1. The Global Competitiveness Report 2017-2018
Briefing for the Geneva-based Diplomatic Community
Cologny, 21 September 2017

2. Why competitiveness matters Annual GDP growth rate (average, %)

3. Productivity slowdown Total factor productivity, (GDP-weighted growth)

4. Core challenges to growth in today’s context
Structural headwinds
Technological changes and innovation
Uncertainty about globalization
Disruptive inequalities

5. The GCI framework 5 6 11 12 4 7 8 9 10 1 2 3 Efficiency enhnancers
Innovation and
sophistication factors
Basic requirements 1
Institutions 2
Infrastructure 5
Higher education and training 6
Goods market efficiency 11
Business sophistication 12
Innovation 3
Macro-economic environment 4
Health and primary education 7
Labor market efficiency 8
Financial market development 9
Technological readiness 10
Market size

6. GCI data 114 indicators in total
Quantitative data mostly sourced from international organizations
Perception data sourced from World Economic Forum’s annual Executive Opinion Survey 14,375 respondents in 2017 | median sample size: 83

7. The Global Competitiveness Index 2017-2018 Partial rankings out of 137
Economy
Score (1-7)
Score 1
Switzerland
5.9 22
France
5.2 2
United States 26
Korea, Rep.
5.1 3
Singapore
5.7 27
China
5.0 4
Netherlands 33
Chile
4.7 5
Germany 36
Indonesia 6
Hong Kong SAR
5.5 38
Russian Federation
4.6 7
Sweden 40
India 8
United Kingdom 43
Italy
4.5 9
Japan 51
Mexico
4.4 10
Finland
5.4 61
South Africa
4.3 14
Canada
5.3 80
Brazil
4.1 17
United Arab Emirates 92
Argentina
4.0 21
Australia
125
Nigeria
3.3

8. Global Competitiveness Index
Pecentile rank

9. 1. The financial sector remains vulnerable
Financial sector supports all economic activity – stability and efficiency are critical
Ten years after the crisis, vulnerabilities persist: debt piling up, non-performing loans, rise of (much less regulated) non-bank sector, securitization, unfishined reforms and talks of deregulation

10. GCI Financial market development pillar Score 1-7 [best]

11. 2. More innovation but limited benefits
Some emerging economies are becoming better at innovating
But unbalanced innovation ecosystem: innovation remains concentrated in a few clusters, while digital divide persists
More widespread technological adoption is needed for innovation to yield meaningful, society-wide benefits

12. Unbalanced ecoystem Rank out of 137 (inverted scale)

13. 3. Protect workers, not jobs
Globally labor markets have become more flexible over the last decade, thanks to reforms and globalization
Flexible labor markets key for 4IR
But this does not necessarily imply a trade-off between flexibility, workers’ protection and social inclusion
Some of the most competitive economies are performing well in all three dimensions

14. Flexible, protected, equal: Having it all
Labor market flexibility (1-7 [more flexibility])
Unequal
ITUC Workers’ rights protection (1-7 [more protection])

15. Thank you!