Economy

World Competitiveness Yearbook: Grand Duchy ranks 8th in the world

Having moved up from 11th to 8th position in the space of a year, the Grand Duchy is back in the top 10 of the world's most competitive countries.

02-wcyThe 2017 edition of the World Competitiveness Yearbook, produced by Switzerland's International Institute for Management Development, analyses the competitiveness of 63 countries, using 260 different criteria. The criteria are grouped in four categories: economic performance, effectiveness of public authorities, business environment, and infrastructures.

The ranking is topped, in order, by Hong Kong, Switzerland and Singapore. The Grand Duchy occupies 8th place worldwide, and 4th place in the European Union. Germany is in 13th place worldwide, Belgium in 23rd place, and France in 31st place.

A solid economic framework

The Grand Duchy's excellent economic performance is rewarded by 3rd place for this indicator. For this group of criteria, the Grand Duchy shows a high level of performance in terms of international investments and international trade, thereby continuing to stand as a major ambassador of free trade. However, vigilance is needed in the areas of prices and diversification of the economy.

The Grand Duchy has also improved its score since last year in the 'business environment' category. By moving up three places, the Grand Duchy now stands in 6th place in the ranking, mainly as a result of its high level of productivity and notable performance in the financial sector.

'Effectiveness of public authorities' is the only criterion to have rated less than in the previous year. The Grand Duchy has fallen back three places finishing 15th. The Grand Duchy ranks 9th for public finances, 8th for its institutional framework, and 44th for budget policy.

For the 'infrastructures' category, the Grand Duchy stands in 22nd place. Its main strong point is the 'basic infrastructure' criterion, in which the country has made good progress; it now occupies 9th place. Nevertheless, the infrastructures needed to support the national economy in the future are still insufficient.

'Digital competitiveness ranking'

In order to take account of the rapid evolution in technology, and its impact on both businesses and countries, the authors have added a separate analysis for the first time this year and produced the Digital Competitiveness Ranking. This new ranking measures the countries' capacity to adapt to digital evolution. The ranking is based on a total of 50 criteria, grouped in 3 categories: knowledge, technology environment, and future readiness. The Grand Duchy ranks 20th, with a score of 82.874 points; top place is taken by Singapore (100.0), followed by Sweden (95.938) and the United States (95.410).

(article written by the editorial team of the portal luxembourg.lu)

  • Updated 08-06-2017