Insight Report The Global Competitiveness Report 2019

1 Insight ReportKlaus Schwab, World Economic ForumThe GlobalCompetitiveness Report2019 Insight ReportThe GlobalCompetitiveness Report2019 Professor Klaus SchwabWorld Economic ForumEditorTERMS OF USE AND DISCLAIMERThe analysis presented in the Global Competitiveness Report 2019 (herein: Report ) is based on a methodology integrating the latest statistics from international organizations and a survey of executives. The methodology, developed in collaboration with leading experts and practitioners through a three-year consultative process, is designed to support countries to identify relevant policies and practices.

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7 : +41 (0)22 869 1212 Fax: +41 (0)22 786 2744E-mail: 2019by the World Economic ForumAll rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, or otherwise without the prior permission of the World Economic : 978-2-940631-02-5 The Report and an interactive data platform are available at The Global Competitiveness Report 2019 | iii Preface vby Klaus SchwabExecutive Summary viiAt a Glance: The Global Competitiveness Index 2019 Rankings xiiiChapter 1: Global Findings 1 Chapter 2.

8 Regional and Country Analysis 11 Chapter 3: Competitiveness , Equality and Sustainability The Way Forward 23 Economy Profiles 41 How to Read the Economy Profiles 43 Index of Economy Profiles 45 Economy Profiles 46 Appendix A: Global Competitiveness Index Methodology and Technical Notes 611 Appendix B: The Executive Opinion Survey: 633 The Voice of the Business CommunityContributors and Acknowledgements 641 Partner Institutes 643 Contents The Global Competitiveness Report 2019 | v Globalization and the Fourth Industrial Revolution have created new opportunities but also disruption and polarization within and between economies and societies.

9 In this context, the World Economic Forum introduced last year the new Global Competitiveness Index , a much-needed new economic compass, building on 40 years of experience of benchmarking the drivers of long-term index is an annual yardstick for policy-makers to look beyond short-term and reactionary measures and to instead assess their progress against the full set of factors that determine productivity. These are organized into 12 pillars: Institutions; Infrastructure; ICT adoption; Macroeconomic stability; Health; Skills; Product market; Labour market; Financial system; Market size; Business dynamism; and Innovation results of the GCI in 2019 reveal that, on average, most economies continue to be far from the Competitiveness frontier the aggregate ideal across all factors of Competitiveness .

10 Performance is also mixed across the 12 pillars of the index. The Report demonstrates that 10 years on from the financial crisis, while central banks have injected nearly 10 trillion dollars into the Global economy, productivity-enhancing investments such as new infrastructure, R&D and skills development in the current and future workforce have been suboptimal. As monetary policies begin to run out of steam, it is crucial for economies to rely on fiscal policy, structural reforms and public incentives to allocate more resources towards the full range of factors of productivity to fully leverage the new opportunities provided by the Fourth Industrial Report also looks to the future, specifically the two defining issues of the next decade building shared prosperity and managing the transition to a sustainable economy and poses the question of their compatibility with Competitiveness and growth.