-Participation Index 0-1 (best) 5.7 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.8 61.4 15 Singapore 1.14 Incidence of corruption 0-100 (best) 27.5 New Zealand 1.15 Property rights 1-7 (best) 6.0 91.7 2 Finland 1.16 Intellectual property protection 1-7 (best) 6.3 Finland 1.17 Quality of land administration 0-30 (best) 7.3 54.7 23 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 72.5 9 Multiple (2) 1.20 Shareholder governance 0-10 (best) 97.1 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 5.6 Singapore 21.6 64.0 17 United States 2.02 Quality of roads 1-7 (best) 4.4 84.0 6 Singapore 2.03 Railroad density km of roads/square km 129,998.5 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 78.8 18 Switzerland 2.05 Airport connectivity score 5.8 2.06 Efficiency of air transport services 1-7 (best) 56.5 79.3 16 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 5.5 91.7 = 6 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 82.9 13 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 4.5 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 0.6 63.0 = 45 Multiple (23) 6.6 Switzerland Pillar 3: ICT adoption 0-100 (best) 73.0 = 15 3.01 Mobile-cellular telephone subscriptions /100 pop. 125.5 84.4 17 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 122.6 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 97.1 = 4 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 37.7 Korea, Rep. 3.05 Internet users % pop. 20.6 76.1 15 89.7 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 54.1 = 36 4.01 Inflation annual % change 1.5 57.4 30 Multiple (74) 4.02 Debt dynamics 0-100 (best) 100.0 Multiple (36) 66.9 35 Pillar 5: Health 0-100 (best) - Multiple (4) 70.9 80.0 11 Multiple (4)
- 56.5 23 Finland
Pillar 6: Skills 0-100 (best) 12.3 Finland 74.5 12 Switzerland 6.01 Mean years of schooling Years 5.3 Switzerland 6.02 Extent of staff training 1-7 (best) 5.0 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 5.3 Sweden 6.04 Skillset of graduates 1-7 (best) 5.8 99.5 16 United States 6.05 Digital skills among population 1-7 (best) 5.0 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 18.6 100.0 = 11 United States 6.07 School life expectancy Years 5.3 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 12.1 94.0 15 85.2 5 537 | The Global Competitiveness Report 2018 100.0 = 51
75.4 13
89.7 14
96.5 17
96.5 16
84.2 7
82.3 = 22
72.0 7
66.6 19
71.1 10
80.6 1
66.2 18
72.0 6
94.8 = 28 Sweden Economy Profiles
9th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 68.8 10 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.8 62.8 14 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.5 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.0 63.7 14 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 74.2 18 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 4.0 Germany 7.07 Efficiency of the clearance process 15 (best) 15.5 67.1 21 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 19
Pillar 8: Labour market 0-100 (best) 14.4 United States 8.01 Redundancy costs weeks of salary 3.8 8.02 Hiring and firing practices 1-7 (best) 5.6 76.2 2 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 3.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.8 84.5 = 17 8.05 Active Labour policies 1-7 (best) 99.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.4 71.1 17 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.9 78.2 = 59 Albania 8.09 Reliance on professional management 1-7 (best) 4.6 Guinea 8.10 Pay and productivity 1-7 (best) 1.00 46.3 73 Finland 8.11 Female participation in Labour force ratio 35.4 8.12 Labour tax rate % 76.3 10 United States Pillar 9: Financial system 0-100 (best) 129.5 47.0 132 9.01 Domestic credit to private sector % GDP 4.9 63.9 14 9.02 Financing of SMEs 1-7 (best) 4.5 United States 9.03 Venture capital availability 1-7 (best) 144.4 99.0 5 Multiple (29) 9.04 Market capitalization % GDP 6.6 9.05 Insurance premium % GDP 5.7 55.9 45 United States 9.06 Soundness of banks 1-7 (best) 1.0 United States 9.07 Non-performing loans % loan portfolio value -8.8 63.6 37 9.08 Credit gap percentage points 19.6 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 82.4 7 Multiple (16) - Pillar 10: Market size 0-100 (best) 474 59.5 31 Finland 41.2 Multiple (2) 10.01 Gross domestic product PPP $ billions 99.7 5 Multiple (97) 10.02 Imports % GDP - Multiple (72) 0.5 61.9 = 131 Pillar 11: Business dynamism 0-100 (best) 7.0 China 78.1 89.0 6 China 11.01 Cost of starting a business % GNI per capita 12.0 Hong Kong SAR 11.02 Time to start a business days 5.0 100.0 = 18 11.03 Insolvency recovery rate cents/$ 6.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 5.4 65.1 12 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.7 11.06 Willingness to delegate authority 1-7 (best) 58.5 7 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.4 100.0 7 5.1 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 32.66 100.0 = 14 Israel 12.01 Diversity of workforce 1-7 (best) 749.3 78.0 26 Denmark 12.02 State of cluster development 1-7 (best) 271.58 Israel 12.03 International co-inventions applications/million pop. 3.3 98.9 12 12.04 Multi-stakeholder collaboration 1-7 (best) 0.10 United States 12.05 Scientific publications H Index 4.7 100.0 = 21 12.06 Patent applications applications/million pop. 10,002.87 Germany 12.07 R&D expenditures % GDP 100.0 = 25 Canada 12.09 Buyer sophistication 1-7 (best) 65.1 40 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 74 Multiple (7) 79.8 4 Multiple (7) 99.8 = 11
84.1 22
66.0 9
83.8 2
74.1 3
62.5 5
79.8 5
73.2 13
67.6 13
71.6 7
98.0 11
26.7 23
61.5 12
99.1 10
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 537 539 | The Global Competitiveness Report 2018 Switzerland Economy Profiles
4th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 4th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 99 100
93 89
90 87
83 80 82
80 77 77
70 67 66
0
Rank /140 4th 5th 3rd 15th 36th 5th 2nd 16th 2nd 4th 39th 20th 3rd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 8.4 GDP (PPP) % world GDP 0.41 GDP per capita US$ 80,590.9 Unemployment rate % 4.8 10-year average annual GDP growth % 5.2 1.3 5-year average FDI inward flow % GDP
Social and environmental performance 4.9 Global Gender Gap Index 0-1 (gender parity) 0.8 6.1 Income Gini 0 (perfect equality) -100 (perfect inequality) 32.3
The Global Competitiveness Report 2018 | 539 Economy Profiles 4th /140
Switzerland Value Score * Rank/140 Best Performer
Index Component - 77.1 5 New Zealand Pillar 1: Institutions 0-100 (best) 0.5 83.0 11 1.01 Organized crime 1-7 (best) 6.5 99.9 12 Multiple (24) 1.02 Homicide rate /100,000 pop. 59.6 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 61.5 100.0 36 Finland 1.04 Reliability of police services 1-7 (best) 6.4 Australia 1.05 Social capital 0-100 (high) 5.4 91.9 3 Multiple (2) 1.06 Budget transparency 0-100 (best) 11.3 1.07 Judicial independence 1-7 (best) 4.7 59.6 20 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.9 Finland 1.09 Freedom of the press 0-100 (worst) 0.84 61.5 = 49 Norway 1.10 Burden of government regulation 1-7 (best) 5.2 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 85.0 89.4 2 Singapore 1.12 E-Participation Index 0-1 (best) 6.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 6.4 73.5 3 Singapore 1.14 Incidence of corruption 0-100 (best) 23.5 New Zealand 1.15 Property rights 1-7 (best) 6.2 88.7 5 Finland 1.16 Intellectual property protection 1-7 (best) 3.3 Finland 1.17 Quality of land administration 0-30 (best) 6.7 60.9 8 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 81.2 5 Multiple (2) 1.20 Shareholder governance 0-10 (best) 77.1 Kazakhstan 84.3 40 Pillar 2: Infrastructure 0-100 (best) 6.4 Singapore 96.3 69.9 10 United States 2.02 Quality of roads 1-7 (best) 6.7 85.0 3 Singapore 2.03 Railroad density km of roads/square km 225,267.6 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 92.3 2 Switzerland 2.05 Airport connectivity score 6.3 2.06 Efficiency of air transport services 1-7 (best) n/a 90.8 2 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 4.5 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 78.3 = 27 Multiple (4) 2.09 Electrification rate % pop. 6.9 Singapore 2.10 Electric power transmission and distribution losses % output 0.6 86.0 7 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 6.9 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 33.0 = 131 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 133.2 67.0 = 32 3.01 Mobile-cellular telephone subscriptions /100 pop. 99.7 93.3 3 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 45.4 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 77.1 = 40 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 5.3 Korea, Rep. 3.05 Internet users % pop. 89.1 89.3 2 Pillar 4: Macroeconomic stability 0-100 (best) - 100.0 = 4 0.0 Multiple (31) 4.01 Inflation annual % change 100.0 94.5 1 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 76.7 29
Pillar 5: Health 0-100 (best) 71.9 Multiple (4) 88.0 4 Multiple (4) 5.01 Healthy life expectancy years - 13.7 n/a n/a Finland Pillar 6: Skills 0-100 (best) Finland 5.9 58.5 49 Switzerland 6.01 Mean years of schooling Years 6.5 Switzerland 6.02 Extent of staff training 1-7 (best) 6.0 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 5.7 Sweden 6.04 Skillset of graduates 1-7 (best) 5.2 97.0 40 United States 6.05 Digital skills among population 1-7 (best) 16.2 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 5.4 100.0 = 10 United States 6.07 School life expectancy Years 10.1 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 99.1 1 77.0 15 541 | The Global Competitiveness Report 2018 100.0 = 35
90.8 1
89.1 16
99.4 36
98.7 84
99.8 5
99.8 4
87.3 2
91.5 = 4
80.9 1
92.3 1
83.3 1
77.5 7
70.1 6
90.0 31
73.9 3
99.7 = 7 Switzerland Economy Profiles
4th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 66.8 16 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 6.0 60.0 21 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.5 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.6 83.2 1 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 3.36 Hong Kong SAR 7.05 Trade tariffs % duty 1.7 75.8 12 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.6 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 60.8 41 7.08 Services trade openness 0-100 (worst) Ecuador
- 77.6 48
Pillar 8: Labour market 0-100 (best) 10.1 United States 11.5 140 Multiple (8) 8.01 Redundancy costs weeks of salary 5.7 8.02 Hiring and firing practices 1-7 (best) 6.1 65.7 16 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 6.0 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 5.8 87.1 n/a 8.05 Active Labour policies 1-7 (best) 90.7 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.3 80.4 2 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.5 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 6.1 87.3 = 32 Albania 8.09 Reliance on professional management 1-7 (best) 5.6 Guinea 8.10 Pay and productivity 1-7 (best) 0.90 78.3 2 Finland 8.11 Female participation in Labour force ratio 17.7 8.12 Labour tax rate % 85.8 1 United States Pillar 9: Financial system 0-100 (best) 171.6 83.3 6 9.01 Domestic credit to private sector % GDP 5.0 79.2 1 9.02 Financing of SMEs 1-7 (best) 4.1 United States 9.03 Venture capital availability 1-7 (best) 214.8 90.7 14 Multiple (29) 9.04 Market capitalization % GDP 7.2 9.05 Insurance premium % GDP 6.2 55.0 49 United States 9.06 Soundness of banks 1-7 (best) 0.7 United States 9.07 Non-performing loans % loan portfolio value 2.0 58.1 69 9.08 Credit gap percentage points 17.0 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 84.6 4 Multiple (16) - Pillar 10: Market size 0-100 (best) 471 76.4 2 Finland 54.5 Multiple (2) 10.01 Gross domestic product PPP $ billions 86.9 31 Multiple (97) 10.02 Imports % GDP - Multiple (72) 2.3 86.5 = 74 Pillar 11: Business dynamism 0-100 (best) 10.0 China 46.7 89.4 4 China 11.01 Cost of starting a business % GNI per capita 12.0 Hong Kong SAR 11.02 Time to start a business days 4.6 100.0 = 5 11.03 Insolvency recovery rate cents/$ 5.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 5.2 66.3 8 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.4 11.06 Willingness to delegate authority 1-7 (best) 52.4 16 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.5 100.0 = 4 5.5 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 73.18 100.0 = 10 Israel 12.01 Diversity of workforce 1-7 (best) 834.0 86.0 8 Denmark 12.02 State of cluster development 1-7 (best) 322.48 Israel 12.03 International co-inventions applications/million pop. 3.0 99.5 5 12.04 Multi-stakeholder collaboration 1-7 (best) 0.12 United States 12.05 Scientific publications H Index 5.0 100.0 = 97 12.06 Patent applications applications/million pop. 20,762.92 Germany 12.07 R&D expenditures % GDP 100.0 = 52 Canada 12.09 Buyer sophistication 1-7 (best) 65.9 39 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 48 Multiple (7) 72.6 20 Multiple (7) 98.9 = 46
50.3 45
59.2 24
81.7 3
69.3 8
56.0 19
82.1 3
74.3 11
74.8 3
75.1 2
99.6 9
98.9 = 8
32.1 20
66.0 6
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 541 543 | The Global Competitiveness Report 2018 Taiwan, China Economy Profiles
13th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 13th/135
Performance Overview 2018 Key Previous edition High income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU 90 100 76 80 94 60 83 88 50 79 21st 40 78 81 30 68 Skills 20 71 74 72 10 66 0
Rank /140 13th 25th 22nd 13th 1st 27th 18th 16th 7th 20th 21st 4th
Overall Institutions Infrastructure ICT Macro- Health Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 23.6 GDP (PPP) % world GDP 0.93 GDP per capita US$ 24,576.7 5-year average FDI inward flow % GDP 0.8
The Global Competitiveness Report 2018 | 543 Economy Profiles 13th /140
Taiwan, China Value Score * Rank/140 Best Performer
Index Component - 68.5 25 New Zealand Pillar 1: Institutions 0-100 (best) 0.8 68.1 56 1.01 Organized crime 1-7 (best) 5.5 98.9 = 26 Multiple (24) 1.02 Homicide rate /100,000 pop. n/a 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 84.6 99.9 59 Finland 1.04 Reliability of police services 1-7 (best) 4.5 Australia 1.05 Social capital 0-100 (high) 3.7 75.7 31 Multiple (2) 1.06 Budget transparency 0-100 (best) 23.4 1.07 Judicial independence 1-7 (best) 4.0 54.2 n/a Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.8 Finland 1.09 Freedom of the press 0-100 (worst) n/a 84.6 = 14 Norway 1.10 Burden of government regulation 1-7 (best) 3.7 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 63.0 57.6 47 Singapore 1.12 E-Participation Index 0-1 (best) 5.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.0 44.7 50 Singapore 1.14 Incidence of corruption 0-100 (best) 28.5 New Zealand 1.15 Property rights 1-7 (best) 5.6 76.6 37 Finland 1.16 Intellectual property protection 1-7 (best) 6.7 Finland 1.17 Quality of land administration 0-30 (best) 7.3 50.4 31 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 45.9 63 Multiple (2) 1.20 Shareholder governance 0-10 (best) 65.8 Kazakhstan 94.4 n/a Pillar 2: Infrastructure 0-100 (best) 5.5 Singapore n/a 45.6 67 United States 2.01 Road connectivity index 0-100 (best) 5.3 2.02 Quality of roads 1-7 (best) 315,887.6 63.0 26 Singapore 2.03 Railroad density km of roads/square km 5.5 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 71.5 74.7 24 Switzerland 2.05 Airport connectivity score 5.2 2.06 Efficiency of air transport services 1-7 (best) 100.0 67.3 29 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 3.2 Singapore 2.08 Efficiency of seaport services 1-7 (best) 9.2 95.0 = 2 Multiple (4) 2.09 Electrification rate % pop. 5.5 Singapore 2.10 Electric power transmission and distribution losses % output 77.4 21 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 121.8 67.0 = 32 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 99.9 73.0 = 15 24.2 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 15.0 82.6 22 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 79.7 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 65.8 = 68 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 1.0 74.6 18 Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 70.1 71.5 11 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 83.2 25
Pillar 5: Health 0-100 (best) 12.1 Multiple (4) 74.4 25 Multiple (4) 5.01 Healthy life expectancy years 4.7 4.6 71.5 14 Finland Pillar 6: Skills 0-100 (best) 4.2 Finland 5.1 69.9 21 Switzerland 6.01 Mean years of schooling Years 5.0 Switzerland 6.02 Extent of staff training 1-7 (best) 16.6 100.0 = 68 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.4 Sweden 6.04 Skillset of graduates 1-7 (best) 12.2 100.0 = 7 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 92.7 = 59 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 74.8 49 77.9 13 545 | The Global Competitiveness Report 2018 100.0 = 63
48.4 42
79.7 30
94.2 27
94.2 26
75.6 21
80.7 28
61.6 30
59.6 36
52.8 58
68.5 25
66.9 14
92.2 = 20
40.6 65
94.6 = 29 Taiwan, China Economy Profiles
13th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 65.7 18 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 5.2 52.7 42 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.8 70.1 7 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 5.14 Hong Kong SAR 7.05 Trade tariffs % duty 4.9 76.4 9 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.5 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 64.1 31 7.08 Services trade openness 0-100 (worst) Ecuador
- 65.8 69
Pillar 8: Labour market 0-100 (best) 15.4 United States 65.5 84 Multiple (8) 8.01 Redundancy costs weeks of salary 4.6 8.02 Hiring and firing practices 1-7 (best) 5.2 61.9 22 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 4.3 68.0 n/a 8.05 Active Labour policies 1-7 (best) 84.5 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.8 71.4 16 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.3 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.3 76.3 = 65 Albania 8.09 Reliance on professional management 1-7 (best) 4.6 Guinea 8.10 Pay and productivity 1-7 (best) 0.86 59.5 17 Finland 8.11 Female participation in Labour force ratio 18.3 8.12 Labour tax rate % 69.7 20 United States Pillar 9: Financial system 0-100 (best) 149.3 81.7 9 9.01 Domestic credit to private sector % GDP 5.0 55.3 35 9.02 Financing of SMEs 1-7 (best) 3.9 United States 9.03 Venture capital availability 1-7 (best) 201.5 84.5 28 Multiple (29) 9.04 Market capitalization % GDP 16.4 9.05 Insurance premium % GDP 5.8 46.5 98 United States 9.06 Soundness of banks 1-7 (best) 0.3 United States 9.07 Non-performing loans % loan portfolio value 0.0 71.1 12 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 71.0 25 Multiple (16) - Pillar 10: Market size 0-100 (best) 1,080 60.3 28 Finland 10.01 Gross domestic product PPP $ billions 53.9 82.0 39 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 85.7 80
Pillar 11: Business dynamism 0-100 (best) 2.0 China 10.0 87.9 7 China 11.01 Cost of starting a business % GNI per capita 82.2 Hong Kong SAR 11.02 Time to start a business days 11.0 100.0 = 10 11.03 Insolvency recovery rate cents/$ 4.4 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.8 67.0 6 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.6 11.06 Willingness to delegate authority 1-7 (best) 4.2 48.4 22 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 100.0 = 5 5.6 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 5.4 100.0 = 1 Israel 25.97 12.01 Diversity of workforce 1-7 (best) 4.7 79.9 19 Denmark 12.02 State of cluster development 1-7 (best) 416.3 Israel 12.03 International co-inventions applications/million pop. 480.33 100.0 = 1 12.04 Multi-stakeholder collaboration 1-7 (best) 3.2 United States 12.05 Scientific publications H Index 0.18 100.0 74 12.06 Patent applications applications/million pop. 4.7 Germany 12.07 R&D expenditures % GDP n/a 95.9 n/a Canada 12.09 Buyer sophistication 1-7 (best) 74.2 20 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 50 Multiple (7) 72.4 21 Multiple (7) 99.0 42
56.3 32
62.8 37
60.2 28
52.8 27
80.8 4
77.2 6
73.5 5
61.5 23
89.4 29
47.5 15
61.9 10
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 545 547 | The Global Competitiveness Report 2018 Tajikistan Economy Profiles
102nd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 97th/135
Performance Overview 2018 Key Previous edition Low income group average Eurasia average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 69 72
61 61 57 59
52 51 53
50 46
40 36
0
Rank /140 102nd 81st 87th 108th 109th 93rd 72nd 64th 70th 125th 122nd 102nd 116th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 8.8 GDP (PPP) % world GDP 0.02 GDP per capita US$ 823.8 Unemployment rate % 10.3 6.6 5-year average FDI inward flow % GDP 3.0
Social and environmental performance 1.0 Global Gender Gap Index 0-1 (gender parity) 0.7 3.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 34.0
The Global Competitiveness Report 2018 | 547 Economy Profiles 102nd /140
Tajikistan Value Score * Rank/140 Best Performer
Index Component - 50.9 81 New Zealand 4.6 Finland Pillar 1: Institutions 0-100 (best) 1.6 59.8 83 1.01 Organized crime 1-7 (best) 4.7 96.2 = 52 Multiple (24) 1.02 Homicide rate /100,000 pop. 49.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 42.3 99.7 79 Finland 1.04 Reliability of police services 1-7 (best) 4.1 Australia 1.05 Social capital 0-100 (high) 3.8 60.9 56 Multiple (2) 1.06 Budget transparency 0-100 (best) 50.1 1.07 Judicial independence 1-7 (best) 4.2 49.8 74 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.4 Finland 1.09 Freedom of the press 0-100 (worst) 0.39 42.3 = 103 Norway 1.10 Burden of government regulation 1-7 (best) 4.5 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 21.0 51.7 60 Singapore 1.12 E-Participation Index 0-1 (best) 4.4 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.2 47.0 44 Singapore 1.14 Incidence of corruption 0-100 (best) 7.5 New Zealand 1.15 Property rights 1-7 (best) 4.1 49.9 122 Finland 1.16 Intellectual property protection 1-7 (best) 6.7 Finland 1.17 Quality of land administration 0-30 (best) 6.7 53.6 24 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 56.4 35 Multiple (2) 1.20 Shareholder governance 0-10 (best) 34.8 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.5 Singapore 4.2 57.7 27 United States 2.01 Road connectivity index 0-100 (best) 3.9 2.02 Quality of roads 1-7 (best) 4,195.6 21.0 134 Singapore 2.03 Railroad density km of roads/square km 4.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 57.3 64 Switzerland 2.05 Airport connectivity score 1.0 2.06 Efficiency of air transport services 1-7 (best) 100.0 54.1 63 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 17.1 Singapore 2.08 Efficiency of seaport services 1-7 (best) 12.4 25.0 = 118 Multiple (4) 2.09 Electrification rate % pop. 4.6 Singapore 2.10 Electric power transmission and distribution losses % output 51.6 103 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 107.6 67.0 = 32 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 18.3 67.0 = 32 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 61.5 87 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 20.5 34.8 = 119 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 58.9 44 6.6 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 44.5 10.6 = 74 4.01 Inflation annual % change - 49.1 45 Multiple (74) 4.02 Debt dynamics 0-100 (best) 63.1 Multiple (36) 23.8 120 Pillar 5: Health 0-100 (best) - Multiple (4) 10.7 56.6 77 Multiple (4) 3.5 n/a n/a Finland Pillar 6: Skills 0-100 (best) 4.2 Finland 4.1 0.6 139 Switzerland 6.01 Mean years of schooling Years 4.5 Switzerland 6.02 Extent of staff training 1-7 (best) 3.9 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 11.2 Sweden 6.04 Skillset of graduates 1-7 (best) 4.2 86.4 103 United States 6.05 Digital skills among population 1-7 (best) 22.2 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 89.4 = 73 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 60.4 76 33.0 108 549 | The Global Competitiveness Report 2018 89.7 = 87
0.1 = 134
20.5 118
68.6 109
92.7 113
44.5 109
72.2 93
72.2 92
61.4 72
41.1 113
53.8 56
52.3 59
57.6 51
48.9 86
62.3 = 110
52.6 32
69.5 82 Tajikistan Economy Profiles
102nd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 56.6 64 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.7 48.7 53 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.4 45.4 66 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 5.99 Hong Kong SAR 7.05 Trade tariffs % duty 6.3 59.2 107 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 1.9 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 55.9 72 7.08 Services trade openness 0-100 (worst) Ecuador
- 60.1 76
Pillar 8: Labour market 0-100 (best) 21.7 United States 87.6 54 Multiple (8) 8.01 Redundancy costs weeks of salary 4.4 8.02 Hiring and firing practices 1-7 (best) 4.3 23.1 132 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.4 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.9 84.2 n/a 8.05 Active Labour policies 1-7 (best) n/a Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.3 59.2 70 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.7 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.4 63.2 96 Albania 8.09 Reliance on professional management 1-7 (best) 4.5 Guinea 8.10 Pay and productivity 1-7 (best) 0.73 56.6 30 Finland 8.11 Female participation in Labour force ratio 28.5 8.12 Labour tax rate % 55.1 75 United States Pillar 9: Financial system 0-100 (best) 21.1 73.5 33 9.01 Domestic credit to private sector % GDP 3.8 47.6 49 9.02 Financing of SMEs 1-7 (best) 3.1 United States 9.03 Venture capital availability 1-7 (best) 0.0 60.4 n/a Multiple (29) 9.04 Market capitalization % GDP 0.3 9.05 Insurance premium % GDP 3.5 55.4 47 United States 9.06 Soundness of banks 1-7 (best) 19.1 United States 9.07 Non-performing loans % loan portfolio value -0.9 61.1 51 9.08 Credit gap percentage points 18.6 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 40.4 121 Multiple (16) - Pillar 10: Market size 0-100 (best) 26 58.9 32 Finland 44.4 Multiple (2) 10.01 Gross domestic product PPP $ billions 66.3 68 Multiple (97) 10.02 Imports % GDP - Multiple (72) 19.3 71.5 = 121 Pillar 11: Business dynamism 0-100 (best) 11.0 China 36.0 46.0 125 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 3.0 22.3 118 11.03 Insolvency recovery rate cents/$ 3.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.1 46.3 65 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) 3.3 35.4 56 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 0.0 121 Pillar 12: Innovation capability 0-100 (best) 3.4 5.6 = 130 Israel 12.01 Diversity of workforce 1-7 (best) 3.9 42.4 121 Denmark 12.02 State of cluster development 1-7 (best) 35.3 Israel 12.03 International co-inventions applications/million pop. 0.00 62.5 = 128 12.04 Multi-stakeholder collaboration 1-7 (best) 0.1 United States 12.05 Scientific publications H Index 0.00 100.0 63 12.06 Patent applications applications/million pop. 3.5 Germany 12.07 R&D expenditures % GDP 12.62 100.0 = 34 Canada 12.09 Buyer sophistication 1-7 (best) 36.2 122 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 117 n/a 66 Multiple (7) 53.1 102 Multiple (7) 89.4 68 Multiple (7)
18.8 = 133
49.1 74
51.9 83
48.2 74
38.2 92
27.4 116
57.6 68
40.2 100
48.9 45
53.2 137
3.6 107
42.3 61
28.1 123
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 549 551 | The Global Competitiveness Report 2018 Tanzania Economy Profiles
116th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 114th/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 55
50 52 51 49 52 53
50 47 46
40 42
30 27
20 18
0
Rank /140 116th 91st 119th 135th 86th 116th 120th 112nd 95th 116th 72nd 107th 119th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 50.1 GDP (PPP) % world GDP 0.13 GDP per capita US$ 1,033.6 Unemployment rate % 2.2 6.2
Social and environmental performance 1.5 Global Gender Gap Index 0-1 (gender parity) 0.7 3.4 Income Gini 0 (perfect equality) -100 (perfect inequality) 37.8
The Global Competitiveness Report 2018 | 551 Economy Profiles 116th /140
Tanzania Value Score * Rank/140 Best Performer
Index Component - 50.0 91 New Zealand Pillar 1: Institutions 0-100 (best) 7.0 59.2 86 1.01 Organized crime 1-7 (best) 4.4 78.1 = 102 Multiple (24) 1.02 Homicide rate /100,000 pop. 46.2 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 57.7 99.1 90 Finland 1.04 Reliability of police services 1-7 (best) 3.7 Australia 1.05 Social capital 0-100 (high) 3.4 56.6 71 Multiple (2) 1.06 Budget transparency 0-100 (best) 30.7 1.07 Judicial independence 1-7 (best) 3.7 46.2 101 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.1 Finland 1.09 Freedom of the press 0-100 (worst) 0.62 57.7 = 61 Norway 1.10 Burden of government regulation 1-7 (best) 4.1 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 36.0 44.9 74 Singapore 1.12 E-Participation Index 0-1 (best) 4.2 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.9 40.8 60 Singapore 1.14 Incidence of corruption 0-100 (best) 7.5 New Zealand 1.15 Property rights 1-7 (best) 4.1 69.4 = 76 Finland 1.16 Intellectual property protection 1-7 (best) 5.3 Finland 1.17 Quality of land administration 0-30 (best) 3.7 45.2 49 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 52.0 45 Multiple (2) 1.20 Shareholder governance 0-10 (best) 54.8 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.7 Singapore 4.8 51.3 45 United States 2.01 Road connectivity index 0-100 (best) 2.9 2.02 Quality of roads 1-7 (best) 12,683.1 36.0 87 Singapore 2.03 Railroad density km of roads/square km 3.9 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 12.3 52.9 78 Switzerland 2.05 Airport connectivity score 3.8 2.06 Efficiency of air transport services 1-7 (best) 32.7 47.8 82 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 17.6 Singapore 2.08 Efficiency of seaport services 1-7 (best) 36.2 25.0 = 118 Multiple (4) 2.09 Electrification rate % pop. 3.5 Singapore 2.10 Electric power transmission and distribution losses % output 51.0 106 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 69.7 53.0 = 84 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 8.7 37.0 = 112 3.2 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 46.0 119 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 13.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 54.8 = 87 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 5.3 45.6 83 49.4 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 12.1 = 71 4.01 Inflation annual % change 56.5 31.2 81 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 34.5 90
Pillar 5: Health 0-100 (best) 6.8 Multiple (4) 3.6 47.8 100 Multiple (4) 5.01 Healthy life expectancy years 4.1 3.9 12.3 77 Finland Pillar 6: Skills 0-100 (best) 3.6 Finland 4.0 46.3 79 Switzerland 6.01 Mean years of schooling Years 8.2 Switzerland 6.02 Extent of staff training 1-7 (best) 3.3 32.7 126 Switzerland 6.03 Quality of vocational training 1-7 (best) 43.1 Sweden 6.04 Skillset of graduates 1-7 (best) 85.8 108 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 65.1 = 118 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 41.9 114 18.3 135 553 | The Global Competitiveness Report 2018 58.1 128
n/a 137
6.4 97
73.0 86
96.5 99
49.4 83
51.7 116
51.7 115
41.5 120
45.3 = 106
43.7 96
51.4 65
47.7 84
43.7 105
50.4 76
45.7 = 138
37.9 77
17.3 = 128 Tanzania Economy Profiles
116th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 50.6 112 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.6 41.6 85 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.3 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.9 44.1 75 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 11.61 Hong Kong SAR 7.05 Trade tariffs % duty 6.2 54.4 121 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.8 Germany 7.07 Efficiency of the clearance process 15 (best) 30.7 48.8 115 7.08 Services trade openness 0-100 (worst) Ecuador
- 22.6 119
Pillar 8: Labour market 0-100 (best) 9.3 United States 3.7 87.2 57 Multiple (8) 8.01 Redundancy costs weeks of salary 4.2 8.02 Hiring and firing practices 1-7 (best) 4.4 44.4 = 53 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 3.2 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 69.1 69.3 = 68 8.05 Active Labour policies 1-7 (best) 3.4 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.3 54.8 95 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.1 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.5 88.9 = 26 Albania 8.09 Reliance on professional management 1-7 (best) 0.49 Guinea 8.10 Pay and productivity 1-7 (best) 17.8 44.9 81 Finland 8.12 Labour tax rate % - 53.9 85 United States 14.4 Multiple (4) Pillar 9: Financial system 0-100 (best) 57.4 107 3.8 Multiple (26) 9.01 Domestic credit to private sector % GDP 2.8 36.4 69 9.02 Financing of SMEs 1-7 (best) 4.6 United States 9.03 Venture capital availability 1-7 (best) 0.7 69.1 80 Multiple (29) 9.04 Market capitalization % GDP 4.0 9.05 Insurance premium % GDP 9.6 40.7 121 United States 9.06 Soundness of banks 1-7 (best) -1.0 United States 9.07 Non-performing loans % loan portfolio value 18.0 55.2 84 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 51.6 77 Multiple (16) 148 Pillar 10: Market size 0-100 (best) 22.6 41.5 101 Finland 10.01 Gross domestic product PPP $ billions - 35.9 102 Multiple (97) 10.02 Imports % GDP 42.9 Multiple (72) 28.0 86.4 75 Pillar 11: Business dynamism 0-100 (best) 21.2 China 48.9 116 China 11.01 Cost of starting a business % GNI per capita 9.0 Hong Kong SAR 11.02 Time to start a business days 3.6 15.2 134 11.03 Insolvency recovery rate cents/$ 4.2 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.1 47.3 60 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) 30.0 79 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.0 4.6 103 Pillar 12: Innovation capability 0-100 (best) 0.00 11.7 = 107 Israel 12.01 Diversity of workforce 1-7 (best) 139.0 49.2 110 Denmark 12.02 State of cluster development 1-7 (best) 0.00 Israel 12.03 International co-inventions applications/million pop. 0.5 81.6 98 12.04 Multi-stakeholder collaboration 1-7 (best) 0.01 United States 12.05 Scientific publications H Index 3.1 100.0 = 60 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 100.0 = 41 Canada 12.09 Buyer sophistication 1-7 (best) 52.0 72 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 124 Multiple (7) 52.7 107 Multiple (7) 78.6 126 72.4 = 115 Multiple (7)
22.8 113
44.1 97
52.9 77
51.8 57
42.8 62
27.2 119
49.7 105
48.7 56
45.7 55
73.2 76
0.0 128
17.6 = 64
1.7 72
34.9 96
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 553 555 | The Global Competitiveness Report 2018 Thailand Economy Profiles
38th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 40th/135
Performance Overview Key Previous edition Upper middle income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 90 87
80 75 70 68 70
63 63
60 55 57
0
Rank /140 38th 60th 60th 64th 48th 42nd 66th 92nd 44th 14th 18th 23rd 51st
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 69.1 GDP (PPP) % world GDP 0.97 GDP per capita US$ 6,590.6 Unemployment rate % 1.1 10-year average annual GDP growth % 1.8
Social and environmental performance 2.5 Global Gender Gap Index 0-1 (gender parity) 0.7 4.2 Income Gini 0 (perfect equality) -100 (perfect inequality) 36.0
The Global Competitiveness Report 2018 | 555 Economy Profiles 38th /140
Thailand Value Score * Rank/140 Best Performer
Index Component - 55.1 60 New Zealand Pillar 1: Institutions 0-100 (best) 3.2 54.7 99 69.9 Multiple (9) 1.01 Organized crime 1-7 (best) 3.5 90.7 77 Multiple (24) 1.02 Homicide rate /100,000 pop. 58.9 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 57.7 69.9 133 Finland 1.04 Reliability of police services 1-7 (best) 4.1 Australia 1.05 Social capital 0-100 (high) 3.3 42.0 107 Multiple (2) 1.06 Budget transparency 0-100 (best) 44.3 1.07 Judicial independence 1-7 (best) 3.6 58.9 23 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 4.1 Finland 1.09 Freedom of the press 0-100 (worst) 0.65 57.7 = 61 Norway 1.10 Burden of government regulation 1-7 (best) 3.8 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 37.0 51.2 61 Singapore 1.12 E-Participation Index 0-1 (best) 4.2 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.7 38.0 71 Singapore 1.14 Incidence of corruption 0-100 (best) 18.0 New Zealand 1.15 Property rights 1-7 (best) 4.9 55.7 114 Finland 1.16 Intellectual property protection 1-7 (best) 8.3 Finland 1.17 Quality of land administration 0-30 (best) 6.3 43.3 58 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 51.2 48 Multiple (2) 1.20 Shareholder governance 0-10 (best) 70.2 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.4 Singapore 10.4 46.0 66 United States 2.02 Quality of roads 1-7 (best) 2.6 37.0 80 Singapore 2.03 Railroad density km of roads/square km 670,386.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 53.6 74 Switzerland 2.05 Airport connectivity score 5.0 2.06 Efficiency of air transport services 1-7 (best) 41.1 44.5 99 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 4.1 60.0 52 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 65.5 52 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 6.2 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 30.2 83.0 7 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 5.2 63.0 45 3.01 Mobile-cellular telephone subscriptions /100 pop. - 69.7 60 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 176.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 70.2 = 55 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 99.0 Korea, Rep. 3.05 Internet users % pop. 11.9 55.9 55 2.1 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 47.5 26.0 = 54 4.01 Inflation annual % change - 27.4 91 Multiple (74) 4.02 Debt dynamics 0-100 (best) 0.4 Multiple (36) 80.0 98.9 9 Pillar 5: Health 0-100 (best) Multiple (4)
- 66.8 48 Multiple (4)
5.01 Healthy life expectancy years 67.9 41.1 39 Finland Pillar 6: Skills 0-100 (best) - Finland 8.3 51.5 68 Switzerland 6.01 Mean years of schooling Years 4.3 Switzerland 6.02 Extent of staff training 1-7 (best) 4.0 100.0 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.1 Sweden 6.04 Skillset of graduates 1-7 (best) 4.4 97.7 32 United States 6.05 Digital skills among population 1-7 (best) 3.9 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 15.5 71.2 = 105 United States 6.07 School life expectancy Years 3.1 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 16.9 69.5 56 56.6 64 557 | The Global Competitiveness Report 2018
23.8 68
47.5 87
89.9 48
99.8 76
87.3 41
63.0 66
55.5 = 88
54.3 48
49.9 75
52.3 61
56.2 61
48.3 88
85.9 = 43
34.2 97
82.8 = 54 Thailand Economy Profiles
38th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 53.4 92 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.5 47.6 57 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.3 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.4 41.2 96 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 8.07 Hong Kong SAR 7.05 Trade tariffs % duty 4.2 71.5 37 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.1 Germany 7.07 Efficiency of the clearance process 15 (best) 43.8 57.5 61 7.08 Services trade openness 0-100 (worst) Ecuador
- 46.2 92
Pillar 8: Labour market 0-100 (best) 36.0 United States 53.5 104 Multiple (8) 8.01 Redundancy costs weeks of salary 4.3 8.02 Hiring and firing practices 1-7 (best) 4.8 53.6 36 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.4 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.7 56.2 = 84 8.05 Active Labour policies 1-7 (best) 66.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.1 63.3 44 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.5 33.3 = 128 Albania 8.09 Reliance on professional management 1-7 (best) 4.5 Guinea 8.10 Pay and productivity 1-7 (best) 0.78 55.2 33 Finland 8.11 Female participation in Labour force ratio 5.4 8.12 Labour tax rate % 64.1 35 United States Pillar 9: Financial system 0-100 (best) 147.6 56.5 111 9.01 Domestic credit to private sector % GDP 4.5 45.3 53 9.02 Financing of SMEs 1-7 (best) 3.6 United States 9.03 Venture capital availability 1-7 (best) 99.9 66.0 88 Multiple (29) 9.04 Market capitalization % GDP 5.0 9.05 Insurance premium % GDP 5.7 52.2 64 United States 9.06 Soundness of banks 1-7 (best) 3.0 United States 9.07 Non-performing loans % loan portfolio value -1.3 59.7 64 9.08 Credit gap percentage points 16.4 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 58.6 51 Multiple (16) - Pillar 10: Market size 0-100 (best) 1,124 58.7 36 Finland 10.01 Gross domestic product PPP $ billions 58.9 73.1 57 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 100.0 = 18
Pillar 11: Business dynamism 0-100 (best) 6.2 China 4.5 84.2 14 China 11.01 Cost of starting a business % GNI per capita 68.0 Hong Kong SAR 11.02 Time to start a business days 12.5 100.0 = 12 11.03 Insolvency recovery rate cents/$ 4.4 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.4 58.8 24 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.6 11.06 Willingness to delegate authority 1-7 (best) 4.0 43.2 34 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 99.9 13 Pillar 12: Innovation capability 0-100 (best) 3.9 84.1 = 22 Israel 0.34 12.01 Diversity of workforce 1-7 (best) 4.0 78.1 25 Denmark 12.02 State of cluster development 1-7 (best) 275.7 Israel 12.03 International co-inventions applications/million pop. 0.89 95.0 49 12.04 Multi-stakeholder collaboration 1-7 (best) 0.6 United States 12.05 Scientific publications H Index 0.04 100.0 56 12.06 Patent applications applications/million pop. 4.2 Germany 12.07 R&D expenditures % GDP 540.23 98.8 = 66 Canada 12.09 Buyer sophistication 1-7 (best) 74.9 18 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 38 Multiple (7) 71.0 23 Multiple (7) 96.9 65 96.0 17 Multiple (7)
73.2 26
78.1 24
56.2 33
57.5 59
50.0 33
42.1 51
65.0 33
48.8 55
9.1 60
49.5 44
83.3 39
11.7 68
20.9 54
11.4 40
53.5 25
67.7 67
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 557 559 | The Global Competitiveness Report 2018 Trinidad and Tobago Economy Profiles
78th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 76th/135
Performance Key Previous edition High income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 88
70 67
58 58 63 60
60 57
50 53 52
40 40
0
Rank /140 78th 92nd 97th 72nd 54th 90th 68th 98th 59th 42nd 105th 78th 81st
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 1.4 GDP (PPP) % world GDP 0.03 GDP per capita US$ 15,769.0 Unemployment rate % 4.8 10-year average annual GDP growth % -1.3 -0.3 5-year average FDI inward flow % GDP
Environmental footprint gha/capita 6.7 Income Gini 0 (perfect equality) -100 (perfect inequality) 40.3
The Global Competitiveness Report 2018 | 559 Economy Profiles 78th /140
Trinidad and Tobago Value Score * Rank/140 Best Performer
Index Component - 49.7 92 New Zealand 3.8 Finland Pillar 1: Institutions 0-100 (best) 30.9 46.8 117 1.01 Organized crime 1-7 (best) 2.9 0.0 134 Multiple (24) 1.02 Homicide rate /100,000 pop. 60.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 46.2 100.0 30 Finland 1.04 Reliability of police services 1-7 (best) 4.5 Australia 1.05 Social capital 0-100 (high) 3.0 31.3 128 Multiple (2) 1.06 Budget transparency 0-100 (best) 22.8 1.07 Judicial independence 1-7 (best) 3.3 60.1 18 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.9 Finland 1.09 Freedom of the press 0-100 (worst) 0.58 46.2 = 90 Norway 1.10 Burden of government regulation 1-7 (best) 2.9 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 41.0 57.9 46 Singapore 1.12 E-Participation Index 0-1 (best) 4.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.0 33.1 85 Singapore 1.14 Incidence of corruption 0-100 (best) 12.0 New Zealand 1.15 Property rights 1-7 (best) 4.8 77.2 34 Finland 1.16 Intellectual property protection 1-7 (best) 7.0 Finland 1.17 Quality of land administration 0-30 (best) 4.7 37.6 83 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 30.9 114 Multiple (2) 1.20 Shareholder governance 0-10 (best) 29.5 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.9 Singapore n/a 31.6 119 United States 2.01 Road connectivity index 0-100 (best) 3.5 2.02 Quality of roads 1-7 (best) 7,558.5 41.0 66 Singapore 2.03 Railroad density km of roads/square km 3.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 7.5 57.7 61 Switzerland 2.05 Airport connectivity score 2.5 2.06 Efficiency of air transport services 1-7 (best) 98.6 49.6 75 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 2.1 Singapore 2.08 Efficiency of seaport services 1-7 (best) 16.8 40.0 = 91 Multiple (4) 2.09 Electrification rate % pop. 4.4 Singapore 2.10 Electric power transmission and distribution losses % output 63.1 58 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 148.3 70.0 = 23 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 46.1 47.0 = 90 23.9 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 58.0 97 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 0.6 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 73.3 29.5 = 125 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. - 48.4 73 2.5 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 75.6 n/a n/a 4.01 Inflation annual % change - 41.4 60 Multiple (74) 4.02 Debt dynamics 0-100 (best) 63.5 Multiple (36) 29.2 108 Pillar 5: Health 0-100 (best) - Multiple (4) 9.9 45.8 108 Multiple (4) 5.01 Healthy life expectancy years 4.4 4.2 7.5 97 Finland Pillar 6: Skills 0-100 (best) 4.2 Finland 4.4 25.8 123 Switzerland 6.01 Mean years of schooling Years 4.5 Switzerland 6.02 Extent of staff training 1-7 (best) 12.7 98.6 85 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.1 Sweden 6.04 Skillset of graduates 1-7 (best) 17.6 100.0 = 3 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 84.9 = 85 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 56.8 86 561 | The Global Competitiveness Report 2018 100.0 = 15
47.7 43
73.3 48
87.8 54
75.6 59
73.5 90
73.5 89
62.6 68
66.0 = 61
56.6 39
54.0 55
53.3 57
57.5 54
58.0 49
35.3 93
81.1 = 62 Trinidad and Tobago Economy Profiles
78th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 52.4 98 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.3 42.2 82 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.0 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.7 37.7 111 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 11.40 Hong Kong SAR 7.05 Trade tariffs % duty 5.2 66.0 66 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) 10.9 61.5 38 7.08 Services trade openness 0-100 (worst) Ecuador
- 24.0 118
Pillar 8: Labour market 0-100 (best) 20.5 United States 70.7 80 Multiple (8) 8.01 Redundancy costs weeks of salary 3.4 8.02 Hiring and firing practices 1-7 (best) 3.2 35.6 98 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.6 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.0 89.1 = 2 8.05 Active Labour policies 1-7 (best) 70.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.4 60.2 59 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.5 65.6 = 89 Albania 8.09 Reliance on professional management 1-7 (best) 3.9 Guinea 8.10 Pay and productivity 1-7 (best) 0.81 40.0 106 Finland 8.11 Female participation in Labour force ratio 9.4 8.12 Labour tax rate % 37.2 140 United States Pillar 9: Financial system 0-100 (best) 36.0 60.2 101 9.01 Domestic credit to private sector % GDP 3.5 32.9 81 9.02 Financing of SMEs 1-7 (best) 2.4 United States 9.03 Venture capital availability 1-7 (best) 86.8 70.1 71 Multiple (29) 9.04 Market capitalization % GDP 3.3 9.05 Insurance premium % GDP 5.7 40.0 124 United States 9.06 Soundness of banks 1-7 (best) 3.1 United States 9.07 Non-performing loans % loan portfolio value 7.8 53.4 94 9.08 Credit gap percentage points 22.6 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 59.0 48 Multiple (16) - Pillar 10: Market size 0-100 (best) 39 48.1 72 Finland 38.8 Multiple (2) 10.01 Gross domestic product PPP $ billions 76.7 51 Multiple (97) 10.02 Imports % GDP - Multiple (72) 0.8 98.1 29 Pillar 11: Business dynamism 0-100 (best) 10.5 China 26.2 66.8 42 China 11.01 Cost of starting a business % GNI per capita 11.0 Hong Kong SAR 11.02 Time to start a business days 3.5 37.8 90 11.03 Insolvency recovery rate cents/$ 4.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.2 41.3 100 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 2.8 11.06 Willingness to delegate authority 1-7 (best) 22.6 112 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.9 86.8 20 Pillar 12: Innovation capability 0-100 (best) 0.29 54.4 = 39 Israel 12.01 Diversity of workforce 1-7 (best) 85.3 78.7 24 Denmark 12.02 State of cluster development 1-7 (best) 1.03 Israel 12.03 International co-inventions applications/million pop. 0.1 94.7 53 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 3.5 84.8 128 12.06 Patent applications applications/million pop. 346.41 Germany 12.07 R&D expenditures % GDP 100.0 = 10 Canada 12.09 Buyer sophistication 1-7 (best) 40.0 105 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 85 Multiple (7) 56.8 78 Multiple (7) 89.9 = 66 Multiple (7)
28.2 104
57.7 57
37.4 125
30.6 134
33.5 81
65.0 34
43.3 84
7.7 64
32.4 127
13.0 66
2.9 = 111
41.7 64
62.9 80
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 561 563 | The Global Competitiveness Report 2018 Tunisia Economy Profiles
87th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 86th/135
Performance Key Previous edition Lower middle income group average Middle East and North Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 66
60 62 61 58 56 52 56 53
50 45 46
0
Rank /140 87th 75th 84th 90th 118th 58th 71st 103rd 129th 78th 70th 73rd 84th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 11.5 GDP (PPP) % world GDP 0.11 GDP per capita US$ 3,496.3 Unemployment rate % 15.4 2.0 5-year average FDI inward flow % GDP 2.5
Social and environmental performance 2.2 Global Gender Gap Index 0-1 (gender parity) 0.7 3.8 Income Gini 0 (perfect equality) -100 (perfect inequality) 35.8
The Global Competitiveness Report 2018 | 563 Economy Profiles 87th /140
Tunisia Value Score * Rank/140 Best Performer
Index Component - 52.0 75 New Zealand Pillar 1: Institutions 0-100 (best) 3.0 59.8 82 97.7 Multiple (9) 1.01 Organized crime 1-7 (best) 4.5 91.4 = 72 Multiple (24) 1.02 Homicide rate /100,000 pop. 47.1 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 46.2 97.7 105 Finland 1.04 Reliability of police services 1-7 (best) 3.9 Australia 1.05 Social capital 0-100 (high) 3.6 58.8 68 Multiple (2) 1.06 Budget transparency 0-100 (best) 30.9 1.07 Judicial independence 1-7 (best) 3.0 47.1 97 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.6 Finland 1.09 Freedom of the press 0-100 (worst) 0.80 46.2 = 90 Norway 1.10 Burden of government regulation 1-7 (best) 3.3 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 42.0 48.6 66 Singapore 1.12 E-Participation Index 0-1 (best) 4.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.9 43.7 53 Singapore 1.14 Incidence of corruption 0-100 (best) 11.0 New Zealand 1.15 Property rights 1-7 (best) 4.2 69.1 78 Finland 1.16 Intellectual property protection 1-7 (best) 5.3 Finland 1.17 Quality of land administration 0-30 (best) 4.3 33.5 103 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 42.8 76 Multiple (2) 1.20 Shareholder governance 0-10 (best) 64.8 Kazakhstan 79.8 52 Pillar 2: Infrastructure 0-100 (best) 3.8 Singapore 13.7 37.5 98 United States 2.02 Quality of roads 1-7 (best) 3.2 42.0 63 Singapore 2.03 Railroad density km of roads/square km 34,374.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 59.1 56 Switzerland 2.05 Airport connectivity score 3.8 2.06 Efficiency of air transport services 1-7 (best) 6.6 47.8 84 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 3.5 Singapore 2.08 Efficiency of seaport services 1-7 (best) 100.0 36.7 = 96 Multiple (4) 2.09 Electrification rate % pop. 16.2 Singapore 2.10 Electric power transmission and distribution losses % output 17.4 53.1 97 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 5.0 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 53.0 = 84 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 124.3 43.0 = 100 3.01 Mobile-cellular telephone subscriptions /100 pop. 65.0 62.5 84 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 7.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 0.1 64.8 = 72 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. 49.6 46.1 81 Pillar 4: Macroeconomic stability 0-100 (best) - 34.3 = 49 4.5 Multiple (31) 4.01 Inflation annual % change 32.9 36.0 70 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 46.7 71
Pillar 5: Health 0-100 (best) 66.6 Multiple (4) 47.4 102 Multiple (4) 5.01 Healthy life expectancy years - 8.0 6.6 103 Finland Pillar 6: Skills 0-100 (best) 3.8 Finland 3.7 42.5 88 Switzerland 6.01 Mean years of schooling Years 3.6 Switzerland 6.02 Extent of staff training 1-7 (best) 4.4 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.2 Sweden 6.04 Skillset of graduates 1-7 (best) 15.1 87.3 98 United States 6.05 Digital skills among population 1-7 (best) 3.1 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 16.2 84.3 = 88 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 66.1 63 45.1 90 565 | The Global Competitiveness Report 2018 100.0 = 53
n/a 76
13.9 85
49.6 86
65.7 118
98.5 89
32.9 133
83.2 58
83.2 57
61.4 71
53.3 = 92
46.2 78
45.6 93
43.4 103
56.1 62
52.8 66
83.9 49
34.7 94
84.5 51 Tunisia Economy Profiles
87th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 51.7 103 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.6 50.7 50 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.8 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.9 43.3 79 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 11.21 Hong Kong SAR 7.05 Trade tariffs % duty 6.4 63.3 79 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) 44.5 48.8 116 7.08 Services trade openness 0-100 (worst) Ecuador
- 25.3 117
Pillar 8: Labour market 0-100 (best) 21.6 United States 90.6 = 38 Multiple (8) 8.01 Redundancy costs weeks of salary 2.9 8.02 Hiring and firing practices 1-7 (best) 3.7 34.4 107 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 3.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.0 55.5 = 86 8.05 Active Labour policies 1-7 (best) 71.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 2.8 46.4 129 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.4 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.9 63.4 = 95 Albania 8.09 Reliance on professional management 1-7 (best) 3.2 Guinea 8.10 Pay and productivity 1-7 (best) 0.37 30.9 129 Finland 8.11 Female participation in Labour force ratio 25.3 8.12 Labour tax rate % 45.1 121 United States Pillar 9: Financial system 0-100 (best) 79.5 47.6 129 9.01 Domestic credit to private sector % GDP 3.6 33.1 79 9.02 Financing of SMEs 1-7 (best) 2.7 United States 9.03 Venture capital availability 1-7 (best) 19.6 71.1 60 Multiple (29) 9.04 Market capitalization % GDP 1.9 9.05 Insurance premium % GDP 3.8 30.3 137 United States 9.06 Soundness of banks 1-7 (best) 15.4 United States 9.07 Non-performing loans % loan portfolio value 1.1 56.5 78 9.08 Credit gap percentage points 9.9 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 48.8 88 Multiple (16) - Pillar 10: Market size 0-100 (best) 123 36.8 124 Finland 58.1 Multiple (2) 10.01 Gross domestic product PPP $ billions 20.9 116 Multiple (97) 10.02 Imports % GDP - Multiple (72) 4.6 76.0 = 110 Pillar 11: Business dynamism 0-100 (best) 11.0 China 52.0 56.1 78 China 11.01 Cost of starting a business % GNI per capita 8.5 Hong Kong SAR 11.02 Time to start a business days 3.6 83.7 37 11.03 Insolvency recovery rate cents/$ 3.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.5 43.4 90 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.0 11.06 Willingness to delegate authority 1-7 (best) 28.1 91 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.6 19.6 81 Pillar 12: Innovation capability 0-100 (best) 0.21 31.2 = 63 Israel 12.01 Diversity of workforce 1-7 (best) 148.3 46.1 112 Denmark 12.02 State of cluster development 1-7 (best) 0.33 Israel 12.03 International co-inventions applications/million pop. 0.6 69.9 119 12.04 Multi-stakeholder collaboration 1-7 (best) 0.02 United States 12.05 Scientific publications H Index 3.1 100.0 = 90 12.06 Patent applications applications/million pop. 335.65 Germany 12.07 R&D expenditures % GDP 82.6 = 117 Canada 12.09 Buyer sophistication 1-7 (best) 52.7 70 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 40 Multiple (7) 57.8 73 Multiple (7) 97.7 55
56.0 38
43.7 98
46.3 116
33.7 124
32.7 84
42.6 129
37.0 109
5.9 73
38.6 93
74.1 73
5.3 79
21.1 52
5.2 52
34.9 97
62.6 82
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 565 567 | The Global Competitiveness Report 2018 Turkey Economy Profiles
61st / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 58th/135
Performance Key Previous edition Upper middle income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 79
70 67 60 55 60 57 54 51 44
0
Rank /140 61st 71st 50th 71st 116th 48th 77th 76th 111th 65th 13th 76th 47th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 80.8 GDP (PPP) % world GDP 1.71 GDP per capita US$ 10,512.0 Unemployment rate % 11.3 10-year average annual GDP growth % 1.5
Social and environmental performance 3.2 Global Gender Gap Index 0-1 (gender parity) 0.6 4.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 41.9
The Global Competitiveness Report 2018 | 567 Economy Profiles 61st /140
Turkey Value Score * Rank/140 Best Performer
Index Component - 52.9 71 New Zealand Pillar 1: Institutions 0-100 (best) 4.3 57.2 91 42.5 Multiple (9) 1.01 Organized crime 1-7 (best) 4.1 87.1 = 83 Multiple (24) 1.02 Homicide rate /100,000 pop. 48.2 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 88.5 42.5 134 Finland 1.04 Reliability of police services 1-7 (best) 2.8 Australia 1.05 Social capital 0-100 (high) 2.7 51.7 90 Multiple (2) 1.06 Budget transparency 0-100 (best) 53.5 1.07 Judicial independence 1-7 (best) 3.3 48.2 92 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.86 88.5 = 8 Norway 1.10 Burden of government regulation 1-7 (best) 3.8 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 40.0 30.7 111 Singapore 1.12 E-Participation Index 0-1 (best) 4.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.7 27.9 109 Singapore 1.14 Incidence of corruption 0-100 (best) 21.5 New Zealand 1.15 Property rights 1-7 (best) 4.2 46.5 129 Finland 1.16 Intellectual property protection 1-7 (best) 6.7 Finland 1.17 Quality of land administration 0-30 (best) 7.7 39.0 74 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 38.1 90 Multiple (2) 1.20 Shareholder governance 0-10 (best) 80.9 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 4.9 Singapore 12.9 46.9 64 United States 2.02 Quality of roads 1-7 (best) 3.3 40.0 69 Singapore 2.03 Railroad density km of roads/square km 558,459.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 49.3 96 Switzerland 2.05 Airport connectivity score 5.3 2.06 Efficiency of air transport services 1-7 (best) 57.2 45.8 94 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 4.5 71.7 = 39 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 54.0 93 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 13.7 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 17.0 67.0 = 32 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 4.4 77.0 = 10 3.01 Mobile-cellular telephone subscriptions /100 pop. - 72.6 50 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 96.4 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 70.5 80.9 = 27 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 14.8 Korea, Rep. 3.05 Internet users % pop. 65.4 33 2.4 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 58.3 32.2 = 51 4.01 Inflation annual % change - 38.0 66 Multiple (74) 4.02 Debt dynamics 0-100 (best) 9.5 Multiple (36) 49.9 94.9 14 Pillar 5: Health 0-100 (best) Multiple (4)
- 71.0 35 Multiple (4)
5.01 Healthy life expectancy years 67.6 57.2 22 Finland Pillar 6: Skills 0-100 (best) - Finland 8.1 58.4 50 Switzerland 6.01 Mean years of schooling Years 3.5 Switzerland 6.02 Extent of staff training 1-7 (best) 3.1 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.7 Sweden 6.04 Skillset of graduates 1-7 (best) 3.4 89.8 89 United States 6.05 Digital skills among population 1-7 (best) 3.5 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 17.4 84.7 = 86 United States 6.07 School life expectancy Years 2.4 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 18.4 57.5 84 53.5 71 569 | The Global Competitiveness Report 2018 80.3 104
29.5 58
58.3 72
67.4 116
84.8 121
49.9 79
86.2 47
60.5 77
53.9 = 90
41.7 107
34.8 132
45.1 94
39.7 118
40.9 117
96.4 = 14
23.1 133
79.0 = 71 Turkey Economy Profiles
61st /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 55.2 76 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.5 42.5 80 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.3 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.4 42.1 86 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 6.10 Hong Kong SAR 7.05 Trade tariffs % duty 4.4 71.6 35 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.7 Germany 7.07 Efficiency of the clearance process 15 (best) 25.0 57.1 62 7.08 Services trade openness 0-100 (worst) Ecuador
- 59.3 78
Pillar 8: Labour market 0-100 (best) 29.8 United States 57.1 100 Multiple (8) 8.01 Redundancy costs weeks of salary 3.4 8.02 Hiring and firing practices 1-7 (best) 3.9 42.8 58 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.3 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.7 75.0 = 51 8.05 Active Labour policies 1-7 (best) 53.6 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.0 51.2 111 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.1 46.3 = 122 Albania 8.09 Reliance on professional management 1-7 (best) 3.6 Guinea 8.10 Pay and productivity 1-7 (best) 0.39 40.7 102 Finland 8.11 Female participation in Labour force ratio 19.9 8.12 Labour tax rate % 47.9 113 United States Pillar 9: Financial system 0-100 (best) 66.8 72.4 35 9.01 Domestic credit to private sector % GDP 3.7 44.7 56 9.02 Financing of SMEs 1-7 (best) 2.7 United States 9.03 Venture capital availability 1-7 (best) 21.8 53.6 115 Multiple (29) 9.04 Market capitalization % GDP 1.3 9.05 Insurance premium % GDP 4.6 49.4 83 United States 9.06 Soundness of banks 1-7 (best) 3.1 United States 9.07 Non-performing loans % loan portfolio value 0.6 60.7 55 9.08 Credit gap percentage points 15.7 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 52.1 75 Multiple (16) - Pillar 10: Market size 0-100 (best) 1,980 42.5 95 Finland 10.01 Gross domestic product PPP $ billions 30.2 24.0 111 Multiple (97) 10.02 Imports % GDP Multiple (72)
- 83.5 = 91
Pillar 11: Business dynamism 0-100 (best) 12.8 China 59.9 65 China 11.01 Cost of starting a business % GNI per capita 6.5 Hong Kong SAR 11.02 Time to start a business days 15.3 70.3 44 11.03 Insolvency recovery rate cents/$ United States 11.04 Insolvency regulatory framework 0-16 (best) 8.0 44.5 86 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.3 11.06 Willingness to delegate authority 1-7 (best) 4.3 28.7 86 New Zealand 11.07 Growth of innovative companies 1-7 (best) 4.2 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.5 21.8 73 Pillar 12: Innovation capability 0-100 (best) - 21.0 = 88 Israel 12.01 Diversity of workforce 1-7 (best) 3.7 60.3 84 Denmark 12.02 State of cluster development 1-7 (best) 0.28 Israel 12.03 International co-inventions applications/million pop. 3.4 94.7 51 12.04 Multi-stakeholder collaboration 1-7 (best) 348.7 United States 12.05 Scientific publications H Index 2.78 100.0 = 84 12.06 Patent applications applications/million pop. 1.0 Germany 12.07 R&D expenditures % GDP 0.13 97.4 = 77 Canada 12.08 Quality of research institutions index 3.7 12.09 Buyer sophistication 1-7 (best) 1,674.39 78.5 13 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 106 Multiple (7) 57.2 76 Multiple (7) 93.6 87
16.5 124
54.3 44
54.3 69
53.8 49
41.0 74
44.0 47
43.0 128
44.4 80
7.6 65
40.8 83
86.7 36
24.4 53
33.5 = 38
34.7 19
45.0 50
79.9 41
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 569 571 | The Global Competitiveness Report 2018 Uganda Economy Profiles
117th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 113rd/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 60
50 47 48 49 48 46
30 25 30
0
Rank /140 117th 104th 121st 126th 93rd 124th 122nd 118th 63rd 119th 85th 82nd 107th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 37.7 GDP (PPP) % world GDP 0.07 GDP per capita US$ 699.4 Unemployment rate % 2.1 10-year average annual GDP growth % 3.5
Social and environmental performance 1.2 Global Gender Gap Index 0-1 (gender parity) 0.7 3.2 Income Gini 0 (perfect equality) -100 (perfect inequality) 42.8
The Global Competitiveness Report 2018 | 571 Economy Profiles 117th /140
Uganda Value Score * Rank/140 Best Performer
Index Component - 47.9 104 New Zealand 3.8 Finland Pillar 1: Institutions 0-100 (best) 11.5 46.8 118 1.01 Organized crime 1-7 (best) 3.6 62.6 = 121 Multiple (24) 1.02 Homicide rate /100,000 pop. 53.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 61.5 98.3 100 Finland 1.04 Reliability of police services 1-7 (best) 3.3 Australia 1.05 Social capital 0-100 (high) 3.2 43.2 105 Multiple (2) 1.06 Budget transparency 0-100 (best) 36.8 1.07 Judicial independence 1-7 (best) 3.6 53.8 48 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.62 61.5 = 49 Norway 1.10 Burden of government regulation 1-7 (best) 3.8 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 26.0 38.5 91 Singapore 1.12 E-Participation Index 0-1 (best) 4.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.4 36.6 75 Singapore 1.14 Incidence of corruption 0-100 (best) 10.5 New Zealand 1.15 Property rights 1-7 (best) 4.2 63.2 95 Finland 1.16 Intellectual property protection 1-7 (best) 5.0 Finland 1.17 Quality of land administration 0-30 (best) 5.0 43.4 57 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 45.1 69 Multiple (2) 1.20 Shareholder governance 0-10 (best) 60.6 Kazakhstan 62.4 84 Pillar 2: Infrastructure 0-100 (best) 3.5 Singapore 5.2 47.5 59 United States 2.01 Road connectivity index 0-100 (best) 1.6 2.02 Quality of roads 1-7 (best) 8,280.9 26.0 127 Singapore 2.03 Railroad density km of roads/square km 3.3 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 50.8 91 Switzerland 2.05 Airport connectivity score 2.6 2.06 Efficiency of air transport services 1-7 (best) 19.4 40.5 109 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) n/a Singapore 2.08 Efficiency of seaport services 1-7 (best) 33.1 35.0 = 99 Multiple (4) 2.09 Electrification rate % pop. 3.9 Singapore 2.10 Electric power transmission and distribution losses % output 52.6 99 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 58.2 50.0 = 95 Multiple (23) 23.4 Switzerland Pillar 3: ICT adoption 0-100 (best) 50.0 = 81 0.3 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. n/a 43.2 121 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 21.9 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 60.6 = 77 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 5.5 42.1 89 47.6 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 12.9 = 67 4.01 Inflation annual % change 54.3 10.0 130 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 30.1 103
Pillar 5: Health 0-100 (best) 5.8 Multiple (4) 3.7 37.6 123 Multiple (4) 5.01 Healthy life expectancy years 3.5 3.4 n/a n/a Finland Pillar 6: Skills 0-100 (best) 3.5 Finland 4.6 27.0 120 Switzerland 6.01 Mean years of schooling Years 10.0 Switzerland 6.02 Extent of staff training 1-7 (best) 2.8 19.4 134 Switzerland 6.03 Quality of vocational training 1-7 (best) 42.7 Sweden 6.04 Skillset of graduates 1-7 (best) 80.5 n/a United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 68.3 = 109 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 48.6 105 24.5 126 573 | The Global Competitiveness Report 2018 48.5 133
0.7 118
21.9 116
71.6 93
95.7 104
47.6 98
44.8 124
44.8 123
40.9 122
38.7 = 115
44.9 86
42.4 107
39.4 126
41.2 113
60.0 42
55.6 = 121
29.3 118
18.2 126 Uganda Economy Profiles
117th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 48.7 118 Singapore 2.8 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 2.7 29.7 129 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.0 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.6 28.2 134 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 11.07 Hong Kong SAR 7.05 Trade tariffs % duty 6.3 66.9 61 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.6 Germany 7.07 Efficiency of the clearance process 15 (best) 34.5 59.6 49 7.08 Services trade openness 0-100 (worst) Ecuador
- 26.2 115
Pillar 8: Labour market 0-100 (best) 8.7 United States 4.4 87.5 56 Multiple (8) 8.01 Redundancy costs weeks of salary 4.4 8.02 Hiring and firing practices 1-7 (best) 6.1 40.3 75 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 2.4 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 71.1 65.5 = 70 8.05 Active Labour policies 1-7 (best) 4.8 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.6 59.8 63 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.0 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.5 90.3 = 20 Albania 8.09 Reliance on professional management 1-7 (best) 0.51 Guinea 8.10 Pay and productivity 1-7 (best) 11.3 56.7 29 Finland 8.12 Labour tax rate % - 56.5 64 United States 15.4 Multiple (4) Pillar 9: Financial system 0-100 (best) 85.4 3 3.9 Multiple (26) 9.01 Domestic credit to private sector % GDP 2.3 23.0 114 9.02 Financing of SMEs 1-7 (best) 4.6 United States 9.03 Venture capital availability 1-7 (best) 0.6 71.1 60 Multiple (29) 9.04 Market capitalization % GDP 4.3 9.05 Insurance premium % GDP 10.4 63.9 15 United States 9.06 Soundness of banks 1-7 (best) -0.8 United States 9.07 Non-performing loans % loan portfolio value 21.8 60.1 62 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 49.4 85 Multiple (16) Pillar 10: Market size 0-100 (best) 28.3 41.3 104 Finland 10.01 Gross domestic product PPP $ billions - 38.7 94 Multiple (97) 10.02 Imports % GDP 33.6 Multiple (72) 24.0 95.4 = 37 Pillar 11: Business dynamism 0-100 (best) 37.5 China 48.5 119 China 11.01 Cost of starting a business % GNI per capita 6.0 Hong Kong SAR 11.02 Time to start a business days 4.3 16.2 130 11.03 Insolvency recovery rate cents/$ 4.3 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.3 48.6 52 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) 21.6 116 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.5 4.6 104 Pillar 12: Innovation capability 0-100 (best) 0.01 9.8 = 116 Israel 12.01 Diversity of workforce 1-7 (best) 148.7 55.6 96 Denmark 12.02 State of cluster development 1-7 (best) 0.01 Israel 12.03 International co-inventions applications/million pop. 0.5 80.0 105 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 2.5 100.0 = 65 12.06 Patent applications applications/million pop. 32.54 Germany 12.07 R&D expenditures % GDP 100.0 = 13 Canada 12.09 Buyer sophistication 1-7 (best) 46.4 85 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 112 Multiple (7) 55.5 82 Multiple (7) 83.2 115 76.4 109 Multiple (7)
54.4 43
54.2 46
43.6 56
29.8 107
57.8 66
43.1 85
0.2 118
43.7 65
74.2 72
15.8 = 67
0.9 83
24.3 130
37.8 118
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 573 575 | The Global Competitiveness Report 2018 Ukraine Economy Profiles
83rd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 89th/135
Performance Overview 2018 Key Previous edition Lower middle income group average Eurasia average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
70 70 72 69
60 57 56 59 63 51 55 55
50 46 49
40 39
0
Rank /140 83rd 110th 57th 77th 131st 94th 46th 73rd 66th 117th 47th 86th 58th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 42.3 GDP (PPP) % world GDP 0.29 GDP per capita US$ 2,582.8 Unemployment rate % 9.5 10-year average annual GDP growth % 2.7 -2.1 5-year average FDI inward flow % GDP
Social and environmental performance 3.0 Global Gender Gap Index 0-1 (gender parity) 0.7 3.4 Income Gini 0 (perfect equality) -100 (perfect inequality) 25.0
The Global Competitiveness Report 2018 | 575 Economy Profiles 83rd /140
Ukraine Value Score * Rank/140 Best Performer
Index Component - 46.3 110 New Zealand 4.0 Finland Pillar 1: Institutions 0-100 (best) 6.3 50.4 111 75.9 Multiple (9) 1.01 Organized crime 1-7 (best) 3.7 80.2 = 99 Multiple (24) 1.02 Homicide rate /100,000 pop. 45.5 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 61.5 75.9 131 Finland 1.04 Reliability of police services 1-7 (best) 2.7 Australia 1.05 Social capital 0-100 (high) 2.8 45.4 97 Multiple (2) 1.06 Budget transparency 0-100 (best) 31.2 1.07 Judicial independence 1-7 (best) 3.4 45.5 107 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.0 Finland 1.09 Freedom of the press 0-100 (worst) 0.69 61.5 = 49 Norway 1.10 Burden of government regulation 1-7 (best) 3.0 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 30.0 29.1 117 Singapore 1.12 E-Participation Index 0-1 (best) 3.3 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.4 29.2 107 Singapore 1.14 Incidence of corruption 0-100 (best) 14.5 New Zealand 1.15 Property rights 1-7 (best) 3.7 68.8 82 Finland 1.16 Intellectual property protection 1-7 (best) 5.0 Finland 1.17 Quality of land administration 0-30 (best) 6.0 40.7 67 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 33.7 103 Multiple (2) 1.20 Shareholder governance 0-10 (best) 72.7 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 2.7 Singapore 35.8 33.0 115 United States 2.02 Quality of roads 1-7 (best) 4.3 30.0 109 Singapore 2.03 Railroad density km of roads/square km 68,844.5 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 38.7 129 Switzerland 2.05 Airport connectivity score 4.0 2.06 Efficiency of air transport services 1-7 (best) 38.0 39.9 114 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 3.8 48.3 = 74 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 45.7 120 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 10.7 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 10.5 50.0 95 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 4.5 60.0 = 56 3.01 Mobile-cellular telephone subscriptions /100 pop. - 70.1 57 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 133.5 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 72.7 = 51 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 41.7 Korea, Rep. 3.05 Internet users % pop. 12.6 28.6 123 Pillar 4: Macroeconomic stability 0-100 (best) 4.3 89.5 = 23 53.0 Multiple (31) 4.01 Inflation annual % change 54.2 37 Multiple (74) 4.02 Debt dynamics 0-100 (best) - Multiple (36) 14.2 56.6 53 Pillar 5: Health 0-100 (best) 40.0 Multiple (4) 49.6 94 Multiple (4) 5.01 Healthy life expectancy years - 63.0 38.0 43 Finland Pillar 6: Skills 0-100 (best) Finland
- 46.5 77 Switzerland
6.01 Mean years of schooling Years 10.4 Switzerland 6.02 Extent of staff training 1-7 (best) 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 3.8 Sweden 6.04 Skillset of graduates 1-7 (best) 4.1 93.0 67 United States 6.05 Digital skills among population 1-7 (best) 4.1 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 4.4 91.3 = 68 United States 6.07 School life expectancy Years 4.4 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 15.0 58.9 81 6.09 Pupil-to-teacher ratio in primary education Ratio 3.8 12.8 51.0 77 577 | The Global Competitiveness Report 2018 100.0 = 33
25.1 66
53.0 83
55.9 131
71.7 130
72.0 94
72.0 93
68.9 46
69.3 = 51
46.6 74
51.5 63
52.1 62
57.2 55
56.3 54
83.3 = 54
47.1 41
93.1 32 Ukraine Economy Profiles
83rd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 55.3 73 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.3 35.6 114 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.8 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.1 37.8 110 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 2.78 Hong Kong SAR 7.05 Trade tariffs % duty 5.9 63.2 80 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.5 Germany 7.07 Efficiency of the clearance process 15 (best) 27.2 51.3 104 7.08 Services trade openness 0-100 (worst) Ecuador
- 81.5 44
Pillar 8: Labour market 0-100 (best) 13.0 United States 82.1 67 Multiple (8) 8.01 Redundancy costs weeks of salary 4.3 8.02 Hiring and firing practices 1-7 (best) 4.3 37.3 90 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 3.8 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.6 72.8 = 60 8.05 Active Labour policies 1-7 (best) 61.9 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.1 59.5 66 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.6 81.3 = 47 Albania 8.09 Reliance on professional management 1-7 (best) 4.2 Guinea 8.10 Pay and productivity 1-7 (best) 0.83 54.4 36 Finland 8.12 Labour tax rate % 54.5 79 United States Pillar 9: Financial system 0-100 (best) 59.7 47.4 = 130 9.01 Domestic credit to private sector % GDP 3.1 43.1 59 9.02 Financing of SMEs 1-7 (best) 2.7 United States 9.03 Venture capital availability 1-7 (best) 20.3 61.9 97 Multiple (29) 9.04 Market capitalization % GDP 1.5 9.05 Insurance premium % GDP 2.8 51.0 73 United States 9.06 Soundness of banks 1-7 (best) 30.5 United States 9.07 Non-performing loans % loan portfolio value -30.1 54.0 91 9.08 Credit gap percentage points 15.4 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 42.9 108 Multiple (16) - Pillar 10: Market size 0-100 (best) 336 53.3 53 Finland 56.6 Multiple (2) 10.01 Gross domestic product PPP $ billions 79.4 47 Multiple (97) 10.02 Imports % GDP - Multiple (72) 0.8 76.7 106 Pillar 11: Business dynamism 0-100 (best) 6.5 China 8.9 48.7 117 China 11.01 Cost of starting a business % GNI per capita 7.5 Hong Kong SAR 11.02 Time to start a business days 4.7 62.9 56 11.03 Insolvency recovery rate cents/$ 3.9 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.5 34.9 118 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.4 11.06 Willingness to delegate authority 1-7 (best) 28.1 92 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.5 20.3 = 77 Pillar 12: Innovation capability 0-100 (best) 0.50 25.7 = 76 Israel 12.01 Diversity of workforce 1-7 (best) 215.7 30.0 135 Denmark 12.02 State of cluster development 1-7 (best) 1.41 Israel 12.03 International co-inventions applications/million pop. 0.6 39.5 136 12.04 Multi-stakeholder collaboration 1-7 (best) 0.04 United States 12.05 Scientific publications H Index 3.4 100.0 = 4 12.06 Patent applications applications/million pop. 653.88 Germany 12.07 R&D expenditures % GDP 96.8 = 84 Canada 12.09 Buyer sophistication 1-7 (best) 62.7 47 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 42 Multiple (7) 55.3 86 Multiple (7)
62.4 17
49.0 97
41.5 112
39.3 84
39.0 58
58.7 62
37.3 106
12.5 56
45.5 56
79.7 50
16.2 62
20.6 56
10.2 44
39.2 74
69.8 60
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 577 579 | The Global Competitiveness Report 2018 United Arab Emirates Economy Profiles
27th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 27th/135
Performance Overview Key Previous edition High income group average Middle East and North Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
90 86
80 78
73 72 68 69 71 71
70 67
50 51
0
Rank /140 27th 19th 15th 6th 1st 79th 53rd 11th 42nd 31st 28th 33rd 35th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 10.1 GDP (PPP) % world GDP 0.54 GDP per capita US$ 37,225.8 Unemployment rate % 1.7 10-year average annual GDP growth % 2.6 2.7 5-year average FDI inward flow % GDP
Environmental footprint gha/capita 9.8 Global Gender Gap Index 0-1 (gender parity) 0.7
The Global Competitiveness Report 2018 | 579 Economy Profiles 27th /140
United Arab Emirates Value Score * Rank/140 Best Performer
Index Component - 71.8 19 New Zealand 5.9 Finland Pillar 1: Institutions 0-100 (best) 0.9 81.8 13 1.01 Organized crime 1-7 (best) 6.0 98.7 27 Multiple (24) 1.02 Homicide rate /100,000 pop. 57.3 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 46.2 100.0 31 Finland 1.04 Reliability of police services 1-7 (best) 5.3 Australia 1.05 Social capital 0-100 (high) 4.7 83.6 15 Multiple (2) 1.06 Budget transparency 0-100 (best) 40.9 1.07 Judicial independence 1-7 (best) 5.0 57.3 27 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.94 46.2 = 90 Norway 1.10 Burden of government regulation 1-7 (best) 5.6 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 71.0 71.8 26 Singapore 1.12 E-Participation Index 0-1 (best) 5.5 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.3 61.9 13 Singapore 1.14 Incidence of corruption 0-100 (best) 21.0 New Zealand 1.15 Property rights 1-7 (best) 5.2 59.1 104 Finland 1.16 Intellectual property protection 1-7 (best) 7.7 Finland 1.17 Quality of land administration 0-30 (best) 7.3 67.3 3 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 71.9 12 Multiple (2) 1.20 Shareholder governance 0-10 (best) 79.5 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 5.9 Singapore n/a 76.7 4 United States 2.01 Road connectivity index 0-100 (best) 4.6 2.02 Quality of roads 1-7 (best) 425,486.6 71.0 21 Singapore 2.03 Railroad density km of roads/square km 5.9 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 73.7 74.4 26 Switzerland 2.05 Airport connectivity score 5.4 2.06 Efficiency of air transport services 1-7 (best) 100.0 72.4 26 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 7.2 Singapore 2.08 Efficiency of seaport services 1-7 (best) 10.5 70.0 = 43 Multiple (4) 2.09 Electrification rate % pop. 5.9 Singapore 2.10 Electric power transmission and distribution losses % output 70.2 38 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 210.9 77.0 = 16 Multiple (23) 243.4 Switzerland Pillar 3: ICT adoption 0-100 (best) 73.0 = 15 14.0 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 13.1 86.2 15 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 90.6 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 79.5 = 32 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 1.8 81.5 9 Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 65.1 59.3 24 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 89.2 19
Pillar 5: Health 0-100 (best) 9.7 Multiple (4) 4.9 82.0 7 Multiple (4) 5.01 Healthy life expectancy years 4.7 5.0 73.7 12 Finland Pillar 6: Skills 0-100 (best) 5.3 Finland 5.1 73.8 13 Switzerland 6.01 Mean years of schooling Years 13.6 Switzerland 6.02 Extent of staff training 1-7 (best) 5.0 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 24.5 Sweden 6.04 Skillset of graduates 1-7 (best) 96.7 45 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 91.3 67 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 81.9 36 83.7 6 581 | The Global Competitiveness Report 2018
28.0 = 62
90.6 11
78.4 79
68.1 53
64.7 = 66
64.4 22
62.0 27
66.2 21
71.0 14
67.9 10
75.8 = 75
67.2 11
63.7 91 United Arab Emirates Economy Profiles
27th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 68.8 11 Singapore 5.4 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.8 73.5 3 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.1 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.3 62.9 18 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 5.09 Hong Kong SAR 7.05 Trade tariffs % duty 6.4 68.9 55 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.6 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 70.9 9 7.08 Services trade openness 0-100 (worst) Ecuador
- 66.1 67
Pillar 8: Labour market 0-100 (best) 4.3 United States 5.1 90.0 39 Multiple (8) 8.01 Redundancy costs weeks of salary 5.2 8.02 Hiring and firing practices 1-7 (best) 5.4 65.8 15 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.5 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 0.0 53.1 n/a 8.05 Active Labour policies 1-7 (best) 5.3 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 5.1 63.4 42 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.2 99.4 = 9 Albania 8.09 Reliance on professional management 1-7 (best) 0.37 Guinea 8.10 Pay and productivity 1-7 (best) 14.1 68.8 7 Finland 8.12 Labour tax rate % - 69.7 21 United States 76.6 Multiple (4) Pillar 9: Financial system 0-100 (best) 73.5 32 4.7 Multiple (26) 9.01 Domestic credit to private sector % GDP 4.4 58.3 27 9.02 Financing of SMEs 1-7 (best) 57.8 United States 9.03 Venture capital availability 1-7 (best) 1.5 0.0 116 Multiple (29) 9.04 Market capitalization % GDP 5.3 9.05 Insurance premium % GDP 5.3 72.0 5 United States 9.06 Soundness of banks 1-7 (best) 5.2 United States 9.07 Non-performing loans % loan portfolio value 18.6 67.9 18 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 70.5 26 Multiple (16) 626 Pillar 10: Market size 0-100 (best) 93.3 69.7 7 Finland 10.01 Gross domestic product PPP $ billions - 20.9 117 Multiple (97) 10.02 Imports % GDP 13.4 Multiple (72) 91.5 = 62 Pillar 11: Business dynamism 0-100 (best) 8.2 China 28.7 70.8 31 China 11.01 Cost of starting a business % GNI per capita 11.0 Hong Kong SAR 11.02 Time to start a business days 80.6 39 11.03 Insolvency recovery rate cents/$ 4.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 5.1 61.7 19 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 5.0 11.06 Willingness to delegate authority 1-7 (best) 4.3 57.0 9 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 57.8 35 5.7 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 5.1 25.7 = 77 Israel 1.20 12.01 Diversity of workforce 1-7 (best) 4.6 72.1 50 Denmark 12.02 State of cluster development 1-7 (best) 158.3 Israel 12.03 International co-inventions applications/million pop. 3.89 90.3 74 12.04 Multi-stakeholder collaboration 1-7 (best) 0.9 United States 12.05 Scientific publications H Index 0.01 91.6 118 12.06 Patent applications applications/million pop. 4.6 Germany 12.07 R&D expenditures % GDP 2,061.17 100.0 = 33 Canada 12.09 Buyer sophistication 1-7 (best) 71.0 28 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 10 Multiple (7) 67.4 33 Multiple (7) 93.3 89 92.3 = 49 Multiple (7)
63.5 14
68.6 24
66.4 12
55.5 20
51.0 35
77.6 5
24.2 40
59.2 28
29.2 46
28.9 43
3.7 56
60.6 16
82.1 38
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 581 583 | The Global Competitiveness Report 2018 United Kingdom Economy Profiles
8th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 6th/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
89 94
90 88
80 82 77 80 82 79 79
0
Rank /140 8th 7th 11th 28th 1st 29th 13th 12th 8th 8th 7th 7th 7th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 66.1 GDP (PPP) % world GDP 2.29 GDP per capita US$ 39,734.6 Unemployment rate % 4.3 10-year average annual GDP growth % 2.3
Social and environmental performance 4.8 Global Gender Gap Index 0-1 (gender parity) 0.8 4.9 Income Gini 0 (perfect equality) -100 (perfect inequality) 33.2
The Global Competitiveness Report 2018 | 583 Economy Profiles 8th /140
United Kingdom Value Score * Rank/140 Best Performer
Index Component - 76.8 7 New Zealand Pillar 1: Institutions 0-100 (best) 1.2 73.0 34 88.3 Multiple (9) 1.01 Organized crime 1-7 (best) 6.0 97.6 39 Multiple (24) 1.02 Homicide rate /100,000 pop. 61.3 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 88.5 88.3 124 Finland 1.04 Reliability of police services 1-7 (best) 5.9 Australia 1.05 Social capital 0-100 (high) 4.9 82.7 18 Multiple (2) 1.06 Budget transparency 0-100 (best) 23.3 1.07 Judicial independence 1-7 (best) 4.1 61.3 16 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.98 88.5 = 8 Norway 1.10 Burden of government regulation 1-7 (best) 4.5 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 82.0 82.2 13 Singapore 1.12 E-Participation Index 0-1 (best) 6.2 Multiple (3) 1.13 Future orientation of government 1-7 (best) 6.1 64.4 11 Singapore 1.14 Incidence of corruption 0-100 (best) 24.5 New Zealand 1.15 Property rights 1-7 (best) 5.8 76.8 35 Finland 1.16 Intellectual property protection 1-7 (best) 8.3 Finland 1.17 Quality of land administration 0-30 (best) 6.7 51.1 27 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 72.3 11 Multiple (2) 1.20 Shareholder governance 0-10 (best) 80.5 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 5.2 Singapore 66.7 59.1 25 United States 2.02 Quality of roads 1-7 (best) 4.6 82.0 8 Singapore 2.03 Railroad density km of roads/square km 901,365.0 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 86.2 5 Switzerland 2.05 Airport connectivity score 5.7 2.06 Efficiency of air transport services 1-7 (best) 82.8 84.3 6 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 5.4 81.7 21 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 80.3 17 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 8.1 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 0.7 83.0 = 7 Multiple (23) 6.7 Switzerland Pillar 3: ICT adoption 0-100 (best) 67.0 = 32 3.01 Mobile-cellular telephone subscriptions /100 pop. 119.6 89.0 11 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 88.1 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 39.3 80.5 = 29 Switzerland 3.04 Fibre Internet subscriptions /100 pop. Korea, Rep. 3.05 Internet users % pop. 0.3 69.5 26 94.8 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 100.0 = 9 4.01 Inflation annual % change 1.7 60.1 22 Multiple (74) 4.02 Debt dynamics 0-100 (best) 100.0 Multiple (36) Pillar 5: Health 0-100 (best) - Multiple (4) 70.0 77.8 15 Multiple (4)
- 82.8 10 Finland
Pillar 6: Skills 0-100 (best) 12.7 Finland 72.6 15 Switzerland 6.01 Mean years of schooling Years 4.8 Switzerland 6.02 Extent of staff training 1-7 (best) 4.7 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.8 Sweden 6.04 Skillset of graduates 1-7 (best) 4.9 95.7 51 United States 6.05 Digital skills among population 1-7 (best) 5.2 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 17.4 100.0 = 14 United States 6.07 School life expectancy Years 5.1 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 17.4 94.9 14 71.1 28 585 | The Global Competitiveness Report 2018 99.7 69
78.6 10
94.8 6
93.9 29
93.9 28
80.2 13
84.6 = 14
63.4 24
62.0 28
63.7 28
65.5 32
69.2 8
96.9 = 12
67.6 10
81.5 = 59 United Kingdom Economy Profiles
8th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 68.7 12 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 4.8 59.3 22 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.7 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.2 64.0 13 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.13 Hong Kong SAR 7.05 Trade tariffs % duty 3.0 78.4 6 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.8 Germany 7.07 Efficiency of the clearance process 15 (best) 14.3 69.6 12 7.08 Services trade openness 0-100 (worst) Ecuador
- 92.4 27
Pillar 8: Labour market 0-100 (best) 9.3 United States 5.1 33.7 112 Multiple (8) 8.01 Redundancy costs weeks of salary 5.1 8.02 Hiring and firing practices 1-7 (best) 5.7 69.3 11 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.2 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 80.4 85.7 = 14 8.05 Active Labour policies 1-7 (best) 4.5 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.7 76.5 8 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.8 88.9 = 26 Albania 8.09 Reliance on professional management 1-7 (best) 0.94 Guinea 8.10 Pay and productivity 1-7 (best) 10.9 69.0 6 Finland 8.12 Labour tax rate % - 68.1 28 United States 134.8 Multiple (4) Pillar 9: Financial system 0-100 (best) 78.7 12 4.6 Multiple (26) 9.01 Domestic credit to private sector % GDP 4.4 53.3 36 9.02 Financing of SMEs 1-7 (best) 117.5 United States 9.03 Venture capital availability 1-7 (best) 10.7 80.4 37 Multiple (29) 9.04 Market capitalization % GDP 5.5 9.05 Insurance premium % GDP 0.9 57.9 37 United States 9.06 Soundness of banks 1-7 (best) -23.0 United States 9.07 Non-performing loans % loan portfolio value 18.8 62.4 48 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 79.8 12 Multiple (16) 2,654 Pillar 10: Market size 0-100 (best) 64.0 14 Finland 32.5 Multiple (2) 10.01 Gross domestic product PPP $ billions 92.5 17 Multiple (97) 10.02 Imports % GDP - Multiple (72) 0.0 96.0 = 33 Pillar 11: Business dynamism 0-100 (best) 4.5 China 85.2 87.8 8 China 11.01 Cost of starting a business % GNI per capita 11.0 Hong Kong SAR 11.02 Time to start a business days 5.1 100.0 = 16 11.03 Insolvency recovery rate cents/$ 5.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 5.2 59.5 22 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.7 11.06 Willingness to delegate authority 1-7 (best) 56.8 11 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.6 100.0 = 10 5.2 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 12.47 100.0 = 5 Israel 5.1 12.01 Diversity of workforce 1-7 (best) 1,235.7 75.1 40 Denmark 12.02 State of cluster development 1-7 (best) 100.63 Israel 12.03 International co-inventions applications/million pop. 1.7 99.1 9 12.04 Multi-stakeholder collaboration 1-7 (best) 0.63 United States 12.05 Scientific publications H Index 4.7 100.0 = 7 12.06 Patent applications applications/million pop. 6,667.07 Germany 12.07 R&D expenditures % GDP 100.0 = 30 Canada 12.09 Buyer sophistication 1-7 (best) 81.7 7 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 98 Multiple (7) 79.0 7 Multiple (7)
91.7 11
68.5 5
75.3 14
69.4 7
62.1 7
79.2 7
76.6 7
79.8 18
67.5 9
84.9 19
56.8 22
61.4 13
94.7 18
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 585 587 | The Global Competitiveness Report 2018 United States Economy Profiles
1st / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 1st/135
Performance Overview Key Previous edition High income group average Europe and North America average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
100 100 99
90 86 89 87 86 92 86 87 71 74
0
Rank /140 1st 13th 9th 27th 34th 47th 3rd 3rd 1st 1st 2nd 1st 2nd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Selected contextual indicators 325.9 GDP (PPP) % world GDP 15.26 59,501.1 Unemployment rate % 4.4 Population millions 1.7 GDP per capita US$ 1.4 5-year average FDI inward flow % GDP
Social and environmental performance 8.4 Global Gender Gap Index 0-1 (gender parity) 0.7 4.6 Income Gini 0 (perfect equality) -100 (perfect inequality) 41.5
The Global Competitiveness Report 2018 | 587 Economy Profiles 1st /140
United States Value Score * Rank/140 Best Performer
Index Component - 74.6 13 New Zealand Pillar 1: Institutions 0-100 (best) 5.4 68.7 53 83.3 Multiple (9) 1.01 Organized crime 1-7 (best) 5.8 83.5 92 Multiple (24) 1.02 Homicide rate /100,000 pop. 63.3 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 88.5 83.3 128 Finland 1.04 Reliability of police services 1-7 (best) 5.7 Australia 1.05 Social capital 0-100 (high) 5.6 80.8 19 Multiple (2) 1.06 Budget transparency 0-100 (best) 23.7 1.07 Judicial independence 1-7 (best) 5.0 63.3 9 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 5.9 Finland 1.09 Freedom of the press 0-100 (worst) 0.98 88.5 = 8 Norway 1.10 Burden of government regulation 1-7 (best) 5.7 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 75.0 79.0 15 Singapore 1.12 E-Participation Index 0-1 (best) 5.8 Multiple (3) 1.13 Future orientation of government 1-7 (best) 5.9 76.5 2 Singapore 1.14 Incidence of corruption 0-100 (best) 17.6 New Zealand 1.15 Property rights 1-7 (best) 5.9 76.3 40 Finland 1.16 Intellectual property protection 1-7 (best) 8.3 Finland 1.17 Quality of land administration 0-30 (best) 4.6 67.1 4 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 81.4 3 Multiple (2) 1.20 Shareholder governance 0-10 (best) 100.0 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 5.9 Singapore 23.2 78.3 3 United States 2.02 Quality of roads 1-7 (best) 5.7 75.0 16 Singapore 2.03 Railroad density km of roads/square km 7,293,521.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 79.7 16 Switzerland 2.05 Airport connectivity score 5.9 2.06 Efficiency of air transport services 1-7 (best) 86.3 80.9 13 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 5.8 58.7 = 55 Multiple (4) 2.09 Electrification rate % pop. 100.0 Singapore 2.10 Electric power transmission and distribution losses % output 81.1 14 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. 5.8 Multiple (9) 2.12 Reliability of water supply 1-7 (best) 0.5 83.0 = 7 Multiple (23) 6.1 Switzerland Pillar 3: ICT adoption 0-100 (best) 46.0 = 99 3.01 Mobile-cellular telephone subscriptions /100 pop. 122.0 89.5 9 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 132.9 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 100.0 = 1 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 33.9 Korea, Rep. 3.05 Internet users % pop. 3.7 81.1 11 Pillar 4: Macroeconomic stability 0-100 (best) 76.2 58.0 = 33 4.01 Inflation annual % change - 78.5 6 Multiple (74) 4.02 Debt dynamics 0-100 (best) 1.7 Multiple (36) 99.2 100.0 = 1 Pillar 5: Health 0-100 (best) Multiple (4)
- 81.5 8 Multiple (4)
5.01 Healthy life expectancy years 67.7 86.3 7 Finland Pillar 6: Skills 0-100 (best) - Finland 13.5 80.6 5 Switzerland 6.01 Mean years of schooling Years Switzerland 6.02 Extent of staff training 1-7 (best) 5.8 100.0 = 1 Switzerland 6.03 Quality of vocational training 1-7 (best) 5.7 Sweden 6.04 Skillset of graduates 1-7 (best) 5.9 98.1 26 United States 6.05 Digital skills among population 1-7 (best) 5.8 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 5.8 100.0 = 1 United States 6.07 School life expectancy Years 16.5 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 5.7 84.6 27 6.09 Pupil-to-teacher ratio in primary education Ratio 14.5 71.2 27 589 | The Global Competitiveness Report 2018 100.0 = 61
67.7 19
76.2 40
99.6 34
99.2 38
86.5 47
86.5 46
90.1 = 5
78.6 2
81.4 2
80.6 2
91.5 = 22
78.9 1
88.9 = 43 United States Economy Profiles
1st /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 73.8 3 Singapore 5.1 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 5.7 69.0 7 Switzerland 7.02 Extent of market dominance 1-7 (best) 5.9 Hong Kong SAR 7.03 Competition in services 1-7 (best) 5.3 78.4 3 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 1.66 Hong Kong SAR 7.05 Trade tariffs % duty 3.7 81.4 3 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.8 Germany 7.07 Efficiency of the clearance process 15 (best) 17.7 71.5 7 7.08 Services trade openness 0-100 (worst) Ecuador
- 89.0 36
Pillar 8: Labour market 0-100 (best) 0.0 United States 5.6 44.6 108 Multiple (8) 8.01 Redundancy costs weeks of salary 5.7 8.02 Hiring and firing practices 1-7 (best) 5.7 69.4 10 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 67.0 82.3 = 28 8.05 Active Labour policies 1-7 (best) 5.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 5.7 81.9 1 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 5.9 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 5.8 100.0 = 1 Albania 8.09 Reliance on professional management 1-7 (best) 0.88 Guinea 8.10 Pay and productivity 1-7 (best) 9.8 77.4 3 Finland 8.12 Labour tax rate % - 78.9 6 United States 191.5 Multiple (4) Pillar 9: Financial system 0-100 (best) 78.7 13 5.8 Multiple (26) 9.01 Domestic credit to private sector % GDP 5.6 77.9 2 9.02 Financing of SMEs 1-7 (best) 145.4 United States 9.03 Venture capital availability 1-7 (best) 6.5 67.0 84 Multiple (29) 9.04 Market capitalization % GDP 5.8 9.05 Insurance premium % GDP 1.3 67.2 7 United States 9.06 Soundness of banks 1-7 (best) -1.6 United States 9.07 Non-performing loans % loan portfolio value 14.3 78.3 2 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 81.2 11 Multiple (16) 17,662 Pillar 10: Market size 0-100 (best) 79.2 1 Finland 15.1 Multiple (2) 10.01 Gross domestic product PPP $ billions 84.5 37 Multiple (97) 10.02 Imports % GDP - Multiple (72) 1.1 97.5 = 30 Pillar 11: Business dynamism 0-100 (best) 5.6 China 82.1 92.1 1 China 11.01 Cost of starting a business % GNI per capita 15.0 Hong Kong SAR 11.02 Time to start a business days 5.8 100.0 = 3 11.03 Insolvency recovery rate cents/$ 5.7 United States 11.04 Insolvency regulatory framework 0-16 (best) 5.8 79.7 1 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 5.7 11.06 Willingness to delegate authority 1-7 (best) 76.7 1 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 5.8 100.0 = 6 5.8 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 12.30 100.0 = 15 Israel 5.8 12.01 Diversity of workforce 1-7 (best) 2,002.3 79.9 18 Denmark 12.02 State of cluster development 1-7 (best) 144.09 Israel 12.03 International co-inventions applications/million pop. 2.8 98.3 15 12.04 Multi-stakeholder collaboration 1-7 (best) 3.88 United States 12.05 Scientific publications H Index 5.6 100.0 = 54 12.06 Patent applications applications/million pop. 2,890.49 Germany 12.07 R&D expenditures % GDP 94.4 = 98 Canada 12.09 Buyer sophistication 1-7 (best) 99.2 2 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 136 Multiple (7) 86.5 1 Multiple (7) 99.5 = 26 94.9 = 30 Multiple (7)
88.4 18
78.4 7
77.5 1
86.5 2
79.3 3
79.5 1
79.4 19
91.5 13
93.1 11
77.4 1
85.7 33
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 589 591 | The Global Competitiveness Report 2018 Uruguay Economy Profiles
53rd / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 50th/135
Performance Key Previous edition High income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 78
70 69 65
63 63 58
60 55 55 56
50 45
0
Rank /140 53rd 34th 62nd 12th 61st 43rd 59th 77th 77th 81st 93rd 79th 70th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 3.5 GDP (PPP) % world GDP 0.06 GDP per capita US$ 16,722.4 Unemployment rate % 7.9 10-year average annual GDP growth % 2.4
Social and environmental performance 3.0 Global Gender Gap Index 0-1 (gender parity) 0.7 4.5 Income Gini 0 (perfect equality) -100 (perfect inequality) 39.7
The Global Competitiveness Report 2018 | 591 Economy Profiles 53rd /140
Uruguay Value Score * Rank/140 Best Performer
Index Component - 63.2 34 New Zealand 5.2 Finland Pillar 1: Institutions 0-100 (best) 7.7 69.4 49 1.01 Organized crime 1-7 (best) 4.1 75.6 108 Multiple (24) 1.02 Homicide rate /100,000 pop. 55.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 73.1 100.0 47 Finland 1.04 Reliability of police services 1-7 (best) 5.4 Australia 1.05 Social capital 0-100 (high) 3.5 52.3 85 Multiple (2) 1.06 Budget transparency 0-100 (best) 15.6 1.07 Judicial independence 1-7 (best) 2.7 55.8 33 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.9 Finland 1.09 Freedom of the press 0-100 (worst) 0.92 73.1 = 27 Norway 1.10 Burden of government regulation 1-7 (best) 3.6 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 70.0 74.1 23 Singapore 1.12 E-Participation Index 0-1 (best) 5.0 Multiple (3) 1.13 Future orientation of government 1-7 (best) 4.7 40.9 59 Singapore 1.14 Incidence of corruption 0-100 (best) 22.5 New Zealand 1.15 Property rights 1-7 (best) 5.3 84.4 20 Finland 1.16 Intellectual property protection 1-7 (best) 5.0 Finland 1.17 Quality of land administration 0-30 (best) 3.7 28.8 118 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 48.1 56 Multiple (2) 1.20 Shareholder governance 0-10 (best) 74.9 Kazakhstan 91.6 26 Pillar 2: Infrastructure 0-100 (best) 3.3 Singapore 17.0 44.2 73 United States 2.02 Quality of roads 1-7 (best) 1.3 70.0 23 Singapore 2.03 Railroad density km of roads/square km 7,181.7 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 65.9 38 Switzerland 2.05 Airport connectivity score 5.1 2.06 Efficiency of air transport services 1-7 (best) 32.3 62.2 39 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) Singapore 2.08 Efficiency of seaport services 1-7 (best) 4.8 75.0 = 31 Multiple (4) 2.09 Electrification rate % pop. 99.9 Singapore 2.10 Electric power transmission and distribution losses % output 12.0 72.3 32 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. Multiple (9) 2.12 Reliability of water supply 1-7 (best) 3.2 50.0 = 95 Multiple (23) 6.0 Switzerland Pillar 3: ICT adoption 0-100 (best) 37.0 = 112 3.01 Mobile-cellular telephone subscriptions /100 pop. 147.5 68.8 62 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 112.1 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 74.9 = 46 Switzerland 3.04 Fibre Internet subscriptions /100 pop. 27.5 Korea, Rep. 3.05 Internet users % pop. 17.1 38.9 99 66.4 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 42.5 = 44 4.01 Inflation annual % change 7.9 4.8 137 Multiple (74) 4.02 Debt dynamics 0-100 (best) 78.5 Multiple (36) 28.7 110 Pillar 5: Health 0-100 (best) - Multiple (4) 67.9 67.7 44 Multiple (4)
- 32.3 52 Finland
Pillar 6: Skills 0-100 (best) 8.7 Finland 3.6 63.0 33 Switzerland 6.01 Mean years of schooling Years 4.4 Switzerland 6.02 Extent of staff training 1-7 (best) 4.1 99.9 69 Switzerland 6.03 Quality of vocational training 1-7 (best) 4.5 Sweden 6.04 Skillset of graduates 1-7 (best) 4.0 91.7 78 United States 6.05 Digital skills among population 1-7 (best) 15.9 Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 2.9 98.8 = 30 United States 6.07 School life expectancy Years 11.8 Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 83.5 31 78.1 12 593 | The Global Competitiveness Report 2018 100.0 = 18
55.0 34
66.4 58
83.8 61
89.1 118
78.5 57
87.3 43
65.3 59
57.8 = 81
44.0 93
56.9 46
51.3 66
57.6 53
49.5 81
88.4 = 36
30.9 114
95.6 = 22 Uruguay Economy Profiles
53rd /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 55.2 77 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.6 44.8 69 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.7 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.4 42.9 83 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 8.85 Hong Kong SAR 7.05 Trade tariffs % duty 6.7 62.3 86 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.5 Germany 7.07 Efficiency of the clearance process 15 (best) 28.4 56.8 65 7.08 Services trade openness 0-100 (worst) Ecuador
- 41.0 95
Pillar 8: Labour market 0-100 (best) 20.8 United States 94.4 19 Multiple (8) 8.01 Redundancy costs weeks of salary 2.6 8.02 Hiring and firing practices 1-7 (best) 3.3 37.9 87 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 2.2 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.8 71.6 = 63 8.05 Active Labour policies 1-7 (best) 95.9 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 5.0 58.1 77 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.3 65.0 = 92 Albania 8.09 Reliance on professional management 1-7 (best) 3.3 Guinea 8.10 Pay and productivity 1-7 (best) 0.82 27.0 133 Finland 8.11 Female participation in Labour force ratio 15.6 8.12 Labour tax rate % 38.5 138 United States Pillar 9: Financial system 0-100 (best) 28.4 20.4 140 9.01 Domestic credit to private sector % GDP 3.7 46.4 51 9.02 Financing of SMEs 1-7 (best) 2.7 United States 9.03 Venture capital availability 1-7 (best) 1.1 95.9 8 Multiple (29) 9.04 Market capitalization % GDP 2.3 9.05 Insurance premium % GDP 5.6 66.0 10 United States 9.06 Soundness of banks 1-7 (best) 2.3 United States 9.07 Non-performing loans % loan portfolio value 7.1 52.6 100 9.08 Credit gap percentage points 15.1 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 54.3 65 Multiple (16) - Pillar 10: Market size 0-100 (best) 71 38.4 119 Finland 20.5 Multiple (2) 10.01 Gross domestic product PPP $ billions 77.0 50 Multiple (97) 10.02 Imports % GDP - Multiple (72) 22.5 89.4 = 68 Pillar 11: Business dynamism 0-100 (best) China 6.5 55.3 81 China 11.01 Cost of starting a business % GNI per capita 41.7 Hong Kong SAR 11.02 Time to start a business days 29.9 104 11.03 Insolvency recovery rate cents/$ 9.5 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.2 45.5 75 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.0 11.06 Willingness to delegate authority 1-7 (best) 3.6 28.4 89 New Zealand 11.07 Growth of innovative companies 1-7 (best) 3.0 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 1.1 112 Pillar 12: Innovation capability 0-100 (best) 4.5 37.5 = 53 Israel 12.01 Diversity of workforce 1-7 (best) 0.56 76.0 36 Denmark 12.02 State of cluster development 1-7 (best) 3.2 Israel 12.03 International co-inventions applications/million pop. 153.7 96.3 38 12.04 Multi-stakeholder collaboration 1-7 (best) 1.72 United States 12.05 Scientific publications H Index 0.3 86.7 125 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 3.4 96.1 = 87 Canada 12.08 Quality of research institutions index 1,058.26 12.09 Buyer sophistication 1-7 (best) 44.5 93 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 129 Multiple (7) 56.3 79 Multiple (7) 88.8 = 108 94.0 = 37 Multiple (7)
44.9 53
37.4 128
50.6 90
42.7 107
32.9 127
36.4 70
57.5 69
37.0 110
13.7 53
36.5 105
74.7 70
18.4 57
11.2 = 80
0.5 89
39.7 70
74.9 49
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 593 595 | The Global Competitiveness Report 2018 Venezuela Economy Profiles
127th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 117th/135
Performance Key Previous edition Upper middle income group average Latin America and the Caribbean average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 60 59
50 47 46 43 39
30 27 28 31
0 0
Rank /140 127th 140th 118th 97th 140th 59th 78th 137th 131st 91st 56th 139th 95th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 31.4 GDP (PPP) % world GDP 0.30 GDP per capita US$ 6,684.0 Unemployment rate % 7.7 10-year average annual GDP growth % 0.5 -3.2 5-year average FDI inward flow % GDP
Social and environmental performance 3.3 Income Gini 0 (perfect equality) -100 (perfect inequality) 46.9
The Global Competitiveness Report 2018 | 595 Economy Profiles 127th /140
Venezuela Value Score * Rank/140 Best Performer
Index Component - 27.3 140 New Zealand 2.6 Finland Pillar 1: Institutions 0-100 (best) 56.3 26.3 137 1.01 Organized crime 1-7 (best) 1.7 0.0 138 Multiple (24) 1.02 Homicide rate /100,000 pop. 43.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 53.8 98.3 98 Finland 1.04 Reliability of police services 1-7 (best) 1.1 Australia 1.05 Social capital 0-100 (high) 1.2 11.8 140 Multiple (2) 1.06 Budget transparency 0-100 (best) 46.0 1.07 Judicial independence 1-7 (best) 1.7 43.8 118 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 1.5 Finland 1.09 Freedom of the press 0-100 (worst) 0.40 53.8 = 67 Norway 1.10 Burden of government regulation 1-7 (best) 1.5 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 18.0 2.4 139 Singapore 1.12 E-Participation Index 0-1 (best) 1.7 Multiple (3) 1.13 Future orientation of government 1-7 (best) 1.7 4.1 140 Singapore 1.14 Incidence of corruption 0-100 (best) 5.5 New Zealand 1.15 Property rights 1-7 (best) 4.2 54.0 117 Finland 1.16 Intellectual property protection 1-7 (best) 2.7 Finland 1.17 Quality of land administration 0-30 (best) 2.7 11.5 139 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 8.1 140 Multiple (2) 1.20 Shareholder governance 0-10 (best) 76.9 Kazakhstan 40.5 114 Pillar 2: Infrastructure 0-100 (best) 2.8 Singapore 0.4 7.8 140 United States 2.01 Road connectivity index 0-100 (best) 1.5 2.02 Quality of roads 1-7 (best) 7,402.4 18.0 139 Singapore 2.03 Railroad density km of roads/square km 2.4 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 7.9 11.7 140 Switzerland 2.05 Airport connectivity score 2.2 2.06 Efficiency of air transport services 1-7 (best) 99.5 11.8 140 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 34.6 Singapore 2.08 Efficiency of seaport services 1-7 (best) 6.5 18.3 = 133 Multiple (4) 2.09 Electrification rate % pop. 2.1 Singapore 2.10 Electric power transmission and distribution losses % output 53.2 95 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 76.6 27.0 = 138 Multiple (23) 50.1 Switzerland Pillar 3: ICT adoption 0-100 (best) 27.0 = 136 8.2 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 47.5 118 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 60.0 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 76.9 = 41 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 671.0 29.9 121 Pillar 4: Macroeconomic stability 0-100 (best) 0.0 0.9 = 100 4.01 Inflation annual % change - 7.7 132 Multiple (74) 4.02 Debt dynamics 0-100 (best) 66.6 Multiple (36) 29.0 109 Pillar 5: Health 0-100 (best) - Multiple (4) 10.1 22.9 137 Multiple (4) 3.4 7.9 95 Finland Pillar 6: Skills 0-100 (best) 3.8 Finland 3.8 20.3 130 Switzerland 6.01 Mean years of schooling Years 3.6 Switzerland 6.02 Extent of staff training 1-7 (best) 3.2 99.5 76 Switzerland 6.03 Quality of vocational training 1-7 (best) 14.3 Sweden 6.04 Skillset of graduates 1-7 (best) 3.0 68.1 123 United States 6.05 Digital skills among population 1-7 (best) n/a Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 95.5 = 39 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 19.0 135 42.6 97 597 | The Global Competitiveness Report 2018 63.8 123
n/a 94
16.3 79
n/a 111
60.0 67
83.0 59
83.0 58
60.2 78
67.2 = 58
40.4 116
46.2 88
46.7 90
44.0 103
37.4 132
79.4 = 66
34.0 98
68.4 n/a Venezuela Economy Profiles
127th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 39.2 137 Singapore 2.0 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 2.8 16.1 140 Switzerland 7.02 Extent of market dominance 1-7 (best) 3.7 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.6 29.2 131 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 12.00 Hong Kong SAR 7.05 Trade tariffs % duty 6.6 45.1 135 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 1.8 Germany 7.07 Efficiency of the clearance process 15 (best) 35.0 42.6 132 7.08 Services trade openness 0-100 (worst) Ecuador
- 20.0 122
Pillar 8: Labour market 0-100 (best) N/Appl. United States 93.7 22 Multiple (8) 8.01 Redundancy costs weeks of salary 1.6 8.02 Hiring and firing practices 1-7 (best) 3.5 19.7 135 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.3 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 1.7 65.0 = 72 8.05 Active Labour policies 1-7 (best) 77.3 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.9 46.1 131 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.2 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.1 0.0 138 Albania 8.09 Reliance on professional management 1-7 (best) 2.2 Guinea 8.10 Pay and productivity 1-7 (best) 0.69 10.6 140 Finland 8.11 Female participation in Labour force ratio 18.0 8.12 Labour tax rate % 42.5 128 United States Pillar 9: Financial system 0-100 (best) 25.2 55.3 116 9.01 Domestic credit to private sector % GDP 3.4 11.8 136 9.02 Financing of SMEs 1-7 (best) 2.3 United States 9.03 Venture capital availability 1-7 (best) 6.6 77.3 44 Multiple (29) 9.04 Market capitalization % GDP 3.3 9.05 Insurance premium % GDP 3.6 48.9 84 United States 9.06 Soundness of banks 1-7 (best) 0.8 United States 9.07 Non-performing loans % loan portfolio value 3.1 53.0 96 9.08 Credit gap percentage points 15.0 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 51.7 76 Multiple (16) - Pillar 10: Market size 0-100 (best) 347 19.7 139 Finland 8.3 Multiple (2) 10.01 Gross domestic product PPP $ billions 61.8 75 Multiple (97) 10.02 Imports % GDP - Multiple (72) 351.6 86.1 = 78 Pillar 11: Business dynamism 0-100 (best) 230.0 China 54.0 91 China 11.01 Cost of starting a business % GNI per capita 5.6 Hong Kong SAR 11.02 Time to start a business days 5.0 26.6 = 108 11.03 Insolvency recovery rate cents/$ 4.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.2 39.4 104 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.2 11.06 Willingness to delegate authority 1-7 (best) 3.6 21.9 115 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 6.6 97 4.7 Multiple (5) Pillar 12: Innovation capability 0-100 (best) 2.4 55.4 = 38 Israel 0.11 12.01 Diversity of workforce 1-7 (best) 3.3 43.9 118 Denmark 12.02 State of cluster development 1-7 (best) 185.0 Israel 12.03 International co-inventions applications/million pop. 0.28 99.3 6 12.04 Multi-stakeholder collaboration 1-7 (best) n/a United States 12.05 Scientific publications H Index 0.01 97.1 = 112 12.06 Patent applications applications/million pop. 2.1 Germany 12.07 R&D expenditures % GDP 386.40 95.9 = 88 Canada 12.09 Buyer sophistication 1-7 (best) 59.3 56 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 46 n/a 140 Multiple (7) 27.7 139 Multiple (7) 0.0 140 Multiple (7)
6.0 132
49.9 69
53.1 75
37.2 127
44.1 55
31.2 95
61.2 48
23.9 139
3.1 82
38.7 92
77.4 56
4.6 82
17.7 n/a
2.5 65
18.8 136
64.1 76
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 597 599 | The Global Competitiveness Report 2018 Viet Nam Economy Profiles
77th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 74th/135
Performance Overview Key Previous edition Lower middle income group average East Asia and Pacific average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
80 81
65 62
60 58 56
50 54 52 54
0
Rank /140 77th 94th 75th 95th 64th 68th 97th 102nd 90th 59th 29th 101st 82nd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 93.6 GDP (PPP) % world GDP 0.51 GDP per capita US$ 2,353.7 Unemployment rate % 2.1 10-year average annual GDP growth % 5.7 5.8 5-year average FDI inward flow % GDP
Social and environmental performance 1.7 Global Gender Gap Index 0-1 (gender parity) 0.7 4.0 Income Gini 0 (perfect equality) -100 (perfect inequality) 35.3
The Global Competitiveness Report 2018 | 599 Economy Profiles 77th /140
Viet Nam Value Score * Rank/140 Best Performer
Index Component - 49.5 94 New Zealand Pillar 1: Institutions 0-100 (best) 1.5 62.7 76 1.01 Organized crime 1-7 (best) 4.3 96.5 = 49 Multiple (24) 1.02 Homicide rate /100,000 pop. 48.0 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 65.4 100.0 = 1 Finland 1.04 Reliability of police services 1-7 (best) 3.4 Australia 1.05 Social capital 0-100 (high) 3.3 55.2 76 Multiple (2) 1.06 Budget transparency 0-100 (best) 75.1 1.07 Judicial independence 1-7 (best) 3.1 48.0 93 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.69 65.4 = 42 Norway 1.10 Burden of government regulation 1-7 (best) 3.6 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 35.0 40.2 89 Singapore 1.12 E-Participation Index 0-1 (best) 3.9 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.5 38.1 69 Singapore 1.14 Incidence of corruption 0-100 (best) 14.0 New Zealand 1.15 Property rights 1-7 (best) 3.5 25.0 139 Finland 1.16 Intellectual property protection 1-7 (best) 4.3 Finland 1.17 Quality of land administration 0-30 (best) 6.7 34.6 96 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 38.5 88 Multiple (2) 1.20 Shareholder governance 0-10 (best) 44.3 Kazakhstan Pillar 2: Infrastructure 0-100 (best) 3.2 Singapore 7.1 43.9 75 United States 2.01 Road connectivity index 0-100 (best) 3.4 2.02 Quality of roads 1-7 (best) 364,184.2 35.0 91 Singapore 2.03 Railroad density km of roads/square km 3.8 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 60.5 47.9 104 Switzerland 2.05 Airport connectivity score 3.8 2.06 Efficiency of air transport services 1-7 (best) 98.3 42.2 105 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 9.1 Singapore 2.08 Efficiency of seaport services 1-7 (best) 15.0 46.7 = 78 Multiple (4) 2.09 Electrification rate % pop. 4.3 Singapore 2.10 Electric power transmission and distribution losses % output 42.5 128 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 125.6 43.0 = 112 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 46.9 67.0 = 32 11.8 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.3 65.4 75 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 46.5 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 44.3 = 107 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 3.1 36.0 109 Pillar 4: Macroeconomic stability 0-100 (best) 17.7 = 57 4.01 Inflation annual % change 65.9 39.2 61 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 86.0 22
Pillar 5: Health 0-100 (best) 7.6 Multiple (4) 3.7 47.4 101 Multiple (4) 5.01 Healthy life expectancy years 3.5 3.3 60.5 20 Finland Pillar 6: Skills 0-100 (best) 3.7 Finland 3.7 46.4 78 Switzerland 6.01 Mean years of schooling Years 12.6 Switzerland 6.02 Extent of staff training 1-7 (best) 2.9 98.3 87 Switzerland 6.03 Quality of vocational training 1-7 (best) 19.6 Sweden 6.04 Skillset of graduates 1-7 (best) 94.7 55 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 86.7 = 82 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 55.1 95 43.3 95 601 | The Global Competitiveness Report 2018 100.0 = 50
23.6 69
46.5 88
75.0 = 64
81.0 68
81.0 67
54.3 97
50.7 = 98
45.8 81
38.6 128
44.6 98
44.6 104
31.4 113
75.9 76 Viet Nam Economy Profiles
77th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 52.1 102 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.6 40.0 94 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.9 43.7 77 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 8.12 Hong Kong SAR 7.05 Trade tariffs % duty 5.6 59.6 103 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 3.0 Germany 7.07 Efficiency of the clearance process 15 (best) 36.0 47.6 124 7.08 Services trade openness 0-100 (worst) Ecuador
- 45.9 93
Pillar 8: Labour market 0-100 (best) 24.6 United States 75.9 73 Multiple (8) 8.01 Redundancy costs weeks of salary 4.1 8.02 Hiring and firing practices 1-7 (best) 4.2 48.8 42 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.7 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 3.0 64.0 = 73 8.05 Active Labour policies 1-7 (best) 68.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.8 55.6 90 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.7 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.4 57.2 = 106 Albania 8.09 Reliance on professional management 1-7 (best) 3.9 Guinea 8.10 Pay and productivity 1-7 (best) 0.70 51.3 46 Finland 8.12 Labour tax rate % 52.8 92 United States Pillar 9: Financial system 0-100 (best) 112.0 61.7 89 9.01 Domestic credit to private sector % GDP 3.7 33.7 78 9.02 Financing of SMEs 1-7 (best) 3.2 United States 9.03 Venture capital availability 1-7 (best) 28.0 68.0 82 Multiple (29) 9.04 Market capitalization % GDP 1.2 9.05 Insurance premium % GDP 3.7 47.3 95 United States 9.06 Soundness of banks 1-7 (best) 2.3 United States 9.07 Non-performing loans % loan portfolio value 2.2 61.6 49 9.08 Credit gap percentage points 12.7 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 39.5 124 Multiple (16) - Pillar 10: Market size 0-100 (best) 590 49.1 66 Finland 103.6 Multiple (2) 10.01 Gross domestic product PPP $ billions 62.9 73 Multiple (97) 10.02 Imports % GDP - Multiple (72) 6.5 76.7 = 106 Pillar 11: Business dynamism 0-100 (best) 22.0 China 21.8 62.3 59 China 11.01 Cost of starting a business % GNI per capita 7.5 Hong Kong SAR 11.02 Time to start a business days 3.7 100.0 = 24 11.03 Insolvency recovery rate cents/$ 3.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.8 44.5 85 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 3.7 11.06 Willingness to delegate authority 1-7 (best) 36.7 51 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 4.2 28.0 60 Pillar 12: Innovation capability 0-100 (best) 0.12 19.8 = 91 Israel 12.01 Diversity of workforce 1-7 (best) 172.3 45.5 113 Denmark 12.02 State of cluster development 1-7 (best) 0.20 Israel 12.03 International co-inventions applications/million pop. 0.4 96.3 = 39 12.04 Multi-stakeholder collaboration 1-7 (best) 0.01 United States 12.05 Scientific publications H Index 3.2 99.5 101 12.06 Patent applications applications/million pop. 354.04 Germany 12.07 R&D expenditures % GDP 90.7 = 111 Canada 12.09 Buyer sophistication 1-7 (best) 70.9 29 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 7 Multiple (7) 53.7 101 Multiple (7) 96.8 66 78.4 104 Multiple (7)
23.5 109
45.2 93
47.3 110
46.6 90
44.7 52
33.4 82
52.6 91
45.2 77
3.4 80
38.2 97
76.3 59
3.4 89
12.5 = 76
3.0 60
36.2 90
63.2 79
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 601 603 | The Global Competitiveness Report 2018 Yemen Economy Profiles
139th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 135th/135
Performance Overview Key Previous edition Low income group average Middle East and North Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
54 50
44 39
40 36 38 37 38
29 34 34
18 23
0
Rank /140 139th 139th 138th 136th 133rd 120th 132nd 131st 140th 140th 113rd 136th 133rd
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 30.0 GDP (PPP) % world GDP 0.03 GDP per capita US$ 550.8 Unemployment rate % 14.0 10-year average annual GDP growth % -1.1 -9.5 5-year average FDI inward flow % GDP
Social and environmental performance 1.0 Income Gini 0 (perfect equality) -100 (perfect inequality) 36.7
The Global Competitiveness Report 2018 | 603 Economy Profiles 139th /140
Yemen Value Score * Rank/140 Best Performer
Index Component - 29.5 139 New Zealand Pillar 1: Institutions 0-100 (best) 6.7 37.2 130 16.9 Multiple (9) 1.01 Organized crime 1-7 (best) 2.7 79.1 = 100 Multiple (24) 1.02 Homicide rate /100,000 pop. 37.8 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 34.6 16.9 138 Finland 1.04 Reliability of police services 1-7 (best) 2.4 Australia 1.05 Social capital 0-100 (high) 2.3 27.7 135 Multiple (2) 1.06 Budget transparency 0-100 (best) 62.2 1.07 Judicial independence 1-7 (best) 2.7 37.8 131 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 2.7 Finland 1.09 Freedom of the press 0-100 (worst) 0.12 34.6 = 116 Norway 1.10 Burden of government regulation 1-7 (best) 1.9 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 16.0 22.5 127 Singapore 1.12 E-Participation Index 0-1 (best) 2.8 Multiple (3) 1.13 Future orientation of government 1-7 (best) 2.4 20.9 128 Singapore 1.14 Incidence of corruption 0-100 (best) 7.0 New Zealand 1.15 Property rights 1-7 (best) 2.6 37.8 136 Finland 1.16 Intellectual property protection 1-7 (best) 4.3 Finland 1.17 Quality of land administration 0-30 (best) 4.3 27.5 121 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 28.3 122 Multiple (2) 1.20 Shareholder governance 0-10 (best) 36.2 Kazakhstan 11.8 137 Pillar 2: Infrastructure 0-100 (best) 2.2 Singapore n/a 14.7 139 United States 2.01 Road connectivity index 0-100 (best) 1.3 2.02 Quality of roads 1-7 (best) 4.2 16.0 140 Singapore 2.03 Railroad density km of roads/square km 2.2 Multiple (20) 2.04 Efficiency of train services 1-7 (best) 11.1 29.5 135 Switzerland 2.05 Airport connectivity score 2.2 2.06 Efficiency of air transport services 1-7 (best) 48.2 23.1 137 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 25.8 Singapore 2.08 Efficiency of seaport services 1-7 (best) 39.2 23.3 = 122 Multiple (4) 2.09 Electrification rate % pop. 1.5 Singapore 2.10 Electric power transmission and distribution losses % output 26.2 138 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 59.6 43.0 = 112 Multiple (23) Pillar 3: ICT adoption 0-100 (best) 5.7 43.0 = 100 1.6 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 33.5 138 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 24.6 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 36.2 = 118 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. -7.7 20.3 136 30.0 Iceland Pillar 4: Macroeconomic stability 0-100 (best) n/a n/a 4.01 Inflation annual % change 56.0 5.4 133 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 0.1 140
Pillar 5: Health 0-100 (best) 2.6 Multiple (4) 2.6 20.6 139 Multiple (4) 5.01 Healthy life expectancy years 2.5 2.7 11.1 80 Finland Pillar 6: Skills 0-100 (best) 2.9 Finland 3.4 19.2 132 Switzerland 6.01 Mean years of schooling Years 9.0 Switzerland 6.02 Extent of staff training 1-7 (best) 2.3 48.2 118 Switzerland 6.03 Quality of vocational training 1-7 (best) 26.9 Sweden 6.04 Skillset of graduates 1-7 (best) 77.3 120 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 62.1 = 121 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 8.9 140 17.6 136 605 | The Global Competitiveness Report 2018 49.6 = 131
n/a 139
3.1 = 106
24.6 112
53.7 133
77.3 126
30.0 = 137
50.0 120
50.0 119
34.4 132
17.3 = 134
27.2 138
25.1 139
27.7 139
32.2 134
39.8 120
49.9 = 131
22.4 134
57.7 98 Yemen Economy Profiles
139th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 44.2 131 Singapore 2.4 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 2.7 23.1 137 Switzerland 7.02 Extent of market dominance 1-7 (best) 3.9 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.5 29.1 132 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 6.57 Hong Kong SAR 7.05 Trade tariffs % duty 6.1 48.8 132 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.4 Germany 7.07 Efficiency of the clearance process 15 (best) n/a 42.1 134 7.08 Services trade openness 0-100 (worst) Ecuador
- 56.2 84
Pillar 8: Labour market 0-100 (best) 27.4 United States 84.5 63 Multiple (8) 8.01 Redundancy costs weeks of salary 2.7 8.02 Hiring and firing practices 1-7 (best) 3.8 35.0 105 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 4.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 1.8 56.2 n/a 8.05 Active Labour policies 1-7 (best) 0.0 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 3.5 37.6 140 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 3.6 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 2.5 51.3 = 114 Albania 8.09 Reliance on professional management 1-7 (best) 3.1 Guinea 8.10 Pay and productivity 1-7 (best) 0.04 28.2 131 Finland 8.11 Female participation in Labour force ratio 11.3 8.12 Labour tax rate % 46.8 116 United States Pillar 9: Financial system 0-100 (best) 5.1 65.2 68 2.6 Multiple (26) 9.01 Domestic credit to private sector % GDP 2.1 13.9 133 9.02 Financing of SMEs 1-7 (best) 0.0 United States 9.03 Venture capital availability 1-7 (best) 0.2 0.0 116 Multiple (29) 9.04 Market capitalization % GDP 2.7 9.05 Insurance premium % GDP 24.0 41.7 114 United States 9.06 Soundness of banks 1-7 (best) -0.5 United States 9.07 Non-performing loans % loan portfolio value 26.8 43.9 129 9.08 Credit gap percentage points Multiple (12) 9.09 Banks’ regulatory capital ratio ratio - 24.4 136 Multiple (16) Pillar 10: Market size 0-100 (best) 24.1 35.7 125 Finland 10.01 Gross domestic product PPP $ billions - 0.0 140 Multiple (97) 10.02 Imports % GDP 73.5 Multiple (72) 40.5 95.4 = 37 Pillar 11: Business dynamism 0-100 (best) 19.5 China 37.2 140 China 11.01 Cost of starting a business % GNI per capita 5.0 Hong Kong SAR 11.02 Time to start a business days 3.2 5.4 = 140 11.03 Insolvency recovery rate cents/$ 2.8 United States 11.04 Insolvency regulatory framework 0-16 (best) 3.3 27.0 133 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 2.7 11.06 Willingness to delegate authority 1-7 (best) 17.6 127 New Zealand 11.07 Growth of innovative companies 1-7 (best) - Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 3.2 0.0 121 Pillar 12: Innovation capability 0-100 (best) 0.00 3.7 = 132 Israel 12.01 Diversity of workforce 1-7 (best) 59.3 28.2 136 Denmark 12.02 State of cluster development 1-7 (best) 0.00 Israel 12.03 International co-inventions applications/million pop. n/a 52.6 = 134 12.04 Multi-stakeholder collaboration 1-7 (best) 0.00 United States 12.05 Scientific publications H Index 2.5 100.0 = 69 12.06 Patent applications applications/million pop. 72.18 Germany 12.07 R&D expenditures % GDP 100.0 = 5 Canada 12.09 Buyer sophistication 1-7 (best) 37.8 113 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 119 Multiple (7) 38.5 136 Multiple (7) 63.3 135 59.8 = 127 Multiple (7)
21.0 116
36.4 131
29.2 138
38.9 119
28.4 137
22.8 133
36.6 136
29.9 133
25.9 138
60.7 120
3.7 n/a
25.0 128
46.2 108
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 605 607 | The Global Competitiveness Report 2018 Zambia Economy Profiles
118th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 115th/135
Performance Overview Key Previous edition Lower middle income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
60 58 57
50 46 49 51 47 51 49 48
40 36
30 28
0
Rank /140 118th 96th 114th 106th 127th 138th 112nd 111th 124th 121st 92nd 77th 115th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 17.2 GDP (PPP) % world GDP 0.05 GDP per capita US$ 1,479.5 Unemployment rate % 7.8 10-year average annual GDP growth % 5.6 5.8 5-year average FDI inward flow % GDP
Environmental footprint gha/capita 1.0 Income Gini 0 (perfect equality) -100 (perfect inequality) 57.1 Inclusive Development Index 1-7 (best) 3.0
The Global Competitiveness Report 2018 | 607 Economy Profiles 118th /140
Zambia Value Score * Rank/140 Best Performer
Index Component - 48.8 96 New Zealand Pillar 1: Institutions 0-100 (best) 5.3 63.2 73 1.01 Organized crime 1-7 (best) 3.7 83.7 = 91 Multiple (24) 1.02 Homicide rate /100,000 pop. 54.3 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 50.0 99.9 51 Finland 1.04 Reliability of police services 1-7 (best) 3.0 Australia 1.05 Social capital 0-100 (high) 2.6 45.4 98 Multiple (2) 1.06 Budget transparency 0-100 (best) 35.4 1.07 Judicial independence 1-7 (best) 3.5 54.3 44 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.6 Finland 1.09 Freedom of the press 0-100 (worst) 0.40 50.0 = 77 Norway 1.10 Burden of government regulation 1-7 (best) 3.5 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 37.0 34.0 104 Singapore 1.12 E-Participation Index 0-1 (best) 4.2 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.7 26.6 118 Singapore 1.14 Incidence of corruption 0-100 (best) 7.0 New Zealand 1.15 Property rights 1-7 (best) 3.8 64.6 92 Finland 1.16 Intellectual property protection 1-7 (best) 5.7 Finland 1.17 Quality of land administration 0-30 (best) 5.0 42.4 62 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 43.9 72 Multiple (2) 1.20 Shareholder governance 0-10 (best) 67.2 Kazakhstan 39.9 115 Pillar 2: Infrastructure 0-100 (best) 3.4 Singapore n/a 41.3 82 United States 2.01 Road connectivity index 0-100 (best) 2.2 2.02 Quality of roads 1-7 (best) 4,819.8 37.0 80 Singapore 2.03 Railroad density km of roads/square km 3.9 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 53.6 76 Switzerland 2.05 Airport connectivity score 2.6 2.06 Efficiency of air transport services 1-7 (best) 33.7 45.1 97 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 9.8 Singapore 2.08 Efficiency of seaport services 1-7 (best) 35.9 23.3 = 122 Multiple (4) 2.09 Electrification rate % pop. 3.1 Singapore 2.10 Electric power transmission and distribution losses % output 46.1 118 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 78.6 57.0 = 65 Multiple (23) 45.2 Switzerland Pillar 3: ICT adoption 0-100 (best) 50.0 = 81 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.0 51.0 114 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 25.5 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 67.2 = 61 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. 12.2 39.6 96 38.8 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 36.1 n/a 4.01 Inflation annual % change 51.5 20.4 107 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 25.0 117
Pillar 5: Health 0-100 (best) 7.9 Multiple (4) 3.5 47.9 99 Multiple (4) 5.01 Healthy life expectancy years 3.7 Pillar 6: Skills 0-100 (best) 3.7 Finland 4.6 26.4 122 Switzerland 6.01 Mean years of schooling Years 12.5 Switzerland 6.02 Extent of staff training 1-7 (best) 2.9 33.7 125 Switzerland 6.03 Quality of vocational training 1-7 (best) 47.9 Sweden 6.04 Skillset of graduates 1-7 (best) 94.0 60 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 65.4 = 117 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 35.2 119 33.7 106 609 | The Global Competitiveness Report 2018 65.5 121
n/a 103
0.4 124
n/a 98
25.5 109
58.0 127
77.2 127
38.8 126
35.8 138
35.8 137
47.1 112
52.7 = 95
42.1 106
45.3 95
47.8 81
44.5 99
60.8 37
69.4 = 95
31.5 110
5.1 = 132 Zambia Economy Profiles
118th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 50.7 111 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.3 39.9 96 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.6 Hong Kong SAR 7.03 Competition in services 1-7 (best) 4.2 37.9 109 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 10.77 Hong Kong SAR 7.05 Trade tariffs % duty 6.3 60.0 100 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.2 Germany 7.07 Efficiency of the clearance process 15 (best) 21.0 52.9 94 7.08 Services trade openness 0-100 (worst) Ecuador
- 28.2 113
Pillar 8: Labour market 0-100 (best) 50.6 United States 88.0 = 50 Multiple (8) 8.02 Hiring and firing practices 1-7 (best) 3.8 29.5 121 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 5.3 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 2.2 79.0 = 39 8.05 Active Labour policies 1-7 (best) 71.1 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 4.5 49.1 124 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 3.8 3.0 = 132 Albania 8.09 Reliance on professional management 1-7 (best) 3.6 Guinea 8.10 Pay and productivity 1-7 (best) 0.34 46.1 75 Finland 8.11 Female participation in Labour force ratio 10.4 8.12 Labour tax rate % 46.9 115 United States Pillar 9: Financial system 0-100 (best) 17.4 71.8 38 9.01 Domestic credit to private sector % GDP 3.1 20.8 116 9.02 Financing of SMEs 1-7 (best) 1.9 United States 9.03 Venture capital availability 1-7 (best) 13.8 71.1 60 Multiple (29) 9.05 Insurance premium % GDP 4.2 57.5 38 United States 9.06 Soundness of banks 1-7 (best) 9.7 United States 9.07 Non-performing loans % loan portfolio value -2.3 62.9 43 9.08 Credit gap percentage points 22.4 Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 46.7 96 Multiple (16) - Pillar 10: Market size 0-100 (best) 63 42.7 92 Finland 39.9 Multiple (2) 10.01 Gross domestic product PPP $ billions 16.9 120 Multiple (97) 10.02 Imports % GDP - Multiple (72) 34.2 96.7 = 32 Pillar 11: Business dynamism 0-100 (best) China 8.5 48.3 121 China 11.01 Cost of starting a business % GNI per capita 48.5 Hong Kong SAR 11.02 Time to start a business days 18.3 126 11.03 Insolvency recovery rate cents/$ 6.0 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.0 34.6 119 Multiple (2) 11.05 Attitudes toward entrepreneurial risk 1-7 (best) 4.5 11.06 Willingness to delegate authority 1-7 (best) 3.8 14.9 131 New Zealand 11.07 Growth of innovative companies 1-7 (best) 3.1 Norway 11.08 Companies embracing disruptive ideas 1-7 (best) 13.8 = 88 Pillar 12: Innovation capability 0-100 (best) 4.4 17.8 = 98 Israel 12.01 Diversity of workforce 1-7 (best) 0.02 54.1 100 Denmark 12.02 State of cluster development 1-7 (best) 3.2 Israel 12.03 International co-inventions applications/million pop. 104.3 81.5 101 12.04 Multi-stakeholder collaboration 1-7 (best) 0.02 United States 12.05 Scientific publications H Index 0.3 100.0 50 12.06 Patent applications applications/million pop. 0.00 Germany 12.07 R&D expenditures % GDP 2.7 100.0 = 12 Canada 12.08 Quality of research institutions index 32.93 12.09 Buyer sophistication 1-7 (best) 44.8 92 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 81 Multiple (7) 57.0 77 Multiple (7) 82.9 118
52.2 41
50.5 64
58.4 53
47.2 89
35.7 111
56.9 72
42.1 90
36.4 106
69.0 94
0.3 117
9.3 = 85
0.5 91
28.5 118
37.9 117
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 609 611 | The Global Competitiveness Report 2018 Zimbabwe Economy Profiles
128th / 140
Global Competitiveness Index 4.0 2018 edition Rank in 2017 edition: 124th/135
Performance Overview 2018 Key Previous edition Low income group average Sub-Saharan Africa average
Overall Enabling Human Markets Innovation Score Environment Capital Ecosystem
Best USA NZL SGP KOR (31) (4) FIN SGP USA USA CHN USA DEU
50 48 50 50
43 43 43 38 38 41 37
30 26
0
Rank /140 128th 124th 122nd 110th 120th 134th 109th 139th 122nd 108th 114th 132nd 128th
Overall Institutions Infrastructure ICT Macro- Health Skills Product Labour Financial Market Business Innovation adoption economic market market system size dynamism capability
Population millions 14.9 GDP (PPP) % world GDP 0.03 GDP per capita US$ 1,175.7 Unemployment rate % 5.0 10-year average annual GDP growth % 2.6
Social and environmental performance 1.1 Global Gender Gap Index 0-1 (gender parity) 0.7 2.8 Income Gini 0 (perfect equality) -100 (perfect inequality) 43.2
The Global Competitiveness Report 2018 | 611 Economy Profiles 128th /140
Zimbabwe Value Score * Rank/140 Best Performer
Index Component - 43.0 124 New Zealand 5.4 Finland Pillar 1: Institutions 0-100 (best) 6.7 73.2 33 1.01 Organized crime 1-7 (best) 3.3 79.1 = 101 Multiple (24) 1.02 Homicide rate /100,000 pop. 48.7 1.03 Terrorism incidence 0 (very high) -100 (no incidence) 38.5 99.9 69 Finland 1.04 Reliability of police services 1-7 (best) 2.9 Australia 1.05 Social capital 0-100 (high) 2.7 39.1 116 Multiple (2) 1.06 Budget transparency 0-100 (best) 40.5 1.07 Judicial independence 1-7 (best) 2.2 48.7 86 Finland 1.08 Efficiency of legal framework in challenging regulations 1-7 (best) 3.3 Finland 1.09 Freedom of the press 0-100 (worst) 0.28 38.5 = 110 Norway 1.10 Burden of government regulation 1-7 (best) 2.4 Singapore 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 22.0 32.1 109 Singapore 1.12 E-Participation Index 0-1 (best) 2.6 Multiple (3) 1.13 Future orientation of government 1-7 (best) 3.4 28.9 108 Singapore 1.14 Incidence of corruption 0-100 (best) 10.0 New Zealand 1.15 Property rights 1-7 (best) 4.9 59.5 102 Finland 1.16 Intellectual property protection 1-7 (best) 5.0 Finland 1.17 Quality of land administration 0-30 (best) 5.7 20.2 134 Singapore 1.18 Strength of auditing and reporting standards 1-7 (best) Finland 1.19 Conflict of interest regulation 0-10 (best) - 38.9 87 Multiple (2) 1.20 Shareholder governance 0-10 (best) 80.2 Kazakhstan 27.5 126 Pillar 2: Infrastructure 0-100 (best) 2.7 Singapore 6.6 23.8 132 United States 2.01 Road connectivity index 0-100 (best) 1.8 2.02 Quality of roads 1-7 (best) 3,605.3 22.0 = 131 Singapore 2.03 Railroad density km of roads/square km 3.5 Multiple (20) 2.04 Efficiency of train services 1-7 (best) n/a 26.3 137 Switzerland 2.05 Airport connectivity score 3.1 2.06 Efficiency of air transport services 1-7 (best) 33.8 39.9 113 Multiple (8) 2.07 Liner Shipping Connectivity Index 0157.1 (best) 17.2 Singapore 2.08 Efficiency of seaport services 1-7 (best) 38.4 33.3 102 Multiple (4) 2.09 Electrification rate % pop. 2.5 Singapore 2.10 Electric power transmission and distribution losses % output 64.3 56 Multiple (66) 2.11 Exposure to unsafe drinking water % pop. - Multiple (9) 2.12 Reliability of water supply 1-7 (best) 85.3 50.0 = 95 Multiple (23) 41.3 Switzerland Pillar 3: ICT adoption 0-100 (best) 57.0 = 69 1.1 Korea, Rep. 3.01 Mobile-cellular telephone subscriptions /100 pop. 0.1 42.9 122 Multiple (68) 3.02 Mobile-broadband subscriptions /100 pop. 23.1 United Arab Emirates 3.03 Fixed-broadband Internet subscriptions /100 pop. 80.2 = 31 Switzerland 3.04 Fibre Internet subscriptions /100 pop. - Korea, Rep. 3.05 Internet users % pop. -0.2 28.9 122 32.0 Iceland Pillar 4: Macroeconomic stability 0-100 (best) 16.5 = 61 4.01 Inflation annual % change 52.1 12.8 124 Multiple (74) 4.02 Debt dynamics 0-100 (best) Multiple (36)
- 22.5 122
Pillar 5: Health 0-100 (best) 8.1 Multiple (4) 3.7 41.7 115 Multiple (4) 5.01 Healthy life expectancy years 3.5 Pillar 6: Skills 0-100 (best) 3.8 Finland 4.2 34.6 103 Switzerland 6.01 Mean years of schooling Years 10.2 Switzerland 6.02 Extent of staff training 1-7 (best) 3.1 33.8 124 Switzerland 6.03 Quality of vocational training 1-7 (best) 36.4 Sweden 6.04 Skillset of graduates 1-7 (best) 86.2 106 United States 6.05 Digital skills among population 1-7 (best) Multiple (9) 6.06 Ease of finding skilled employees 1-7 (best) 62.9 = 120 United States 6.07 School life expectancy Years Multiple (6) 6.08 Critical thinking in teaching 1-7 (best) 25.1 129 32.6 110 613 | The Global Competitiveness Report 2018 71.0 115
2.3 108
23.1 114
65.1 120
98.2 93
32.0 135
37.7 133
48.1 109
54.3 = 89
44.9 87
40.9 116
48.5 79
46.1 93
52.9 64
56.7 = 120
35.3 91
34.0 = 117 Zimbabwe Economy Profiles
128th /140
Index Component Value Score * Rank/140 Best Performer
Pillar 7: Product market 0-100 (best) - 38.2 139 Singapore 7.01 Distortive effect of taxes and subsidies on competition 1-7 (best) 3.0 38.7 104 Switzerland 7.02 Extent of market dominance 1-7 (best) 4.4 Hong Kong SAR 7.03 Competition in services 1-7 (best) 3.8 33.0 123 Singapore 7.04 Prevalence of non-tariff barriers 1-7 (best) 15.01 Hong Kong SAR 7.05 Trade tariffs % duty 4.5 57.5 112 Hong Kong SAR 7.06 Complexity of tariffs 1-7 (best) 2.0 Germany 7.07 Efficiency of the clearance process 15 (best) 64.2 47.1 126 7.08 Services trade openness 0-100 (worst) Ecuador
- 0.0 134
Pillar 8: Labour market 0-100 (best) 25.3 United States 58.6 98 Multiple (8) 8.01 Redundancy costs weeks of salary 2.6 8.02 Hiring and firing practices 1-7 (best) 4.1 25.0 130 Hong Kong SAR 8.03 Cooperation in Labour-employer relations 1-7 (best) 2.9 Switzerland 8.04 Flexibility of wage determination 1-7 (best) 1.6 35.8 = 96 8.05 Active Labour policies 1-7 (best) 62.9 Hong Kong SAR 8.06 Workers’ rights 0-100 (best) 2.3 49.7 122 Switzerland 8.07 Ease of hiring foreign labour 1-7 (best) 4.8 Multiple (4) 8.08 Internal Labour mobility 1-7 (best) 4.7 55.7 = 108 Albania 8.09 Reliance on professional management 1-7 (best) 3.2 Guinea 8.10 Pay and productivity 1-7 (best) 0.49 26.5 134 Finland 8.11 Female participation in Labour force ratio 5.6 8.12 Labour tax rate % 51.0 97 United States Pillar 9: Financial system 0-100 (best) 22.8 31.8 136 9.01 Domestic credit to private sector % GDP 2.8 10.8 138 9.02 Financing of SMEs 1-7 (best) 1.9 United States 9.03 Venture capital availability 1-7 (best) 54.8 62.9 92 Multiple (29) 9.05 Insurance premium % GDP 3.3 21.1 140 United States 9.06 Soundness of banks 1-7 (best) 7.1 United States 9.07 Non-performing loans % loan portfolio value -0.7 63.0 42 9.08 Credit gap percentage points n/a Multiple (12) 9.09 Banks’ regulatory capital ratio ratio 62.4 40 Multiple (16) - Pillar 10: Market size 0-100 (best) 31 37.3 123 Finland 31.8 Multiple (2) 10.01 Gross domestic product PPP $ billions 36.3 100 Multiple (97) 10.02 Imports % GDP - Multiple (72) 110.0 100.0 = 20 Pillar 11: Business dynamism 0-100 (best) 61.0 China 19.7 50.4 108 China 11.01 Cost of starting a business % GNI per capita Hong Kong SAR 11.02 Time to start a business days 5.0 24.0 = 113 11.03 Insolvency recovery rate cents/$ 4.1 United States 11.04 Insolvency regulatory framework 0-16 (best) 4.5 29.8 130 Multiple (2) 11.06 Willingness to delegate authority 1-7 (best) 3.0 14.7 133 New Zealand 11.07 Growth of innovative companies 1-7 (best) Norway 11.08 Companies embracing disruptive ideas 1-7 (best) - 54.8 = 37 Pillar 12: Innovation capability 0-100 (best) 2.6 6.1 = n/a Israel 12.01 Diversity of workforce 1-7 (best) 2.9 37.9 129 Denmark 12.02 State of cluster development 1-7 (best) 113.7 Israel 12.03 International co-inventions applications/million pop. 0.04 86.7 = 85 12.04 Multi-stakeholder collaboration 1-7 (best) n/a United States 12.05 Scientific publications H Index 0.00 100.0 = 66 12.06 Patent applications applications/million pop. 2.6 Germany 12.07 R&D expenditures % GDP 19.26 100.0 = n/a Canada 12.09 Buyer sophistication 1-7 (best) 37.1 114 United States 12.10 Trademark applications applications/million pop. Multiple (7) n/a 112 n/a 102 Multiple (7) 41.0 132 Multiple (7) 45.0 136 39.2 133 Multiple (7)
21.2 115
52.2 54
57.6 58
48.0 79
33.8 122
25.5 128
56.1 78
26.6 137
1.2 98
70.2 86
8.3 n/a
26.7 122
32.4 121
- Scores are on a 0 to 100 scale, where 100 represents the optimal situation or ‘frontier’. Arrows indicate the direction of the change in score from the previous
Note: For detailed methodology, definitions, sources, and periods, visit http://gcr.weforum.org/
The Global Competitiveness Report 2018 | 613 APPENDIX A The following pages report the GCI 4.0 2018 rankings for the twelve pillars of the Index (Tables 13). The Global pillars fall under four categories: Enabling Environment, Competitiveness Human Capital, Markets, and Innovation Ecosystem. Index 4.0 Detailed scorecards for all the economies are available 2018 Pillar Rankings in the Economy Profiles section of the report. Enhanced scorecards and sortable rankings for every component of the GCI 4.0 are available at http://gcr.weforum.org/.
The Global Competitiveness Report 2018 | 615
Table 1: The Global Competitiveness Index 4.0 2018: Enabling environment
- Institutions 2. Infrastructure 3. ICT adoption 4. Macroeconomic stability
Economy Rank Score Rank Score Rank Score Rank Score
Albania 68 53.9 100 57.3 74 52.3 97 70.0 Angola 120 44.4 88 61.2 83 47.2 111 68.5 Armenia 134 37.2 127 40.7 119 27.4 139 31.1 Austria 77 51.5 68 67.6 65 56.2 136 44.9 Bahrain 67 54.0 74 66.3 56 59.2 89 72.4 Belgium 15 73.6 31 77.9 22 73.5 1 100.0 Bolivia 18 72.7 12 88.3 46 64.7 1 100.0 Botswana 58 55.8 46 73.6 69 54.0 126 59.8 Brunei Darussalam 42 60.9 30 78.0 38 66.7 119 65.3 Burkina Faso 108 46.5 109 53.4 102 39.8 88 72.6 Cambodia 21 69.8 13 86.5 40 66.1 1 100.0 Canada 114 45.1 126 41.0 133 20.0 94 71.6 Chad 129 41.2 102 56.2 87 45.7 84 73.1 China 111 45.6 89 60.7 86 45.8 73 74.4 Congo, Democratic Rep. 62 54.7 108 53.9 98 42.0 1 100.0 Côte d’Ivoire 93 49.7 81 64.3 66 55.6 122 64.6 Cyprus 45 58.3 54 71.3 17 76.2 81 73.7 Denmark 70 53.6 58 69.9 30 69.6 52 89.2 Ecuador 86 50.6 128 37.9 124 26.2 80 73.8 El Salvador 135 36.3 132 36.6 134 18.4 129 56.5 Eswatini 126 41.9 112 51.7 92 44.4 74 74.4 Finland 125 43.0 125 42.1 131 22.0 76 74.3 Gambia, The 11 75.5 25 80.6 34 68.6 1 100.0 Germany 79 51.5 106 54.7 79 48.1 107 68.9 Greece 137 34.6 137 34.1 140 12.8 91 72.3 Guinea 32 63.6 41 75.2 49 61.3 1 100.0 Honduras 65 54.6 29 78.1 26 71.5 39 98.3 Hungary 89 50.3 83 63.0 84 46.7 56 87.3 India 136 36.0 139 33.1 137 17.1 138 39.1 Iran, Islamic Rep. 44 59.1 78 65.1 55 59.6 85 73.0 Israel 118 44.5 113 51.2 104 38.9 68 75.0 Jamaica 74 52.0 36 76.8 53 60.2 106 69.3 Jordan 37 63.0 43 74.9 33 68.8 63 78.9 Kenya 43 60.5 18 83.5 42 65.7 1 100.0 Kuwait 10 75.9 14 86.3 8 82.3 1 100.0 99 48.5 77 65.3 82 47.4 77 74.2
100 48.4 59 69.7 89 45.7 87 73.0
102 48.1 56 70.5 100 40.6 135 51.0
131 40.7 90 59.7 103 39.5 69 74.9
22 69.5 42 75.2 14 77.4 1 100.0
97 48.8 94 58.8 125 24.9 115 67.8
116 44.9 120 45.5 138 16.0 113 68.0
2 81.0 23 82.3 16 77.0 1 100.0
23 69.5 8 90.1 29 71.1 33 99.9
95 49.3 110 52.1 114 28.3 123 63.6
40 61.0 72 66.7 45 64.8 72 74.5
16 73.5 7 90.2 31 69.3 1 100.0
59 55.7 116 50.3 88 45.7 132 54.8
87 50.5 38 76.2 57 58.9 83 73.6
123 43.5 96 58.3 112 31.1 75 74.4
128 41.6 131 37.2 132 21.0 108 68.7
138 32.9 140 28.6 129 22.6 125 61.0
117 44.7 98 58.0 115 28.1 78 74.2
6 76.9 2 94.0 2 87.9 1 100.0
66 54.2 28 78.4 51 61.0 43 90.0
14 74.3 37 76.4 7 82.7 1 100.0
47 57.9 63 68.7 117 28.0 49 89.8
48 57.9 71 66.8 50 61.1 51 89.7
121 44.3 76 65.4 80 47.6 117 66.9
17 73.1 34 77.0 41 66.0 37 99.4
26 66.3 20 83.3 39 66.7 38 99.1
56 56.4 21 83.1 52 60.3 58 85.0
82 50.9 82 63.5 91 44.4 97 70.0
20 71.1 5 91.5 3 87.4 41 93.9
50 57.7 73 66.6 75 52.3 101 69.9
61 54.9 69 67.3 44 64.9 62 80.3
64 54.6 105 54.8 113 30.2 104 69.5
27 65.4 6 91.3 1 91.3 1 100.0
57 56.0 61 69.3 62 56.8 1 100.0
88 50.4 107 54.3 73 52.8 64 75.0
616 | The Global Competitiveness Report 2018
Table 1: The Global Competitiveness Index 4.0 2018: Enabling environment (cont’d.)
- Institutions 2. Infrastructure 3. ICT adoption 4. Macroeconomic stability
Economy Rank Score Rank Score Rank Score Rank Score
Lao PDR 119 44.5 99 57.5 96 42.7 110 68.5 Lebanon 49 57.9 47 73.1 11 80.4 1 100.0 Liberia 113 45.2 95 58.5 59 57.0 114 67.9 Luxembourg 107 46.5 134 35.6 107 33.5 90 72.4 Malawi 115 45.1 136 34.8 139 14.9 124 63.4 Mali 41 60.9 44 74.7 18 75.8 1 100.0 Mauritania 12 75.2 16 84.7 20 74.8 1 100.0 Mexico 85 50.6 80 64.5 70 54.0 70 74.6 Mongolia 103 48.0 129 37.8 128 23.0 128 57.5 Morocco 24 68.7 32 77.9 32 69.1 1 100.0 Namibia 132 40.3 123 42.7 121 26.7 82 73.7 Netherlands 33 63.5 52 71.7 24 72.4 1 100.0 Nicaragua 133 38.4 135 35.4 118 27.7 97 70.0 Norway 38 62.8 67 68.0 47 62.1 43 90.0 Pakistan 105 47.7 49 72.9 76 51.3 35 99.4 Paraguay 84 50.8 79 65.0 48 61.7 95 71.6 Philippines 80 51.1 103 56.2 78 48.7 121 65.0 Portugal 63 54.7 86 62.2 58 57.1 102 69.7 Romania 54 56.6 53 71.5 93 44.2 47 90.0 Rwanda 130 41.2 130 37.3 122 26.3 137 44.5 Senegal 51 57.2 91 59.7 105 37.3 100 69.9 Seychelles 98 48.5 117 48.5 101 40.5 96 70.3 Singapore 4 77.9 4 92.4 19 75.1 1 100.0 Slovenia 1 81.6 39 76.1 23 73.4 1 100.0 Spain 122 43.9 104 55.2 111 32.0 79 74.0 Sweden 127 41.7 124 42.3 123 26.2 130 56.4 Taiwan, China 8 76.7 45 74.7 10 81.6 1 100.0 Tanzania 36 63.1 24 81.8 61 56.9 58 85.0 Trinidad and Tobago 109 46.3 93 59.0 127 23.6 103 69.6 Turkey 83 50.9 66 68.3 81 47.5 50 89.8 Ukraine 112 45.3 101 56.3 99 41.5 71 74.6 United Kingdom 90 50.2 85 62.4 94 43.9 1 100.0 Uruguay 101 48.3 92 59.4 67 54.8 43 90.0 Viet Nam 53 57.1 27 79.3 68 54.4 1 100.0 Zambia 30 63.9 19 83.3 37 67.1 58 85.0 31 63.8 26 80.0 9 81.9 40 96.5
46 58.1 55 71.2 36 67.1 53 89.2
72 52.7 51 72.2 25 72.1 55 87.5
29 64.4 115 50.8 120 27.1 92 71.8
39 62.2 40 75.5 54 59.9 1 100.0
73 52.5 111 51.8 116 28.0 105 69.4
76 51.6 48 73.0 60 56.9 64 75.0
52 57.1 70 67.0 63 56.6 64 75.0
106 46.9 133 36.3 130 22.4 134 52.3
3 80.7 1 95.7 4 85.2 42 92.6
55 56.4 33 77.6 35 67.8 32 99.9
35 63.1 35 76.9 43 65.6 1 100.0
69 53.8 64 68.6 85 46.1 57 86.7
28 64.5 10 89.1 21 73.8 43 90.0
78 51.5 65 68.6 109 32.9 112 68.2
9 76.0 17 84.4 5 85.2 1 100.0
5 77.1 3 93.3 15 77.0 36 99.4
25 68.5 22 82.6 13 77.9 1 100.0
81 50.9 87 61.5 108 33.0 109 68.6
91 50.0 119 46.0 135 18.3 86 73.0
60 55.1 60 69.7 64 56.6 48 89.9
92 49.7 97 58.0 72 53.3 54 87.8
75 52.0 84 62.5 90 45.1 118 65.7
71 52.9 50 72.6 71 53.5 116 67.4
104 47.9 121 43.2 126 24.5 93 71.6
110 46.3 57 70.1 77 51.0 131 55.9
19 71.8 15 86.2 6 83.7 1 100.0
7 76.8 11 89.0 28 71.1 1 100.0
13 74.6 9 89.5 27 71.2 34 99.6
34 63.2 62 68.8 12 78.1 61 83.8
140 27.3 118 47.5 97 42.6 140 0.0
94 49.5 75 65.4 95 43.3 64 75.0
139 29.5 138 33.5 136 17.6 133 53.7
96 48.8 114 51.0 106 33.7 127 58.0
124 43.0 122 42.9 110 32.6 120 65.1
The Global Competitiveness Report 2018 | 617
Table 2: The Global Competitiveness Index 4.0 2018: Human capital and Markets (Pillars 78)
HUMAN CAPITAL MARKETS 5. Health 6. Skills 8. Labour market
Economy Rank Score Rank Score Rank Score Rank Score
Albania 45 86.8 47 68.7 58 57.0 34 64.8 Angola 66 81.5 88 57.4 128 45.4 134 44.0 Armenia 118 50.9 138 31.1 140 37.5 135 43.5 Austria 53 85.1 51 68.4 120 48.3 116 50.7 Bahrain 61 82.7 55 67.6 39 61.2 33 65.0 Belgium 8 98.5 12 81.0 8 70.2 22 68.5 Bolivia 15 96.7 17 78.4 17 66.5 26 67.3 Botswana 91 73.1 54 67.8 37 61.4 40 63.6 Brunei Darussalam 74 79.2 28 73.6 28 63.0 46 63.0 Burkina Faso 96 71.2 116 44.0 123 47.8 115 50.9 Cambodia 28 94.1 16 79.5 22 64.3 37 64.4 Canada 121 49.8 119 42.5 86 54.0 118 50.6 Chad 87 75.0 93 56.6 119 48.5 126 47.5 China 52 85.3 87 57.5 106 51.6 112 51.2 Congo, Democratic Rep. 115 51.9 92 56.7 95 53.1 57 60.5 Côte d’Ivoire 73 79.6 94 56.0 117 48.9 114 51.0 Cyprus 50 85.9 58 66.0 44 60.9 38 64.2 Denmark 70 80.0 60 64.7 62 56.7 50 62.0 Ecuador 129 40.4 137 31.7 101 52.3 109 51.6 El Salvador 127 42.2 134 32.9 127 45.6 133 44.5 Eswatini 104 62.9 121 41.0 114 50.0 65 59.7 Finland 132 39.0 111 47.4 109 51.1 106 51.9 Gambia, The 12 97.5 11 81.0 20 64.9 6 77.0 Germany 86 75.6 98 53.3 96 52.8 84 57.6 Greece 136 36.6 139 29.9 138 38.4 139 42.0 Guinea 30 93.4 42 69.6 13 68.2 45 63.2 Honduras 44 87.0 63 64.1 55 57.4 69 59.3 Hungary 35 90.9 80 59.9 85 54.0 80 57.9 India 128 41.0 117 42.7 126 46.3 81 57.8 Iran, Islamic Rep. 13 97.4 44 69.1 46 60.4 64 59.7 Israel 133 38.0 130 37.3 90 53.5 105 52.1 Jamaica 51 85.7 65 63.4 71 55.7 96 54.8 Jordan 26 94.4 33 72.8 26 63.3 28 66.9 Kenya 41 87.8 25 73.7 47 60.4 47 63.0 Kuwait 31 93.4 5 84.9 15 66.9 5 78.0 63 82.5 90 57.0 84 54.1 51 61.6
39 88.1 75 61.0 125 47.1 113 51.2
99 68.9 99 52.8 121 48.2 130 46.4
60 82.7 107 48.3 87 54.0 104 52.2
54 84.9 18 78.0 21 64.8 21 69.3
139 30.1 102 52.3 104 51.6 86 57.5
113 56.0 135 32.6 135 41.0 98 54.6
22 95.4 1 87.9 14 66.9 19 70.9
7 99.1 34 72.6 31 62.5 53 61.5
111 57.1 115 44.0 97 52.6 99 54.5
80 78.2 45 68.9 42 61.0 31 65.6
25 94.5 4 85.4 7 72.0 12 74.1
112 56.0 104 51.3 61 56.8 89 55.9
21 95.7 39 70.4 63 56.7 107 51.8
89 74.6 101 52.6 40 61.1 110 51.3
130 40.4 136 32.5 94 53.1 128 46.5
122 49.7 126 39.0 133 42.8 123 49.4
85 75.8 108 48.2 59 56.9 88 56.4
1 100.0 19 77.4 2 79.0 11 74.2
69 80.7 49 68.5 82 54.4 83 57.8
10 98.4 9 83.3 43 60.9 9 75.0
108 59.0 96 54.5 110 50.9 75 58.3
95 71.7 62 64.1 51 58.5 82 57.8
84 77.5 91 57.0 134 42.0 136 43.1
24 95.1 15 79.9 23 64.2 7 76.8
11 98.2 14 80.0 41 61.1 15 71.9
6 99.2 40 70.1 30 62.6 79 58.1
75 79.2 76 60.9 72 55.7 27 67.2
1 100.0 26 73.7 5 72.9 18 71.1
78 78.4 61 64.4 88 53.8 91 55.6
97 70.8 57 67.0 57 57.3 30 65.8
110 58.1 95 55.4 79 54.8 60 59.9
19 96.1 27 73.6 67 56.2 48 62.4
38 88.2 79 60.1 69 55.9 120 50.0
98 70.2 82 58.8 105 51.6 85 57.5
618 | The Global Competitiveness Report 2018
Table 2: The Global Competitiveness Index 4.0 2018: Human capital and Markets (Pillars 78) (cont’d.)
HUMAN CAPITAL MARKETS 5. Health 6. Skills 8. Labour market
Economy Rank Score Rank Score Rank Score Rank Score
Lao PDR 107 59.6 105 49.5 91 53.5 94 55.4 Lebanon 76 78.8 23 74.5 49 59.8 29 66.8 Liberia 37 88.4 64 63.6 108 51.2 101 54.2 Luxembourg 140 11.9 110 47.8 93 53.2 61 59.9 Malawi 123 47.7 129 37.8 124 47.2 108 51.8 Mali 77 78.8 31 73.3 53 57.7 32 65.2 Mauritania 14 96.8 22 74.7 9 69.3 13 73.7 Mexico 71 80.0 81 59.0 107 51.5 78 58.1 Mongolia 131 39.7 127 38.1 116 49.2 76 58.2 Morocco 62 82.6 24 74.2 24 63.6 20 70.2 Namibia 126 42.8 133 34.1 113 50.4 127 46.6 Netherlands 16 96.6 35 72.4 36 61.5 24 67.8 Nicaragua 103 65.6 131 34.6 136 39.4 137 42.8 Norway 83 77.7 74 61.0 19 65.6 74 58.3 Pakistan 56 84.6 86 57.9 54 57.5 100 54.4 Paraguay 92 72.7 73 61.2 70 55.7 71 59.1 Philippines 105 62.2 89 57.4 100 52.3 41 63.5 Portugal 55 84.8 52 68.1 45 60.9 25 67.5 Romania 88 74.9 114 45.2 75 55.2 119 50.0 Rwanda 135 37.7 140 28.2 115 49.6 138 42.5 Senegal 117 51.5 100 52.7 80 54.4 39 63.7 Seychelles 102 66.8 106 48.4 130 44.8 125 49.1 Singapore 20 96.0 6 84.5 6 72.3 10 74.9 Slovenia 18 96.2 10 83.2 4 73.5 4 78.4 Spain 36 90.4 113 45.5 89 53.8 103 52.8 Sweden 119 50.9 124 40.2 99 52.4 73 58.5 Taiwan, China 9 98.4 8 83.9 29 62.8 14 73.5 Tanzania 65 81.9 36 71.6 33 62.5 93 55.6 Trinidad and Tobago 109 58.2 125 39.9 122 47.9 121 49.7 Turkey 33 91.8 85 58.2 52 58.0 87 56.5 Ukraine 81 78.0 103 51.8 68 56.1 97 54.6 United Kingdom 32 93.3 83 58.6 50 59.5 72 58.8 Uruguay 101 67.6 67 62.9 60 56.9 36 64.5 Viet Nam 49 86.2 32 72.9 38 61.2 62 59.8 Zambia 23 95.3 41 69.9 35 61.9 35 64.7 40 88.0 38 70.7 25 63.6 54 61.3
72 79.8 69 61.8 56 57.3 56 60.7
100 68.5 50 68.5 83 54.2 67 59.5
106 60.9 123 40.9 65 56.6 49 62.1
64 82.4 30 73.4 32 62.5 102 53.4
114 55.9 118 42.5 81 54.4 92 55.6
67 81.5 56 67.5 66 56.5 52 61.5
82 78.0 43 69.3 48 60.1 23 67.8
137 36.3 128 38.1 132 44.1 132 44.7
1 100.0 20 76.0 1 81.2 3 80.2
57 84.0 48 68.6 78 55.0 58 60.2
34 91.6 29 73.5 27 63.1 43 63.4
125 43.2 84 58.4 74 55.2 55 61.0
1 100.0 37 70.7 34 62.0 68 59.5
46 86.7 70 61.7 129 44.9 117 50.6
17 96.5 7 84.2 10 68.8 17 71.1
5 99.8 2 87.3 16 66.8 2 80.4
27 94.2 21 75.6 18 65.7 16 71.4
93 72.2 72 61.4 64 56.6 70 59.2
116 51.7 120 41.5 112 50.6 95 54.8
42 87.3 66 63.0 92 53.4 44 63.3
90 73.5 68 62.6 98 52.4 59 60.2
58 83.2 71 61.4 103 51.7 129 46.4
48 86.2 77 60.5 76 55.2 111 51.2
124 44.8 122 40.9 118 48.7 63 59.8
94 72.0 46 68.9 73 55.3 66 59.5
79 78.4 53 68.1 11 68.8 42 63.4
29 93.9 13 80.2 12 68.7 8 76.5
47 86.5 3 86.3 3 73.8 1 81.9
43 87.3 59 65.3 77 55.2 77 58.1
59 83.0 78 60.2 137 39.2 131 46.1
68 81.0 97 54.3 102 52.1 90 55.6
120 50.0 132 34.4 131 44.2 140 37.6
138 35.8 112 47.1 111 50.7 124 49.1
134 37.7 109 48.1 139 38.2 122 49.7
The Global Competitiveness Report 2018 | 619
Table 3: The Global Competitiveness Index 4.0 2018: Markets (Pillars 910) and Innovation ecosystem
MARKETS INNOVATION ECOSYSTEM 10. Market size 11. Business dynamism 12. Innovation capability
Economy Rank Score Rank Score Rank Score Rank Score
Albania 105 51.3 108 39.2 48 64.1 91 31.7 Angola 122 47.8 38 66.4 113 51.3 106 29.9 Armenia 137 40.1 66 53.9 137 34.5 140 16.8 Austria 97 52.5 34 68.6 84 55.4 54 40.5 Bahrain 87 54.2 118 36.7 62 60.2 60 38.8 Belgium 13 85.6 25 72.3 15 75.2 18 69.8 Bolivia 28 72.9 43 64.3 26 69.9 15 74.3 Botswana 96 52.6 65 54.0 31 68.8 71 36.0 Brunei Darussalam 33 70.3 90 45.8 54 61.9 72 35.9 Burkina Faso 103 51.8 36 66.5 120 50.0 102 30.6 Cambodia 24 78.4 33 68.9 18 73.8 17 73.4 Canada 132 43.8 125 34.9 105 52.7 126 26.7 Chad 85 54.8 87 46.2 130 45.0 122 26.9 China 83 55.1 99 41.8 106 52.7 114 28.2 Congo, Democratic Rep. 69 59.5 111 38.6 103 53.0 101 30.6 Côte d’Ivoire 57 63.2 10 80.9 108 52.4 40 47.8 Cyprus 107 51.2 115 37.0 68 58.5 79 33.9 Denmark 71 58.2 64 54.6 61 60.3 48 43.9 Ecuador 124 47.6 112 38.3 112 51.6 130 24.9 El Salvador 135 42.2 136 22.6 123 48.8 131 23.8 Eswatini 92 53.6 88 46.2 128 45.3 96 31.2 Finland 130 45.0 89 46.0 117 50.3 109 29.1 Gambia, The 11 86.1 15 76.7 13 76.0 13 75.0 Germany 75 57.3 138 17.1 131 44.0 137 21.4 Greece 139 38.7 120 36.7 138 28.6 136 21.6 Guinea 20 80.3 46 62.7 46 64.3 53 41.3 Honduras 30 71.9 1 100.0 43 64.6 24 64.4 Hungary 53 63.8 37 66.5 49 63.6 73 35.5 India 133 43.6 96 42.8 133 40.5 139 18.8 Iran, Islamic Rep. 68 59.8 86 46.2 80 55.9 55 40.4 Israel 115 49.0 83 47.8 88 55.3 113 28.3 Jamaica 62 60.6 78 49.5 81 55.7 63 37.7 Jordan 95 53.3 110 39.1 34 66.9 45 44.7 Kenya 40 67.5 42 64.6 25 70.2 29 57.3 Kuwait 12 85.8 55 59.6 6 79.1 12 75.4 70 58.8 69 53.1 90 54.8 94 31.4
82 55.1 68 53.7 129 45.2 88 32.0
99 52.3 24 72.8 97 54.1 64 37.7
64 60.1 95 43.2 111 51.6 123 26.9
46 65.9 97 42.3 29 69.3 33 52.5
102 51.9 133 27.0 116 50.7 134 22.7
126 46.0 63 54.6 125 47.9 127 26.5
3 89.7 61 57.4 8 78.3 10 76.3
17 82.9 9 81.5 28 69.4 11 76.1
110 49.6 140 16.0 126 47.9 104 30.4
88 54.1 102 40.9 53 62.1 85 32.7
21 80.2 5 85.8 2 81.6 1 87.5
112 49.6 73 51.8 87 55.3 83 32.7
114 49.4 58 59.0 72 58.0 44 45.0
74 57.4 74 50.8 91 54.6 100 30.7
111 49.6 116 37.0 65 59.4 90 31.8
134 42.9 129 33.3 140 14.9 138 20.3
67 59.8 98 41.9 100 53.9 92 31.5
2 90.1 26 71.1 17 74.5 26 61.9
66 59.8 48 61.7 75 57.2 39 48.0
36 69.3 131 31.5 11 76.6 23 65.7
35 69.5 3 92.7 58 61.2 31 53.8
52 63.9 8 81.6 30 69.0 68 37.1
98 52.5 19 74.5 119 50.0 65 37.6
37 68.5 44 64.0 10 76.9 21 67.0
22 80.1 57 59.2 5 79.6 16 74.0
49 64.3 12 79.1 42 65.4 22 65.8
50 64.0 123 36.1 32 68.5 76 34.3
10 86.4 4 86.7 14 75.7 6 79.3
32 70.7 81 48.7 94 54.4 59 38.9
100 52.2 45 63.0 37 66.0 87 32.1
73 57.8 71 52.2 63 60.2 69 36.5
19 81.4 14 78.5 22 71.6 8 78.2
48 64.8 54 59.9 96 54.2 103 30.5
118 48.5 124 36.0 93 54.5 125 26.7
620 | The Global Competitiveness Report 2018
Table 3: The Global Competitiveness Index 4.0 2018: Markets (Pillars 910) and Innovation ecosystem (cont’d.)
MARKETS INNOVATION ECOSYSTEM 10. Market size 11. Business dynamism 12. Innovation capability
Economy Rank Score Rank Score Rank Score Rank Score
Lao PDR 106 51.3 100 41.1 134 40.1 117 27.4 Lebanon 94 53.5 94 44.0 47 64.3 52 42.0 Liberia 43 66.7 80 48.9 109 52.4 61 38.6 Luxembourg 120 48.5 135 24.8 118 50.0 132 23.7 Malawi 127 45.8 137 20.8 85 55.3 135 22.0 Mali 76 56.9 76 50.1 44 64.5 42 47.4 Mauritania 9 86.5 77 50.0 38 65.8 19 68.2 Mexico 80 55.6 109 39.2 57 61.2 98 31.1 Mongolia 123 47.7 127 34.2 127 47.4 112 28.6 Morocco 15 84.1 23 73.0 19 73.8 30 55.5 Namibia 129 45.6 106 39.8 110 51.6 108 29.3 Netherlands 29 72.2 119 36.7 66 59.2 34 51.0 Nicaragua 138 38.9 130 32.2 135 38.7 129 25.5 Norway 25 77.7 117 36.9 35 66.5 62 38.3 Pakistan 61 60.8 11 80.6 41 65.5 50 42.7 Paraguay 128 45.6 126 34.4 69 58.3 105 30.2 Philippines 109 50.2 103 40.5 89 55.0 99 31.0 Portugal 51 63.9 132 28.2 50 63.4 74 34.9 Romania 44 66.3 53 60.0 99 53.9 78 34.0 Rwanda 113 49.5 104 40.3 104 52.8 120 27.1 Senegal 47 65.7 121 36.2 121 49.7 77 34.1 Seychelles 58 62.9 84 46.7 98 54.0 110 29.0 Singapore 16 83.7 21 73.9 3 80.3 9 77.5 Slovenia 26 76.1 67 53.8 12 76.4 27 61.4 Spain 90 54.0 107 39.7 122 49.6 121 27.0 Sweden 131 44.1 30 70.8 83 55.4 93 31.4 Taiwan, China 23 80.1 50 61.3 9 77.0 20 67.8 Tanzania 56 63.4 62 55.8 52 62.7 86 32.6 Trinidad and Tobago 89 54.1 31 70.7 67 59.1 75 34.9 Turkey 41 66.9 79 48.9 71 58.3 66 37.5 Ukraine 72 57.9 91 45.0 115 50.7 111 28.9 United Kingdom 63 60.5 49 61.6 92 54.5 89 31.9 Uruguay 39 67.9 32 70.2 39 65.8 67 37.2 Viet Nam 55 63.4 22 73.4 55 61.5 38 48.7 Zambia 38 68.4 52 60.1 27 69.7 32 53.1 34 70.1 51 60.4 40 65.7 37 50.3
101 51.9 41 64.7 64 60.1 57 39.6
86 54.8 6 84.0 51 62.9 36 50.7
84 54.9 128 33.8 60 60.6 118 27.3
45 65.9 17 76.3 114 51.2 41 47.4
104 51.7 101 41.1 95 54.3 97 31.2
79 55.9 75 50.7 59 60.9 56 39.7
93 53.6 139 16.4 74 57.6 49 43.5
136 42.0 134 26.9 124 48.7 124 26.8
5 89.3 27 71.1 16 74.7 14 75.0
54 63.7 60 57.7 45 64.5 43 46.6
60 62.3 82 47.8 24 70.3 28 57.9
18 82.1 35 68.4 56 61.4 46 44.3
27 75.1 16 76.7 36 66.3 25 62.9
77 56.8 59 57.9 70 58.3 80 33.7
6 89.0 40 65.1 4 79.8 5 79.8
4 89.4 39 65.9 20 72.6 3 82.1
7 87.9 20 74.2 21 72.4 4 80.8
125 46.0 122 36.2 102 53.1 116 27.4
116 48.9 72 52.0 107 52.7 119 27.2
14 84.2 18 74.9 23 71.0 51 42.1
42 66.8 105 40.0 78 56.8 81 33.5
78 56.1 70 52.7 73 57.8 84 32.7
65 59.9 13 78.5 76 57.2 47 44.0
119 48.5 85 46.4 82 55.5 107 29.8
117 48.7 47 62.7 86 55.3 58 39.0
31 70.8 28 71.0 33 67.4 35 51.0
8 87.8 7 81.7 7 79.0 7 79.2
1 92.1 2 99.2 1 86.5 2 86.5
81 55.3 93 44.5 79 56.3 70 36.4
91 54.0 56 59.3 139 27.7 95 31.2
59 62.3 29 70.9 101 53.7 82 33.4
140 37.2 113 37.8 136 38.5 133 22.8
121 48.3 92 44.8 77 57.0 115 28.1
108 50.4 114 37.1 132 41.0 128 25.5
The Global Competitiveness Report 2018 | 621 APPENDIX B For almost 40 years, the Executive Opinion Survey (the Survey) has been a key ingredient of the Global The Executive Competitiveness Report series. The Survey provides a Opinion Survey: yearly evaluation of critical aspects of competitiveness The Voice of the for which statistical data is missing because it is either Business Community impossible or extremely difficult to measure on a global scale. The aim of the Survey is to capture reality as best as possible, and business leaders are arguably the best positioned to assess these aspects.
The indicators derived from the Survey are used in the calculation of the Global Competitiveness Index 4.0 (GCI), as well as a number of other World Economic Forum indexes, such as the Networked Readiness Index, the Enabling Trade Index, the Travel & Tourism Competitiveness Index, the Gender Gap Index, and the Human Capital Index, as well as several other reports, including The Inclusive Economic Growth and Development Report, The Global Risks Report and a number of regional competitiveness studies. A truly unique source of data, the Survey has also long been used by a number of international and nongovernmental organizations, think tanks and academia for empirical and policy work.
THE SURVEY 2018 IN NUMBERS
The 2018 edition captured the views of 16,658 business executives in 140 economies between January and April 2018. Following the data editing process described below, a total of 12,274 responses were retained. This year half of the retained surveys (50.7%) were completed online. In 52 economies over 90% of respondents complete the Survey online, while in a further 21 economies, at least 50% of respondents completed the Survey online (see Figure 1). The 2018 edition of the Survey was made available in 42 languages (see Table 1).
SURVEY STRUCTURE, ADMINISTRATION AND METHODOLOGY
The Survey comprises 148 questions divided into 15 sections. Most questions ask respondents to evaluate on a scale of 1 (considered among the worst in the world) to 7 (considered among the best in the world) specific aspects of the business environment in the country where the respondent operates. The 2018 edition of the Survey instrument is available in the Downloads section of the Global Competitiveness Report’s page at http://gcr. weforum.org/.
The administration of the Survey is supervised by the World Economic Forum and conducted at the national level by the Forum’s network of Partner Institutes. Partner Institutes are typically universities or other research organizations, business associations, competitiveness councils, or survey companies. These organizations have the private sector network for reaching out to leading
The Global Competitiveness Report 2018 | 623
Figure 1: Descriptive statistics of the Executive Opinion Survey 2018
NUMBER OF ECONOMIES NUMBER OF SURVEYS SAMPLE SIZE
140 economies 16,658 (number of valid surveys by economy) surveyed surveys collected Collected Maximum 378: India 12,274 134 339: Pakistan 3 largest surveys 291: United States samples economies retained * with enough valid responses*
Administration method 3rd quartile 96.50 Average 92.25 Online Paper Median 83 (50.7%) (49.3%) 62.50 1st quartile 31: Norway Minimum
Source: World Economic Forum, Executive Opinion Survey, 2018 edition. Note: Not all charts are drawn to scale. * Following data treatment. See text for details.
Table 1: Available languages in 2018
Albanian Czech Icelandic Mongolian Spanish Arabic Danish Indonesian Montenegrin Tajik Armenian English Italian Polish Thai Azeri Estonian Khmer Portuguese Turkish Bosnian Farsi Korean Romanian Urdu Bulgarian French Lao Russian Vietnamese Chinese German Latvian Serbian Chinese (traditional) Greek Lithuanian Slovak Croatian Hungarian Macedonian Slovenian
624 | The Global Competitiveness Report 2018 Figure 2: Sample frame requirements Appendix B: The Executive Opinion Survey
REGIONAL SECTORS OF SIZE OF · Ensuring the representation of both large- (more COVERAGE ACTIVITY COMPANIES than 250 employees) and small-sized companies (249 employees or fewer), again reflecting each Agriculture SME, large sector. At least one-third of companies are large companies and one-third are small, and the remaining one-third Partner Industry are determined by the structure of the economy in Institutes (manufacturing) SME, large proportion to the share of GDP by company size. database companies Industry · Ensuring the chosen companies also have a (non- SME, large sufficiently wide geographical coverage. companies manufacturing) The Survey is administered in a variety of formats, SME, large including face-to-face or telephone interviews with Services companies business executives, mailed paper forms and online surveys. For energy, time and cost considerations, the Forum encourages the use of a dedicated online Survey tool.
The Partner Institutes also play an active and essential role in disseminating the findings of The Global Competitiveness Report and other reports published by the World Economic Forum by holding press events and workshops to highlight the results at the national level to the business community, the public sector and other stakeholders.
business executives and a firm commitment to improving DATA TREATMENT AND SCORE the competitiveness of their respective economies (for COMPUTATION the full list, see the Contributors and Acknowledgments section of this report).1 This section details the process whereby individual responses are edited and aggregated in order to In administering the Survey and in order to gather produce the Survey question scores of each economy. the strongest dataset, Partner Institutes are asked to These are the results that then feed into the GCI other follow detailed sampling guidelines and collect the data indices and projects listed above. in a specific timeframe. The collection process is based on best practices in the field of Survey administration Data editing and on discussions with survey experts. It is put in place Prior to aggregation, the respondent-level data are to ensure that the sample of respondents is the most subjected to a careful editing process. The following representative possible and comparable across the globe. observations are excluded from the dataset: Surveys where the respondent gives the same answer to at least The sampling guidelines specify that the Partner 80% of the questions; Surveys with a completion rate Institutes create a sample frame (Figure 2) that is a large inferior to 50%; respondents who are not based in the list of potential business executives from companies of same country as the Partner Institute; respondents who various sizes and from the various sectors of activity, are not in a leadership position within their firm; and as detailed below. The Partner Institutes separate the finally, duplicate Surveys—which can occur, for example, frame into two lists: one that includes only large firms, when a Survey is both completed online and mailed in. and a second that includes all other firms (both lists representing the various economic sectors). To reduce In a second step, a multivariate test is applied to the bias, Partner Institutes randomly select firms from each data using the Mahalanobis distance method. This test list to receive the Survey. estimates the probability that an individual Survey in a specific country “belongs” to the sample of that country by The sample frame should reflect the structure of the comparing the pattern of answers of that Survey against country/economy: the average pattern of answers in the country sample.
- In proportion to the share of GDP by sector: A univariate outlier test is then applied at the
agriculture, manufacturing industry, non- country level for each question of each survey. We use manufacturing industry (mining and quarrying, the standardized score—or “z-score”—method, which electricity, gas and water supply, construction), and indicates by how many standard deviations any one services. individual answer deviates from the mean of the country
The Global Competitiveness Report 2018 | 625
Table 2: Executive Opinion Survey: Descriptive statistics and weightings
Period 1 Period 2
Economy Survey edition No. of Weight (%)* Survey edition No. of Weight (%)* Online (%) respondents respondents Albania 2018 58.5 — Algeria 2017 71 41.5 2018 94 50.0 — Angola 2018 87 100.0 100.0 Argentina 2017 130 50.0 2018 120 53.0 100.0 Armenia 2018 84 52.7 100.0 Australia 2017 data not available 2018 63 53.5 98.6 Austria 2018 69 58.3 59.4 Azerbaijan 2017 99 47.0 2017 128 57.2 — Bahrain 2016 92 62.0 — Bangladesh 2017 76 47.3 2018 89 56.6 — Belgium 2018 92 48.1 100.0 Benin 2017 78 46.5 2018 56 55.0 — Bolivia 2018 78 100.0 90.7 Bosnia and Herzegovina 2017 98 41.7 2018 54 56.7 100.0 Botswana 2018 87 52.6 — Brazil 2016 77 42.8 2018 91 56.7 100.0 Brunei Darussalam 2018 118 52.1 67.2 Bulgaria 2015 50 38.0 2018 61 53.9 — Burkina Faso 2018 95 100.0 — Burundi 2017 81 43.4 2017 73 52.9 — Cambodia 2018 81 52.8 — Cameroon 2017 99 51.9 2018 58 53.7 — Canada 2018 73 60.1 100.0 Cape Verde 2017 78 45.0 2018 119 53.3 75.8 Chad 2018 62 56.5 — Chile 2017 data not available 2018 82 60.9 100.0 China 2017 227 56.4 — Colombia 2017 76 43.3 2018 396 52.9 81.4 Congo, Dem. Rep. 2018 113 53.3 12.7 Costa Rica 2017 110 47.4 2018 110 56.4 84.4 Cote d’Ivoire 2018 77 100.0 — Croatia 2017 103 43.3 2018 120 55.2 100.0 Cyprus 2018 82 55.3 10.7 Czech Republic 2017 77 47.9 2018 75 56.5 100.0 Denmark 2018 95 51.3 100.0 Dominican Republic 2017 104 46.1 2018 63 56.1 88.1 Ecuador 2018 59 55.1 26.0 Egypt 2017 data not available 2018 100 54.4 — El Salvador 2018 94 60.1 98.4 Estonia 2016 96 47.1 2018 62 53.3 100.0 Eswatini 2018 67 53.7 33.3 Ethiopia 2017 69 47.2 2017 45 53.5 — Finland 2018 79 52.8 100.0 France 2017 81 46.3 2018 42 51.7 100.0 Gambia, The 2018 62 57.0 — Georgia 2017 79 39.9 2018 87 53.8 100.0 Germany 2018 40 50.7 93.7 Ghana 2017 71 46.7 2018 79 56.5 — Greece 2018 90 55.8 97.6 Guatemala 2017 73 43.5 2018 83 54.7 — Guinea 2018 91 100.0 — Haiti 2017 140 39.1 2018 66 59.2 — Honduras 2018 73 55.4 — Hong Kong SAR 2016 355 43.6 2018 93 53.9 67.1 Hungary 2018 85 55.9 18.0 Iceland 2017 134 47.1 2018 89 57.0 100.0 India 2018 82 62.6 57.4 Indonesia 2017 126 46.7 2018 378 53.9 — Iran, Islamic Rep. 2018 86 50.8 100.0 Ireland 2017 69 43.6 2018 143 47.0 100.0 Israel 2018 54 55.4 100.0 Italy 2017 data not available 2018 85 53.8 — Jamaica 2018 89 49.9 97.9 Japan 2017 81 44.8 2018 47 53.1 29.6 Jordan 2018 54 49.6 2.0 Kazakhstan 2017 73 44.7 2018 99 59.5 16.9 Kenya 2018 124 55.1 — Korea, Rep. 2017 84 43.5 2018 114 55.0 — Kuwait 2018 100 57.8 35.3 Kyrgyz Republic 2017 85 48.7 2018 85 55.8 — Lao PDR 2018 103 50.2 6.8 2017 54 43.9 59 2017 99 44.9
2017 99 45.6
2017 41 39.9
2017 77 46.7
2017 50 46.3
2016 89 46.5
2017 50 47.2
2017 81 48.3
2017 74 43.0
2017 44 46.2
2017 112 49.3
2017 80 43.5
2017 78 44.2
2017 93 45.3
2017 data not available
2017 52 40.8
2017 90 44.6
2017 93 46.1
2017 83 44.1
2017 70 43.0
2017 201 37.4
2017 94 46.1
2017 200 49.2
2017 105 53.0
2017 82 44.6
2017 98 46.2
2017 71 50.1
2017 63 46.9
2017 154 50.4
2017 86 40.5
2017 113 44.9
2017 100 45.0
2017 68 42.2
2017 97 44.3
2017 87 49.8
626 | The Global Competitiveness Report 2018
Table 2: Executive Opinion Survey: Descriptive statistics and weightings (cont’d.)
Period 1 Period 2
Economy Survey edition No. of Weight (%)* Survey edition No. of Weight (%)* Online (%) respondents respondents Latvia 2018 56.5 Lebanon 2017 55 43.5 2018 62 56.5 100.0 Lesotho 2017 2018 Liberia 2017 78 44.7 2018 80 55.3 — Lithuania 2017 2018 — Luxembourg 2017 92 44.5 2018 96 55.5 64.1 Macedonia, FYR 2017 2018 100.0 Malawi 55 42.2 2018 69 57.8 98.3 Malaysia 2017 2018 20.9 Mali 2017 116 46.5 2018 103 53.5 — Malta 2017 2018 — Mauritania 2017 43 46.2 2018 39 53.8 100.0 Mauritius 2017 2018 — Mexico 2017 2017 data not available 2018 58 100.0 97.4 Moldova 2017 2018 77.4 Mongolia 2017 75 42.6 2018 91 57.4 — Montenegro 2017 2018 67.5 Morocco 2017 96 47.6 2018 78 52.4 — Mozambique 2017 2018 100.0 Namibia 2017 65 43.2 2018 75 56.8 1.2 Nepal 2017 2018 — Netherlands 2017 58 47.4 2018 48 52.6 7.9 New Zealand 2017 2018 100.0 Nicaragua 2017 118 48.1 2018 92 51.9 100.0 Nigeria 2017 2018 86.4 Norway 2017 61 50.8 2018 38 49.2 — Oman 2017 2018 100.0 Pakistan 2017 291 49.2 2018 208 50.8 26.6 Panama 2017 2018 5.6 Paraguay 2017 132 50.3 2018 86 49.7 74.2 Peru 2017 2018 100.0 Philippines 2017 82 45.3 2018 80 54.7 90.8 Poland 2017 2018 66.1 Portugal 2017 80 45.2 2018 79 54.8 98.5 Qatar 2017 2018 99.4 Romania 2017 89 50.5 2018 57 49.5 6.1 Russian Federation 2017 2018 22.0 Rwanda 2017 95 46.5 2018 84 53.5 — Saudi Arabia 2017 2018 — Senegal 2017 74 45.3 2018 72 54.7 64.4 Serbia 2017 2018 — Seychelles 2017 91 45.3 2018 89 54.7 100.0 Sierra Leone 2017 2018 — Singapore 2017 78 45.0 2018 78 55.0 — Slovak Republic 2017 2018 100.0 Slovenia 2017 32 36.3 2018 66 63.7 100.0 South Africa 2017 2018 86.3 Spain 2017 47 42.2 2018 59 57.8 100.0 Sri Lanka 2017 2018 90.0 Sweden 2017 85 42.4 2018 105 57.6 100.0 Switzerland 2017 2018 100.0 Taiwan, China 2017 39 47.9 2018 31 52.1 100.0 Tajikistan 2017 2018 69.3 Tanzania 2017 86 46.1 2018 79 53.9 6.3 Thailand 2017 2018 — Trinidad and Tobago 2017 290 43.1 2018 339 56.9 95.8 Tunisia 2017 2018 75.8 Turkey 2017 89 43.9 2018 97 56.1 62.8 Uganda 2017 2018 23.8 Ukraine 2017 111 47.2 2018 93 52.8 26.0 United Arab Emirates 2017 2018 — United Kingdom 2017 90 43.9 2018 98 56.1 73.1 United States 2017 2018 100.0 Uruguay 2017 55 44.1 2018 59 55.9 100.0 Venezuela 2017 2018 100.0 Vietnam 2017 204 44.9 2018 205 55.1 100.0 Yemen 2017 2018 33.3 Zambia 2017 140 43.0 2018 165 57.0 13.8 Zimbabwe 2017 2018 — 2017 97 44.9 98 55.1 90.9
103 45.4 100 54.6
268 43.8 296 56.2
92 46.6 81 53.4
164 50.9 101 49.1
80 44.5 83 55.5
98 43.9 107 56.1
47 42.8 56 57.2
79 50.6 50 49.4
148 47.4 122 52.6
110 56.2 42 43.8
89 46.3 80 53.7
170 47.0 145 53.0
75 44.2 80 55.8
75 44.4 79 55.6
71 46.7 62 53.3
52 43.2 60 56.8
121 45.7 114 54.3
89 44.1 96 55.9
80 43.5 90 56.5
115 47.4 95 52.6
70 46.5 62 53.5
102 47.1 86 52.9
84 45.6 80 54.4
86 43.6 96 56.4
99 45.0 99 55.0
85 46.1 78 53.9
83 49.9 56 50.1
249 43.1 291 56.9
71 43.8 78 56.2
47 48.3 36 51.7
90 46.8 78 53.2
65 46.4 58 53.6
61 42.1 77 57.9
43 41.9 55 58.1
Note: All statistics are computed following the editing of the data; see text for details. ”—” indicates that there was no online administration of the Survey.
- Weight applied to the country score in that edition of the Survey. See Box 1 for an example of a calculation. Share of surveys completed online (2018 only).
The Global Competitiveness Report 2018 | 627
sample. Individual answers with a standardized score latest developments in a country in order to assess the greater than 3 are dropped.2 plausibility of the Survey results. Based on the result of this test and the complementary qualitative analysis, the Aggregation and computation of country averages data collected in 2018 for Azerbaijan, Bahrain, Burundi, We use a simple average to compute scores at the China, Ethiopia and Guinea were not used. Instead, economy level. As the sample frame aims to replicate Survey results from the previous editions were used (for an economy’s sectoral composition and includes details see Table 2). companies of different sizes, the country-level score of each Executive Opinion Survey question is the arithmetic Moving average and computation of country scores mean of all answers in each country. That is, for a given We then proceed to compute moving averages of question, all individual answers carry the same weight. country scores. The moving average technique consists of taking a weighted average of the most recent year’s Formally, the average of a Survey indicator i for Survey results, together with a discounted average of country c, qi,c, is computed as follows: the previous year. There are several reasons for doing this. First, it makes results less sensitive to the specific q i,c = N i,c point in time when the Survey is administered. Second, it increases the amount of available information by q i,c,j providing a larger sample size. Additionally, because the Survey is carried out during the first quarter of the year, j the average of the responses in the first quarter of 2017 and the first quarter of 2018 better aligns the Survey N i,c data with many of the data indicators from sources other than the Survey, which are often annual-averages data. where To calculate the moving average, we use a weighting qi,c,j is the answer to question i in country c from scheme composed of two overlapping elements. We respondent j; and place more weight on the year with the larger sample Ni,c is the number of respondents to question i in size to attribute equal weight to each response. At the country c. same time, we attribute greater weight to the most recent sample because it contains most up to date Once responses have been aggregated at the information. That is, we also “discount the past.” Table 2 country level, a test to detect statistical outliers is reports the exact weights used in the computation of the run. We leverage the strong relationship between scores of each country. the indicators derived from the Survey and some 50 statistical indicators included in the GCI: countries doing Economy score calculation well on these indicators tend to do well in the Survey. A univariate linear regression is used to predict the The details of the method applied to compute the expected average score of Survey indicators based on the average performance in the other indicators. Average country scores for the vast majority of economies Survey scores that lie outside the 90% confidence interval around the predicted values are considered included in The Global Competitiveness Report 2018 are “outliers”. The scores of individual Survey indicators are systematically corrected by a factor corresponding to the as follows. distance between the observed average Survey score and the predicted Survey average at the limit of the For any given Survey question i, country c’s final confidence interval. score, , q 201718 is given by: In addition, an analysis to assess the reliability and i,c consistency of the Survey data over time is carried out. As part of this analysis, an inter-quartile range (IQR) q i2,c01718 w 2017 q 2017 w 2018 q 2018 (1) test is performed to identify large swings—positive and c i,c c i,c negative— between two editions. For each country, we compute the year-on-year difference, d, in the where average score of a core set of 66 Survey questions. We then compute the inter-quartile range (i.e. the q t is country c’s score on question i in year t, difference between the 25th percentile and the 75th i,c percentile). Any value d outside the range bounded by the 25th percentile minus 1.5 times the IQR and the with t = 2017, 2018, as computed following the 75th percentile plus 1.5 times the IQR is identified as a potential “outlier”. This test is complemented by a series approach described in the text; and of additional empirical tests, including an analysis of five- year trends and a comparison of changes in the Survey wct is the weight applied to country c’s score in results with changes in other indicators capturing similar year t. concepts. We interview local experts and consider the The weights for each year are determined as follows:
(1) N 2017 (2a) c
w 2017 N c2017 N 2018 c c
2
and
628 | The Global Competitiveness Report 2018
N 2018 (2b) In the case of Survey questions that were introduced N c in 2018 for which, by definition, no past data exist, full weight is given to the 2018 score. For newly covered w 2018 2017 N 2018 economies, this treatment is applied to all questions. For c c c countries whose 2018 data were discarded, the results from the previous editions of the report are used instead. 2 Box 1 provides a clarifying example of the methodology.
where N t is the sample size (i.e. the number of c
respondents) for country c in year t, with t = 2017, 2018.
a is the discount factor that accounts for temporality set
at 0.6.
Plugging Equations (2a) and (2b) into (1) and
rearranging yields: NOTES
N 2017 1 The World Economic Forum’s Centre for the New Economy c NEacnx20de1N7cScu20oNt1i8cvc2ei0e1t8Oypaicnkiqoni,n2co01wS8 ulerdvegyes20R1e8seinartchhe q 1 201718 1 Now for carrying out the 2 i,c 2 United States, Germany, q q 2017 (1) 2018 N N 2017 2018 q 2017 i,c i,c
c c Denmark, India, Japan, New Zealand, South Africa, Sweden and
discounted-past weighted average
sample-size weightthedeavUernagiteed Kingdom following the detailed sampling guidelines.
The World Economic Forum also acknowledges IPSOS for
2017 2018 carrying out the Executive Opinion Survey 2018 following the Nc q N 2017 detailed sampling guidelines in Norway. N N 2017 N N i,c q q 1 c 2017 2018 2 2018 q 2018 (3) i,c 2017 2018 i,c
c c c c
ed-past weighted average sample-size weighted average 2 For a more detailed formal description of the various tests presented here, see Browne and Geiger, 2009.
In Equation (3), the first component of the weighting
scheme is the discounted-past weighted average.
The second component is the sample-size weighted REFERENCES average. The two components are given half-weight each. One additional characteristic of this approach is Browne, Ciara and Thierry Geiger, “The Executive Opinion Survey: that it prevents a country sample that is much larger in Capturing the Views of the Business Community”, The Global one year from overwhelming the smaller sample from the Competitiveness Report 20092010, World Economic Forum, other year. 2009.
Chandra, Prasanta, “On the generalised distance in statistics”, Proceedings of the National Institute of Sciences of India, vol. 2, no. 1, 1936, pp. 4955, https://insa.nic.in/writereaddata/ UpLoadedFiles/PINSA/Vol02_1936_1_Art05.pdf, retrieved 27 September 2016.
Box 1: Example of score computation
For this example, we compute the score of Denmark for the indicator Hiring and firing practices, which is included in the Global Competitiveness Index (indicator 8.02) and derived from the following Survey question: “In your country, to what extent do regulations allow for the flexible hiring and firing of workers? (1 = not at all, 7 = to a great extent).” This question is not a new Survey question and therefore the normal treatment applies, using Equation (1). Denmark’s Survey score was 4.93 in 2017 and 5.15 in 2018. The weighting scheme described above indicates how the two scores are combined. In Denmark, the size of the sample was 63 in 2017 and 85 in 2018. Using a = 0.6 and applying Equations (2a) and (2b) yields weights of 48.7% for 2017 and 51.3% for 2018 (see Table 2). The final country score for this question is therefore:
0.487 4.93 0.513 5.15 5.04.
2017 2018
This is the final score used in the computation of the GCI. Although numbers are rounded to two decimal places in this example and to one decimal place in the Denmark country profile, exact figures are used in all calculations.
The Global Competitiveness Report 2018 | 629 APPENDIX C This Appendix presents the methodology and detailed structure of the Global Competitiveness Index 4.0 The Global (Section A); provides information about each of the Competitiveness indicators included in the Index (Section B); presents Index 4.0 Methodology the methodology used to impute missing data points and Technical Notes and reports the imputed values by indicator (Section C); presents the methodology used to compute progress scores (Section D); and details the computation of the 2017 (“backcast”) GCI 4.0 scores (Section E).
A. COMPUTATION AND COMPOSITION OF THE GCI 4.0
The computation of the Global Competitiveness Index 4.0 (GCI) is based on successive aggregations of scores, from the indicator level (the most disaggregated level) to the overall GCI score (the highest level). At every aggregation level, each aggregated measure is computed by taking the average (i.e. arithmetic mean) of the scores of its components, with a few exceptions described in Section B. The overall GCI score is the average of the twelve pillars.
For individual indicators, prior to aggregation raw values are transformed into a progress score ranging from 0 to 100, with 100 being the ideal state. See Section D for more details.
In the list below, weights are rounded to one decimal place, but full precision is used in the computation.
Weight (%) within immediate parent category
(not used in calculation)1
Pillar 1: Institutions… 8.3%
A. Security… 14.3% 1.01 Business costs of organized crime 1.02 Homicide rate 1.03 Terrorism incidence 1.04 Reliability of police services
B. Social capital… 14.3%
C. Checks and balances… 14.3% 1.06 Budget transparency 1.07 Judicial independence 1.08 Efficiency of legal framework in challenging regulations 1.09 Freedom of the press
1 For presentation and analysis purposes, the 12 pillars are also organized into four overarching components—Enabling environment, Human capital, Markets, and Innovation ecosystem—but these components do not enter into the computation of the GCI.
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D. Public-sector performance… 14.3% Pillar 4: Macroeconomic stability… 8.3% 1.10 Burden of government regulation 4.01 Inflation 1.11 Efficiency of legal framework in settling disputes 4.02 Debt dynamics 1.12 E-Participation 1.13 Future orientation of government HUMAN CAPITAL
E. Transparency… 14.3% (not used in calculation) 1.14 Incidence of corruption Pillar 5: Health… 8.3% F. Property rights… 14.3% 5.01 Healthy life expectancy 1.15 Property rights 1.16 Intellectual property protection Pillar 6: Skills… 8.3% 1.17 Quality of land administration A. Current workforce… 50%
G. Corporate governance… 14.3% I. Education of current workforce… 50% 1.18 Strength of auditing and accounting standards 6.01 Mean years of schooling 1.20 Shareholder governance II. Skills of current workforce… …50% 6.02 Extent of staff training Pillar 2: Infrastructure… 8.3% 6.03 Quality of vocational training A. Transport infrastructure… 50%2 6.04 Skillset of graduates 6.05 Digital skills among active population I. Road… 25% 6.06 Ease of finding skilled employees 2.01 Quality of road network 2.02 Quality of road infrastructure B. Future workforce… 50% I. Education of future workforce… 50% II. Rail… 25% 6.07 School life expectancy 2.03 Railroad density II. Skills of future workforce…50% 2.04 Efficiency of train services 6.08 Critical thinking in teaching 6.09 Pupil-to-teacher ratio in primary education III. Air … 25% 2.05 Airport connectivity MARKETS 2.06 Efficiency of air transport services (not used in calculation) IV. Sea… 25% 2.07 Liner shipping connectivity3 Pillar 7: Product market… 8.3% 2.08 Efficiency of seaport services A. Domestic market competition… 50%
B. Utility infrastructure… 50% 7.01 Distortive effect of taxes and subsidies on competition I. Electricity … 50% 2.09 Electricity access 7.02 Extent of market dominance 2.10 Electricity quality 7.03 Competition in services B. Trade openness… 50% II. Water … 50% 7.04 Prevalence of non-tariff barriers 2.11 Exposure to unsafe drinking water 7.05 Trade tariffs 2.12 Reliability of water supply 7.06 Complexity of tariffs 7.07 Border clearance efficiency Pillar 3: ICT adoption4… 8.3% 7.08 Service trade openness 3.01 Mobile-cellular telephone subscriptions 3.02 Mobile-broadband subscriptions Pillar 8: Labour market… 8.3% 3.03 Fixed-broadband internet subscriptions A. Flexibility… 50% 3.04 Fiber internet subscriptions 3.05 Internet users 8.01 Redundancy costs 8.02 Hiring and firing practices 2 For economies where there is no regular train service or where 8.03 Cooperation in labour-employer relations the network covers only a negligible portion of the territory, the 8.04 Flexibility of wage determination Transport infrastructure sub-pillar corresponds to the average 8.05 Active labour policies score of the Road, Air and Sea components. Assessment of the 8.06 Workers’ rights existence of a network was conducted by the World Economic 8.07 Ease of hiring foreign labour Forum based on various sources. 8.08 Internal labour mobility
3 For landlocked countries, this indicator is not included in the computation and the Sea component score corresponds to the score of Indicator 2.08.
4 In computing the score of this pillar, indicator 3.02 is not directly used in the calculation. Instead the ratio of indicator 3.02 to indicator 3.01 is used, as an approximation of the share of mobile- cellular telephone subscriptions that have broadband capability. The same approach is used for indicator 3.04, as a way to approximate the share of fixed broadband connections that are optical fiber subscriptions. In both cases, the ratios are converted onto 0-100 scale and used in the computation. See Section D for more details.
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B. Meritocracy and incentivization… 50% B. TECHNICAL NOTES AND SOURCES 8.09 Reliance on professional management 8.10 Pay and productivity The following notes provide sources for all the 8.11 Female participation in labour force individual indicators included in the GCI 4.0. The title 8.12 Labour tax rate of each indicator appears on the first line, preceded by its number to allow for quick reference. Below is a Pillar 9: Financial system… 8.3% description of each indicator or, in the case of Executive A. Depth… 50% Opinion Survey data, the full question and associated answers. If necessary, additional information is provided 9.01 Domestic credit to private sector underneath. 9.02 Financing of SMEs 9.03 Venture capital availability The interactive ranking tables at 9.04 Market capitalization http://gcr.weforum.org provide information about the 9.05 Insurance premiums source and period for each individual data point. Select B. Stability… 50% the indicator of interest from the selector and click on 9.06 Soundness of banks the “info” icon next to each economy to access the 9.07 Non-performing loans information. For indicators not sourced from the World 9.08 Credit gap Economic Forum, users are urged to refer to the original 9.09 Banks’ regulatory capital ratio source for any additional information and exceptions for certain economies and/or data points. Pillar 10: Market size5… 8.3% 10.01 Gross domestic product The data used in the computation of the GCI 4.0 10.02 Imports of goods and services 2018 represent the most recent and best data available at the time when they were collected. It is possible that INNOVATION ECOSYSTEM data were updated or revised subsequently.
(not used in calculation) Pillar 1: Institutions
Pillar 11: Business dynamism… 8.3% 1.01 Business costs of organized crime A. Administrative requirements… 50% Response to the survey question “In your country, to what extent does organized crime (mafia-oriented racketeering, 11.01 Cost of starting a business extortion) impose costs on businesses?” [1 = to a great extent, 11.02 Time to start a business imposes huge costs; 7 = not at all, imposes no costs] | 2017 11.03 Insolvency recovery rate 2018 weighted average or most recent period available 11.04 Insolvency regulatory framework B. Entrepreneurial culture… 50% Source: World Economic Forum, Executive Opinion Survey. For 11.05 Attitudes toward entrepreneurial risk more details, refer to Appendix B of this report. 11.06 Willingness to delegate authority 11.07 Growth of innovative companies 1.02 Homicide rate 11.08 Companies embracing disruptive ideas Number of intentional homicides per 100,000 population. | 2016 or most recent year available Pillar 12: Innovation capability6… 8.3% “Intentional homicide” refers to unlawful death inflicted upon a A. Interaction and diversity person with the intent to cause death or serious injury. More details about the methodology can be found at https://dataunodc. 12.01 Diversity of workforce un.org/crime/intentional-homicide-victims. 12.02 State of cluster development 12.03 International co-inventions Source: United Nations Office on Drugs and Crime (UNODC). 12.04 Multistakeholder collaboration B. Research and development 1.03 Terrorism incidence 12.05 Scientific publications Assesses the frequency and severity of terror attacks. The 12.06 Patent applications scale ranges from 0 (highest incidence) to 100 (no incidence). | 12.07 R&D expenditures Weighted count 20132017 12.08 Research institutions prominence index This indicator has two components: number of terrorism-related C. Commercialization casualties (injuries and fatalities) and the number of terrorist 12.09 Buyer sophistication attacks over a five-year period, with each year assigned half the 12.10 Trademark applications weight of the following year. Each component is normalized on a 0 to 100 scale, with 100 meaning “no casualty” and “no attack”, 5 The score of this pillar corresponds to the natural logarithm of the respectively, and then averaged. sum of GDP and imports, both valued at purchasing power parity (PPP). Valuation of imports at PPP is estimated by multiplying the Source: National Consortium for the Study of Terrorism and share of exports (indicator 10.02) by the value of GDP (indicator Responses to Terrorism (START). 10.01).
6 The score of this pillar corresponds to the average of the scores of the 10 individual indicators. Components A, B, and C are used for presentation purposes only, and do not enter the calculation.
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1.04 Reliability of police services 1.10 Burden of government regulation Response to the survey question “In your country, to what Response to the survey question “In your country, how extent can police services be relied upon to enforce law and burdensome is it for companies to comply with public order?” [1 = not at all; 7 = to a great extent] | 20172018 administration’s requirements (e.g., permits, regulations, weighted average or most recent period available reporting)?” [1 = extremely burdensome; 7 = not burdensome at all] | 20172018 weighted average or most recent period Source: World Economic Forum, Executive Opinion Survey. For available 1.05 Social capital more details, refer to Appendix B of this report. Score on the Social Capital pillar of the Legatum Prosperity IndexTM, which assesses social cohesion and engagement, 1.11 Efficiency of legal framework in settling disputes community and family networks, and political participation and In your country, how easy is it for private businesses to institutional trust. The scale ranges from 0 (low) to 100 (high). | challenge government actions and/or regulations through the 2017 edition legal system? [1 = extremely difficult; 7 = extremely easy] | This indicator measures national performance in three areas: 20172018 weighted average or most recent period available social cohesion and engagement (bridging social capital), community and family networks (bonding social capital), and Source: World Economic Forum, Executive Opinion Survey. For political participation and institutional trust (linking social capital). more details, refer to Appendix B of this report. More details about the methodology can be found at http://www. prosperity.com/about/methodology. 1.12 E-Participation Score on the E-Participation Index, which assesses the use Source: Legatum Institute. of online services to facilitate the provision of information by governments to citizens. The scale ranges from 0 to 1 (best). | 1.06 Budget transparency 2018 Represents the Open Budget Data Score, which indicates The E-Participation Index measures the use of online services the extent to which the government publishes data related to facilitate provision of information by governments to to budget and spending. The scale ranges from 0 (low citizens (“e-information sharing”), interaction with stakeholders transparency) to 100 (high transparency). | 2017 (“e-consultation”) and engagement in decision-making processes The score is based on the evaluation of 20 key criteria related (“e-decision making”). More details about the methodology can be to government practices in publishing open budget data. More found at https://publicadministration.un.org. details can be found at http://www.worldbank.org/publicfinance/ fmis. Source: United Nations, Department of Economic and Social Affairs (UNDESA). 1.13 Future orientation of government 1.07 Judicial independence Average of the responses to the following four Executive Response to the survey question “In your country, how Opinion Survey questions: 1) “In your country, how fast is independent is the judicial system from influences of the the legal framework of your country in adapting to digital government, individuals, or companies?” [1 = not independent business models (e.g. e-commerce, sharing economy, fintech, at all; 7 = entirely independent] | 20172018 weighted average etc.)?” [1 = not fast at all; 7 = very fast]; 2) “In your country, or most recent period available to what extent does the government ensure a stable policy environment for doing business?”; 3) “In your country, to what Source: World Economic Forum, Executive Opinion Survey. For extent does the government respond effectively to change more details, refer to Appendix B of this report. (e.g. technological changes, societal and demographic trends, security and economic challenges)?”; and 4) “In your country, 1.08 Efficiency of legal framework in challenging regulations to what extent does the government have a long-term vision Response to the survey question “In your country, how easy in place?”. For the last three questions, the answer ranges is it for private businesses to challenge government actions from 1 (not at all) to 7 (to a great extent). | 20172018 weighted and/or regulations through the legal system?” [1 = extremely average or most recent period available difficult; 7 = extremely easy] | 20172018 weighted average or most recent period available Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Appendix B of this report. 1.14 Incidence of corruption Score on the Corruption Perceptions Index, which measures 1.09 Freedom of the press perceptions of corruption in the public sector. This is a Score on the World Press Freedom Index, which measures the composite indicator, and the scale ranges from 0 (highly level of freedom available to journalists. The scale ranges from corrupt) to 100 (very clean). | 2016 0 (good) to 100 (very bad). | 2018 edition The index aggregates data from a number of different sources The index measures media independence, the quality of the that provide perceptions of business people and country experts infrastructure that supports the production of news, and of the level of corruption in the public sector. More details can be information and acts of violence against journalists. It is based on found at https://www.transparency.org/cpi. two sources: 1) a database of the level of abuses and violence against journalists and media; and 2) an expert opinion survey on Source: Transparency International. pluralism, media independence, self-censorship, transparency and infrastructure in each country. More details about the methodology 1.15 Property rights can be found at https://rsf.org/en/world-press-freedom-index. Response to the survey question “In your country, to what extent are property rights, including financial assets, Source: Reporters Without Borders (RSF). protected?” [1 = not at all; 7 = to a great extent] | 20172018 weighted average or most recent period available
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1.16 Intellectual property protection Pillar 2: Infrastructure extent is intellectual poperty protected?” [1 = not at all; 7 = to 2.01 Quality of road network a great extent] | 20172018 weighted average or most recent Score on the Road Quality Index, which measures average period available speed and straightness of a driving itinerary connecting the 10 or more largest cities that together account for at least 15% of Source: World Economic Forum, Executive Opinion Survey. For the economy’s total population. The scale ranges from 0 to 100 more details, refer to Appendix B of this report. (excellent). | 2016 The Road Quality Index, developed by the World Economic 1.17 Quality of land administration Forum, comprises two elements: 1) a measure of the average Score on the quality of land administration index, which speed of a driving itinerary connecting the 10 or more assesses the reliability of infrastructure, transparency of largest cities in an economy accounting for at least 15% of information, geographic coverage, land dispute resolution and the economy’s total population; and 2) a measure of road equal access to property rights. The scale ranges from 0 to 30 straightness. The itinerary was not optimized and connects the (best). | 2017 cities from the largest to the smallest. Any leg involving a ferry More details about the methodology can be found at http://www. was excluded from the average speed calculation. As a first step doingbusiness.org/Methodology. to the identification of cities to include in the itinerary, pairwise distances (“as the crow flies”) were calculated, and when the Source: The World Bank Group. distance was less than 20 kilometres, the smallest city in the pair was excluded. The road straightness corresponds to the ratio of 1.18 Strength of auditing and reporting standards the sum of driving distances between each city in the journey to Response to the survey question “In your country, how strong the sum of crow fly distances between each city in the journey. are financial auditing and reporting standards?” [1 = extremely For this component, legs involving a ferry were included. The weak; 7 = extremely strong] | 20172018 weighted average or APIs of Google Directions and Open Street Map were used to most recent period available compute the itinerary. The Geonames database was used for city populations and coordinates. For more information about this Source: World Economic Forum, Executive Opinion Survey. For indicator, please contact gcp@weforum.org. Source: World Economic Forum’s calculations. Score on the extent of conflict of interest regulation index, 2.02 Quality of road infrastructure which measures the protection of shareholders against Response to the survey question “In your country, what is the directors’ misuse of corporate assets for personal gain. The quality (extensiveness and condition) of road infrastructure?” [1 scale ranges from 0 to 10 (best). | 2017 = extremely poor—among the worst in the world; 7 = extremely The index assesses three dimensions of regulation that address good—among the best in the world] | 20172018 weighted conflicts of interest: 1) transparency of related-party transactions, 2) average or most recent period available shareholders’ ability to sue and hold directors liable for self-dealing, and 3) access to evidence and allocation of legal expenses in Source: World Economic Forum, Executive Opinion Survey. For shareholder litigation. More details about the methodology can be more details, refer to Appendix B of this report. found at http://www.doingbusiness.org/Methodology. 2.03 Railroad density Source: The World Bank Group. Kilometres of railroad per 1,000 square kilometres of land. | 2016 Score on the extent of shareholder governance index, which Source: The World Bank Group. measures shareholders’ rights in corporate governance. The scale ranges from 0 to 10 (best). | 2017 2.04 Efficiency of train services The index assesses three dimensions of good governance: 1) Response to the survey question “In your country, how efficient shareholders’ rights and role in major corporate decisions, 2) (i.e. frequency, punctuality, speed, price) are train transport governance safeguards protecting shareholders from undue board services?” [1 = extremely inefficient, among the worst in the control and entrenchment, and 3) corporate transparency on world; 7 = extremely efficient, among the best in the world] | ownership stakes, compensation, audits and financial prospects. 20172018 weighted average or most recent period available More details about the methodology can be found at http://www. doingbusiness.org/Methodology. Source: World Economic Forum, Executive Opinion Survey. For 2.05 Airport connectivity Represents the IATA airport connectivity indicator, which measures the degree of integration of a country within the global air transport network. | 2018 For each airport, the number of available seats to each destination is weighted by the size of the destination airport (in terms of number of passengers handled). The weighted totals are then summed for all destinations, then for all airports in the country to produce a score. The log transformation of the raw value is raised to a cubic power before converting it to the 0 to 100 score.
Source: International Air Transport Association (IATA).
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2.06 Efficiency of air transport services Pillar 3: ICT adoption Response to the survey question “In your country, how efficient (i.e. frequency, punctuality, speed, price) are air transport 3.01 Mobile-cellular telephone subscriptions services?” [1 = extremely inefficient, among the worst in the Number of mobile-cellular telephone subscriptions per 100 world; 7 = extremely efficient, among the best in the world] | population. | 2016 20172018 weighted average or most recent period available This indicator includes post-paid subscriptions, active prepaid accounts (i.e. that have been active during the past three Source: World Economic Forum, Executive Opinion Survey. For months), and all mobile-cellular subscriptions that offer voice more details, refer to Appendix B of this report. communications.
2.07 Liner shipping connectivity Source: International Telecommunications Union (ITU). Score on the Liner Shipping Connectivity Index, which assesses a country’s connectivity to global shipping networks. 3.02 Mobile-broadband subscriptions The index uses an open scale, with the benchmark score of Number of active mobile-broadband subscriptions per 100 100 corresponding to the most connected country in 2004 population. | 2016 (China).| 2017 This indicator includes standard mobile-broadband subscriptions The index is based on five components of the maritime transport and dedicated mobile-broadband data subscriptions to the public sector: the number of ships, their container-carrying capacity, the internet. maximum vessel size, the number of services and the number of companies that deploy container ships in a country’s ports. Source: International Telecommunications Union (ITU).
Source: United Nations Conference on Trade and Development 3.03 Fixed-broadband internet subscriptions (UNCTAD). Number of fixed-broadband internet subscriptions per 100 population. | 2016 2.08 Efficiency of seaport services This indicator refers to the number of subscriptions for high-speed Response to the survey question “In your country, how efficient access to the public internet (a TCP/IP connection), including (i.e. frequency, punctuality, speed, price) are seaport services cable modem, DSL, fiber, and other fixed (wired)-broadband (ferries, boats) (for landlocked countries: assess access to technologies—such as Ethernet, LAN and broadband over seaport services)?” [1 = extremely inefficient, among the worst powerline communications. in the world; 7 = extremely efficient, among the best in the world] | 20172018 weighted average or most recent period Source: International Telecommunications Union (ITU). 3.04 Fiber internet subscriptions Source: World Economic Forum, Executive Opinion Survey. For Fiber-to-the-home/building internet subscriptions per 100 more details, refer to Appendix B of this report. population. | 2016 This indicator refers to the number of internet subscriptions 2.09 Electricity access using fiber-to-the-home or fiber-to-the-building at downstream Percentage of population with access to electricity. | 2016 speeds equal to or greater than 256 kb/s. This should include estimate subscriptions where fiber goes directly to the subscriber’s Electricity access entails a household having initial access to premises or fiber-to-the-building subscriptions that terminate no sufficient electricity to power a basic bundle of energy services— more than two metres from an external wall of the building. Fiber- at a minimum, several lightbulbs, task lighting (such as a to-the-cabinet and fiber-to-the-node are excluded. flashlight), phone. Source: World Economic Forum calculations based on Source: International Energy Agency (IEA). International Telecommunications Union (ITU).
2.10 Electricity quality 3.05 Internet users Electric power transmission and distribution losses as a Percentage of individuals who used the internet from any percentage of domestic supply. | 2015 estimate location and for any purpose, irrespective of the device and network used, in the last three months. | 2016 Source: International Energy Agency (IEA). Source: International Telecommunications Union (ITU). 2.11 Exposure to unsafe drinking water Risk-weighted percentage of population exposed to unsafe Pillar 4: Macroeconomic stability drinking water. | 2016 This indicator is reported as a summary exposure value (SEV): it 4.01 Inflation measures a population’s exposure to unsafe drinking water, taking Annual percentage change in the Consumer Price Index. | into account the extent of exposure by risk level and the severity 20162017 moving average of that risk’s contribution to disease burden. The indicator takes Inflation is normalized in a U-shaped function to capture the the value 0 when no excess risk for a population exists and the detrimental effects of high inflation and deflation. Countries with value 1 when the population is at the highest level of risk. inflation rates between 0.5% and 4% receive the highest possible score of 100. Outside this range, scores decrease linearly as the Source: Institute for Health Metrics and Evaluation (IHME). distance between the optimal value and the actual value increases.
2.12 Reliability of water supply Source: International Monetary Fund (IMF). Response to the survey question “In your country, how reliable is the water supply (lack of interruptions and flow fluctuations)?” [1 = extremely unreliable; 7 = extremely reliable] | 20172018 weighted average or most recent period available
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4.02 Debt dynamics Pillar 5: Health
Index measuring the change in public debt-to-GDP ratio, 5.01 Healthy life expectancy weighted by a country’s credit rating and debt level in relation Number of years that a newborn can expect to live in good to its GDP. | Difference between the 2017 and 2018 expected health, taking into account mortality and disability. | 2016 values of the debt-to-GDP ratio estimate This indicator is a category-based min-max normalization of the More details about the methodology can be found at http://www. debt change. The debt change is the difference between the healthdata.org/research-article/gbd-2015-dalys-hale. 2017 and 2018 of the debt to GDP ratio expected values. To transform the debt change value into a 0 to 100 score, each Source: Institute for Health Metrics and Evaluation (IHME). country is assigned to a specific category that determines the value boundaries. Categories are based on three criteria: general Pillar 6: Skills credit rating, government debt to GDP level for the year 2017, and country classification (1 if country is considered advanced, 6.01 Mean years of schooling 0 otherwise according to IMF’s classification). The general Average number of completed years of education of a credit rating for each country is computed as the average of country’s population aged 25 years and older, excluding years Fitch, Standard and Poor’s (S&P) and Moody’s credit ratings. spent repeating individual grades. | 2015 A country’s rating is considered “investment grade 1” for S&P’s grades AAA to A, Moody’s grades Aaa to A1, and Fitch’s grades Sources: United Nations Educational, Scientific and Cultural AAA to A. A country’s rating is considered “investment grade Organization (UNESCO); Wittgenstein Centre for Demography and 2” for S&P’s grades A- to BBB-, Moody’s grades Baa3 to Baa1, Global Human Capital. and Fitch’s grades A- to BBB+. A country’s rating is considered “speculative” for S&P’s grades BB+ to CCC+, Moody’s grades 6.02 Extent of staff training Ba3 to Caa2, and Fitch’s grades BBB- to B-. A country credit Response to the survey question “In your country, to what rating is considered “default” for S&P’s grade SD, Moody’s grades extent do companies invest in training and employee Caa1 and C, and Fitch’s grades CC and RD. Based on these development?” [1 = not at all; 7 = to a great extent] | 2017 criteria, 12 cases are identified: ii) if a country’s average rating is 2018 weighted average or most recent period available “investment grade 1” and its debt to GDP level is less than 60%, its debt change is normalized to 100; ii) if a country’s average Source: World Economic Forum, Executive Opinion Survey. For rating is “investment grade 1” and its debt to GDP level is less more details, refer to Appendix B of this report. than 110%, its debt change is normalized to a score between 90 and 100; iii) if a country’s average rating is graded as “investment 6.03 Quality of vocational training grade 1” and its debt to GDP level is greater than 110%, its Response to the survey question “In your country, how do you debt change is normalized to a score between 80 and 90; iv) if assess the quality of vocational training?” [1 = extremely poor the average credit rating is rated as “investment grade 2” and among the worst in the world; 7 = excellent among the best in the debt level is lower than 110%, its debt change is normalized the world] | 20172018 weighted average or most recent period to a score between 70 and 80; v) if the average credit rating is available “investment grade 2” and the debt level is greater than 110%, its debt change is normalized to a score between 60 and 70; Source: World Economic Forum, Executive Opinion Survey. For vi) if the average credit rating is “speculative”, the debt level is more details, refer to Appendix B of this report. less than 110%, and the country classification is “advanced”, its debt change is normalized to a score between 50 and 60; 6.04 Skillset of graduates vii) if the average credit rating is “speculative”, the debt level is Average score of the following two Executive Opinion Survey greater than 110%, and the country classification is “advanced”, questions: “In your country, to what extent do graduating its debt change is normalized to a score between 40 and 50; students from secondary education possess the skills needed viii) if the average credit rating is “speculative”, the debt level is by businesses?” and “In your country, to what extent do less than 60%, and the country classification is “developing”, its graduating students from university possess the skills needed debt change is normalized to a score between 40 and 50; ix) if by businesses?” In each case, the answer ranges from 1 (not the average credit rating is “speculative”, the debt level is greater at all) to 7 (to a great extent).| 20172018 weighted average or than 60%, and the country classification is “developing”, its debt most recent period available change is normalized to a score between 30 and 40; x) if the average credit rating is “default”, the debt change is normalized Source: World Economic Forum, Executive Opinion Survey. For to a score between 0 and 30; xi) if a country does not receive a more details, refer to Appendix B of this report. credit rating from any rating agency and its debt level is below 60%, its debt change is normalized to a score between 40 and 6.05 Digital skills among active population 50; and xii) if a country does not receive a credit rating from a Response to the survey question “In your country, to what rating agency and its debt is above 60% of GDP, its debt change extent does the active population possess sufficient digital is normalized to a score between 30 and 40. To determine the skills (e.g. computer skills, basic coding, digital reading)?” [1 = final value of the debt dynamics indicator within the assigned not all; 7 = to a great extent] | 20172018 weighted average or boundaries, we’ve calculated the normalized debt change, which most recent period available ranges from a minimum observed value of 0 and the maximum observed value of 20. As part of the normalization process, we Source: World Economic Forum, Executive Opinion Survey. For assigned a score equivalent to the minimum value of each bracket more details, refer to Appendix B of this report. if the debt change was 20% or higher; assigned the maximum value of the bracket if the debt change was 0% or lower; and 6.06 Ease of finding skilled employees assigned a score between the two values if the debt change was Response to the survey question “In your country, to what between 0% and 20%. extent can companies find people with the skills required to fill their vacancies?” [1 = not at all; 7 = to a great extent] | 2017 Source: World Economic Forum; calculations based on data 2018 weighted average or most recent period available from International Monetary Fund and the rating agencies Fitch, Moody’s, and Standard and Poor’s. Source: World Economic Forum, Executive Opinion Survey. For
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6.07 School life expectancy 7.05 Trade tariffs Total number of years of schooling (primary through tertiary) Measured as the weighted average applied tariff rate, that a child of school entrance age can expect to receive. | expressed in percentage points. | 2017 2015 The weighted mean applied tariff is the average of effectively This indicator assumes that the probability of a person being applied rates weighted by the product import shares enrolled in school at any particular future age is equal to the corresponding to each partner country. Applied tariffs are current enrolment ratio at that age. More details about the considered to be the tariff rates applied by a customs methodology can be found at http://uis.unesco.org/en/glossary. administration on imported goods. They are the rates published by national customs authorities for duty administration purposes. Source: United Nations Educational, Scientific and Cultural Organization (UNESCO). Source: International Trade Centre (ITC).
6.08 Critical thinking in teaching 7.06 Complexity of tariffs Response to the survey question “In your country, how do you Score on an index that measures the complexity of a country’s assess the style of teaching?” [1 = frontal, teacher based, and tariff regime. The index ranges from 1 (very complex) to 7 (not focused on memorizing; 7 = encourages creative and critical complex). | 2017 individual thinking] | 20172018 weighted average or most Tariff complexity is assessed on four criteria: tariff dispersion, the recent period available prevalence of tariff peaks, the prevalence of specific tariffs and the number of distinct tariffs. This index is calculated as the simple Source: World Economic Forum, Executive Opinion Survey. For average of the normalized score of these four criteria. Source: International Trade Centre (ITC). 6.09 Pupil-to-teacher ratio in primary education Average number of pupils per teacher, based on headcounts of 7.07 Border clearance efficiency both pupils and teachers. | 2016 Assesses the effectiveness and efficiency of the clearance process by customs and other border control agencies in the Source: The World Bank Group. eight major trading partners of each country. The scale ranges from 1 (worst) to 5 (best). | 2018 Pillar 7: Product market More details about the methodology can be found at https://lpi. worldbank.org/about. 7.01 Distortive effect of taxes and subsidies on competition Response to the survey question “In your country, to what Source: The World Bank Group; Turku School of Economics. extent do fiscal measures (subsidies, tax breaks, etc.) distort competition?” [1 = distort competition to a great extent; 7 = do 7.08 Service trade openness not distort competition at all] | 20172018 weighted average or Score on the Services Trade Restrictiveness Index (STRI), most recent period available which assesses the overall openness of the service sector of a country. The scale ranges from 0 (completely open) to 100 Source: World Economic Forum, Executive Opinion Survey. For (completely closed). | 2011 more details, refer to Appendix B of this report. The STRI measures openness for five major services sectors (financial services, telecommunications, retail distribution, 7.02 Extent of market dominance transportation and professional services) and three modes of Response to the survey question “In your country, how do supply (cross-border supply of services, supply of services you characterize corporate activity?” [1 = dominated by a few through commercial presence or FDI and temporary presence business groups; 7 = spread among many firms]. | 20172018 of natural persons). More details about the methodology can be weighted average or most recent period available found at http://iresearch.worldbank.org/servicetrade/aboutData. htm#MeasuringRestrictions. more details, refer to Appendix B of this report. Source: The World Bank Group.
7.03 Competition in services Pillar 8: Labour market Average of the scores of the three components of the following Executive Opinion Survey question: “In your 8.01 Redundancy costs country, how competitive is the provision of the following Measures the cost of advance notice requirements and services: (a) professional services (legal services, accounting, severance payments due when terminating a redundant worker, engineering, etc.); (b) retail services; and (c) network sector expressed in weeks of salary. | 2017 (telecommunications, utilities, postal, transport, etc.)?” In each The average value of notice requirements and severance case, the answer ranges from 1 (not at all competitive) to 7 payments applicable to a worker with 1 year of tenure, 5 years of (extremely competitive). | 20172018 weighted average or most tenure, and 10 years of tenure is considered. recent period available more details, refer to Appendix B of this report. 8.02 Hiring and firing practices 7.04 Prevalence of non-tariff barriers extent do regulations allow for the flexible hiring and firing of Response to the survey question “In your country, to what workers?” [1 = not at all; 7 = to a great extent] | 20172018 extent do non-tariff barriers (e.g. health and product standards, weighted average or most recent period available technical and labelling requirements, etc.) limit the ability of imported goods to compete in the domestic market?” [1 = Source: World Economic Forum, Executive Opinion Survey. For strongly limit; 7 = do not limit at all] | 20172018 weighted more details, refer to Appendix B of this report. average or most recent period available
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8.03 Cooperation in labour-employer relations 8.10 Pay and productivity Response to the survey question “In your country, how do Response to the survey question “In your country, to what you characterize labour-employer relations?” [1 = generally extent is pay related to employee productivity?” [1 = not at all; confrontational; 7 = generally cooperative] | 20172018 7 = to a great extent] | 20172018 weighted average or most weighted average or most recent period available recent period available
Source: World Economic Forum, Executive Opinion Survey. For Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Appendix B of this report. more details, refer to Appendix B of this report.
8.04 Flexibility of wage determination 8.11 Female participation in labour force Response to the survey question “In your country, how are Illustrates the ratio of the percentage of women aged 1564 wages generally set?” [1 = by a centralized bargaining process; participating in the labour force as wage and salaried workers 7 = by each individual company] | 20172018 weighted average to the percentage of men aged 1564 participating in the or most recent period available labour force as wage and salaried workers. | 2017 Wage and salaried workers (employees) are those workers Source: World Economic Forum, Executive Opinion Survey. For who hold the type of jobs defined as “paid employment jobs,” more details, refer to Appendix B of this report. where the incumbents hold explicit (written or oral) or implicit employment contracts that give them a basic remuneration that 8.05 Active labour policies is not directly dependent upon the revenue of the unit for which Response to the survey question “In your country, to what they work. extent do labour market policies help unemployed people to reskill and find new employment (including skills matching, Sources: International Labour Organization (ILO); World Economic retraining, etc.)?” [1 = not at all; 7 = to a great extent] | 2017 Forum. 2018 weighted average or most recent period available 8.12 Labour tax rate Source: World Economic Forum, Executive Opinion Survey. For Labour tax and contributions are the amount of taxes (at any more details, refer to Appendix B of this report. level—federal, state, or local) and mandatory contributions on labour paid by the business, expressed as a percentage of 8.06 Workers’ rights commercial profits. | 2016 Score adapted from the ITUC Global Rights Index, which This measure includes government-mandated contributions paid measures the level of protection of internationally recognized by the employer to a requited private pension fund or workers’ core labour standards. The scale of this indicator ranges from 1 insurance fund. More details about this indicator can be found at (no protection) to 7 (high protection). | 2017 http://www.doingbusiness.org/Methodology/Paying-Taxes. Dimensions of labour protection include civil rights, the right to bargain collectively, the right to strike, the right to associate Source: The World Bank Group. freely, and access to due process rights. The indicator does not consider firing regulations. More details about the methodology Pillar 9: Financial system of the Global Rights Index can be found at https://survey.ituc-csi. org/ITUC-Global-Rights-Index.html. 9.01 Domestic credit to private sector The total value of financial resources provided to the private Sources: International Trade Union Confederation (ITUC); World sector, expressed as a percentage of GDP. | 20142016 Economic Forum. moving average This indicator is computed as the sum of loans, purchases of 8.07 Ease of hiring foreign labour non-equity securities, trade credits and other accounts receivable Response to the survey question “In your country, how that establish a claim for repayment provided by financial restrictive are regulations related to the hiring of foreign corporations to firms and households. labour?” [1 = highly restrictive; 7 = not restrictive at all] | 2017 2018 weighted average or most recent period available Source: The World Bank Group.
Source: World Economic Forum, Executive Opinion Survey. For 9.02 Financing of SMEs more details, refer to Appendix B of this report. Response to the survey question “In your country, to what extent can small- and medium-sized enterprises (SMEs) access 8.08 Internal labour mobility finance they need for their business operations through the Response to the survey question “In your country, to what financial sector?” [1 = not at all; 7 = to a great extent] | 2017 extent do people move to other parts of the country for 2018 weighted average or most recent period available professional reasons?” [1 = not at all; 7 = to a great extent] | 20172018 weighted average or most recent period available Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Appendix B of this report. 9.03 Venture capital availability Response to the survey question “In your country, how easy is 8.09 Reliance on professional management it for start-up entrepreneurs with innovative but risky projects Response to the survey question “In your country, who to obtain equity funding?” [1 = extremely difficult; 7 = extremely holds senior management positions in companies?” [1 = easy] | 20172018 weighted average or most recent period usually relatives or friends without regard to merit; 7 = mostly available professional managers chosen for merit and qualifications] | 20172018 weighted average or most recent period available Source: World Economic Forum, Executive Opinion Survey. For
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9.04 Market capitalization Pillar 10: Market size The total value of listed domestic companies, expressed as a percentage of GDP. | 20142016 moving average 10.01 Gross domestic product Calculated as the share price of all listed domestic companies Gross domestic product (GDP) valued at purchasing power multiplied by the number of their outstanding shares. Investment parity in billions of international dollars (constant 2011 prices). funds, unit trusts and companies whose only business goal is to | 2017 hold shares of other listed companies are excluded. Data are end- of-year values. Source: International Monetary Fund (IMF).
Source: World Federation of Exchanges. 10.02 Imports of goods and services Imports of goods and services, expressed as a percentage of 9.05 Insurance premiums GDP. | 2017 Life and non-life insurance premium volumes, expressed as a This indicator illustrates the value of all goods and other market percentage of GDP. | 20132015 moving average services received from the rest of the world, as a percentage of Computed as the sum of life and non-life insurance premium the country’s GDP. Imports include the value of merchandise, volume divided by GDP. The premium volume is the insurer’s freight, insurance, transport, travel, royalties, license fees and direct premiums earned (if property/casualty) or received (if life/ other services, such as communication, construction, financial, health) during the previous calendar year. information, business, personal, and government services. They exclude compensation of employees and investment income Source: The World Bank Group. (formerly called factor services) and transfer payments.
9.06 Soundness of banks Sources: World Trade Organization (WTO); International Monetary Response to the survey question “In your country, how do Fund (IMF). you assess the soundness of banks?” [1 = extremely low banks may require recapitalization; 7 = extremely high banks Pillar 11: Business dynamism are generally healthy with sound balance sheets] | 20172018 weighted average or most recent period available 11.01 Cost of starting a business Expressed as a percentage of the economy’s income per Source: World Economic Forum, Executive Opinion Survey. For capita. | 2017 more details, refer to Appendix B of this report. The costs include all official fees and fees for legal or professional services if such services are required by law or commonly used in 9.07 Non-performing loans practice. Fees for purchasing and legalizing company books are The ratio of the value of nonperforming loans divided by the included if these transactions are required by law. Although value- total value of the loan portfolio of all banks operating in a added tax registration can be counted as a separate procedure, country. | 2016 value-added tax is not part of the incorporation cost. More details Defaulting loans are payments of interest and principal past due of the methodology can be found at http://www.doingbusiness. by 90 days or more. The loan amount recorded as nonperforming org/Methodology/Starting-a-Business. includes the gross value of the loan as recorded on the balance sheet, not just the amount that is overdue. Source: The World Bank Group.
Source: International Monetary Fund (IMF). 11.02 Time to start a business Number of calendar days needed to complete the procedures 9.08 Credit gap to legally operate a business. | 2017 Measures the difference between the credit-to-GDP ratio and The measure captures the median duration that incorporation its long-term trend. | 2016 lawyers or notaries indicate is necessary in practice to complete Computed as the difference between the latest “Domestic a procedure with minimum follow-up with government agencies credit to private sector (as a percentage of GDP)” and its and no unofficial payments. If a procedure can be sped up at trend. Following the methodology from Bank of International additional cost, the fastest procedure, independent of cost, is Settlements, the trend value is calculated by applying a Hodrick chosen. More details about the methodology can be found at Prescott filter to the 15-year time series of the “Domestic credit http://www.doingbusiness.org/Methodology/Starting-a-Business. to private sector (% of GDP)” indicator. More details about the methodology can be found at https://www.bis.org/publ/qtrpdf/r_ Source: The World Bank Group. qt1403g.htm. 11.03 Insolvency recovery rate Source: World Economic Forum; calculations based on The World Recorded as cents on the dollar recovered by secured Bank Group data. creditors through judicial reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. | 2017 9.09 Banks’ regulatory capital ratio The calculation takes into account the outcome, whether the Banks’ regulatory capital ratio. | 20132015 moving average business emerges from the proceedings as a going concern or This indicator measures the capital adequacy of deposit takers. the assets are sold piecemeal. Then the costs of the proceedings It is a ratio of total banks’ regulatory capital (shareholders’ equity, are deducted (1 cent for each percentage point of the value of disclosed and undisclosed reserves, revaluation reserves, general the debtor’s estate). Finally, the value lost as a result of the time provisions and other instruments) to total banks’ assets, weighted the money remains tied up in insolvency proceedings is taken according to the risk of these assets. A log transformation is into account, including the loss of value due to depreciation of applied to the raw score before it is normalized to a 0 to 100 the hotel furniture. More details about the methodology can be scale. found at http://www.doingbusiness.org/Methodology/Resolving- Insolvency.
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11.04 Insolvency regulatory framework 12.03 International co-inventions Score on an index that measures the adequacy and integrity of Number of patent family applications with co-inventors located the legal framework applicable to liquidation and reorganization abroad per million population. | 20122014 average proceedings. Scores range from 0 to 16, with higher values Computed as the sum of the patent family applications with at indicating insolvency legislation that is better designed for least one co-inventor located abroad, filed in at least two of the rehabilitating viable firms and liquidating nonviable ones. | 2017 major five (IP5) offices in the World: the European Patent Office The index is calculated as the sum of the scores on the (EPO), the Japan Patent Office (JPO), the Korean Intellectual commencement of proceedings index, management of debtor’s Property Office (KIPO), the State Intellectual Property Office of assets index, reorganization proceedings index and creditor the People’s Republic of China (SIPO), and the United States participation index. Patent and Trademark Office (USPTO). Data is extracted from the PATSTAT database by earliest filing date and inventor country, Source: The World Bank Group. using fractional counts, and expressed in applications per million population. A log transformation is applied to the raw score before 11.05 Attitudes toward entrepreneurial risk it is normalized to a 0 to 100 scale. extent do people have an appetite for entrepreneurial risk?” Source: Organisation for Economic Co-operation and [1 = not at all; 7 = to a great extent] | 20172018 weighted Development (OECD). average or most recent period available 12.04 Multistakeholder collaboration Source: World Economic Forum, Executive Opinion Survey. For Average score of the following three Executive Opinion more details, refer to Appendix B of this report. Survey questions: “In your country, to what extent do people collaborate and share ideas within a company?” [1 = not at 11.06 Willingness to delegate authority all; 7 = to a great extent]; “In your country, to what extent do Response to the survey question “In your country, to what companies collaborate in sharing ideas and innovating?” [1 extent does senior management delegate authority to = not at all; 7 = to a great extent]; “In your country, to what subordinates?” [1 = not at all; 7 = to a great extent] | 2017 extent do business and universities collaborate on research 2018 weighted average or most recent period available and development (R&D)?” [1 = do not collaborate at all; 7 = collaborate extensively] | 20172018 weighted average or most Source: World Economic Forum, Executive Opinion Survey. For recent period available 11.07 Growth of innovative companies more details, refer to Appendix B of this report. extent do new companies with innovative ideas grow rapidly?” 12.05 Scientific publications [1 = not at all; 7 = to a great extent] | 20172018 weighted Score on an index measuring the number of publications and average or most recent period available their citations, expressed at the country level. | 20152017 average Source: World Economic Forum, Executive Opinion Survey. For The H-index measures the number of published papers cited more details, refer to Appendix B of this report. in other papers at least h times. The H-index reflects both the number of publications and the number of citations per 11.08 Companies embracing disruptive ideas publication. Only articles, reviews and conference papers are Response to the survey question “In your country, to what considered. The document universe is defined by those tracked extent do companies embrace risky or disruptive business by Scopus, an abstract and citation database of peer-reviewed ideas?” [1 = not at all; 7 = to a great extent] | 20172018 literature: scientific journals, books and conference proceedings. weighted average or most recent period available A log transformation is applied to the raw score before it is normalized to a 0 to 100 scale. more details, refer to Appendix B of this report. Source: SCImago.
Pillar 12: Innovation capability 12.06 Patent applications Total number of patent family applications per million 12.01 Diversity of workforce population. | 20122014 average Response to the survey question “In your country, to what Computed as the sum of the patent family applications filed in at extent do companies have a diverse workforce (e.g. in terms of least two of the major five (IP5) offices in the World: the European ethnicity, religion, sexual orientation, gender)?” [1 = not at all; Patent Office (EPO), the Japan Patent Office (JPO), the Korean 7 = to a great extent] | 20172018 weighted average or most Intellectual Property Office (KIPO), the State Intellectual Property recent period available Office of the People’s Republic of China (SIPO), and the United States Patent and Trademark Office (USPTO). Data are extracted Source: World Economic Forum, Executive Opinion Survey. For from the PATSTAT database by earliest filing date and inventor more details, refer to Appendix B of this report. country, using fractional counts, and expressed in applications per million population. A log transformation is applied to the raw score 12.02 State of clusters development before it is normalized to a 0 to 100 scale. Response to the survey question “In your country, how widespread are well-developed and deep clusters (geographic Sources: Organisation for Economic Co-operation and concentrations of firms, suppliers, producers of related Development (OECD). products and services, and specialized institutions in a particular field)?” [1 = non-existent; 7 = widespread in many fields] | 20172018 weighted average or most recent period
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12.07 R&D expenditures score i,c value i,c wpi 100, Expenditures on research and development (R&D), expressed frontieri wpi as a percentage of GDP. | 2015 Expenditures for research and development are current and capital expenditures (both public and private) on creative work undertaken systematically to increase knowledge—including knowledge of humanity, culture, and society—and the use of knowledge for new applications. R&D covers basic research, where valuei,c is the “raw” value of country c for applied research and experimental development. indicator i, worst performance (wpi,c) is the lowest acceptable value for indicator i and frontieri,c Source: UNESCO Institute for Statistics. corresponds to the best possible outcome. Depending
12.08 Research institutions prominence index on the indicator, the frontier may be a policy target or Score on an index that measures the prominence and standing of private and public research institutions. | 2017 aspiration, the maximum possible value, or a number The index is computed as the sum of the inverse ranks of all research institutions in a country included in the SCImago was derived from statistical analysis of the distribution Institutions Rankings (SIR). A log transformation is applied to the raw score before it is normalized to a 0 to 100 scale. More (e.g. 90th or 95th percentile). If a value is below the worst details about the SIR methodology can be found at https://www. scimagoir.com/methodology.php. performance value, its score is 0; if a value is above the
Sources: SCImago; World Economic Forum. frontier value, its score is capped at 100. In the case of
12.09 Buyer sophistication indicators where a higher value corresponds to a worse Response to the survey question “In your country, on what basis do buyers make purchasing decisions?” [1 = based solely outcome (e.g. terrorism incidence, power losses), the on the lowest price; 7 = based on sophisticated performance attributes] | 20172018 weighted average or most recent period normalized score becomes 100 minus the expression above, so 100 always corresponds to the ideal more details, refer to Appendix B of this report. outcome. In some cases, signalled in Section A above, a logarithmic transformation is applied to the value, prior to 12.10 Trademark applications conversion. The following table provides the actual floor Number of trademark applications per million population. | and frontier values used for the normalization of each 20142016 moving average individual indicator. Number of international trademark applications issued directly or through the Madrid System by country of origin per million E. BACKCASTING THE 2017 EDITION OF population. The residence of the first-named applicant is used to THE GCI 4.0 determine the origin of an application. When there are multiple applicants, only the first one is considered. This indicator is based In order to provide a point of reference against on the concept of “equivalent count”. That is, an application filed which to compare the inaugural edition of the Global at a regional IP office is counted multiple times according to the Competitiveness Index 4.0, the index was computed for number of its members. A log transformation is applied to the raw 2017. The backcast' edition results were produced by score before it is normalized to a 0 to 100 scale. using the GCI 4.0 methodology, the weighted averages of the 2016 and 2017 editions of the Executive Opinion Source: World Intellectual Property Organization (WIPO). Survey (in most cases) and the values for all the other indicators from one period earlier than the period used C. MISSING DATA IMPUTATION in the 2018 edition of the GCI 4.0. For example, for indicator 1.02 Homicide rate, the GCI 4.0 uses 2016 Missing values and values older than 2008 are imputed data. For the backcast 2017 edition, the 2015 data for the purpose of the calculation, with the exception was used. More generally, if for any given indicator and of indicator 1.05 Social capital, for which missing data country the value used for the 2018 edition of the GCI is not imputed. Table 1 below presents the imputation 4.0 is from period t, for the backcast 2017 edition, the method and the imputed values by indicator. Note that value from period t-1 was used provided the value is the Economy Profiles and Ranking tables (available available. In most cases, this amounts to going back in online at http://gcr.weforum.org) do not report imputed the past’, to collect for each indicator the data that would values. have been available as of July 2017. When doing so would have led to using values older than 2015, the value D. COMPUTATION OF PROGRESS SCORES used for the 2018 edition is used instead. In case the AND FRONTIER VALUES value used for the 2018 edition is from an earlier period, this value is automatically used for the backcast edition. To allow the aggregation of indicators of different nature For indicators 2.01, 2.03, 2.05, 6.01, 6.07, 9.05, and 9.10, and magnitude, each indicator entering the GCI is the exact same dataset was used for both editions. As converted into a unit-less score, called `progress score’, a result, the differences between the two editions are ranging from 0 to 100 using a min-max transformation. slightly underestimated. Formally, each indicator is re-scaled according to the following formula:
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Table 1: GCI 4.0 imputation methodology and imputed values
Indicator Imputation method Economy Imputed value Linear regression estimation. Bosnia and Herzegovina 53.02 Regressors: Mean years of schooling, Corruption Perception Serbia 45.62 Index, General trust among population, and GDP (log). Taiwan, China 54.22
1.12 E-Participation Linear regression estimation. Hong Kong SAR 0.93 0.94 Regressors: Corruption Perception Index, Net users, and Open Taiwan, China 14.45 Budget Data score. 26.04 2.03 Railroad density Linear regression estimation. Zambia 23.00 Regressors: Electrification rate, Road quality index, Urbanization rate, Land-locked country (binary), and regional 7.30 dummies (IMF classification). 23.29 18.16 2.10 Electricity quality Linear regression estimation. Burundi Regressors: Electrification rate and GDP (log). Burkina Faso 8.80 Cape Verde 25.69 Guinea 20.72 Gambia, The 20.94 Lao PDR 25.23 Liberia 21.05 Lesotho 26.10 Mauritania Malawi 9.52 Rwanda 6.94 Sierra Leone 25.65 Eswatini 22.73 Chad 4.15 2.11 Exposure to unsafe drinking Peer group mean. Group is defined as the combination Hong Kong SAR 0.04 water or World Bank income group and regional dummies (IMF 0.02 classification). 0.20 Ratio of fiber internet subscriptions Linear regression estimation. Benin 0.15 (indicator 3.04) to fixed-broadband Regressors: Net users, Electrification rate, and regional Burkina Faso 0.03 internet subscriptions (indicator 3.03) dummies (IMF classification). Congo, Democratic Rep. 0.01 Cape Verde 0.00 In the absence of data for indicator Egypt 0.18 3.04, instead of imputing a value for this Ghana 0.02 indicator, we directly impute the ratio. Guinea 0.05 Honduras 0.06 Haiti 0.00 Lebanon 0.46 Liberia 0.03 Mali 0.13 Mauritania 0.22 Nicaragua 0.32 Philippines 0.06 Eswatini 72.80 Tajikistan 15.35 Uganda 22.63
5.01 Healthy life expectancy Linear regression estimation. Hong Kong SAR 2.40 2.40 Regressors: Life expectancy, GDP (log), and regional dummies 3.34
(IMF classification). (Continued)
6.09 Pupil-to-teacher ratio in Linear regression estimation. Montenegro primary education Regressors: Net primary education enrollment, Gross Venezuela secondary education enrollment, GDP (log), and regional dummies (IMF classification).
7.07 Border clearance efficiency Peer group mean. Group is defined as the combination Cape Verde or World Bank income group and regional dummies (IMF Eswatini classification). Seychelles
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Table 1: GCI 4.0 imputation methodology and imputed values (cont’d.)
Indicator Imputation method Economy Imputed value 7.08 Service trade openness Linear regression estimation. Angola 33.46 Regressors: Regional service trade agreements count, Service United Arab Emirates 46.92 Imports-to-GDP, GDP (log), and regional dummies (IMF Azerbaijan 17.80 classification). Benin 30.20 Burkina Faso 30.56 Bosnia and Herzegovina 18.16 Brunei Darussalam 25.51 Switzerland 12.90 Congo, Democratic Rep. 32.47 Cape Verde 25.74 Cyprus 11.77 Estonia 13.45 Guinea 30.27 Gambia, The 26.60 Hong Kong SAR 29.31 Croatia 16.02 Haiti 17.53 Iceland 13.15 Israel 46.71 Jamaica 17.56 Lao PDR 44.60 Liberia 27.70 Luxembourg 10.50 Latvia 14.66 Moldova 14.60 Macedonia, FYR 16.77 Malta 32.21 Montenegro 14.74 Mauritania 29.32 Norway 27.20 Singapore 10.80 Sierra Leone 28.57 El Salvador 18.93 Serbia 18.73 Slovak Republic 18.10 Slovenia 15.08 Eswatini 28.67 Seychelles 23.59 Chad 28.91 Tajikistan 15.82 Taiwan, China 32.00 Yemen 43.85
8.06 Workers’ rights Linear regression estimation and peer group means. Armenia 69.78 Regressors: World Press Freedom Index, Ratio of wage Azerbaijan 55.29 and salaried female workers to men workers, and regional Brunei Darussalam 62.04 dummies (IMF classification). Cape Verde 79.70 Cyprus 86.89 Guinea 63.81 Gambia, The 64.67 Kyrgyz Republic 68.66 Luxembourg 86.98 Malta 62.38 Mongolia 75.16 Malawi 76.15 Nicaragua 65.23 Slovenia 85.51 Seychelles 88.37 Tajikistan 60.37
9.05 Insurance premiums Linear regression estimation. Armenia 0.63 Regressors: Domestic credit to private sector, GDP (log), and Congo, Democratic Rep. 0.37 regional dummies (IMF classification). Liberia 0.37 Montenegro 1.30 Zimbabwe 0.37
9.07 Non-performing loans Linear regression estimation. Haiti 10.35 15.40 Regressors: Domestic credit to private sector, Credit gap, GDP Montenegro (log), and GDP growth rate.
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Table 1: GCI 4.0 imputation methodology and imputed values (cont’d.)
Indicator Imputation method Economy Imputed value
9.09 Banks’ regulatory capital ratio Linear regression estimation. Angola 18.35 Regressors: Domestic credit to private sector, GDP (log), and Benin 20.05 regional dummies (IMF classification). Burkina Faso 19.63 Côte d’Ivoire 18.96 Congo, Democratic Rep. 19.26 Cape Verde 20.60 Ethiopia 18.18 Gambia, The 21.80 Haiti 18.36 Iran, Islamic Rep. 15.06 Jamaica 17.86 Lao PDR 20.71 Liberia 21.25 Mali 19.62 Montenegro 21.65 Mongolia 19.96 Malawi 20.39 Nicaragua 17.44 Nepal 15.24 Chad 20.25 Taiwan, China 14.98 Zimbabwe 19.78
12.07 R&D expenditures Linear regression estimation. Benin 0.13 Regressors: IP 5 patent applications per million population, Brunei Darussalam 0.40 Gross tertiary education enrollment, Mean years of schooling, Côte d’Ivoire 0.18 and GDP (log). Cameroon 0.29 Guinea 0.10 Honduras 0.29 Haiti 0.15 Lao PDR 0.25 Lebanon 0.53 Liberia 0.00 Mauritania 0.06 Nigeria 0.29 Rwanda 0.12 Sierra Leone 0.41 Eswatini 0.18 Seychelles 0.26 Chad 0.04 Venezuela 0.53 Yemen 0.11 Zimbabwe 0.25
12.10 Trademark applications Peer group mean. Group is defined as the combination of Burundi 64.74 World Bank income group and IMF regional classification. Greece 8,080.30 Paraguay 232.27 Slovenia 908.42 Taiwan, China 8,080.30 8,080.30
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Table 2: Normalization of indicators
Worst Applied
Indicator title and units Frontier performance transformation Guiding principle 1.02 Homicides per 100,000 population 0.5 Winsorization 1.03 Terrorism incidence (0=very high; 100=no 100 30 — Range of possible values incidence) 1.05 Social capital (0100, high) 0 — 1.06 Open Budget Data score (0100, best) 1.09 World Press Freedom (0=most free; 100=least 100 0 — Range of possible values free) Range of possible values 1.12 E-Participation Index (01, best) 100 0 — Range of possible values 1.14 Corruption Perception Index (0=highly corrupt; 100=very clean) 0 100 — 1.17 Quality of land administration index (030, best) 1 0 — Range of possible values 1.19 Extent of conflict of interest regulation (010, Range of possible values best) 100 0 — 1.20 Extent of shareholder governance (010, best) 2.01 Road quality index (0100, best) 30 0 — Range of possible values 2.03 Railroad density (km/1,000 km2) 2.05 Airport connectivity (score) 10 0 — Range of possible values 2.07 Liner Shipping Connectivity Index (0100, best) 10 0 — Range of possible values 2.09 Electrification rate (% of population) 2.10 Electric power losses (% of output) 100 0 — Range of possible values 2.11 Exposure to unsafe drinking water (% of population) 40 0 — Winsorization 3.01 Mobile-cellular telephone subscriptions (per 100 pop.) 200 0 Cubic power of logarithm Winsorization
— Ratio of mobile broadband subs. to total 100 0 — Range of possible values mobile subs. 100 0 — Winsorization 3.03 Fixed-broadband internet subscriptions (per Winsorization 100 pop.) 4 100 — Winsorization
— Ratio of fibre subs. to fixed-broadband subs. 2 100 —
3.05 Internet users (% of adult population) 120 0 — 120 is the value above which mobile broadband technology is 4.01 Inflation (%) considered sufficiently widespread not to consitute a constraint for the 4.02 Debt dynamic (0100, best) average user 5.01 Health-adjusted life expectancy (years) 6.01 Mean years of schooling (years) 0.9 0 Ratio of mobile broadband Winsorization
6.07 School life expectancy (years) subscription and minimum
6.09 Pupil-to-teacher ratio in primary education between actual mobile
subcriptions and 120 (see
indicator 3.01)
50 0 — 50 is the value above which fixed broadband technology is considered sufficiently widespread not to constitute a constraint for the average user
0.9 0 Ratio of fiber broadband Winsorization
subscription and minimum
between actual fixed
broadband subcriptions and
50 (See indicator 3.03)
100 0 — Based on ITU (International Telecommunications Union) practice
4 40 Any value between 0 and 4 Central banks’ target and
is assigned a value of 0.5. winsorization
Values lower than 4 are
transformed into 4+ (0.5-value)
100 0 — Winsorization
72 40 — Winsorization
15 0 — Based on Human Development
18 0 — Based on Human Development
10 50 — Winsorization
646 | The Global Competitiveness Report 2018
Table 2: Normalization of indicators (cont’d.)
Worst Applied
Indicator title and units Frontier performance transformation Guiding principle
7.05 Trade tariffs (%) 0 15 — Frontier set at minimum possible
7.06 Complexity of tariffs (17, least complex) 7 1 — Range of possible values
7.07 Border clearance efficiency (15, best) 5 1 — Range of possible values
7.08 Service Trade Restrictiveness Index 0 100 — Range of possible values
(0=completely open; 100=completely closed)
8.01 Redundancy costs (weeks of salary) 0 52 — Frontier set at minimum possible
8.06 Workers’ Rights Index (0100, best) 100 0 — Range of possible values
8.11 Ratio of wage and salaried female workers to 1 0.2 — Winsorization
male workers (%)
8.12 Total tax on labour (%) 8 80 — Winsorization
9.01 Domestic credit to private sector (% of GDP) 95 0 — Winsorization for frontier, worst
9.04 Market capitalization (% of GDP) 100 0 — Winsorization for frontier, worst
9.05 Life and non-life insurance premium (% of 6 0 — Winsorization for frontier, worst GDP) possible value
9.07 Bank nonperforming loans (% of loan portfolio 0.5 50 — Winsorization
value)
9.08 Credit gap (%) 2 40 — Winsorization
9.09 Banks’ regulatory capital ratio (% of risk- 17 0 Logarithmic Winsorization for frontier, worst weighted assets) performance set at minimum
Pillar Market size 10 0 Logarithm of (GDP + imports) Winsorization for frontier, worst
11.01 Cost required to start a business (% of GNI 0 200 — Frontier set at minimum possible per capita) performance
11.02 Time required to start a business (days) 0.5 100 — Winsorization
11.03 Resolving Insolvency - Recovery rate (cents 92.9 0 — Winsorization for frontier, worst to the dollar) possible value
11.04 Strength of insolvency framework (016, best) 16 0 — Range of possible values
12.03 IP5 international patent applications (per 25 0 Logarithmic Winsorization for frontier, worst million pop.) performance set at minimum
12.05 Scientific publications H Index 855 0 Logarithmic Winsorization for frontier, worst
12.06 IP 5 patent applications (per million pop.) 230 0 Logarithmic Winsorization for frontier, worst
12.07 R&D expenditures (% of GDP) 3 0 — Winsorization for frontier, worst
12.08 Research institutions prominence index 0.43 0 Logarithmic Winsorization for frontier, worst
12.10 Trademark applications (per million pop.) 10,890 0 Logarithmic Winsorization for frontier, worst
Note: “Winsorization” means that the Frontier/Worst performance values are set based on percentile values of the indicator’s distribution such that outliers are excluded.
The Global Competitiveness Report 2018 | 647 Contributors and Acknowledgements
EDITOR We are immensely grateful to Professor Xavier Sala-i- Martín, Chief Advisor of The Global Competitiveness Professor Klaus Schwab Report, for his longstanding guidance and support, and to Executive Chairman Margareta Drzeniek Hanouz, former Head of the System World Economic Forum Initiative on Shaping the Future of Economic Progress, for her leadership and friendship over the years. We thank PROJECT TEAM AT THE CENTRE Saadia Zahidi, Head of the Centre for the New Economy FOR THE NEW ECONOMY AND SOCIETY and Society and Member of the Managing Board, for her unwavering support. Thierry Geiger Head, Research and Benchmarking Practice We are extremely grateful to Ilaria Marchese for her invaluable research assistance and to our colleagues Roberto Crotti in the Centre for the New Economy and Society for Practice Lead their help and support, in particular Ciara Porawski and Genesis Elhussein. We thank Michael Fisher and Andrew Jean-Francois Trinh Tan Wright for their excellent editing work and Neil Weinberg Economist for his superb graphic design and layout.
Sophie Brown The authors would like to thank the many experts, Project Specialist practitioners and government who provided valuable suggestions and feedback during the development of the Silja Baller Global Competitiveness Index 4.0. Practice Lead We are also grateful to all the organizations, from which Attilio Di Battista we source the indicators that compose the Index. Without Practice Lead their tremendous efforts in collecting data, this work would not be possible. In particular, we thank the staff of the following organizations for providing privileged access to datasets, and for their help, guidance, and feedback: Institute for Health Metrics and Evaluation, International Air Transport Association, International Energy Agency, International Monetary Fund, International Telecommunications Union, International Trade Centre, International Trade Union Confederation, OECD, UNESCO, and the World Bank.
Finally, we acknowledge and thank the organizations listed on the following pages as our valued Partner Institutes, which help administer the Executive Opinion Survey and advance the competitiveness agenda in their respective economies.
The Global Competitiveness Report 2018 | 649 Partner Institutes
Albania Benin Institute for Contemporary Studies (ISB) Institut de Recherche Empirique en Economie Politique Artan Hoxha, President Elira Jorgoni, Research Director (IREEP) Helton Cevi, Researcher Horace Gninanfon, Research Assistant Stéphania Houngan, Research Associate Algeria Léonard Wantchekon, Director Centre de Recherche en Economie Appliquée pour le Développement (CREAD) MIT Center, School of Economics and Business in Sarajevo, Yacine Belarbi, Director Khaled Menna, Director of Macroeconomics and Economic University of Sarajevo Zlatko Lagumdzija, Professor Integration Division Zeljko Sain, Executive Director Jasmina Selimovic, Assistant Director Angola Jobartis Botswana Luis Verdeja, Director Botswana National Productivity Centre João Freitas, Country Manager Letsogile Batsetswe, Research Consultant and Statistician Baeti Molake, Executive Director Argentina Phumzile Thobokwe, Manager, Information and Research IAE—Universidad Austral Carlos Marcelo Belloni, Research Analyst Services Department Eduardo Luis Fracchia, Director of Academic Department of Economics Fundação Dom Cabral (FDC), Innovation and Entrepreneurship
Armenia Center Economy and Values Research Center Carlos Arruda, Professor and Director Manuk Hergnyan, Chairman Ana Burcharth, Associate Professor Sevak Hovhannisyan, Board Member and Senior Associate Debora Rodrigues Dias, Research Assistant
Australia Brunei Darussalam Australian Industry Group Ease of Doing Business Unit, Ministry of Energy (Energy and Colleen Dowling, Senior Research Analyst Julie Toth, Chief Economist Manpower) and Industry Innes Willox, Chief Executive Austria Center for Economic Development Austrian Institute of Economic Research (WIFO) Maria Prohaska, Director Christoph Badelt, Director Gerhard Schwarz, Coordinator, Survey Department Burkina Faso Chambre de Commerce et d’Industrie du Burkina Faso (CCI- Azerbaijan Marketing Society BF) Fuad Aliyev, Consultant Issaka Kargougou, Directeur Général Ashraf Hajiyev, Coordinator Thimothée Dabire, Directeur des Etudes et de la Stratégie Zakaya Ramde, Chef du Service Statistiques Bahrain Bahrain Economic Development Board Burundi Khalid Al Rumaihi, Chief Executive Faculty of Economics and Management, Research Centre for Nada Azmi, Senior Manager, Competitiveness Advocacy Rana Abdel Haq, Junior Executive, Competitiveness Advocacy Economic and Social Development (CURDES), University of Bangladesh Isaac Bizimana, Dean of the Faculty Centre for Policy Dialogue (CPD) Léonidas Ndayizeye, Head of Department Fahmida Khatun, Executive Director Arcade Ndoricimpa, Director of the Centre Mustafizur Rahman, Professor and Distinguished Fellow Khondaker Golam Moazzem, Research Director Cambodia Nuppun Research and Consulting Co., Ltd Belgium Pisey Khin, Managing Director Solvay Brussels School of Economics and Management Sonng Sin, Research Assistant Soha Saati, Corporate Alliances Manager Chakriya Heng, Admin and Finance Assistant
Comité de Compétitivité (Competitiveness Committee) Lucien Sanzouango, Secrétaire Permanent (Permanent
Secretary) Justin Otsin, Expert Senior Survey
The Global Competitiveness Report 2018 | 651 Contributors and Acknowledgements Denmark Danish Technological Institute Canada Stig Yding Sørensen, Senior Specialist, Center for Business The Conference Board of Canada Michael Burt, Executive Director, Industrial Economic Trends and Policy Analysis Eleni Kachulis, Research Associate Karsten Frøhlich Hougaard, Center Director, Center for
Cape Verde Business and Policy Analysis Center for Applied Statistics and Econometrics Research Ecuador INOVE ESPAE Graduate School of Management, Escuela Superior Júlio Delgado, Director Jerónimo Freire, Project Manager Politécnica del Litoral (ESPOL) Frantz Tavares, Chief Executive Officer Xavier Ordeñana, Dean Sara Wong, Professor Chad Tania Tenesaca, Project Coordinator Centre d’Études et de Recherches sur la Gouvernance, les Industries Extractives et le Développement durable The Egyptian Center for Economic Studies (ECES) (CERGIED) Abla Abdel Latif, Executive Director and Director of Research Mbairassem Simael, Researcher Khaled Wahid, Head of Statistical Department Gilbert Maoundonodji, Director Chile Estonian Institute of Economic Research (EKI) School of Government, Universidad Adolfo Ibáñez Marje Josing, Director Ignacio Briones, Dean Julio Guzman, Assistant Professor Enterprise Estonia (EAS) Veiko Pärn, Member of the Board China Institute of Economic System and Management, National Eswatini Federation of Swaziland Employers and Chamber of Development and Reform Commission Chen Wei, Division Director and Professor Commerce (FSE & CC) Li Yeyan, Research Fellow Musa Maseko, Trade and Business Support Coordinator Wang Hai, Deputy Director Ntsandvose Dlamini, Trade and Commerce Officer
The China Center for Economic Statistics Research, Tianjin Ethiopia University of Finance and Economics African Institute of Management, Development and
Bojuan Zhao, Professor Governance Lu Dong, Professor Tegegne Teka, Senior Expert and Team Leader Jian Wang, Associate Professor Adugna Girma, Operations Manager
Colombia Finland National Planning Department ETLA—The Research Institute of the Finnish Economy Luis Fernando Mejía, Director Markku Kotilainen, Research Director Juan Sebastian Robledo, Director, Private Sector Petri Rouvinen, Research Director Vesa Vihriälä, Managing Director Development Sara Rivera, Project Manager France HEC Paris, HEC Paris Executive Education Colombian Private Council on Competitiveness Armelle Dufour, Global Initiatives Director, Global Business Rosario Córdoba, President Rafael Puyana, Vice President Development
Congo, Democratic Republic of Gambia, The Congo-Invest Consulting (CIC) The Gambia Economic and Social Development Research Teza Bila, Managing Director Alphonse Mande, Project Coordinator Institute (GESDRI) Makaireh A. Njie, Director Côte d’Ivoire Chambre de Commerce et d’Industrie de Côte d’Ivoire Georgia Kouakou Germain Yao, Directeur des Etudes et de Business Initiative for Reforms in Georgia Vakhtang Charaia, Executive Director l’Information Economique Giga Makharadze, Founding Member of the Board of Directors Mamuka Tsereteli, Founding Member of the Board of Directors Centre de Promotion des Investissements en Côte d’Ivoire (CEPICI) Germany WHU—Otto Beisheim School of Management Esmel Emmanuel Essis, Directeur Général Ralf Fendel, Professor, Chair of Monetary Economics Michael Frenkel, Professor, Chair of Macroeconomics and National Competitiveness Council International Economics Jadranka Gable, Advisor Kresimir Jurlin, Research Fellow Ghana Association of Ghana Industries (AGI) Cyprus Yaw Adu Gyamfi, President European University Cyprus Seth Twum-Akwaboah, Chief Executive Officer Bambos Papageorgiou, Project Coordinator John Defor, Director for Policy & Research
Bank of Cyprus Public Company Ltd Greece Michalis Persianis, Director for Corporate Affairs SEV Hellenic Federation of Enterprises Michael Mitsopoulos, Senior Advisor, Macroeconomic Analysis Czechia CMC Graduate School of Business and European Policy Tomás Janca, Executive Director Thanasis Printsipas, Associate Advisor, Macroeconomic
Analysis and European Policy
652 | The Global Competitiveness Report 2018 Guatemala Contributors and Acknowledgements FUNDESA Juan Carlos Paiz, President of the Board of Directors Japan Juan Carlos Zapata, Chief Executive Officer Keizai Doyukai (Japan Association of Corporate Executives) Hironori Saito, General Manager for Policy Studies Confédération Patronale Des Entreprises De Guinée Jordan Hadja Aïssatou Gnouma Traore, Présidente Ministry of Planning and International Cooperation Kerfalla Camara, 1er Vice-Président chargé de l’International Mary Kawar, Minister of Planning and International Mohamed Benogo Conde, Secrétaire Général Cooperation Haiti Ziad Obeidat, Secretary General Group Croissance S.A. Basem Kanan, Director of Policies and Studies Dept Kesner F. Pharel, Chief Executive Officer University Quisqueya Center for Strategic Initiatives Olzhas Khudaibergenov, Senior Partner Hong Kong SAR Bakytzhan Sarkeyev, Director Hong Kong General Chamber of Commerce Sanzhar Batyrov, Consultant Watson Chan, Deputy Chief Executive Officer (Policy & Kenya Business Development) Institute for Development Studies, University of Nairobi Wilson Chong, Senior Economist Paul Kamau, Senior Research Fellow Dorothy McCormick, Research Professor Hungary Winnie Mitullah, Director and Associate Research Professor KOPINT-TÁRKI Economic Research Ltd. Éva Palócz, Chief Executive Officer Korea, Republic of Peter Vakhal, Project Manager Korea Development Institute Joonghae Suh, Executive Director, Economic Information and Innovation Center Iceland Education Center Karl Fridriksson, Managing Director of Human Resources and Youngho Jung, Head, Public Opinion Analysis Unit Jiyeon Park, Senior Research Associate, Public Opinion Marketing Fjalar Sigurdarson, Marketing Manager Analysis Unit Snaebjorn Kristjansson, Operational R&D Manager Kuwait India Kuwait National Competitiveness Committee LeadCap Knowledge Solutions Pvt. Ltd (LeadCap Ventures) Adel Al-Husainan, Committee Member Sangeeth Varghese, Managing Director Fahed Al-Rashed, Committee Chairman Vidyadhar Prabhudesai, Director Sayer Al-Sayer, Committee Member
Indonesia Kyrgyz Republic Center for Industry, SME & Business Competition Studies, Economic Policy Institute Marat Tazabekov, Chairman University of Trisakti Ida Busnetti, Vice Director Lao PDR Tulus Tambunan, Director Enterprise & Development Consultants Co., Ltd
Iran, Islamic Republic of Latvia Iran Chamber of Commerce, Industries, Mines and Stockholm School of Economics in Riga Arnis Sauka, Head of the Centre for Sustainable Development Agriculture, Deputy of Economic Affairs Morteza Allahdad, Economic Deputy Lebanon Mohammadreza Doostmohammadi, Project Manager InfoPro, Research Department Farnaz Safdari, Research Associate Joseph Haddad, Research Operations Manager Barrak Dbeiss, Project Manager Ibec, representing Irish Business Lesotho Fergal O’Brien, Director of Policy and Public Affairs Private Sector Foundation of Lesotho Geraldine Anderson, Head of Research Manapo Mofolo, Researcher Thabo Qhesi, Chief Executive Officer Israel Kutloano Sello, President, Researcher Manufacturers Association of Israel (MAI) Shraga Brosh, President Lithuania Dan Catarivas, Foreign Trade & International Relations Director Statistics Lithuania Ona Grigiene, Deputy Head, Knowledge Economy and General Ruby Ginel, Chief Executive Officer Special Surveys Statistics Division Gediminas Samuolis, Head, Knowledge Economy and Special SDA Bocconi School of Management Surveys Statistics Division Paola Dubini, Associate Professor, Bocconi University Vilija Lapeniene, Director General Francesco A. Saviozzi, SDA Professor, Strategic and Luxembourg Entrepreneurial Management Department Luxembourg Chamber of Commerce Carlo Thelen, Chief Economist, Director General Jamaica Jean-Baptiste Nivet, Research Analyst Mona School of Business & Management (MSBM), The Laure Demezet, Research Analyst
University of the West Indies, Mona Macedonia David McBean, Executive Director Economic Chamber of North-West Macedonia William Lawrence, Director, Professional Services Unit Drilon Iseni, Executive Director Patricia Douce, Project Administrator, Professional Services Milaim Ameti, Operational Manager
The Global Competitiveness Report 2018 | 653 Contributors and Acknowledgements Morocco Confédération Générale des Entreprises du Maroc (CGEM) Malawi Meriem Bensalah Cheqroun, President Malawi Confederation of Chambers of Commerce and Si Mohamed Elkhatib, Project Head, Commission Climat des
Industry Affaires et Partenariat Public Privé Hope Chavula, Head, Real Sector and Macroeconomic Policy Ahmed Rahhou, President, Commission Climat des Affaires et Chancellor L. Kaferapanjira, Chief Executive Officer Partenariat Public Privé Malaysia Productivity Corporation (MPC) Mozambique Zainon Bakar, Director EconPolicy Research Group, Lda. Mohd Razali Hussain, Director General Peter Coughlin, Director Abdul Latif Abu Seman, Deputy Director General Mwikali Kieti, Project Coordinator
Mali Namibia Groupe de Recherche en Economie Appliquée et Théorique Institute for Public Policy Research (IPPR) Ndeshi Fikameni, Research Associate (GREAT) Graham Hopwood, Executive Director Massa Coulibaly, Executive Director Salmi Shigwedha, Research Associate
Malta Nepal Competitive Malta Competitiveness and Development Institute (CODE) Matthew Castillo, Board Secretary Ramesh Chandra Chitrakar, Professor, Country Coordinator
Mauritania and Project Director Mauritania Bicom-Service Commercial Menaka Shrestha, Team Member Habib Sy, Administrative Director and Analyst Ousmane Samb, Technical and Marketing Director Netherlands Modou Werzeg Fall, Financial Director Erasmus Centre for Business Innovation, Erasmus University Henk W. Volberda, Director and Professor Economic Development Board New Zealand BusinessNZ Ken Poonoosamy, Deputy Chief Executive Officer Kirk Hope, Chief Executive Manaesha Fowdar, Senior Investment Executive Kathryn Asare, Project Manager
Mexico Nigeria Mexican Institute for Competitiveness (IMCO) Nigerian Economic Summit Group (NESG) Juan E. Pardinas Carpizo, General Director Ifeanyi Edeh, Research Analyst Manuel J. Molano Ruiz, Deputy General Director Olaoye Jaiyeola, Chief Executive Officer César Ruiz Sosa, Researcher and Editor Olusegun Omisakin, Head of Research and Information
Ministry of the Economy Services María del Rocío Ruiz Chávez, Undersecretary for Competitiveness and Business Regulation National Competitiveness Office Francisco Javier Anaya Rojas, Head of the Competitiveness Bader Alabdali, Acting Director Nadia Ali Al Balushi, Head of International Cooperation and Daniel Zaga Szenker, Deputy General Director Media Buthaina Alsadi, Statistician Center for Intellectual Capital and Competitiveness Erika Ruiz Manzur, Executive Director Pakistan René Villarreal Arrambide, President and Chief Executive Mishal Pakistan Tania Guiot, Director Puruesh Chaudhary, Director of Content Amir Jahangir, Chief Executive Officer Centro de Competitividad de México Hasan Saeed, Research Associate Ivan Rivas Rodríguez, General Director Paraguay Moldova Fundación Paraguaya Academy of Economic Studies of Moldova (AESM) Martin Burt, Founder and Chief Executive Officer Grigore Belostecinic, Rector Luis Fernando Sanabria, Chief Operating Officer Alejandro Carrizosa, Institutional Management Assistant Institute of Economic Research and European Studies (IERES) Corneliu Gutu, Director Peru Centro de Desarrollo Industrial (CDI), Sociedad Nacional de Mongolia Open Society Forum (OSF) Industrias Oyunbadam Davaakhuu, Manager of Economic Policy Luis Tenorio, Executive Director Maria Elena Baraybar, Project Assistant Program Erdenejargal Perenlei, Executive Director Philippines Enkhtsetseg Uuganbayar, Program Assistant Makati Business Club (MBC) Edgar O. Chua, Chairman Montenegro Coco Alcuaz, Executive Director Institute for Strategic Studies and Prognoses (ISSP) Elizabeth A. Bautista, Programs Officer Maja Drakic Grgur, Project Manager Jadranka Kaludjerovic, Program Director Poland Veselin Vukotic, President Department of Economic Analysis, National Bank of Poland Piotr Boguszewski, Economic Advisor Piotr Szpunar, Director
654 | The Global Competitiveness Report 2018 Portugal Contributors and Acknowledgements PROFORUM, Associação para o Desenvolvimento da Slovenia Engenharia Institute for Economic Research Ilídio António de Ayala Serôdio, President of the Board of Peter Stanovnik, Professor Sonja Ursic, Senior Research Assistant Directors University of Ljubljana, Faculty of Economics Fórum de Administradores de Empresas (FAE) Mateja Drnovsek, Professor Luis Filipe Pereira, President of the Board of Directors José Gomes da Costa, Vice President of the board of South Africa Business Leadership South Africa Directors Bonang Mohale, Chief Executive Officer Paulo Bandeira, General Director Tebele Makhetha, Head of Policy and Legislation
Qatar Business Unity South Africa Qatari Businessmen Association (QBA) Tanya Cohen, Chief Executive Officer Issa Abdull Salam Abu Issa, Secretary-General Olivier Serrao, Director, Economic and Trade Policy Sarah Abdallah, Deputy General Manager Tyson Thamsanqa Sibanda, Co-Ordinator, Economic and
Social and Economic Survey Research Institute (SESRI) Trade Policy Hassan Al Sayed, Director Raymond Carasig, Senior Survey Support Specialist Spain IESE Business School, International Center for Romania ADAF (Association of Women Entrepreneurship Development) Competitiveness Cornelia Rotaru, President Pascual Berrone, Professor María Luisa Blázquez, Research Associate The Chamber of Commerce and Industry of Romania Cristina Mihai, Director, Internal Relations and ICC Romania Sri Lanka Institute of Policy Studies of Sri Lanka (IPS) Division Dushni Weerakoon, Executive Director Kithmina Hewage, Research Officer Russian Federation Harini Weerasekera, Research Assistant Eurasia Competitiveness Institute (ECI) Alexey Prazdnichnykh, Managing Director Sweden Nikita Popov, Project Associate International University of Entrepreneurship and Technology
Rwanda Association (IUET) Private Sector Federation (PSF) Thomas Andersson, President Robert Bafakulera, Chairman In partnership with Deloitte Sweden Stephen Ruzibiza, Chief Executive Officer Saudi Arabia University of St. Gallen, Executive School of Management, Alfaisal University Mohammed Kafaji, Director of Quality Assurance and Technology and Law (ES-HSG) Tobias Trütsch, Head of Economics Division Accreditation Taiwan, China National Competiveness Center (NCC) National Development Council Eiman Habbas AlMutairi, Head Cheng-Mount Cheng, Deputy Minister Salman AlTukhaifi, Analytical Director Minghuei Wu, Director, Economic Development Department Nawaf AlSalloum, Associate Specialist for Research and Chung-Chung Shieh, Researcher, Economic Development
Reports Department
Senegal Tajikistan Centre de Recherches Economiques Appliquées (CREA), Center of Sociological Research “Zerkalo” Qahramon Baqozoda, Director Université Cheikh Anta Diop of Dakar Gulchehra Tabarova, Head of Data Collection Department Babacar Sène, Directeur du Centre de Recherches Tanzania Economiques Appliquées REPOA Ltd Mamadou Marone, Coordonnateur des enquêteurs, Cornel Jahari, Researcher Lucas Katera, Senior Researcher Chercheur au CREA Donald Mmari, Executive Director
Serbia Thailand Foundation for the Advancement of Economics (FREN) Chulalongkorn Business School, Chulalongkorn University Aleksandar Radivojevic, Project Coordinator Pasu Decharin, Dean Svetozar Tanaskovic, Researcher Siri-on Setamanit, Assistant Dean Jelena Zarkovic Rakic, Director Trinidad and Tobago Seychelles Arthur Lok Jack Global School of Business, The University of Better Life Foundation Marco L. Francis, Partner the West Indies, St. Augustine Selma Francis-Belle, Corporate Manager Balraj Kistow, Lecturer and Programme Director Nirmala Maharaj, Director, Internationalisation and Institutional Singapore Economic Development Board Relations Centre Cheng Wai San, Director, Research and Statistics Unit Sade Lazzar, Internationalisation and Institutional Relations Teo Xinyu, Executive Officer, Research and Statistics Unit Officer Business Alliance of Slovakia (PAS) Tunisia Robert Kicina, Executive Board Member Institut Arabe des Chefs d’Entreprises Peter Kremsky, Executive Director Taieb Bayahi, President Majdi Hassen, Executive Counsellor
The Global Competitiveness Report 2018 | 655 Contributors and Acknowledgements
Turkey TUSIAD Sabanci University Competitiveness Forum Izak Atiyas, Director Sezen Uurlu Sum, Project Specialist
Kabano Research and Development Centre Robert Apunyo, Program Manager Delius Asiimwe, Executive Director Anna Namboonze, Research Associate
Ukraine CASE Ukraine, Center for Social and Economic Research Dmytro Boyarchuk, Executive Director Vladimir Dubrovskiy, Leading Economist
Federal Competitiveness and Statistics Authority H.E. Abdulla Nasser Lootah, Director General Department of Economic Development Abu Dhabi H.E. Khaleefa Salem Al Mansouri, Undersecretary
United Kingdom LSE Enterprise Ltd Elitsa Garnizova, Project Manager and Researcher Robyn Klingler-Vidra, Senior Researcher
Uruguay Universidad ORT Uruguay Bruno Gili, Professor Isidoro Hodara, Professor
CONAPRI—The Venezuelan Council for Investment Promotion Litsay Guerrero, Economic Affairs and Investor Services
Manager Juan Pérez, Executive Director
Viet Nam Ho Chi Minh Institute for Development Studies (HIDS) Tran Anh Tuan, Acting Director Du Phuoc Tan, Head of Urban Management Studies
Department Trieu Thanh Son, Deputy Head of Research Management and
Cooperation Department
Yemeni Business Club (YBC) Fathi Abdulwasa Hayel, Chairman Ghadeer Al-Maqhafi, Executive Manager Ejlal Al-Wadei, Projects Coordinator
Zambia Institute of Economic and Social Research (INESOR),
University of Zambia Patricia Funjika, Research Fellow and Project Coordinator Jolly Kamwanga, Senior Research Fellow and Director Grayson Koyi, Research Fellow
Fulham Economics, Harare A. M. Hawkins, Chairman
Bolivia, Costa Rica, Dominican Republic, El Salvador, Honduras, Nicaragua, Panama INCAE Business School, Latin American Center for
Competitiveness and Sustainable Development (CLACDS) Ronald Arce, Researcher Enrique Bolaños, President Víctor Umaña, Director
Liberia and Sierra Leone FJP Development and Management Consultants Omodele R. N. Jones, Chief Executive Officer
656 | The Global Competitiveness Report 2018 The World Economic Forum is the International Organization for Public-Private Cooperation and engages the foremost political, business and other leaders of society to shape global, regional and industry agendas.
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