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1 Insight ReportKlaus Schwab, World Economic ForumThe GlobalCompetitiveness Report2018 Insight ReportThe GlobalCompetitiveness Report2018 Professor Klaus SchwabWorld Economic ForumEditorTERMS OF USE AND DISCLAIMERThe analysis presented in the Global Competitiveness Report 2018 (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. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the World Economic Report presents information and data that were compiled and/or collected by the World Economic Forum (all information and data referred herein as Data ).

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5 : +41 (0)22 869 1212 Fax: +41 (0)22 786 2744E-mail: 2018by 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 : 978-92-95044-76-0 The Report and an interactive data platform are available at The Global Competitiveness Report 2018 | iii Preface vby Klaus SchwabSummary of Key Findings viiAt a Glance: The Global Competitiveness Index 2018 Rankings xiIntroduction: 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.

6 37 Introducing the Global Competitiveness Index Profiles 49 How to Read the Economy Profiles 51 Index of Economy Profiles 53 Economy Profiles 55 Appendix A: Global Competitiveness Index 2018 Pillar Rankings 615 Appendix B: The Executive Opinion Survey: 623 The Voice of the Business CommunityAppendix C: Global Competitiveness Index Methodology and Technical Notes 631 Contributors and Acknowledgements 649 Partner Institutes 651 Contents The Global Competitiveness Report 2018 | v With the Fourth Industrial Revolution (4IR), humanity has entered a new phase. The 4IR has become the lived reality for millions of people around the World , and is creating new opportunities for business, government and individuals. Yet it also threatens a new divergence and polarization within and between economies and societies.

7 This year also marks the tenth anniversary of the beginning of the Global financial crisis, which has had social and Economic consequences of a magnitude unprecedented in recent generations. Combined with a background of growing inequality and geopolitical flashpoints, this has fuelled citizens concerns about globalization and polarized the political debate. Although Global Economic growth has been robust over the past two years, it remains fragile in this changing Economic and political context. These developments the 4IR and the consequences of the Great Recession are redefining the pathways to prosperity and, indeed, the very notion of prosperity, with profound implications for policy-making. Concerned leaders are grappling for answers and solutions, aiming to go beyond short-term, reactionary measures.

8 In this context, the World Economic Forum is introducing the new Global Competitiveness Index , a much-needed Economic compass, building on 40 years of experience in benchmarking the drivers of long-term competitiveness. After having conceptualized the Fourth Industrial Revolution, the World Economic Forum is contributing to Global thinking and policy-making by integrating the notion of the 4IR into the definition of index integrates well-established aspects with new and emerging levers that drive productivity and growth. It emphasizes the role of human capital, innovation, resilience and agility, as not only drivers but also defining features of Economic success in the 4IR. It calls for better use of technology for Economic leapfrogging but also cautions that this is only possible as part of a holistic approach with other factors of competitiveness.

9 Finally, it offers objective, data-driven analysis for dispassionate, future-oriented, and rational policy-making. The results of the GCI reveal the sobering conclusion that most economies are far from the competitiveness frontier the aggregate ideal across all factors of competitiveness. In fact, the Global average score of 60 suggests that many economies have yet to implement the measures that would enhance their long-term growth and resilience and broaden opportunities for their populations. In addition, we find that countries have a mixed performance across the twelve pillars of the index and that long-standing developmental issues such as the lack of well-functioning institutions continue to be a source of friction for competitiveness. Yet there are bright spots in the form of economies that outperform their peers and present valuable case studies for learning more about methods to implement the factors of competitiveness.

10 At the World Economic Forum s Centre for the New Economy and Society, the new home of the Global Competitiveness Report , we provide a platform for leaders to understand and anticipate emerging Economic and social trends, and to adapt policies and practices to our rapidly evolving context. This Report is complemented by a range of other benchmarking tools as well as frontier insights on the emerging contours of the new economy and society. Importantly, the Centre also aims to serve as an accelerator for newly emerging solutions, experiments and pilots led by the public and private sectors in areas such as designing new industrial policy, closing skills gap, developing new standards for business, and preparing for the future of work. This combination allows policy-makers, business and other stakeholders to combine Insight and action into accelerating change, and we invite leaders to engage with our platform.