Published: Thu, October 18, 2018
Worldwide | By Gretchen Simon

Changing competitiveness poses challenges for future of global economy

Changing competitiveness poses challenges for future of global economy

The Philippines ranked 56th out of 149 countries in the latest Global Competitiveness Report, while also ranking the 5th most competitive economy in Southeast Asia.

It also scored 52, 59, 44, 71, 55 and 31 in product market, labour market, financial system, market size, business dynamism and innovation capacity respectively. The US remains top of the list, followed by Singapore, Germany and Switzerland.

In last year's report Greece had appeared to be in 87th position among 135 countries, but the WEF has since updated its methodology, applying it in this year's report and adjusting last year's.

In addition, WEF this year used a new methodology to fully capture the new emerging dynamics of what fuels the global economy, which means including some other indicators that were not included before, such as diversity, workers rights, re-skilling, and press freedom.

When the indicators, of which there are almost 100, were measured on a scale of 0 to 100, the US scored an average of 85.6 points and was followed by Singapore (83.5) and Germany (82.8).

The revamp of the rankings put the United States in first place, ending Switzerland's nine-year streak at the top of the table, while China placed 28th and India slid from 40th to 58th. "The U.S. scored 85.6 out of a possible 100".

Syria-Jordan Border Crossing Officially Reopened
It also reinforces the Syrian government's message that it is slowly emerging victorious from the seven-year conflict. He also noted "we hope that the crossing between the Syrian city of Abu Kamal and Iraq would be reopened soon".

With its strong focus on the impact of the so-called fourth industrial revolution, the report assesses what it believes is the readiness of countries to handle future changes in the business landscape.

Singapore is the most "future-ready" economy, according to the report, while Sweden has the most digitally skilled workforce. Finally, under innovation capability the country ranked 83rd out of 140 countries with a score of 38 out of a 100.

Of these 12 areas, Việt Nam's health dimension was evaluated highest at 81 points, ranked 68th out of 140.

The World Economic Forum defines competitiveness as the ability of the country and its institutions to ensure stable economic growth, which would be stable in the medium term.

For Klaus Schwab, chairman of the World Economic Forum, the Fourth Industrial Revolution is creating new opportunities but it also "threatens a new divergence and polarisation within and between economies and societies". I foresee a new global divide between countries who understand innovative transformations and those that don't.

The WEF has been publishing global competitive reports since 1979, and according to its own mission, has been "providing policy-makers and other stakeholders around the world with an annual assessment of the drivers of long-term growth".

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