Overall and Factor Level Rankings

Overall Rankings Factor Conditions Demand Conditions Related Industries Business Context Workers Politicians & Bureaucrats Enterpreneurs Professionals

2015-2016 2017-2018 2019-2020 2015-2016 2017-2018 2019-2020 2015-2016 2017-2018 2019-2020 2015-2016 2017-2018 2019-2020 2015-2016 2017-2018 2019-2020 2015-2016 2017-2018 2019-2020 2015-2016 2017-2018 2019-2020 2015-2016 2017-2018 2019-2020 2015-2016 2017-2018 2019-2020
Argentina 48 49 46 19 19 20 46 53 49 37 39 42 34 38 51 40 35 20 58 51 41 49 50 51 45 53 50
Australia 9 9 10 6 5 1 15 13 17 13 11 9 9 8 14 15 13 52 11 11 12 15 10 15 9 10 16
Austria 19 20 17 48 48 16 16 14 16 10 9 5 16 15 10 31 28 53 19 20 19 35 23 17 28 26 22
Bangladesh 55 51 56 33 33 60 58 51 56 58 57 59 57 51 55 55 48 36 57 54 53 44 55 59 38 33 43
Belgium 16 16 13 58 58 28 12 12 19 15 14 8 14 14 7 30 24 33 16 13 14 21 20 13 10 16 12
Brazil 44 48 52 5 6 19 56 58 42 48 40 53 42 42 46 45 46 48 48 50 60 40 41 53 59 59 53
Cambodia 54 57 61 30 28 47 49 50 62 57 58 62 53 57 58 49 50 42 56 59 50 46 57 61 53 55 58
Canada 2 1 1 4 4 2 10 11 6 11 12 16 5 4 8 5 5 12 8 7 8 4 1 3 3 3 5
Chile 46 41 39 16 16 13 45 43 35 41 37 37 55 55 56 22 27 18 26 24 21 56 36 20 58 56 54
China 15 13 16 1 1 33 9 6 2 31 28 35 33 23 25 1 1 1 23 22 22 17 21 25 30 23 15
Colombia 50 46 41 18 18 17 57 56 37 47 45 45 41 35 48 38 34 16 51 52 49 52 38 34 50 48 37
Croatia 61 61 57 36 36 29 33 38 46 32 35 32 60 62 60 58 59 57 60 61 62 62 62 54 61 60 59
Czech Republic 36 33 31 39 44 22 32 28 50 25 24 23 39 34 24 47 45 35 42 35 32 47 45 26 26 32 34
Denmark 5 4 2 45 46 12 5 5 8 6 6 1 6 5 4 27 33 17 2 3 3 11 8 6 2 2 1
Dominican Republic 42 44 49 59 59 50 54 52 59 46 48 46 44 45 54 33 38 26 38 44 51 28 31 40 34 35 38
Egypt 52 54 48 38 38 45 53 55 58 49 50 54 52 54 49 53 57 50 40 47 35 48 53 44 47 49 42
Finland 8 10 11 31 32 8 11 15 15 3 5 4 8 9 11 11 14 31 4 5 6 12 14 12 4 6 18
France 22 21 23 42 41 35 18 17 13 17 18 20 21 21 21 36 31 56 17 17 16 25 25 19 39 36 45
Germany 11 11 15 29 31 24 2 2 4 9 8 14 11 12 13 18 22 54 10 9 9 16 9 16 14 12 14
Greece 49 43 38 37 39 30 39 39 45 30 31 26 54 47 36 50 49 51 35 33 30 57 56 37 51 40 41
Guatemala 56 56 54 51 52 48 61 60 48 62 60 58 38 40 42 44 52 22 62 62 61 38 49 55 43 44 44
Hong Kong 4 5 9 60 61 61 8 10 10 4 3 21 3 3 1 3 2 8 5 8 10 7 7 2 6 7 7
Hungary 29 34 33 47 47 31 29 33 47 27 27 27 31 49 35 41 43 45 30 39 37 36 37 27 22 21 26
India 21 22 24 7 7 58 25 30 25 52 49 47 20 22 31 43 41 4 33 30 28 6 18 38 8 5 10
Indonesia 30 30 37 11 11 38 38 35 40 43 41 48 32 28 37 23 36 11 47 40 44 23 30 48 23 20 30
Iran 60 60 60 17 17 9 43 45 43 56 51 55 61 60 62 56 56 61 52 49 59 60 61 52 60 61 61
Israel 12 15 14 57 55 32 22 22 14 12 15 18 4 7 12 35 39 41 14 18 18 1 6 5 12 19 8
Italy 25 27 29 53 53 44 19 23 18 21 21 25 18 17 19 16 15 32 32 31 27 37 43 29 31 38 29
Japan 18 18 21 34 34 52 6 8 5 18 17 15 17 19 29 7 9 39 18 16 15 27 24 32 27 24 46
Jordan 39 40 44 61 60 55 37 40 54 39 44 40 46 48 40 17 30 47 27 29 31 43 40 41 40 39 40
Kenya 59 59 62 49 49 57 62 62 61 61 61 57 59 58 61 61 60 59 46 43 55 39 46 60 56 58 62
Korea 23 25 26 50 51 53 14 16 11 20 20 17 24 31 32 14 20 44 41 37 24 30 29 21 20 22 19
Kuwait 24 26 19 9 9 3 31 34 32 28 30 31 22 24 22 10 11 7 22 23 26 29 28 24 35 41 27
Malaysia 32 28 30 21 20 18 27 29 39 29 29 33 48 41 30 20 19 25 31 32 29 32 26 31 32 30 23
Mexico 37 37 43 20 21 37 36 37 34 40 42 43 28 32 45 25 17 13 50 53 57 33 32 33 33 31 28
Morocco 45 47 53 52 50 54 47 48 52 44 47 52 43 39 47 59 58 58 29 27 48 41 44 57 42 46 57
Netherlands 13 12 7 23 23 15 13 9 12 14 13 7 13 10 3 19 23 23 9 10 4 14 12 8 18 14 6
New Zealand 14 8 8 14 14 5 20 19 20 16 16 11 12 6 9 13 6 14 7 4 5 22 15 14 17 9 9
Nigeria 35 42 45 22 22 51 48 47 36 53 56 61 25 26 41 60 61 49 36 48 45 10 19 49 24 25 21
Oman 31 29 - 13 13 - 28 31 - 35 33 - 37 29 - 52 53 - 20 19 - 42 34 - 37 34 -
Pakistan 51 52 59 32 30 56 52 54 60 60 59 60 40 46 59 54 54 55 43 46 46 45 54 62 46 42 60
Panama 41 45 42 27 26 21 44 44 33 36 36 39 35 44 38 28 26 24 49 45 43 34 39 39 41 52 47
Peru 53 53 51 12 12 14 55 57 53 51 55 51 51 56 57 39 37 19 54 58 56 53 48 47 57 54 55
Philippines 28 32 35 40 40 49 42 42 41 45 43 44 26 30 33 12 12 3 39 41 38 18 17 45 19 27 25
Poland 26 23 28 35 35 23 30 26 29 26 25 28 30 27 26 24 21 21 25 25 33 26 27 28 21 18 24
Russia 38 35 34 3 3 6 40 41 31 34 34 36 56 59 50 48 40 10 44 42 42 54 52 43 48 47 39
Saudi Arabia 33 31 25 8 8 7 34 27 23 23 26 30 50 43 39 32 29 34 24 28 23 51 35 22 49 51 36
Singapore 1 2 3 62 62 62 3 4 7 5 4 10 1 2 2 4 4 9 1 1 2 2 3 11 1 1 3
Slovak Republic - - 47 - - 39 - - 44 - - 29 - - 34 - - 60 - - 52 - - 46 - - 48
Slovenia - - 22 - - 26 - - 27 - - 22 - - 17 - - 37 - - 25 - - 23 - - 31
South Africa 57 58 58 24 25 25 59 59 57 54 52 56 45 52 52 62 62 62 61 60 58 55 58 50 25 29 49
Spain 40 38 36 46 45 34 23 24 28 22 22 24 29 33 27 42 44 43 37 38 36 58 51 35 54 57 52
Sri Lanka 58 55 55 56 57 59 51 46 55 55 53 50 58 53 53 51 51 27 59 57 47 59 59 58 52 43 56
Sweden 3 3 5 28 29 10 7 7 9 7 7 3 2 1 5 6 7 28 3 2 7 3 2 4 7 4 4
Switzerland 6 6 4 54 54 41 4 3 3 1 1 2 7 11 6 8 10 46 6 6 1 5 5 7 5 8 2
Taiwan 10 14 18 55 56 46 17 20 24 2 2 6 10 13 20 2 3 15 21 21 20 8 13 18 11 17 20
Thailand 27 24 27 26 27 40 26 25 26 33 32 34 23 25 18 9 18 5 45 34 34 19 22 30 16 15 17
Turkey 43 39 40 44 42 42 41 36 38 42 38 38 49 36 43 46 47 29 28 26 39 50 42 36 55 50 33
U.A.E. 17 17 12 10 10 4 24 21 22 24 23 13 27 20 16 37 32 40 15 14 13 13 11 10 13 13 13
Ukraine 47 50 50 43 43 27 50 49 51 38 46 41 47 50 44 26 25 6 53 56 54 31 47 56 44 45 51
United Kingdom 20 19 20 41 37 36 21 18 21 19 19 19 19 16 15 29 16 30 12 12 11 24 16 9 36 28 32
United States 7 7 6 2 2 11 1 1 1 8 10 12 15 18 23 34 42 38 13 15 17 9 4 1 15 11 11
Venezuela 62 62 - 15 15 - 60 61 - 59 62 - 62 61 - 57 55 - 55 55 - 61 60 - 62 62 -
Vietnam 34 36 32 25 24 43 35 32 30 50 54 49 36 37 28 21 8 2 34 36 40 20 33 42 29 37 35
Sub-factor Level Rankings

Factor Conditions Demand Conditions Related Industries Business Context Workers Politicians & Bureaucrats Entrepreneurs Professionals
2019-2020
Energy Produced Demand Demand Industrial Living Quantity of Quality of Personal Social Personal Social
Structure Rivalry Politicians Bureaucrats
Resources Resources Size Quality Infrastructure Infrastructure Labor Force Labor Force Competence Context Competence Context
Argentina 18 19 41 54 56 36 48 57 24 31 41 37 55 51 52 50
Australia 1 1 12 15 15 8 11 36 60 16 11 11 8 17 19 12
Austria 28 13 18 12 11 4 9 16 45 26 19 20 15 16 25 21
Bangladesh 60 59 59 55 49 58 50 61 3 58 50 56 58 59 42 42
Belgium 58 20 15 16 18 3 12 4 46 11 14 15 14 14 18 10
Brazil 13 22 31 44 52 50 38 59 27 47 58 58 53 52 54 54
Cambodia 26 57 62 62 61 62 61 10 4 59 48 54 60 62 56 56
Canada 2 2 11 6 17 19 4 24 47 2 8 8 4 4 6 7
Chile 10 21 40 33 38 37 58 39 26 22 22 21 16 26 58 47
China 39 25 2 23 34 35 17 56 1 10 10 28 31 21 14 14
Colombia 11 33 49 31 48 44 42 49 19 32 52 44 30 44 47 31
Croatia 22 29 45 46 33 30 62 23 41 56 62 53 41 58 55 58
Czech Republic 30 16 32 57 23 13 33 17 28 34 36 24 25 30 34 40
Denmark 49 6 17 2 7 1 3 6 62 1 2 6 5 8 3 1
Dominican Republic 50 48 51 59 42 52 54 45 18 43 49 57 39 38 49 30
Egypt 42 46 52 58 62 46 45 50 16 54 30 46 54 35 51 36
Finland 14 7 21 7 13 2 14 8 52 7 7 3 10 13 13 18
France 44 30 7 19 20 17 25 20 55 51 18 16 17 19 38 46
Germany 27 17 3 18 12 11 13 22 50 28 9 13 20 15 12 15
Greece 25 32 37 49 28 25 36 31 53 23 25 33 38 36 43 38
Guatemala 29 55 56 43 47 60 34 54 12 50 61 62 56 49 32 48
Hong Kong 62 61 10 9 10 23 10 1 21 20 15 9 3 3 8 6
Hungary 32 27 39 51 24 31 46 15 32 40 40 35 28 31 23 33
India 54 56 25 28 46 53 23 52 2 48 27 31 47 28 10 8
Indonesia 24 45 42 40 51 43 27 55 10 38 45 43 50 42 33 23
Iran 9 15 46 42 53 54 60 58 59 57 55 61 49 54 60 61
Israel 51 23 22 4 9 21 8 32 39 29 20 19 2 9 4 16
Italy 45 41 13 14 26 24 15 34 43 13 31 25 34 27 29 26
Japan 46 49 4 11 16 15 26 41 40 25 21 12 24 46 50 41
Jordan 55 53 58 50 43 41 43 28 33 41 28 32 43 37 44 37
Kenya 52 58 61 61 57 56 59 53 49 55 54 59 59 60 62 62
Korea 56 47 14 5 8 22 31 33 34 37 26 22 21 20 17 19
Kuwait 3 3 29 32 29 32 22 26 31 6 17 34 27 24 28 22
Malaysia 17 14 36 38 32 40 37 19 13 49 32 26 22 48 26 20
Mexico 31 37 26 39 40 51 44 42 9 42 59 48 37 32 27 34
Morocco 47 51 55 48 41 55 51 35 48 53 47 49 61 47 59 49
Netherlands 34 12 9 13 14 6 5 3 57 3 4 4 12 1 9 3
New Zealand 6 5 24 8 19 9 2 38 44 4 5 5 19 11 7 9
Nigeria 35 52 53 29 60 59 32 60 37 35 39 55 35 53 20 25
Pakistan 57 54 60 60 58 61 57 62 5 61 42 52 62 61 61 59
Panama 12 42 43 26 36 45 41 25 17 39 44 41 36 41 48 43
Peru 8 39 50 52 54 49 55 46 14 45 56 51 46 45 57 51
Philippines 40 50 48 36 44 47 29 40 8 18 38 38 48 40 24 27
Poland 23 18 30 30 30 26 28 30 25 24 43 29 29 34 22 32
Russia 4 8 27 35 35 39 49 47 15 30 35 45 44 43 35 45
Saudi Arabia 7 9 28 20 27 34 35 44 22 46 16 27 23 25 39 39
Singapore 61 62 8 10 2 18 7 2 29 8 3 1 11 12 1 4
Slovak Republic 43 35 38 45 31 27 47 13 38 60 57 40 33 50 37 53
Slovenia 21 26 34 24 22 16 20 12 54 12 29 23 26 23 30 29
South Africa 20 24 47 56 45 57 56 37 51 62 60 50 42 56 46 55
Spain 41 28 20 37 25 12 30 27 56 15 51 30 32 39 53 52
Sri Lanka 53 60 57 53 55 42 53 48 11 52 46 47 57 57 45 60
Sweden 16 10 16 3 5 7 1 11 58 5 6 7 6 2 5 5
Switzerland 37 38 5 1 4 5 6 5 61 9 1 2 7 6 2 2
Taiwan 59 44 23 27 6 10 24 18 35 14 23 18 18 18 21 24
Thailand 38 36 35 22 37 29 18 21 6 27 33 36 40 22 16 17
Turkey 33 43 33 41 39 38 39 51 23 44 37 39 45 29 40 35
U.A.E. 5 4 19 21 3 20 21 9 30 36 12 17 13 7 15 13
Ukraine 19 34 54 47 59 33 52 29 20 17 53 60 51 55 41 57
United Kingdom 48 31 6 34 21 14 16 14 42 19 13 10 9 10 36 28
United States 15 11 1 17 1 28 19 43 36 33 24 14 1 5 11 11
Vietnam 36 40 44 25 50 48 40 7 7 21 34 42 52 33 31 44
IPS
NATIONAL COMPETETIVENESS RESEARCH
2019-2020
IPS
NATIONAL COMPETITIVENESS RESEARCH
2019-2020

© 2020 The Institute for Policy & Strategy on National Competitiveness (IPSNC)

ISBN 979-11-89116-08-8 08000

Published by the Institute for Policy & Strategy on National Competitiveness (IPSNC),

in cooperation with the Institute for Industrial Policy Studies (IPS), Seoul School of Integrated

Sciences and Technologies (aSSIST), Taylor Institute at Franklin University Switzerland (FUS),

and United Nations Institute for Training and Research (UNITAR).

For more information, please contact the IPSNC Research Team at:

IPSNC
7F Finland Tower
203, Sinchon-ro, Seodaemun-gu, Seoul, 03767, Korea
E-mail: [email protected]
http://ipsnc.org

All rights reserved. No part of this publication may be reproduced, stored in any information

storage, or transmitted in any form, without the prior written permission by IPSNC.
 IPS
National Competitiveness Research Team

Dong-Sung Cho Chairman Institute for Industrial Policy Studies

Professor Emeritus Seoul National University

Hwy-Chang Moon Chairman Institute for Policy & Strategy on National

Competitiveness

Professor Emeritus Seoul National University

Wenyan Yin Researcher Institute for Policy & Strategy on National

Competitiveness

Chul-Seung Lee Researcher Institute for Policy & Strategy on National

Competitiveness

Yeon W. Lee Researcher Institute for Policy & Strategy on National

Competitiveness

Yunjae Bae Research Associate Institute for Policy & Strategy on National
Competitiveness

Professor Dong-Sung Cho

Professor Hwy-Chang Moon

Table of Contents

01  User Guide���������������������������������������������������������������������������������������������� 1

02 Highlights���������������������������������������������������������������������������������������������� 13

03  Conceptual Framework and Analytical Methodologies������������������������ 25

04  Application of MASI: A Case of Korea��������������������������������������������������� 41

05  Factor-Level Analysis��������������������������������������������������������������������������� 51

06  Snapshot of Top 30 Economies������������������������������������������������������������� 79

07  Country Profiles������������������������������������������������������������������������������������ 89

Appendix��������������������������������������������������������������������������������������������� 153

References������������������������������������������������������������������������������������������ 290
IPS NATIONAL COMPETETIVENESS RESEARCH 2019-2020

01
USER GUIDE
 01 USER GUIDE
This research volume is an extended version of the previous IPS studies on national competitiveness by the
Institute for Policy and Strategy on National Competitiveness (IPSNC).1 It features the Measure-Analyze-Simu-
late-Implement (MASI) method, which is foundationally applied for IPS research to address policy implications
that can enhance step-by-step national competitiveness. The MASI approach includes the following four steps:
• Measure: Double Diamond (DD)-Based 9-Factor Model (the IPS Model) for measuring national competi-
tiveness
• Analyze: 3×3 framework for classifying country groups and comparing countries with similar competi-
tiveness structures
• Simulate: Applying business strategy (cost or differentiation strategy) that provides guidance toward se-
lecting the most effective approach for enhanced competitiveness
• Implement: Practical strategies for strengthening national competitiveness, using Optimal Strategic Mix
and Term-Priority Matrix at both macro and micro levels.
In this section, the MASI methodology is briefly described and the guidelines on using this report are also pre-
sented for users in both public and private sectors.

1.1  MEASURE: THE DD-BASED 9-FACTOR MODEL (THE IPS MODEL)

This report measures the competitiveness of sixty-two countries using the IPS Model. The scope of national
competitiveness encompasses both domestic and international contexts, and the sources of national competi-
tiveness are composed of both physical and human factors. Physical factors are made up of four parts which are
Factor Conditions, Demand Conditions, Related Industries, and Business Context. Human factors include four
other parts – Workers, Politicians & Bureaucrats, Entrepreneurs, and Professionals. As an example, Figure 1.1
illustrates Switzerland’s competitiveness for 2019-2020 using the IPS Model.

FIGURE 1.1  IPS Model: The Case of Switzerland

Physical Factors Human Factors

Business Politicians &
Context Bureaucrats
100.00
100.00
80.00
80.00
60.00
60.00
40.00
40.00
20.00
20.00
Factor 0.00 Demand
Conditions Conditions Workers 0.00 Profess-
ionals

Related Entrepreneurs
Industries

1  Unless otherwise specified, tables, figures, concepts, methodologies, and other information are adopted, reorganized, and
extended from previous IPS studies on national competitiveness and Cho and Moon (2013) in particular.

01  USER GUIDE 3

The eight factors of national competitiveness in the IPS Model are composed of sixteen sub-factors,
which are further made up of ninety-eight criteria. About 60 percent (57) of the criteria are hard data, and
the other about 40 percent (41) are soft data. Table 1.1 shows the number of criteria under each of the
eight factors. The IPS report has adopted a three-year average methodology to minimize the effects of
random variances in a particular year.

TABLE 1.1  Factors and the Number of Criteria

Physical Factors Human Factors
Factors Number of Criteria Factors Number of Criteria
Factor Conditions 10 Workers 9
Demand Conditions 9 Politicians & Bureaucrats 10
Related Industries 24 Entrepreneurs 10
Business Context 16 Professionals 10
Total 59 Total 39

1.2  ANALYZE: COUNTRY GROUPS

This IPS research places more emphasis on assessing competitiveness among nations with similar character-
istics. Such an approach is adopted because competitiveness implies a relative position among competitors in
the same group. This intra-group analysis is helpful in developing the direction of a country’s policies toward
enhancing its competitiveness. For example, if country A in the medium-intermediate group is looking for a
counterpart to benchmark, then country B, which is in the medium-strong group is more comparable and ap-
propriate than country C which is in the large-strong group. This is simply because countries A and B are more
similar in terms of size (see Table 1.2). For size, countries are categorized into large, medium, and small groups,
based on population and land size. For competitiveness, countries are classified into strong, intermediate, and
weak groups based on each one’s score of overall national competitiveness. By considering both the size and
competitiveness, countries will be able to evaluate their relative position in a more appropriate way.

TABLE 1.2  Country Groups by Size and Competitiveness

Size
Large Medium Small
Competitiveness
Strong Large-Strong countries Medium-Strong countries Small-Strong countries
Intermediate Large-Intermediate countries Medium-Intermediate Small-Intermediate countries
countries
Weak Large-Weak countries Medium-Weak countries Small-Weak countries

4 01  USER GUIDE

 1.3  SIMULATE: STRATEGY SIMULATION
In order to identify a more effective strategy to enhance national competitiveness, cost and differentiation strat-
egies are applied to each nation. The cost strategy involves “low cost and high efficiency” by focusing on Factor
Conditions and Workers. In contrast, the differentiation strategy targets “high cost with high value” and looks
more at Demand Conditions and Professionals than other competitiveness determinants (see Figure 1.2). In using
such a strategy simulation, each nation is able to select the best possible strategy to enhance its competitiveness.

FIGURE 1.2  Competitive Strategies of Nations

Competitive Differentiation
Strategy Cost Strategy
Strategy

High
Competitiveness

Medium

Low

Physical Factor Business Related Demand

Factors Conditions Context Industries Conditions
Human Politicians & Professionals
Workers Entrepreneurs
Factors Bureaucrats

For example, if Korea adopts a cost strategy it will rank thirty-eighth. However, if it employs a differentiation
strategy its rank will jump up to tenth place, which is higher than its current position at twenty-sixth (see Fig-
ure 1.3). This example demonstrates that a differentiation strategy is the optimal approach for Korea to enhance
its competitiveness, and is also one that can be emulated by other countries.

FIGURE 1.3  Changing Rankings with Different Strategy Simulation: The Case of Korea

Competitive Cost Strategy Differentiation

Strategy Strategy

10th
High
Competitiveness

18th
26th
Medium

38th

Low
46th

Physical Factor Business Related Demand

Factors Conditions Context Industries Conditions
Human Workers Politicians & Entrepreneurs Professionals
Factors Bureaucrats

01  USER GUIDE 5

1.4 IMPLEMENT
1.4.1  Optimal Strategic Mix (Macro Level)
Once the above three steps are complete, a different set of strategies for each country according to its stage of
economic development can be derived. In this respect, countries can be classified based on group rankings for
each factor. Countries in the weak group are categorized as developing, those in the intermediate group are
transitional, and those in the strong group are developed. In order to move up to a higher stage of economic
development, countries are recommended to implement the most effective strategy as shown in the far-right
column of Table 1.3. Take Korea for example. In the case of Factor Conditions, Korea’s disadvantage in natural
resources can be overcome through internationalization. In addition, Korea’s manufacturing-based economy
can be upgraded to a knowledge-based one by creating high value-added products. Similar policy implications
can also be derived for other competitiveness variables in the table.

TABLE 1.3  Optimal Strategic Mix: The Case of Korea

Stages
Developing Transitional Developed Strategies for Enhancing Competitiveness
Factors
Factor Resource- Manufactur- Knowledge- • Overcome problems through internationalization
Conditions Based ing-Based Based • Create high value-added products by applying high
technology and design to the production processes
Business Protectionism Efficiency Competition • Enhance corporate competences such as manage-
Context ment techniques and labor-management relations
• Attract investment and establish a system to

encourage competition by opening up the domestic

Physical Factors

market
Related Physical Industrial Regional • Enhance R&D competence by strengthening aca-
Industries Infrastructure Cluster Integration demic-industrial cooperation and increasing R&D
(Roads & expenditures
Ports) • Create synergies of technologies, human resources,

and services through regional integration

Demand Quantity Quality Sophistica- • Enlarge the market size by exporting and investing
Conditions tion abroad
• Pay more attention to the sophistication of the

market
Workers Cheap Motivated Skilled • Establish mutually beneficial labor-management
relations and improve worker motivation
• Improve skill level of the workforce by establishing

a lifetime education and training system

Politicians & Facilitation Support & Advice • Enhance the stability and efficiency of the political
Bureaucrats Regulation system
Human Factors

• Regulate critical issues such as environment, health

and safety as an adviser; reduce other regulations

and unnecessary intervention
Entrepreneurs Risk Taking Efficiency Value • Improve the market mechanism for enhancing a
Developing Creating creative mindset among entrepreneurs
• Reduce direct support for start-up firms

Professionals Operational Managerial Strategic • Improve tertiary education and open the skilled
labor market
• Create a social context for professionals

6 01  USER GUIDE

1.4.2  Term-Priority Matrix (Micro Level)
The Term-Priority Matrix presents policy guidelines and prescriptions according to different time periods and
priorities. By identifying the terms and priorities for policy implementation, countries can focus and allocate
their limited resources more efficiently. The first step in deriving the Term-Priority Matrix is to categorize weak
sub-factors into twelve groups according to the terms and priorities of policies. The term on the horizontal axis
is classified into short, mid, long, and very long depending on the executable time period. The sub-factors that
are more related to the private sector are categorized under long to very long term because it is assumed that
for governments these are less controllable than those of the public sector. Thus, they are less likely to have an
immediate impact when constructing government policies. The level of priority on the vertical axis is classified
into high, medium, and low, and it is determined by the degree of correlation between sub-factors and GDP
per capita. The sub-factors with higher priority are those that have a higher correlation with GDP per capita,
thereby imposing greater effects on the creation of national wealth. Figure 1.4 shows the Term-Priority Matrix
of Korea as an example, which lists the sub-factors with weak criteria for Korea. In this example, the upper-left
corner represents the more important and immediate polices for the Korean government.

FIGURE 1.4  Term-Priority Matrix: The Case of Korea

 Bureaucrats  Industrial Infrastructure  Personal Competence of  Living infrastructure

- Regulatory quality - International travel Entrepreneurs - Social safety net
- Ethics (Bribery & corruption) - Entrepreneur's international - Gini index
experience - CO2 emission
High

 Politicians  Social Context of  Structure  Quality of Labor Force

- Ethics (Bribery & corruption) Entrepreneurs - Equal treatment - The openness of labor
- The process of legislature - Openness to foreign - Ethical practices market
Priority

entrepreneurs
Medium

- Social status of
entrepreneurs

 Rivalry  Produced resources  Social Context of  Quantity of Labor Force

- FDI openness - Oil production Professionals - Monthly compensation for
- Service openness - Natural gas production - Openness to foreign manufacturing workers
Low

0professionals 0

Short Mid Long Very long

Term

01  USER GUIDE 7

1.5  FOR USERS IN THE PUBLIC SECTOR
Users in the public sector can utilize this method by using the following directions. The first step is to identify
the strengths and weaknesses of the country’s competitiveness structure by comparing them with other coun-
tries. The benchmarking target can be a country or a group of countries with a higher performance, a similar
competitiveness structure, and a similar country size. Take Korea for example. In this case, Germany can be
selected as a benchmark target for comparison as it is the most competitive country in the medium-sized econ-
omies and has a similar industrial structure with Korea. As shown in Figure 1.5, Korea is weaker than Germany
in most of the factors except for Workers.

FIGURE 1.5  Comparison between Korea and Germany (Factor Level)

Physical Factors Human Factors

Business Politicians &
Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Conditions Conditions

Related Entrepreneurs
Industries
Korea Germany Korea Germany

The next step is to conduct a comparative analysis at the sub-factor level to identify strengths and weaknesses
in detail. Two methods are suggested and can be selectively used depending on the purpose. The first method is
to use the same benchmarking country to target and improve weak sub-factors, while the second one is to use
multiple benchmarking countries as a way to target and improve weak sub-factors.

8 01  USER GUIDE

1.5.1  Method 1: Single Benchmarking Country to Target and Improve Weak Sub-Factors
To start, a full score of 100 points is given to the base country. As the benchmarking target country in this case,
Germany has the highest competitiveness index in the medium-sized group with a similar industrial structure.
Next, the relative index of Korea, (IKorea/IGermany) multiplied by 100, is calculated. Here, Icountry denotes the stan-
dardized score of relevant sub-factors. This index represents the relative development level of Korea compared
to Germany. Figure 1.6 shows that, among the eight sub-factors under human factors, Korea is stronger than
Germany only in Quantity of Labor Force, but weaker in all other sub-factors, particularly in Politicians, Bu-
reaucrats, and Social Context of Professionals, which are less than 85 percent of the level of Germany.

FIGURE 1.6  Relative Position of Korea Compared to Germany in Human Factors (Method 1)

(%)
160

140 137

120

100 92 98 96
88 84
81
80
73
60

40

20

0
5.1 5.2 6.1 6.2 7.1 7.2 8.1 8.2
Note: 5.1: Quantity of Labor Force, 5.2: Quality of Labor Force, 6.1: Politicians, 6.2: Bureaucrats, 7.1: Personal Competence
of Entrepreneurs, 7.2: Social Context of Entrepreneurs, 8.1: Personal Competence of Professionals, 8.2: Social Context of
Professionals

1.5.2  Method 2: Multiple Benchmarking Countries to Target and Improve Weak Sub-Factors
This method is to compare the target country that is the most competitive within the group for each sub-factor.
As Korea was in the Medium-Intermediate Group, the Medium-Strong Group was selected for benchmarking.
As such, for the sub-factor of Quantity of Labor Force, Korea ranked the highest compared to the other six
Medium-Strong economies. However, Korea showed a much weaker performance in other sub-factors. For
example, as Sweden ranked the highest in this group for the Social Context of Entrepreneurs, Sweden can be
benchmarked as the target country. In this case, the user can compare Korea with Sweden and calculate Korea’s
relative competitiveness by using the formula suggested in Method 1. Likewise, the indices for other sub-factors
can be obtained by comparing Korea with other top countries, as shown in Table 1.4.

01  USER GUIDE 9

TABLE 1.4  Intra-Group Position of Korea in Human Factors with Strong-Medium Group Countries
(Method 2)
Quantity of Labor Force Quality of Labor Force Politicians Bureaucrats
1 Korea 1 New Zealand 1 New Zealand 1 Finland
2 Taiwan 2 Sweden 2 Sweden 2 New Zealand
3 United Kingdom 3 Finland 3 Finland 3 Sweden
4 New Zealand 4 Taiwan 4 Germany 4 United Kingdom
5 Germany 5 United Kingdom 5 United Kingdom 5 Germany
6 Finland 6 Germany 6 Taiwan 6 Taiwan
7 Sweden 7 Korea 7 Korea 7 Korea
Personal Competence of Social Context of Personal Competence of Social Context of
Entrepreneurs Entrepreneurs Professionals Professionals
1 Sweden 1 Sweden 1 Sweden 1 Sweden
2 United Kingdom 2 United Kingdom 2 New Zealand 2 New Zealand
3 Finland 3 New Zealand 3 Germany 3 Germany
4 Taiwan 4 Finland 4 Finland 4 Finland
5 New Zealand 5 Germany 5 Korea 5 Korea
6 Germany 6 Taiwan 6 Taiwan 6 Taiwan
7 Korea 7 Korea 7 United Kingdom 7 United Kingdom

1.6  FOR USERS IN INTERNATIONAL BUSINESS

An international investor seeking to select a country for overseas investment may require a comprehensive
analytic data set in order to make the right decision. The areas for analysis may include infrastructure, workers,
and host country’s policies. For further detailed analysis, investors can refer to sub-factors. Regarding the local
industrial and living infrastructure, for example, investors can examine the criteria related to transportation
and telecommunication under the sub-factor of Industrial Infrastructure, and the criteria on living conditions
under the sub-factor of Living Infrastructure. Through such comprehensive intra-group comparisons (see Fig-
ure 1.7), investors can analyze relative competitiveness more accurately and narrow down the potential candi-
dates for investment.

10 01  USER GUIDE

FIGURE 1.7  Intra-Group Rankings

3.1 Industrial Infrastructure (Intra-Group Rankings) 3.2 Living Infrastructure (Intra-Group Rankings)
+PVTC)TQWR4CPMKPIU 9QTNF4CPMKPIU
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 8QLWHG.LQJGRP   .XZDLW 8QLWHG.LQJGRP    7KDLODQG
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 )UDQFH   6ORYDN5)HUSDXQEFOHLF    +XQJDU\
 6SDLQ   0DOD\VLD.RUHD    .XZDLW
 ,WDO\   &URDWLD ,WDO\    8NUDLQH
 *UHHFH   &KLQD *UHHFH    6DXGL$UDELD
 3RODQG   5XVVLD 3RODQG    &KLQD
 0DOD\VLD   3DQDPD 7KDLODQG    $UJHQWLQD
 7KDLODQG   7KDLODQG&KLOH    &KLOH
 &KLOH   &KLOH  0DOD\VLD    7XUNH\
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0:    5XVVLD
 *XDWHPDOD   0H[LFR 6UL/DQND    0DOD\VLD
 6UL/DQND   0RURFFR0RURFFR    -RUGDQ
 .HQ\D   'RPLQLFD.QHQ5\HDSXEOLF    6UL/DQND
 8NUDLQH   -RUGDQ *XDWHPDOD    ,QGRQHVLD
 &DPERGLD   3KLOLSSLQ& HDV PERGLD    &RORPELD
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 $XVWULD   ,QGRQHVL8 D $(    0H[LFR
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 %HOJLXP   ,UDQ  +RQJ.RQJ    ,QGLD
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 &URDWLD   &DPERG& LDURDWLD    3DNLVWDQ
 'RPLQLFDQ5HSXEOLF   (J\SW 'RPLQLFDQ5HSXEOLF    &DPERGLD

Note: L.S.: Large-Strong group; L.I.: Large-Intermediate group; L.W.: Large-Weak group; M.S.: Medium-Strong group; M.I.:
Medium-Intermediate group; M.W.: Medium-Weak group; S.S.: Small-Strong group; S.I.: Small-Intermediate group; S.W.:
Small-Weak group.

01  USER GUIDE 11

IPS NATIONAL COMPETETIVENESS RESEARCH 2019-2020

07
COUNTRY PROFILES
Argentina
Overall Performance Country Information
0
Capital Buenos Aires
Population 44,780,677 (2019 est.)
Ranking

47 49 48 49 46
59 59 56 56 59 59
53 Area 2,780,400 sq km
61 62 62
Major Languages Spanish
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $9,887 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Argentina’s economy is in recession against the back-
Neutral Starategy Basis ground of internal and external imbalances in 2019.
Opmal Strategy Basis Uncertainty about future policy priorities has triggered
0 capital outflows and a strong currency depreciation.
The resulting liquidity challenges have led to a re-pro-
filing of short-term and the reinstatement of currency
Ranking

controls. Recent volatility is weighing on growth and

46 increasing unemployment.
46 44
Monetary policy will need to remain tight to
54
49 reduce inflation, which currently exceeds 50%.
70 Strengthening the independence of the central bank
Cost Strategy Neutral Strategy Differenaon Strategy would make monetary policy more effective. Reducing
the fiscal deficit will be key to lowering public debt,
but preserving the real value of well-targeted social
benefits remains important to cushion the impact of
the recession on vulnerable groups. Reforms of taxes,
regulations and administrative procedures could boost
productivity. Lower trade barriers, including a phase-
out of export taxes as scheduled, are key to foster a
stronger integration into the global economy.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Argen
na Nigeria Argenna Nigeria
(A) (B) (A) (B)

90 07  COUNTRY PROFILES_Argentina

 Australia
Overall Performance Country Information
0 10 10 7 9 9 7 9 9 9 10
13 13
17 16 15 Capital Canberra
Population 25,203,198 (2019 est.)
Ranking

Area 7,741,220 sq km
Major Languages English
70 GDP per capita $53,825 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy Australia’s economic growth is projected to firm
Neutral Starategy Basis to about 2.25% in 2020-21. While weaker trading
Opmal Strategy Basis partner growth and a downturn in domestic dwelling
0
10 2 investment will weigh on economic conditions, recent
household tax cuts and monetary policy easing should
15
13 provide some support to activity. Subdued output
growth and lingering uncertainty will weaken the
Ranking

23
recent strong labour market conditions.
Monetary policy is accommodative and the central
bank is projected to make a further cut in the policy
rate in its attempt to achieve the inflation target.
70
Cost Strategy Neutral Strategy Differenaon Strategy Macroprudential policies may need to be tightened
if lower interest rates fuel house prices, which would
create imbalances and expose the economy to down-
side vulnerabilities. Fiscal policy, which on current
plans is expected to exert a broadly neutral influence,
may need to play a more active role in strengthening
economic growth.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand Professionals
0.00 Workers 0.00
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Australia Canada Australia Canada

(A) (B) (A) (B)

07  COUNTRY PROFILES_Australia 91

Austria
Overall Performance Country Information
0 12 13 14 14
17 15 15 15 16 18 17
19 20 19 20 Capital Vienna
Population 8,955,102 (2019 est.)
Ranking

Area 83,871 sq km
Major Languages German
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
GDP per capita $50,022 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Austria’s economic growth is projected to edge down
Neutral Starategy Basis over the 2020-21 period, as the global slowdown with
Opmal Strategy Basis confidence of manufacturing firms fallen sharply, busi-
0
ness investment growth slowed, and trade tensions
17 9 weakened export growth and business environment.
16 Employment will continue to increase and a tight
29 labour market will support income growth. Especially,
Ranking

recent sentiment indicators suggest that the construc-

43 tion and service sectors remain resilient. Domestic
demand will be the key driver of growth with support-
70 ed wage growth through tight labor market. Inflation
Cost Strategy Neutral Strategy Differenaon Strategy will remain subdued.
Following an increase in pension entitlements, the
budget balance will deteriorate slightly over 2019-
21 with fiscal policy otherwise broadly neutral. The
authorities should let the automatic stabilizers operate
and consider more active measures to further stimulate
long-term growth. The government should address the
sluggish productivity performance in business sectors
by promoting more competition in services.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Austria Denmark Austria Denmark

(A) (B) (A) (B)

92 07  COUNTRY PROFILES_Austria

 Bangladesh
Overall Performance Country Information
0
Capital Dhaka
Population 163,046,192 (2019 est.)
Ranking

53 54 55 51 Area 143,998 sq km
59 57 56 56
62 65 64 64 64 62
68 Major Languages Bangla
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
GDP per capita $1,905 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Bangladesh has made remarkable progress in
Neutral Starategy Basis reducing poverty, supported by sustained econom-
Opmal Strategy Basis ic growth. Bangladesh reduced poverty from 44.2
0 percent in 1991 to 14.8 percent in 2016/17. In parallel,
life expectancy, literacy rates and per capita food
production have increased significantly. Progress was
Ranking

underpinned by steady growth in GDP, which averaged

6.5 percent in the last decade. Rapid growth enabled
52 56 49 Bangladesh to reach the lower middle-income country
status in 2015.
57 55
70 In 2018, Bangladesh fulfilled all three eligibility
Cost Strategy Neutral Strategy Differenaon Strategy criteria for graduation from the UN’s Least Developed
Countries (LDC) list for the first time and is on track for
graduation in 2024. Sustained economic growth has
rapidly increased the demand for energy, transport
and urbanization. Insufficient planning and investment
have resulted in increasingly severe infrastructure
bottlenecks, congestion and pollution. Improving
infrastructure as well as the business climate would
allow new productive sectors to develop and generate
quality self and wage employment.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Bangladesh Nigeria Bangladesh Nigeria

(A) (B) (A) (B)

07  COUNTRY PROFILES_Bangladesh 93

Belgium
Overall Performance Country Information
5 8 5 9 9 9 9
0 11 12
17 14 15 16 16 13 Capital Brussels
Population 11,539,328 (2019 est.)
Ranking

Area 30,528 sq km
Major Languages Dutch, French
70 GDP per capita $45,175 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy Belgium’s economic growth is projected to moderate
Neutral Starategy Basis to around 1% in 2020-21. External headwinds will
Opmal Strategy Basis weigh on exports and business investment, despite
0
1 supportive financing conditions. Private consumption
13
will be more resilient on the back of past tax cuts and
11 wage growth that will increase household disposable
28
Ranking

income. The job market is set to remain tight, with the

unemployment rate at 5.4% at the end of 2021.
38
Fiscal policy will support growth moderately in
2020-21, which is appropriate in the current economic
70 slowdown. However, the public debt-to-GDP ratio
Cost Strategy Neutral Strategy Differenaon Strategy remain high and the government should stick to
prudent medium-term fiscal targets. Loose financial
conditions have fueled credit growth, which could
require additional and binding borrower-based macro-
prudential instruments. Competition in some profes-
sional services and incentives for firm creation should
be enhanced, and the efficiency of public support to
innovation and policies to re-skill workers should be
improved to boost productivity growth.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand %XVLQHVV&RQWH[W 0.00
0.00 Workers Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Belgium Denmark Belgium Denmark

(A) (B) (A) (B)

94 07  COUNTRY PROFILES_Belgium

 Brazil
Overall Performance Country Information
0
Capital Brasilia
33
38 36 37 41 41 Population 211,049,527 (2019 est.)
Ranking

42 43 44 44 42 45 44 48 52 Area 8,514,877 sq km
Major Languages Portuguese
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $8,796 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Brazil’s economy is recovering gradually. A pension
Neutral Starategy Basis reform has been approved, and better prospects for
Opmal Strategy Basis progress on structural reform are lifting confidence
0 and supporting investment, which is also buoyed by
easier financial conditions. Low inflation and easier
withdrawal of funds in individual unemployment in-
surance accounts will underpin stronger consumption.
Ranking

On the assumption that the reform agenda continues

52 45 to advance, growth is projected to gain momentum
53
53 in 2020. However, high unemployment is falling only
58
70 slowly, and newly created jobs are of low quality,
Cost Strategy Neutral Strategy Differenaon Strategy including many informal jobs.
Monetary policy has been relaxed, which is
appropriate as inflation is expected to remain below
target during 2020 and 2021. Some scope for addi-
tional easing remains. Ensuring fiscal sustainability
and compliance with fiscal rules will require further
adjustments on mandatory spending, while safeguard-
ing effective social transfers and public investment.
Raising productivity will hinge on improving the
business climate through reforms in taxes, regulations,
and lower trade barriers. Preserving natural assets will
require more determined enforcement efforts.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Brazil Nigeria Brazil Nigeria

(A) (B) (A) (B)

07  COUNTRY PROFILES_Brazil 95

Cambodia
Overall Performance Country Information
0
Capital Phnom Penh
Population 16,486,542 (2019 est.)
Ranking

50 50
57 55 55 54 57 Area 181,035 sq km
63 63 61 61 61
66
Major Languages Khmer
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $1,620 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Over the past two decades, Cambodia has undergone
Neutral Starategy Basis a significant transition, reaching lower middle-income
Opmal Strategy Basis status in 2015 and aspiring to attain upper middle-in-
0
come status by 2030. Driven by garment exports
and tourism, Cambodia’s economy has sustained an
average growth rate of 8% between 1998 and 2018,
Ranking

making it one of the fastest-growing economies in the

world. While easing slightly, growth remains strong,
projected to reach 7% in 2019, after the better-than-ex-
56 61
61
pected growth rate of 7.5% in 2018.
70 60 61 Poverty continues to fall in Cambodia. According
Cost Strategy Neutral Strategy Differenaon Strategy to official estimates, the poverty rate in 2014 was
13.5% compared to 47.8% in 2007. About 90% of the
poor live in the countryside. While Cambodia achieved
in 2009 the Millennium Development Goal (MDG)
of halving poverty, the vast majority of families who
escaped poverty did so by a small margin. Around
4.5 million people remain near-poor, vulnerable to
falling back into poverty when exposed to economic
and other external shocks. Key reforms are needed for
Cambodia to sustain pro-poor growth, foster compet-
itiveness, sustainably manage natural resource wealth
and improve access to and quality of public services.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Cambodia Ukraine Cambodia Ukraine

(A) (B) (A) (B)

96 07  COUNTRY PROFILES_Cambodia

 Canada
Overall Performance Country Information
0
3 2 3 3 3 2 2 2 1 1 Capital Ottawa
4 4 4
10
14 Population 37,411,047 (2019 est.)
Ranking

Area 9,984,670 sq km
Major Languages English, French
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $46,212 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Canada’s economy will go through a period of sub-
Neutral Starategy Basis dued growth in 2020. A slowdown in external trade,
Op mal Strategy Basis lower growth in trading partners, and ongoing trade
1
0
1
policy uncertainty are weakening exports and damp-
11 ing business investment. The labour market has been
7
strong, supporting incomes, but employment growth
18 will slow with domestic demand remaining weak. The
Ranking

unemployment rate will stop falling, but remain at a

low level. In addition, companies’ investment inten-
tions for machinery and equipment have been volatile.
Residential investment, on the other hand, has picked
70
Cost Strategy Neutral Strategy Differen a on Strategy up in light of the resumption of house price growth.
The Bank of Canada should reduce rates modestly
in the coming quarters to support demand. This will
help keep inflation near the mid-point of the target
band. Modest structural fiscal easing will support the
economy. Risks remain in the housing market, which
shows signs of a rebound after a period of stabilization
that was helped by macroprudential measures. The
supply of affordable housing should be increased
and social housing should be better maintained and
targeted.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Canada Canada Canada Canada

(A) (B) (A) (B)

07  COUNTRY PROFILES_Canada 97

China
Overall Performance Country Information
0 13
17 15 15 15 14 15 16
24 24 21 20 Capital Beijing
32
37 Population 1,433,783,686 (2019 est.)
Ranking

45
Area 9,596,961 sq km
Major Languages Standard Chinese or Mandarin
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
GDP per capita $10,098 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy China’s economic growth is projected to decline to
Neutral Starategy Basis 5.5% in 2021 as the economy continues to rebalance
Opmal Strategy Basis and trade tensions remain high. In 2019, frontloading
0
of exports has helped to support activity, but increased
16
16 10 tariffs will constrain growth going forward. Imports
17
will slow further as demand for import inputs eases,
resulting in an increase in the current account surplus.
Ranking

27
Overall investment growth is no longer slowing thanks
to government infrastructure projects and still robust
real estate investment, although manufacturing invest-
70 ment growth is weak. Private consumption will grow
Cost Strategy Neutral Strategy Differenaon Strategy steadily on the back of relatively strong disposable
income gains. Inflation is easing, notwithstanding
soaring prices of some consumption goods.
Monetary conditions were tightened by restric-
tions on shadow banking but are now being eased to
support economic activity. Fiscal policy, with a number
of tax cuts, will remain supportive of consumption
amid deteriorating consumer confidence. Infrastruc-
ture investment will be robust, and project financing
is expected to benefit from relaxed own fund require-
ments.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

China Canada China Canada

(A) (B) (A) (B)

98 07  COUNTRY PROFILES_China

 Chile
Overall Performance Country Information
0
Capital Santiago
Population 18,952,048 (2019 est.)
Ranking

23 21 24
30 30 26 27
33 33 34 37 38 39 Area 756,102 sq km
41
46
70
Major Languages Spanish, English
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $15,399 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Chile’s economic growth is projected to strengthen
Neutral Starategy Basis gradually in the coming years, but remain weaker than
Opmal Strategy Basis previously expected due to the recent social events
0
and persistent external headwinds. Supportive financ-
ing conditions and a tax reform in 2020 will sustain
investment. Solid private consumption is set to be
29
Ranking

39 supported by low real interest rates and rising wages.

39
34 Stronger growth and sustained immigration will boost
46 employment. The current account deficit will remain
stable.
70
Cost Strategy Neutral Strategy Differenaon Strategy Monetary policy will stay appropriately accom-
modative and start tightening a slow pace as inflation
approaches the 3% target and the output gap closes.
Fiscal policy needs to strike a balance between higher
social spending needs and remaining prudent to
comply with the fiscal rule. Fostering inclusive growth
requires reforms to strengthen social and active labour
market policies and boost business dynamism.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 80.00
80.00 60.00
60.00
40.00
40.00
20.00
20.00
Factor Demand %XVLQHVV&RQWH[W 0.00
0.00 Workers Professionals
Condions Condions

Related Entrepreneurs
Industries

Chile France Chile France

(A) (B) (A) (B)

07  COUNTRY PROFILES_Chile 99

Colombia
Overall Performance Country Information
0
Capital Bogota
29
Population 50,339,443 (2019 est.)
Ranking

41 37 41 41
44 44 44 47 47 47 45 48 46
50 Area 1,138,910 sq km
Major Languages Spanish
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
GDP per capita $6,508 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Colombia has taken a leading role in adopting an open
Neutral Starategy Basis borders policy and implementing good practices in
Opmal Strategy Basis the provision of services to Venezuelan migrants and
0 returned Colombians in areas such as education to
health, services of employment and humanitarian aid.
Colombia has a track record of prudent macroeco-
nomic and fiscal management, and despite economic
Ranking

30
41 downturns has maintained its investment grade rating
44
41 since 2013. After slowing down to 1.4 percent in 2017,
50 economic growth accelerated to 3 percent in the first
70
half of 2019, driven by robust private consumption and
Cost Strategy Neutral Strategy Differenaon Strategy stronger investment.
Growth is projected to accelerate to 3.3 percent
in 2019, supported by stronger investment growth,
accommodative monetary policy, and the dissipation
of some transitory factors that affected growth in the
first semester. It is expected to accelerate further to
3.6 percent in 2020, as private consumption growth
remains strong, and investment spending is boosted
by lower effective corporate taxes and an expected re-
covery in residential investment and improved budget
execution at the national level. Higher profitability in
the oil sector is expected to incentivize investments in
exploitation and exploration.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Colombia Japan Colombia Japan

(A) (B) (A) (B)

100 07  COUNTRY PROFILES_Colombia

 Croatia
Overall Performance Country Information
0
Capital Zagreb
Population 4,130,304 (2019 est.)
Ranking

46 42 46
51 47 51 49 51 53 57 58 58 57 Area 56,594 sq km
61 61
Major Languages Croatian
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $14,949 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy The Croatian economy started out strong in 2019
Neutral Starategy Basis but lost momentum in the second quarter as annual
Opmal Strategy Basis growth decelerated to 2.4 percent. This mainly reflects
0 the fall in the export of goods and a deceleration in
the growth of household consumption. On the other
hand, growth of export of services picked up and cap-
ital investment as well as government consumption
Ranking

remained robust.
57 51 Growth is expected to pick up slightly in 2019 to
61 2.9 percent, with household consumption making the
56
70 61 largest contribution to overall GDP. A significant con-
Cost Strategy Neutral Strategy Differenaon Strategy tribution is expected to come from investment activity
in both the public and private sectors, partly reflecting
a greater absorption of EU funds. Furthermore, after a
marked increase in 2019, investment growth is set to
moderate in the private and general government sec-
tors, while exports might also edge down on the back
of a weak external outlook. The general government
budget is expected to remain close to balanced in the
forecast period, as revenues are expected to remain
buoyant while interest expenses could further dimin-
ish. Public debt could further decline to 64.6 percent of
GDP by the end of 2021.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Croa
a Slovak Republic Croaa Slovak Republic
(A) (B) (A) (B)

07  COUNTRY PROFILES_Croatia 101

Czech Republic
Overall Performance Country Information
0
Capital Prague
33 33 31
36 35 35 35 35 36 Population 10,689,209 (2019 est.)
Ranking

38 40 38 39 37
49
Area 78,867 sq km
Major Languages Czech
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
GDP per capita $23,213 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Economic growth of Czech Republic is projected to
Neutral Starategy Basis ease to 2-2.25% in 2020. Household consumption and
Opmal Strategy Basis government spending will drive as the main engine
0 of growth. Workers will still benefit from high wage
growth, while unemployment will remain low and
government is increasing spending on social policies.
31 26
However, the external sector will limit growth as eco-
Ranking

40 32 nomic activity in the main trading partners is slowing,

which will also lead to declining investment growth.
48 Exports are declining but less than imports, reflecting
70
a greater diversification of the economy and some
Cost Strategy Neutral Strategy Differenaon Strategy upgrading into global value chain.
Adjusting monetary policy should continue in
2020 as inflation is projected to stay above the 2%
target of the central bank. Government spending
is increasing, in particular social benefits, thanks to
rising revenues. Even so, public debt will continue to
decrease. Labour shortage remains the main domestic
bottleneck to growth. Accelerating childcare reform to
increase women’s participation in the labour market
and streamlined immigration procedures would help
to ease tensions in the labour market.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Czech Slovenia Czech Slovenia

Republic (B) Republic (B)
(A) (A)

102 07  COUNTRY PROFILES_Czech Republic

 Denmark
Overall Performance Country Information
4 3 4 3 4 5 6 6 5 4 2
8
0 14 12 Capital Copenhagen
18
Population 5,771,876 (2019 est.)
Ranking

Area 43,094 sq km
Major Languages Danish
70 GDP per capita $59,795 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy Resilient exports have sustained economic growth in
Neutral Starategy Basis 2019. Pharmaceuticals and machinery, wind turbines,
Opmal Strategy Basis account for a large part of export growth since the
2
0 1 mid-2018. Specialization industries has helped to
2 cushion industrial production from the global trade
17 slowdown. The economy is projected to grow at a
moderate pace of around 1.5% in 2020 and 2021.
Ranking

27 Strong exports will slow and weigh on growth as de-

mand from trading partners weakens. However, robust
wage growth, continued job creation and negative
interest rates will boost household disposable incomes
70
and bolster private consumption. Private consumption
Cost Strategy Neutral Strategy Differenaon Strategy
continues to grow at a moderate pace, while business
and residential investment growth have weakened.
Inflation is set to rise gradually.
Monetary policy conditions are expected to remain
highly accommodative due to the Krone’s peg to the
euro. Strong public spending growth is planned in
2020, while public investment is set to pick up in 2021.
A stronger focus on efficiency of public spending and
investment would be suitable, not least in the govern-
ment’s ambitious climate policy.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Denmark Denmark Denmark Denmark

(A) (B) (A) (B)

07  COUNTRY PROFILES_Denmark 103

Dominican Republic
Overall Performance Country Information
0
Capital Santo Domingo
Ranking

43 41 42 42 Population 10,738,958 (2019 est.)

46 46 46 44 44 44
50 49 49
Area 48,670 sq km
Major Languages Spanish
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $8,629 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy The Dominican Republic has enjoyed strong economic
Neutral Starategy Basis growth in recent years, averaging 5.3 percent annually
Opmal Strategy Basis between 1993 and 2018, one of the fastest rates in the
0 Latin America and the Caribbean (LAC) region. The
sustained growth has reduced poverty and inequality,
helping to expand the middle class. Poverty reduced
Ranking

from nearly 35 percent to 20 percent while the pro-

40 portion of the middle class rose from 24 percent to 37
49
51 percent. Dominican Republic wants to achieve its goal
48 of becoming a high-income country by 2030. This goal
57
70 may be done by improvement of the fiscal balance,
Cost Strategy Neutral Strategy Differenaon Strategy building human capital, promoting better business
environment, enhancing management of natural
resources, and increasing policy-making transparency
and accountability.
Building on the long-term National Development
Strategy (Vision 2030), the government drafted the
2016-2020 Government Plan at the start of its second
term. The plan’s strategic objective is to foster a more
inclusive economic growth and sets a target of deep-
ening the reforms begun during the previous four-year
term. Presidential and congressional elections will be
held in May 2020.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Dominican Slovak Republic Dominican Slovak Republic

Republic (B) Republic (B)
(A) (A)

104 07  COUNTRY PROFILES_Dominican Republic

 Egypt
Overall Performance Country Information
0
Capital Cairo
Population 100,388,073 (2019 est.)
Ranking

45 42 43
49 50 49 48
52 54 54 52 52 54 Area 1,001,450 sq km
61
Major Languages Arabic
70
GDP per capita $3,046 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy The Government of Egypt successfully implemented a
Neutral Starategy Basis first wave of macro-economic and structural reforms
Opmal Strategy Basis that successfully addressed a number of deep-seated
0 issues and helped to stabilize the economy, sustain
growth and lay the groundwork for more dynamic
private sector participation in the economy. In 2019,
real Gross Domestic Product growth reached 5.6
Ranking

40 percent, up from 5.3 percent in 2018. Data for the first

48
49 nine months of 2019 show that this pickup is driven
47 by net exports. Private investment is also picking up,
55 although from a low base and with sluggish Foreign
70
Cost Strategy Neutral Strategy Differenaon Strategy Direct Investment (FDI) mainly directed to hydrocar-
bons.
On the sectoral side, gas extractives, tourism,
wholesale and retail trade, real estate and construction
have been the main drivers of growth. Unemployment
decreased to 7.5 percent in the fourth quarter of
2019, although accompanied by shrinking labor force
participation. While macroeconomic environment has
improved, social conditions remain difficult. Official
estimates reported that the share of the population liv-
ing below the national poverty line in 2018 increased
to 32.5 percent, from 27.8 in 2015, with the highest
poverty rates still in rural Upper Egypt.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Egypt Nigeria Egypt Nigeria

(A) (B) (A) (B)

07  COUNTRY PROFILES_Egypt 105

Finland
Overall Performance Country Information
3 6 7 7 6 7
8 10 9 8 8 10
0 11 12 11 Capital Helsinki
Population 5,532,156 (2019 est.)
Ranking

Area 338,145 sq km
Major Languages Finnish
70 GDP per capita $48,868 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy The expansion is projected to continue to lose mo-
Neutral Starategy Basis mentum, with GDP growth edging down to around
Opmal Strategy Basis 1% in 2019 through reduced private consumption and
0 1 residential and business investment. Exports are set
11
to weaken, mainly reflecting a deteriorating global
20 10 environment, and housing investment will slow from
recent high rates. Despite a sharp fall in job creation
Ranking

29 since 2016, unemployment should remain unchanged

as labour force growth stalls. Export growth was strong
early this year owing to temporary large ship deliver-
70 ies, but is slowing due to sluggish growth in key export
Cost Strategy Neutral Strategy Differenaon Strategy market. Inflation is rising as a tighter labour market
pushes up wages.
Fiscal policy is currently neutral but will appropri-
ately become expansionary in 2020, with the budget
deficit widening to 11.5% of GDP in 2020-21. Pro-
moting employment by enhancing work incentives,
particularly for older worker and young women, and
advancing productivity-reviving reforms are essential
to boost growth and improve the fiscal position.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Finland Sweden Finland Sweden

(A) (B) (A) (B)

106 07  COUNTRY PROFILES_Finland

 France
Overall Performance Country Information
0 9 9 14
15 18 17 17 21 20 20 20 20 22 21 23 Capital Paris
Population 65,129,728 (2019 est.)
Ranking

Area 643,801 sq km
Major Languages French
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
GDP per capita $41,760 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy France’s growth will remain moderate at 1.2% in 2020-
Neutral Starategy Basis 21, driven by domestic demand. Resilient job creation,
Opmal Strategy Basis notably for jobs with permanent contracts, tax cuts
0 and the impacts of the social emergency measures will
raise household disposable income and consumption.
16
23 Supportive financing conditions and high business
Ranking

profit margins will damp the slowdown in investment,

26
40 despite weak and uncertain global economic con-
ditions. The unemployment rate will decline slowly
48 towards 8.1% at the end of 2021, while core inflation
70
and wages will strengthen only slightly.
Cost Strategy Neutral Strategy Differenaon Strategy Tax cuts and new social spending will provide
some fiscal easing over 2020-21. Even so, the tight-
ening of some social expenditures and decreasing
debt-servicing costs are set to reduce the fiscal deficit
to 2.1% of GDP in 2021, after the temporary increase
due to the tax credit reform in 2019. A reduction in
non-priority spending is needed to put the public
debt-to-GDP ratio, currently close to 100%, on a firmly
declining path and sustainably finance ongoing tax
cuts for households and businesses. In parallel, the
government should continue to pursue structural
reforms, to generate more inclusive and sustainable
growth.

National Competitiveness Structure

Physical Factors Human Factors

business Policians &

context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
factor demand
0.00 Workers 0.00 Professionals
condions condions

related Entrepreneurs
industries

France France France France

(a) (b) (a) (b)

07  COUNTRY PROFILES_France 107

Germany
Overall Performance Country Information
6 8
0 13 12 12 11 11
17 17 18 18 18 19 17 15 Capital Berlin
Population 83,517,045 (2019 est.)
Ranking

Area 357,022 sq km
Major Languages German
70 GDP per capita $46,564 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy The export-dependent economy has taken a sub-
Neutral Starategy Basis stantial hit from the stagnation of global trade, with
Opmal Strategy Basis declines in export orders and industrial production.
0 2 After expanding by an estimated 0.6% in 2019, GDP
15 is projected to grow only by 0.4% in 2020 and 0.9% in
14 2021. Continuing trade disputes and Brexit uncertainty
are weighing on business confidence and investment.
Ranking

29
Private consumption and construction are expected
42 to stay resilient, but weaknesses in manufacturing will
spill over to the rest of the economy. However, in light
of the shortage of skilled labour and programs to sup-
70
Cost Strategy Neutral Strategy Differenaon Strategy port flexibility in working hours, large deteriorations in
the labour market are not expected.
Expansionary monetary and fiscal policy will
continue to support growth. As investment is needed
across a broad range of infrastructure sectors and
the economy is slowing, budgetary margins allowed
under the debt brake should be used to strengthen
long-term growth and facilitate the transition to a low
emissions economy.

National Competitiveness Structure

Physical Factors Human Factors

Policians &
Business Bureaucrats
Context 100.00
100.00 80.00
80.00 60.00
60.00 40.00
40.00 20.00
20.00 Workers 0.00 Professionals
Factor Demand
0.00
Condions Condions

Entrepreneurs
Related
Industries
Germany Sweden
Germany Sweden (A) (B)
(A) (B)

108 07  COUNTRY PROFILES_Germany

 Greece
Overall Performance Country Information
0
Capital Athens
28 28 29 28 31 35 35 Population 10,473,455 (2019 est.)
Ranking

38 40 38
46 43
48 49
51 Area 131,957 sq km
Major Languages Greek
70
GDP per capita $19,974 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy GDP of Greece is projected to expand by about 2% in
Neutral Starategy Basis 2020-21. Employment and real wage gains will support
Opmal Strategy Basis consumption, while improving financing condition
0 and rising business confidence will boost business
investment. Bank lending to non-financial corporations
has been increasing since early 2019, and remaining
capital controls were abolished in September 2019.
Ranking

38 30
Exports are driving the recovery, buoyed by tourism re-
46 39 ceipts. Reform-induced gains in price competitiveness
are supporting exports of goods. However, sluggish
54
external demand will moderate export growth. This,
70
Cost Strategy Neutral Strategy Differenaon Strategy and the gradual rise in imports, will mitigate improve-
ments in the current account balance.
In spite of the adoption of expansionary fiscal
measures in mid-2019, the primary budget surplus will
remain high in 2019 at 3.8% of GDP. The 2020 budget,
which includes large tax cuts along with measures to
broaden the tax base and, to a lesser extent, rationalize
spending, will support growth and lower the primary
surplus to 3.5% of GDP. Ambitious reforms need to
continue to raise employment durably, especially of
women and the young, as well as investment and
productivity growth.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Greece France Greece France

(A) (B) (A) (B)

07  COUNTRY PROFILES_Greece 109

Guatemala
Overall Performance Country Information
0
Capital Guatemala City
Ranking

41 Population 17,581,471 (2019 est.)

49 50 51 50 48 52
55 54 54 54
62
56 56 Area 108,889 sq km

70
Major Languages Spanish, Amerindian Languages
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $4,617 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Guatemala has experienced continued economic
Neutral Starategy Basis stability that can be attributed to a combination of
Opmal Strategy Basis inflation targeting, prudent fiscal management and
0
managed floating exchange rate. The country has been
a solid economic performer in recent years, with a GDP
growth rate of 3.1 percent in 2016, 2.8 percent in 2017
Ranking

and 3.1 percent in in 2018. The country’s economy

45 is expected to grow by 3.3 percent in 2019 and 2.8
54
52 percent in 2020.
52
58 Strategically located, with substantial natural
70
Cost Strategy Neutral Strategy Differenaon Strategy
resources and a young multi-ethnic population, Gua-
temala has enormous potential to generate growth
and prosperity for its people. But Guatemala’s stability
has not translated into growth acceleration to close
the income gap with rich countries. In fact, poverty
and inequality in the country are persistently high, and
high rates of childhood stunting threaten Guatemala’s
ability to reach its full development potential.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Guatemala Ukraine Guatemala Ukraine

(A) (B) (A) (B)

110 07  COUNTRY PROFILES_Guatemala

 Hong Kong SAR, China
Overall Performance Country Information
3 2 6 6 5 3 3 4 5
7 10 8 8 8 9
0 Capital -
Population 7,436,154 (2019 est.)
Ranking

Area 1,104 sq km
Major Languages Cantonese
70
GDP per capita $49,334 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy In the final quarter of the 2019, economic activity de-
Neutral Starategy Basis clined at the sharpest rate in over a decade. Plunging
Opmal Strategy Basis fixed investment and a frail external sector led the
0
9 1 contraction, while private consumption dropped at
17 6 a slightly softer pace in fourth quarter but remained
depressed nonetheless. Turning to the first quarter,
Ranking

29
the economy is expected to remain battered amid the
coronavirus outbreak which has paralyzed Chinese
economic activity. The manufacturing PMI was stuck
in negative territory in January despite reaching a six-
70
Cost Strategy Neutral Strategy Differenaon Strategy
month high; employment levels continued to tick
down; and inflation is expected to intensify due to the
coronavirus outbreak. Meanwhile, in politics, pro-de-
mocracy protests have seemingly taken a back seat
as of late due to fears of the coronavirus spreading in
Hong Kong, exacerbating uncertainty over a resolution
to the current political turmoil.
The economy should recover in second quarter
of 2020 on a favorable base effect, gradually healing
business confidence and some support from fiscal
stimulus. However, activity will remain depressed,
especially in H1, as the effects of political turmoil and
coronavirus rumble on. Slower-than-expected growth
in mainland China poses a downside risk.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Hong Kong Denmark Hong Kong Denmark

(A) (B) (A) (B)

07  COUNTRY PROFILES_Hong Kong SAR, China 111

Hungary
Overall Performance Country Information
0
25 Capital Budapest
27 29 27 29 28 26 29
32 32 32 34 33
36 35 Population 9,684,679 (2019 est.)
Ranking

Area 93,028 sq km
Major Languages Hungarian
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
GDP per capita $17,463 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy The strong recovery of Hungary is projected to slow in
Neutral Starategy Basis line with external demand to slightly above 3% in the
Opmal Strategy Basis 2020-21. Private consumption will continue to drive
0 growth on the back of strong gains in real incomes.
Household demand remains strong, driven by contin-
23
ued solid gains in employment and real wages, with
high consumer confidence. Public investment will
Ranking

33
31 decelerate along with declining disbursements from
44
EU structural funds. Capacity constraints will bolster
51 business investment and imports in response to strong
70
domestic demand. However, exports have slowed
Cost Strategy Neutral Strategy Differenaon Strategy in line with foreign demand. The tightening labour
market continues to push up wage and price inflation.
Fiscal policy will remain supportive as social
security contributions are further reduced and public
spending, including on wages, is increased. The central
bank is expected to continue its loose monetary policy
stance. However, counter-cyclical policies should
address signs of overheating and contain inflation
expectations. Policies to bolster geographical labour
mobility and labour supply, including expansion of
early childhood care, would prolong the recovery.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Hungary Slovenia Hungary Slovenia

(A) (B) (A) (B)

112 07  COUNTRY PROFILES_Hungary

 India
Overall Performance Country Information
0
24 22 21 22 21 22 24 Capital New Delhi
33 32 33 28
Population 1,366,417,754 (2019 est.)
Ranking

40 38
42
47
Area 3,287,263 sq km
Major Languages Hindi, English
70
GDP per capita $2,172 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy Economic growth of India is projected to recover to
Neutral Starategy Basis just under 6.5% in 2021 as election-related uncer-
Opmal Strategy Basis tainties fade and monetary and fiscal policies have
0 become accommodative. The new income-support
scheme for farmers and a good monsoon is supporting
24 16 private consumption. The cut in corporate income tax
will support corporate investment. Inflation and the
Ranking

31 24
current account deficit will remain moderate given the
relatively large spare capacity in the economy and low
44
oil prices. Job creation remains a challenge.
With inflation below target, some room for further
70
accommodation in monetary policy remains. The large
Cost Strategy Neutral Strategy Differenaon Strategy
cuts in policy rates since the start of 2019 have not yet
been fully reflected in lower lending rates, reflecting
still high non-performing loans and public sector
borrowing needs. Further reforms to improve financial
sector soundness and the ease of doing business are
needed to revive corporate investment. Re-building
fiscal space will be key to finance better infrastructure
and public services. Tax reforms are needed to broaden
the property and personal income tax base. Borrowing
from public enterprises and banks also need to be
restrained.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

India Japan India Japan

(A) (B) (A) (B)

07  COUNTRY PROFILES_India 113

Indonesia
Overall Performance Country Information
0
Capital Jakarta
34 30 30 30
37 37 Population 270,625,568 (2019 est.)
Ranking

40 39
45 47 45
54 54 53 Area 1,904,569 sq km
61
Major Languages Bahasa Indonesia
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $4,164 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Indonesia's steady growth has lifted GDP per capita by
Neutral Starategy Basis around 4% annually for several years. In 2020, domestic
Opmal Strategy Basis demand is projected to continue supporting growth
0 despite external headwinds. Rising household incomes
and low inflation will underpin household spending.
Investment growth will edge up again, partly reflecting
infrastructure projects. Weaker trade growth globally is
Ranking

37 30
weighing on exports in the near term.
44
40 Bank of Indonesia has begun easing monetary
49 policy to boost growth and has some scope to lower
70 interest rates further. It has also deployed macropru-
Cost Strategy Neutral Strategy Differenaon Strategy dential instruments to make policy more accommo-
dative. Fiscal policy is expected to be broadly neutral,
with the budget deficit well inside the 3% of GDP limit.
An ambitious regulatory reform program could help
boost business confidence, investment and formal em-
ployment. Winding back fossil fuel subsidies, matched
by more targeted social benefits, would improve
environmental and social outcomes.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Indonesia Japan Indonesia Japan

(A) (B) (A) (B)

114 07  COUNTRY PROFILES_Indonesia

 Iran
Overall Performance Country Information
0
Capital Tehran
Population 82,913,906 (2019 est.)
Ranking

Area 1,648,195 sq km
62 59 60 60 60 60
64 65 66 65 64 65 66 Major Languages Persian
70
GDP per capita $5,506 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy Iran’s economy is characterized by the hydrocarbon
Neutral Starategy Basis sector, agriculture and services sectors, and a notice-
Opmal Strategy Basis able state presence in manufacturing and financial
0 services. Iran ranks second in the world in natural gas
reserves and fourth in proven crude oil reserves. Eco-
nomic activity and government revenues still depend
to a large extent on oil revenues and therefore remain
Ranking

volatile.
Iranian authorities have adopted a comprehen-
60 sive strategy encompassing market-based reforms as
56
60 reflected in the government’s 20-year vision document
61 59
70 and the sixth five-year development plan for the 2016-
Cost Strategy Neutral Strategy Differenaon Strategy 2021 period. The sixth five-year development plan is
comprised of three pillars, namely, the development of
a resilient economy, progress in science and technolo-
gy, and the promotion of cultural excellence.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Iran Nigeria Iran Nigeria

(A) (B) (A) (B)

07  COUNTRY PROFILES_Iran 115

Israel
Overall Performance Country Information
0 12 8 11 10 11 12
14 13 14 14 15 14
16
21 22
Capital Jerusalem
Population 8,519,377 (2019 est.)
Ranking

Area 20,770 sq km
Major Languages Hebrew
70 GDP per capita $42,823 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy Economic growth of Israel is projected to ease slightly,
Neutral Starategy Basis but will remain close to to its potential rate at 3%
Opmal Strategy Basis in 2020. Industrial production remains resilient and
0 1 consumer credit card purchases continue to expand
14 at a healthy rate. Business and consumer confidence
12 remain solid despite prolonged political uncertainty.
28 The global slowdown is weakening exports, and pri-
Ranking

vate consumption growth will moderate as the labour

35 market cools slightly, but low interest rates and the
start of gas exports will support activity. Exports have
been holding up well despite the rising shekel and
70 global trade slowdown due to strong performance in
Cost Strategy Neutral Strategy Differenaon Strategy tourism and high-tech services. Inflation will rise slowly
towards the lower half of the Bank of Israel's 1-3%
target range.
Fiscal policy tightening is needed to bring debt on
a downward trajectory and ensure room for maneuver
should downside risks materialize. The accommodative
monetary stance is appropriate and the authorities
should wait until inflation is entrenched in its target
range before gradually raising interest rates. Intensi-
fying structural reforms, especially to improve skills of
the Ultra-Orthodox and Israeli-Arabs and align them
with labour market needs, is crucial to lower the large
social disparities and boost productivity.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Israel Denmark Israel Denmark

(A) (B) (A) (B)

116 07  COUNTRY PROFILES_Israel

 Italy
Overall Performance Country Information
0
25 22 23 21 25 25 24 22 24 24 24 25
Capital Rome
26 27 29
Population 60,550,075 (2019 est.)
Ranking

Area 301,340 sq km
Major Languages Italian
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
GDP per capita $32,947 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy GDP growth of Italy is projected to resume very
Neutral Starategy Basis gradually. Global trade uncertainty and softer external
Opmal Strategy Basis demand will continue to weigh on export growth and
0 business investment. Consumption will gradually pick
up, as households’ disposable incomes keep rising
16 and as confidence stabilizes. Fiscal policy is projected
29
to support activity through reduced tax burdens and
Ranking

21
40
social security charges, as well as higher public invest-
ment and tax incentives for business investment.
48 The primary budget surplus is expected to con-
tinue falling modestly in 2020, and then to stabilize
70
in 2021. This will allow the high public debt-to-GDP
Cost Strategy Neutral Strategy Differenaon Strategy
ratio to start falling from 2021. A comprehensive fiscal
reform is key to improving spending effectiveness,
enhancing the equality and efficiency of the tax sys-
tem and reducing the debt burden. Improving public
services, reducing the regulatory burden, and enhanc-
ing job-search and training programs would buttress
investment and employment and reduce income and
regional disparities.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Italy France Italy France

(A) (B) (A) (B)

07  COUNTRY PROFILES_Italy 117

Japan
Overall Performance Country Information
0 7
18 19 19 16 16 19 18 18
20 20 22 23 23 21 Capital Tokyo
Population 126,860,301 (2019 est.)
Ranking

Area 377,915 sq km
Major Languages Japanese
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $40,847 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy The economy of Japan is estimated to have expanded
Neutral Starategy Basis by 1% in 2019, but growth is projected to ease in
Opmal Strategy Basis 2020. The temporary effect of the consumption tax
0 increase on GDP growth will be mitigated by fiscal
measures and the 2020 Olympic Games in Tokyo. With
21 16 wage and investment growth sustained by labour and
capacity shortages, GDP growth is set to remain close
Ranking

25
38 to potential following the rollback of the temporary
fiscal measures in 2021. Headline inflation is projected
46 to edge up to 1.5% by 2021, sustained by continued
wage and economic growth.
70 Record high gross government debt, at 224%
Cost Strategy Neutral Strategy Differenaon Strategy
of GDP, poses serious risks and calls for a detailed
consolidation program in the medium to long term
with further gradual increases in the consumption tax
rate and measures to control spending in the face of
rapid population aging. Structural reforms to boost
employment and productivity are also key, both to put
the public finances back on a sustainable trajectory
and to improve well-being. The Bank of Japan should
maintain its expansionary monetary policy until the 2%
inflation target is achieved.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Japan Japan Japan Japan

(A) (B) (A) (B)

118 07  COUNTRY PROFILES_Japan

 Jordan
Overall Performance Country Information
0
26 23 26 Capital Amman
29 28 30 27
33 33
Population 10,101,694 (2019 est.)
Ranking

39 40
47 45 44
Area 89,342 sq km
Major Languages Arabic
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $4,387 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Jordan faces external regional challenges with the
Neutral Starategy Basis crises in neighboring Syria and Iraq causing influxes
Opmal Strategy Basis of refugees, greater health and education costs, and
0 disruption to its trade routes. Regional uncertainty
and reduced external assistance will continue to put
pressure on Jordan in the short- and medium-term.
Real GDP growth was 1.9 percent in 2018, marginally
Ranking

32
44 lower than in 2017, and stood at 1.8 percent during
48 2019, compared to 2.1 percent for the same period last
45 year. Prolonged weak economic growth is reflected in
55 elevated unemployment indicators and a declining
70 labor force participation rate. Unemployment patterns
Cost Strategy Neutral Strategy Differenaon Strategy
consistently show high unemployment among fe-
males, youth, and university graduates. 
Jordan’s balance of payments is showing signifi-
cant improvement because of favorable terms of trade,
which have helped curtail the cost of imports, largely
due to a decline in international oil prices. Export
growth is showing moderate pick-up; tourism receipts
remain robust, but FDI flows remain stagnant, which
remain a concern. The stability of Jordan’s economy
relies on its access to international markets and the re-
alization of the multilateral and bilateral commitments
made to support it.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Jordan Slovenia Jordan Slovenia

(A) (B) (A) (B)

07  COUNTRY PROFILES_Jordan 119

Kenya
Overall Performance Country Information
0
Capital Nairobi
Population 52,573,973 (2019 est.)
Ranking

56 59 59 56 58 59 59 59 Area 580,367 sq km
64 63 61 60 61 60 62
Major Languages English
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $1,998 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Kenya has made significant political, structural and
Neutral Starategy Basis economic reforms that have largely driven sustained
Op mal Strategy Basis economic growth, social development and political
0 gains over the past decade. However, its key devel-
opment challenges still include poverty, inequality,
climate change, continued weak private sector invest-
ment and the vulnerability of the economy to internal
Ranking

and external shocks.

While economic activity faltered following the
62
62
62
2008 global economic recession, growth resumed in
70 62 62 the last five years reaching 5.7% in 2019 placing Kenya
Cost Strategy Neutral Strategy Differen a on Strategy as one of the fastest growing economies in Sub-Saha-
ran Africa. The recent economic expansion has been
boosted by a stable macroeconomic environment,
positive investor confidence and a resilient services
sector.
Looking ahead, medium-term gross domestic
product growth (GDP) is expected to rise from 5.9%
in 2019 and 6.0% in 2020 underpinned by private
consumption, a pick-up in industrial activity and still
strong performance in the services sector. Growth will
also be driven by ongoing key investment to support
implementation of the Big 4 development agenda and
improved business sentiment.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Kenya Ukraine Kenya Ukraine

(A) (B) (A) (B)

120 07  COUNTRY PROFILES_Kenya

 Korea, Rep.
Overall Performance Country Information
0
18 17
22 24 25 22 22 23 22 23 21 19 23 25 Capital Seoul
26
Population 51,225,308 (2019 est.)
Ranking

Area 99,720 sq km
Major Languages Korean
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
GDP per capita $31,431 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Republic of Korea’s (hereafter referred to as Korea)
Neutral Starategy Basis economic growth will remain subdued in 2019, as the
Opmal Strategy Basis global slowdown with shrinking export market, height-
0 ened global uncertainty, falling prices for semi-con-
10 ductor, and trade tensions holds back exports, while
26 high uncertainty weighs on investment. Job creation
18 in the public sector, notably in health care and welfare
Ranking

38 services will mitigate the impacts of sluggish output

growth on employment. A gradual recovery in global
46 demand for semi-conductors and expansionary fiscal
policy will support the economy.
70
Further monetary policy easing is expected in
Cost Strategy Neutral Strategy Differenaon Strategy
2020, as headline inflation will remain below the
2% inflation target. The fiscal expansion of over one
percentage point of GDP in 2020 provides a welcome
stimulus, but sustaining long-term growth in the face
of rapid population will require structural reforms to
boost productivity and create better jobs. In addition,
easing labor market regulations and investing further
in skills, especially digital, would help lift female and
youth employment, and enhance the quality of older
workers.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Korea France Korea France

(A) (B) (A) (B)

07  COUNTRY PROFILES_Korea, Rep. 121

Kuwait
Overall Performance Country Information
0
25 24
19 Capital Kuwait City
29 27 29 29 26
31 32 32
48 Population 4,207,083 (2019 est.)
Ranking

39 38
48
Area 17,818 sq km
Major Languages Arabic
70
GDP per capita $29,267 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy OPEC+ oil output cuts in the first half of 2019 are
Neutral Starategy Basis expected to keep growth subdued, However, the
Opmal Strategy Basis economy is expected to grow at around 3% as higher
0 government spending supports the non-oil sector.
Plans to invest US$115 billion in the oil sector over the
19
20
16 next five years should further boost oil production.
Resumption of production in the shared fields with
Ranking

29 27 Saudi Arabia offers a more immediate prospect of an

oil sector boost.
Key external risks include spillovers from geo-po-
litical tensions and conflict, global financial volatility,
70 and volatility in oil prices. A slowdown in global
Cost Strategy Neutral Strategy Differenaon Strategy growth could prompt a decline in energy prices, which
would add pressure on fiscal and external balances.
Lower oil prices in recent years have, in the meantime,
resulted in a depletion of liquidity buffers; further
drawdowns from the GRF could erode these further. To
mitigate these risks, and to secure fiscal sustainability,
the government will need to persevere with fiscal
consolidation, expenditure rationalization and revenue
mobilization reforms over the medium term. Howev-
er, parliamentary opposition to critical fiscal reforms
remains a key challenge.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Kuwait Denmark Kuwait Denmark

(A) (B) (A) (B)

122 07  COUNTRY PROFILES_Kuwait

 Malaysia
Overall Performance Country Information
0
Capital Kuala Lumpur
26 28 28 30
32 32 32
35 37 37 Population 31,949,777 (2019 est.)
Ranking

38 38 38 38 40
Area 329,847 sq km
Major Languages Bahasa Malaysia
70
GDP per capita $11,137 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy Since gaining independence in 1957, Malaysia has
Neutral Starategy Basis successfully diversified its economy from one that was
Opmal Strategy Basis initially agriculture and commodity-based, to one that
0 now plays host to robust manufacturing and services
sectors, which have propelled it to become a leading
exporter of electrical appliances, electronic parts and
21
30 components. Malaysia is one of the most open econo-
Ranking

33 mies in the world, with a trade to GDP ratio averaging

30
over 130 percent since 2010. Openness to trade and
45 investment has been instrumental in employment
creation and income growth, with about 40 percent of
70 jobs in Malaysia linked to export activities.
Cost Strategy Neutral Strategy Differenaon Strategy Malaysia’s near-term economic outlook will be
more dependent on government measures to sustain
private sector activity as an increasingly challeng-
ing external environment reduces opportunity for
export-led growth, and reduced fiscal space limits the
scope for public investment-led expansion. Over the
longer term, as Malaysia converges with high-income
economies, incremental growth will depend less on
factor accumulation, and more on raising the level of
productivity to sustain higher potential growth.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Malaysia France Malaysia France

(A) (B) (A) (B)

07  COUNTRY PROFILES_Malaysia 123

Morocco
Overall Performance Country Information
0
Capital Rabat
Population 36,471,769 (2019 est.)
Ranking

40
49 47 45 47
50 52 53 54 51 51 53 Area 446,550 sq km
58 58 58
Major Languages Arabic
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
GDP per capita $3,345 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Since its appointment in April 2017, Morocco’s
Neutral Starategy Basis government coalition led by the Justice and Develop-
Opmal Strategy Basis ment Party (PJD) has rolled out the pro-poor reforms
0 initiated under the previous government, focusing
mainly on social protection programs, job creation,
and reducing economic disparities across the coun-
try. The government is currently working to develop a
Ranking

new model of economic development for the country.

46 However, the 6-party government coalition is gradually
53
showing signs of a lack of cohesion ahead of critical
60 54 2021 legislative elections. Recurrent social crises, such
70 61 as the recent teachers’ strike movement, have pressure
Cost Strategy Neutral Strategy Differenaon Strategy on the government to ensure proper social services
and promote equitable development.
On the economic front, growth has slowed down
below its potential, constrained by a volatile, rainfed,
agricultural sector and slow growth in the tertiary
sector. Real GDP slowed to 2.7 percent in 2019, while
non-agricultural growth improved by 3.4 percent driv-
en by the better performance of phosphates, chemi-
cals, and textiles. Thanks to sound monetary policy and
ample supplies of fresh food, inflation has remained
low, under 0.6 percent. The unemployment rate
declined slightly to 9.3 percent in 2019, underlined by
a protracted fall in the labor force participation, which
dropped to 46.1 percent.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Morocco Ukraine Morocco Ukraine

(A) (B) (A) (B)

124 07  COUNTRY PROFILES_Morocco

 Mexico
Overall Performance Country Information
0
25 Capital Mexico City
31 27
34 34 34 34 36 Population 127,575,529 (2019 est.)
Ranking

39 41 37 37
46 43 43
Area 1,964,375 sq km
Major Languages Spanish
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
GDP per capita $10,118 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Mexico’s growth will pick up gradually in 2020, as ro-
Neutral Starategy Basis bust remittances, increases in minimum wages, lower
Opmal Strategy Basis fuel prices, and declining inflation will boost consump-
0 tion. Investment has been weak but will gradually
strengthen on the back of lower interest rates. The
industry and agriculture sectors are weak while ser-
29 vices remain more resilient. Export growth will decline
Ranking

43 owing to less favorable global conditions, especially in

45 38 the United States. Trade tensions and policy uncer-
53
tainty have reduced business confidence and held
70
back investment. Informality remains widespread and
Cost Strategy Neutral Strategy Differenaon Strategy inequalities across regions are high with the current
account deficit declined in line with slowing domestic
demand.
Monetary policy will appropriately become accom-
modative, given declining inflation and the prevailing
slack in the economy. Fiscal policy will need to remain
prudent to stabilize public debt. Boosting productivity
requires more competition and continuing efforts
to strengthen the rule of law and to reduce crime.
Increasing low female labour market participation by
expanding access to early childhood education would
boost growth and inclusion.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Mexico Japan Mexico Japan

(A) (B) (A) (B)

07  COUNTRY PROFILES_Mexico 125

Netherlands
Overall Performance Country Information
3 2 1 2 1 3
8 7
0 12 11 11 11 13 13 12 Capital Amsterdam
Population 17,097,130 (2019 est.)
Ranking

Area 41,543 sq km
Major Languages Dutch
GDP per capita $52,367 (Oct 2019 est.)
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy After Netherlands declining in 2019 due to the slowing
Neutral Starategy Basis of world trade, mainly by weak external demand
Opmal Strategy Basis especially from Germany, economic growth in 2020 is
0 7 1 projected to be boosted by a significant fiscal stimulus
5
package. The labour market will remain strong, with a
17 low unemployment rate and solid wage growth. Con-
sumer and business confidence, on the other hand,
Ranking

29 remain subdued. Headline inflation has fallen, as the

effects of the past VAT increases have dropped out. A
tight housing market has pushed up house prices, and
housing construction has slowed.
70
The planned fiscal impulse will slow the decline
Cost Strategy Neutral Strategy Differenaon Strategy
in public debt as percent of GDP. There remains fiscal
space to intervene should the international environ-
ment deteriorate further, particularly in the event of a
disruptive Brexit outcome. Reducing the tax wedge be-
tween regular employees and self-employment would
improve inclusiveness.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Netherlands Denmark Netherlands Denmark

(A) (B) (A) (B)

126 07  COUNTRY PROFILES_Netherlands

 New Zealand
Overall Performance Country Information
0 8 8
15 14
20 16 19 16 19 16 19 18 17 16 Capital Wellington
24
Population 4,783,063 (2019 est.)
Ranking

Area 267,710 sq km
Major Languages English
70 GDP per capita $40,634 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy New Zealand’s Economic growth has eased to around
Neutral Starategy Basis 2.5% in 2019. Household consumption has moderated
Opmal Strategy Basis on the back of slower net migration and smaller hous-
0
8 1 ing wealth gains. Despite historically high capacity
utilization and the low cost of capital, business invest-
15 9 ment remains subdued, as business confidence has
been depressed by heightened uncertainty over global
Ranking

24
economic conditions, concerns about government pol-
icy, the costs and availability of labour and tight profit
margins. However, residential investment has strength-
ened considerably, helping to ease housing shortages.
70 Prices for New Zealand’s commodity exports remain
Cost Strategy Neutral Strategy Differenaon Strategy high by historical comparison, supporting income and
economic activity.
The labour market is tight, with the unemploy-
ment rate below the estimated structural rate and
wage growth edging up, partly reflecting scheduled
increases in the minimum wage rate, which is set on
rise to NZ$ 20 per hour by 2021, one of the highest lev-
els relative to the median wage in the OECD. Inflation
remains slightly below the mid-point of the Reserve
Bank’s target band.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

New Zealand Sweden New Zealand Sweden

(A) (B) (A) (B)

07  COUNTRY PROFILES_New Zealand 127

Nigeria
Overall Performance Country Information
0
Capital Abuja
35 Population 200,936,599 (2019 est.)
Ranking

46 42 45
50 50 49
57 57 58 57 Area 923,768 sq km
64 61
66 67 Major Languages English
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $2,222 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy A key regional player in West Africa, Nigeria accounts
Neutral Starategy Basis for about half of West Africa’s population and one of
Opmal Strategy Basis the largest populations of youth in the world. With an
0 abundance of natural resources, it is Africa’s biggest oil
exporter, and has the largest natural gas reserves on
the continent. Since 2015, economic growth remains
muted. Growth averaged 1.9% in 2018 and remained
Ranking

32
45 stable at 2% in the first half of 2019.
Domestic demand remains constrained by stag-
51 44
nating private consumption in the context of high
57 inflation. On the production side, growth in 2019 was
70
Cost Strategy Neutral Strategy Differenaon Strategy
primarily driven by services, particularly telecoms.
Agricultural growth remains below potential due to
continued insurgency in the Northeast and ongoing
farmer-herdsmen conflicts. Industrial performance is
mixed. Oil GDP growth is stable, while manufacturing
production is expected to slow down in 2019 due to
a weaker power sector performance. Food and drink
output is expected to increase, likely in response to
import restrictions. Construction continues to perform
positively, supported by ongoing megaprojects, higher
public investment in the first half of the year, and
import restrictions.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Nigeria Nigeria Nigeria Nigeria

(A) (B) (A) (B)

128 07  COUNTRY PROFILES_Nigeria

 Pakistan
Overall Performance Country Information
0
Capital Islamabad
Population 216,565,318 (2019 est.)
Ranking

44
50 50 52 53 51 52 Area 796,095 sq km
56 58 56 57 55 59
63 60
Major Languages Punjabi, Sindhi
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $1,388 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy The industrial sector growth slowed to 1.4 percent in
Neutral Starategy Basis 2019 compared to 4.9 percent in 2018. The services
Opmal Strategy Basis sector grew at 4.7 percent—1.5 percent lower than
0 in FY18. Adverse weather conditions have dampened
agricultural performance and reduced growth to 0.8
percent in FY19, significantly lower than the targeted
growth of 3.8 percent. Average headline inflation
Ranking

increased to 7.3 percent in FY19 compared with 3.9

percent in 2018, primarily because of the exchange
56 59 rate passthrough. Aided by bilateral, IMF, and other
61
61
multilateral flows, international reserves have started
70 61
Cost Strategy Neutral Strategy Differenaon Strategy
to recover. Financial flows had a boost in 2019 due
to a significant increase in central bank deposits and
bilateral inflows from China, UAE and Saudi Arabia.
Real GDP growth is projected to decelerate to
2.4 percent in 2020 as the government tightens fiscal
and monetary policies. Pakistan’s adjustment entails a
rebalancing from domestic to external demand. While
domestic demand will slow down quickly, net exports
are expected to increase gradually. Growth is expected
to recover gradually to 3.0 percent in 2021 as external
demand picks up, macroeconomic conditions improve,
and the package of structural reforms in fiscal manage-
ment and competitiveness take effect.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Pakistan Nigeria Pakistan Nigeria

(A) (B) (A) (B)

07  COUNTRY PROFILES_Pakistan 129

Panama
Overall Performance Country Information
0
Capital Panama City
35 34 33 31 32
36 38 Population 4,246,439 (2019 est.)
Ranking

42 39 40 39 41 42
44 45
Area 75,420 sq km
Major Languages Spanish
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $16,245 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Given the momentum generated by the Cobre Panama
Neutral Starategy Basis mine, growth in Panama this year is projected with
Opmal Strategy Basis a substantial acceleration with respect to 2018. The
0 country ranks as the second fastest growing economy
in Latin America and the Caribbean, in an environment
where public investments have been high and private
30
investment has remained strong.
Ranking

42 However, in an increasingly competitive global

44 context, this model could be at risk, since the econo-
43
50
my has been based on traffic through the Canal and
investments in infrastructure. Growth could also be
70 affected from protracted international trade disputes
Cost Strategy Neutral Strategy Differenaon Strategy
or by a global economic turndown. Panama has made
significant progress in reducing poverty in recent
years. Economic growth and public transfers have
helped reduce poverty substantially. Despite the
gains on poverty reduction, sharp regional disparities
remain. Poverty prevails in rural areas, mainly inhab-
ited by indigenous people. Access to basic services
is not universal and remains linked to factors such as
geographic location, education levels, ethnicity and
income levels of households.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Panama Slovenia Panama Slovenia

(A) (B) (A) (B)

130 07  COUNTRY PROFILES_Panama

 Peru
Overall Performance Country Information
0
Capital Lima
Population 32,510,453 (2019 est.)
Ranking

46
52 52 52 51
55 58 56 60 59 57 55 56 53 53 Area 1,285,216 sq km
Major Languages Spanish, Quechua
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $7,047 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy The Peruvian economy has experienced two distinct
Neutral Starategy Basis phases of economic development since the turn of
Opmal Strategy Basis the century. Between 2002 and 2013, Peru was one of
0 the fastest-growing countries in Latin America, with
an average GDP growth rate of 6.1 percent annually. A
favorable external environment, prudent macroeco-
nomic policies and structural reforms in different areas
Ranking

created a scenario of high growth and low inflation.

51 45 The strong growth in employment and income sharply
50
50 reduced poverty rates. The poverty rate fell from 52.2%
55
70
in 2005 to 26.1% in 2013.
Cost Strategy Neutral Strategy Differenaon Strategy Between 2014 and 2018, GDP growth slowed to
an annual average rate of 3.2%, mainly owing to lower
international commodity prices, including copper,
the leading Peruvian export commodity. This led to a
temporary reduction of private investment, less fiscal
income and a slowdown of consumption. The higher
deficit stems from a decline in revenues resulting from
lower commodity prices and the economic slowdown,
and an increase in recurrent expenditures in recent
years, especially for goods and services and wages. 
In 2018, an important rebound of fiscal revenues has
allowed to the reduction of the fiscal deficit to 2.3% of
GDP. The process of fiscal consolidation is expected to
continue, and the public deficit will reach an estimated
1% of GDP in 2021.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Peru Nigeria Peru Nigeria

(A) (B) (A) (B)

07  COUNTRY PROFILES_Peru 131

Philippines
Overall Performance Country Information
0
Capital Manila
28 30 27 30 31 29 28
34 32 33 32
Ranking

36 35 Population 108,116,615 (2019 est.)

45 41
Area 300,000 sq km
Major Languages Filipino, English
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $3,294 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy The Philippines is one of the most dynamic economies
Neutral Starategy Basis in the East Asia Pacific region. With increasing urban-
Opmal Strategy Basis ization, a growing middle class, and a large and young
0 population, the Philippines’ economic dynamism is
rooted in strong consumer demand supported by a
vibrant labor market and robust remittances. Business
26 activities are buoyant with notable performance in
Ranking

35
40
the services sector including the business process
33
outsourcing, real estate, and finance and insurance
48 industries.
Sound economic fundamentals and a globally rec-
70 ognized competitive workforce reinforce the growth
Cost Strategy Neutral Strategy Differenaon Strategy
momentum. In the first half of 2019, economic growth
slowed to 5.5% year-on-year, the lowest in eight years,
driven by a rapid deceleration in investment growth
and a weak external environment. The World Bank
projects the country’s real GDP growth at 5.8% in 2019,
before accelerating to 6.1% in 2020 and 6.2% in 2021.
The outlook considers slower investment growth in
2019, hampered by the delayed approval of the 2019
national budget, and the adverse impact of global
developments, including weak global manufacturing
activity and trade, as well as heightened uncertainty
from escalating trade tensions. 

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Philippines Japan Philippines Japan

(A) (B) (A) (B)

132 07  COUNTRY PROFILES_Philippines

 Poland
Overall Performance Country Information
0
26 26 26 23 Capital Warsaw
27 30 30 29 29 27 27 28
34 36 Population 37,887,768 (2019 est.)
Ranking

39
Area 312,685 sq km
Major Languages Polish
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $14,902 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Poland’s economic growth will remain robust,
Neutral Starategy Basis although decreasing to 3.8% in 2020 and 3% in 2021.
Opmal Strategy Basis Both private and public investment will decelerate,
0 and low world trade growth will limit exports. Private
consumption growth will decline gradually as the
impact of new social transfers and tax cuts fade. De-
creasing employment gains and the steady decline of
Ranking

32 30
34 29 the labour force will lead to a progressive reduction in
the unemployment rate.
47 The fiscal stance is pro-cyclical, remaining expan-
sionary in 2020. This will help to offset the impact of
70
Cost Strategy Neutral Strategy Differenaon Strategy
weak global conditions in 2020, but the composition
of the fiscal easing package could provide more
support to address long-term issues. The central bank
is expected to keep its policy interest rate unchanged,
focusing on declining growth prospects rather than on
the medium-term inflation outlook. Structural policies
will need to support seniors’ and female employment,
better integrate immigrants in the labour market, and
ensure environmentally sustainable development.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Poland France Poland France

(A) (B) (A) (B)

07  COUNTRY PROFILES_Poland 133

Russia
Overall Performance Country Information
0
Capital Moscow
51 34 35 34 Population 145,872,256 (2019 est.)
Ranking

40 40 39 38
62 45 45 46 45 43
47
Area 17,098,242 sq km
Major Languages Russian
70 GDP per capita $11,163 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy More than ten years after the crisis, the Russian
Neutral Starategy Basis economy is growing slowly and the gap in GDP per
Opmal Strategy Basis capita with respect to the upper half of OECD coun-
0 tries persists. Rapid aging and a productivity growth
decline are hardly compensated by investment and
improved labour market participation. Real household
income growth is sluggish and poverty remains high.
34 30
Ranking

32 Widespread exposure to ambient air pollution and

poor water quality have important health consequenc-
44 42 es. Poor energy efficiency causes high greenhouse
gas emissions and weighs on the performance of the
70 energy sector.
Cost Strategy Neutral Strategy Differenaon Strategy The fiscal framework has improved with the adop-
tion of the new fiscal rule in 2017. On the other hand,
state control in the economy has increased, partic-
ularly in the energy and financial sectors. Barriers to
foreign investment remain high and the transparency
of the public administration is weak. Public support to
R&D still fails to foster business innovation. Reduc-
ing government ownership and policies to improve
innovation at the firm level could boost entrepreneur-
ship, productivity and growth. Lifting the barriers to
foreign investment and restrictions in trade in services,
particularly in transport and logistics, would enhance
competition and productivity.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Russia Japan Russia Japan

(A) (B) (A) (B)

134 07  COUNTRY PROFILES_Russia

 Saudi Arabia
Overall Performance Country Information
0
25 Capital Riyadh
31 28 31 31
33
37 37 36 Population 34,268,528 (2019 est.)
Ranking

44 40
46 48
57 53 Area 2,149,690 sq km
Major Languages Arabic
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
GDP per capita $22,865 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Saudi Arabia implemented significant cuts in oil pro-
Neutral Starategy Basis duction in 2019, as part of an OPEC+ agreement. These
Opmal Strategy Basis have contributed to softening GDP growth to 1.7%
0 in 2019 from 2.4% in 2018. With US shale production
continuing to increase in the first half of 2019, Saudi
25 18 Arabia’s oil production cuts were deeper than pledged,
29 with output in July standing at 9.65mbd versus the
Ranking

28 voluntary limit under the OPEC+ accord. Non-oil sector

39 growth increased as the fiscal stance turned more
supportive and the government settled US$43 billion
in arrears to private firms.
70
The attacks on Saudi oil facilities in 2018 led to a
Cost Strategy Neutral Strategy Differenaon Strategy
significant supply disruption to impact 2019 growth.
These adverse outcomes would be partially offset by
the boost to non-oil private sector activity from rising
government spending. Growth is expected to rise to
2.2% in 2021 as oil production cuts are reversed and
ongoing diversification reforms yield dividends. Infla-
tion should remain subdued as growth remains below
potential. Public finances will remain in deficit, albeit
narrowing, given the outlook for low energy prices
over the next two years. Realizing the balanced-bud-
get target by 2023 is contingent on sustained fiscal
consolidation and higher oil prices.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Saudi Arabia Japan Saudi Arabia Japan

(A) (B) (A) (B)

07  COUNTRY PROFILES_Saudi Arabia 135

Singapore
Overall Performance Country Information
2 5 5 1 1 1 1 1 2 3
6 8
0 11 11 11 Capital Singapore
Population 5,804,337 (2019 est.)
Ranking

Area 697 sq km
Major Languages Mandarin, English

70 GDP per capita $63,987 (Oct 2019 est.)

2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy Singapore is a high-income economy with a gross
Neutral Starategy Basis national income of US$54,530 per capita, as of
Opmal Strategy Basis 2017. The country provides one of the world’s most
0 3 business-friendly regulatory environment for local
1
4 entrepreneurs and is ranked among the world's most
17 competitive economies. After rapid industrialization in
the 1960s catapulted the island nation’s development
Ranking

27 trajectory, manufacturing became the main driver

of growth. In the early 1970s, Singapore reached full
employment and joined the ranks of Hong Kong,
South Korea and Taiwan a decade later as Asia’s newly
70
Cost Strategy Neutral Strategy Differenaon Strategy
industrializing countries. The manufacturing and
services sectors remain the twin pillars of Singapore’s
high value-added economy.
The overall growth of the Singapore economy was
3.2% in 2018. Value-added manufacturing, particularly
in the electronics and precision engineering sectors,
remains the key drivers of growth, as are the services
sectors, particularly the information and communica-
tions industries, which grew 6.0% , and the finance &
insurance industries, which grew 5.9%.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Singapore Denmark Singapore Denmark

(A) (B) (A) (B)

136 07  COUNTRY PROFILES_Singapore

 Slovak Republic
Overall Performance Country Information
0
Capital Bratislava
Population 5,457,013 (2019 est.)
Ranking

47
Area 49,035 sq km
Major Languages Slovak
70
GDP per capita $19,548 (Oct 2019 est.)
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020

Different Rankings with Different Strategy Economic growth of Slovak Republic is projected to
Neutral Starategy Basis slow to around 2.5% in 2020-21, as weaker external de-
Opmal Strategy Basis mand will weigh on export growth. Domestic demand
0 will remain relatively strong, notably due to private
consumption, which held up by a resilient labour hour
market with historically low unemployment. Howev-
er, its effects on household consumption have been
Ranking

moderated by significant increases in saving. Inflation

47 37 will remain above 2% as the economy operates above
56
its normal capacity.
46
The fiscal stance will be neutral in 2020-21. Nev-
70 61 ertheless, containing public spending pressures will
Cost Strategy Neutral Strategy Differenaon Strategy be important, give the absence of spare capacity and
medium-term challenges posed by population aging.
A thorough reform of the public sector could increase
efficiency and finance inclusiveness-friendly reforms in
the area of Roma integration and education.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

Related Entrepreneurs
Industries

Slovak Republic Slovak Republic Slovak Republic Slovak Republic

(A) (B) (A) (B)

07  COUNTRY PROFILES_Slovak Republic 137

Slovenia
Overall Performance Country Information
0
22 Capital Ljubljana
Population 2,078,654 (2019 est.)
Ranking

Area 20,273 sq km
Major Languages Slovene
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
GDP per capita $26,170 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Economic growth of Slovenia is projected to remain
Neutral Starategy Basis at around 3% until 2021. Private consumption will
Opmal Strategy Basis continue to be the main driver of growth, sustained by
0 higher wages and solid employment gains. Uncertain-
ty about the external environment will show the pace
16
22 of new business investment. Improvements in export
Ranking

performance will slow with rising labour unit costs.

23
39 The important content of exports is rising, as foreign
demand for goods with higher domestic value added
48 weakens. Domestic demand is increasingly satisfied
70
through imports, owing to tightening capacity con-
Cost Strategy Neutral Strategy Differenaon Strategy straints.
Fiscal policy will remain supportive of growth in
the coming two years, driven by higher public sector
wages and social transfers. As favorable borrowing
conditions persist, growing domestic inflationary
pressures call for a moderation in the fiscal stimulus.
Measures to restrict pathways to early retirement
would mobilize older workers, while accelerating pri-
vatizations and decentralizing wage bargaining, would
contribute to improve labour allocations, and alleviate
labour shortages and wage pressures.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condi
ons Condi
ons

related Entrepreneurs
industries

Slovenia Slovenia Slovak Republic Slovak Republic

(a) (b) (A) (B)

138 07  COUNTRY PROFILES_Slovenia

 South Africa
Overall Performance Country Information
0
Capital Pretoria, Cape Town, Bloemfontein
Population 46,736,776 (2019 est.)
Ranking

46 42 45
49 47 48 51
53 54 56 57 57 Area 1,219,090 sq km
60 58 58
Major Languages IsiZulu, IsiXhosa
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $6,100 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy South Africa has made considerable strides toward im-
Neutral Starategy Basis proving the wellbeing of its citizens since its transition
Opmal Strategy Basis to democracy in the mid-1990s, but progress towards
0 poverty reduction has slowed in recent years, poverty
rate increasing from 16.8% to 18.8% between 2011 and
2015. This is partly due to structural challenges and
Ranking

weak growth since the global financial crisis of 2008,

but increasingly too by labor market developments
58 52 that demand skills that the country’s poor currently
61
57
lack.
70 61 South Africa remains a dual economy with one of
Cost Strategy Neutral Strategy Differenaon Strategy
the highest inequality rates in the world, with a con-
sumption expenditure Gini coefficient of 0.63 in 2015.
High inequality is perpetuated by a legacy of exclusion
and the nature of economic growth, which is not pro-
poor and does not generate sufficient jobs. Not only
does South Africa lag its peers on level of inequality
and poverty, it lags on the inclusiveness of consump-
tion growth.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

South Africa Nigeria South Africa Nigeria

(A) (B) (A) (B)

07  COUNTRY PROFILES_South Africa 139

Spain
Overall Performance Country Information
0
26 23 21
26 23 22 23 24 Capital Madrid
27 30 30
36 36 Population 46,736,776 (2019 est.)
Ranking

40 38
Area 505,370 sq km
Major Languages Castilian Spanish, Catalan
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $29,961 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy The moderation in economic growth in 2019 is
Neutral Starategy Basis projected to continue in 2020 and 2021. Domestic
Opmal Strategy Basis demand will remain the main driver of growth, albeit
0 at a slower pace than in recent years, with moderating
employment growth weighing on consumption and
heightened uncertainty hindering investment. Con-
29 tinued job creation, wage increases, and low inflation
Ranking

36
have supported household income and the recent rise
37 in household saving. A fall in confidence and weak
50
external growth have adversely affected the manufac-
56 turing sector, but services continue to perform well.
70 Lower export market growth will be a drag on exports.
Cost Strategy Neutral Strategy Differenaon Strategy
Inflation will remain subdued, with continued slack in
the economy. Trends in housing sales and new loans
for house purchases point to a continued slowdown in
residential investment.
The recent improvements in the public finances
largely relied on favorable macroeconomic conditions.
Further improving the structural fiscal balance to allow
for a durable reduction in the high public debt-to-
GDP ratio is key. To boost potential growth and reduce
inequalities, the skills and labour market outcomes
of vulnerable groups should be improved. Boosting
productivity growth requires firms to be more exposed
to competition and innovation.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Spain France Spain France

(A) (B) (A) (B)

140 07  COUNTRY PROFILES_Spain

 Sri Lanka
Overall Performance Country Information
0
Capital Colombo
Ranking

43 Population 21,323,733 (2019 est.)

51 52 51 55 55
56 56 60 61 61 58 Area 65,610 sq km
66 64 64
Major Languages Sinhala, Tamil
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $3,947 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Sri Lanka has shown steady growth over the last
Neutral Starategy Basis decade although key macroeconomic challenges
Opmal Strategy Basis persist. Sri Lanka is a middle-income country with
0 a total population of 21.7 million people. Following
30 years of civil war that ended in 2009, Sri Lanka’s
economy grew at an average 5.6 percent during the
period of 2010-2018, reflecting a peace dividend and a
Ranking

determined policy thrust towards reconstruction and

52 55 52 growth; although growth slowed down in the last few
years. The economy is transitioning from a predomi-
58 58
70 nantly rural-based economy towards a more urbanized
Cost Strategy Neutral Strategy Differenaon Strategy economy oriented around manufacturing and services.
Extreme poverty is rare and concentrated in some
geographical pockets. However, a relatively large
share of the population subsists on slightly more than
the poverty line. Low fiscal revenues combined with
largely non-discretionary expenditure in salary bill,
transfers, and interest payments have constrained
critical development spending on health, education
and social protection, which is low compared to peer
countries. Public debt levels are high while the overall
debt portfolio indicate some important challenges.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Sri Lanka Ukraine Sri Lanka Ukraine

(A) (B) (A) (B)

07  COUNTRY PROFILES_Sri Lanka 141

Sweden
Overall Performance Country Information
4 4 2 6 5 5 5 6 7 4 6 5 3 3 5
0 Capital Stockholm
Population 10,036,379 (2019 est.)
Ranking

Area 450,295 sq km
Major Languages Swedish
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $51,242 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Sweden's long expansion is losing momentum in
Neutral Starategy Basis 2019-20. Export growth will decline sharply, reflecting
Opmal Strategy Basis the global slowdown. Heightened uncertainty will con-
0 5 1 tiune weigh on business investment, while residential
3 investment will bottom out. Low consumer confidence
17
and subdued wage growth are holding back private
Ranking

27 consumption. Households will continue to spend with

caution, as unemployment is rising and wage gains re-
main moderate. Unemployment is rising, though most
probably not as steeply as suggested by recent data.
70 Inflation will continue to undershoot the 2% target
Cost Strategy Neutral Strategy Differenaon Strategy
due to sluggish activity, slower energy price increases
and fading effects from the depreciation of the Krona.
Monetary policy will likely remain accommodative
until the economy shows clear signs of recovery and
inflation moves clearly towards the target. Auto-
matic stabilizers and discretionary fiscal measures
will support the economy, but space for stimulus is
available, should economic condition deteriorate more
than projected. Support for entry-level jobs and skills
development, along with labour market reform, will be
critical to contain the rise in unemployment.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Sweden Sweden Sweden Sweden

(A) (B) (A) (B)

142 07  COUNTRY PROFILES_Sweden

 Switzerland
Overall Performance Country Information
10 10 10 11 10 10 7 5 4 6 6 4
0 13 13 12
Capital Bern
Population 8,591,365 (2019 est.)
Ranking

Area 41,277 sq km
Major Languages German, French
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $83,717 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy After Switzerland decelerating during 2019, partly be-
Neutral Starategy Basis cause of the effects of biannual international sporting
Opmal Strategy Basis events that impact a sizeable boost every even year –
0 4 1 related licenses, patents and rights, economic growth
1
is projected to pick up in 2020-21. Private consumption
20
will remain resilient, supported by low unemployment.
Ranking

29 A gloomy environment will weigh on investment and

trade, but the current account surplus will remain
large. International sporting events will boost service
exports and thus growth in 2020. Inflation will be
70
Cost Strategy Neutral Strategy Differenaon Strategy
subdued following the recent currency appreciation
but inch up in 2021.
Monetary policy will remain very accommodative,
with the policy rate set to stay at -0.75 in the coming
two years. Fiscal policy will be expansionary in 2020.
Reforms are necessary to cope with population aging
and sustain high well-being. Increasing the statutory
retirement age would reduce future public expendi-
ture, limit the expected fall in the labour force and help
maintain retirees’ living standard.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Switzerland Denmark Switzerland Denmark

(A) (B) (A) (B)

07  COUNTRY PROFILES_Switzerland 143

Chinese Taipei
Overall Performance Country Information
0 15 16 13 10 10 14
19 20 18 20 19 21 18 17 18
Capital Taipei
Ranking

Population 23,773,876 (2019 est.)

Area 35,980 sq km
70 Major Languages Mandarin Chinese
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020
GDP per capita $24,828 (Oct 2019 est.)

Different Rankings with Different Strategy Economic activity picked up in the fourth quarter of
Neutral Starategy Basis 2019, according to revised GDP data, placing annual
Opmal Strategy Basis growth for the year at a similar level to that recorded
0
in 2018. Soaring fixed investment drove the quarterly
16 acceleration, as the government’s pro-growth policies
27 and trade diversion from China spurred a reshoring
Ranking

31 22
of capital by domestic companies. Turning to the first
quarter of this year, activity looks likely to be severely
45
hampered by the impact of the coronavirus outbreak
70 in China, with Taiwan particularly vulnerable due to its
Cost Strategy Neutral Strategy Differenaon Strategy intertwined supply chains and dependence on Chinese
tourism and exports. This bodes ill for the manufactur-
ing industry in the first months of year, despite the PMI
recently climbing to a 17-month high in January.
This year, economic activity is likely to slow as cap-
ital inflows from overseas return to more sustainable
levels and higher inflation eats into private spending
growth. The extent of the coronavirus outbreak’s
impact on the Taiwanese economy and tense cross-
strait relations with China pose downside risks to
the outlook. FocusEconomics panelists forecast GDP
growth of 2.3% in 2020, which is unchanged from last
month’s estimate, and 2.4% in 2021.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Taiwan Sweden Taiwan Sweden

(A) (B) (A) (B)

144 07  COUNTRY PROFILES_Chinese Taipei

 Thailand
Overall Performance Country Information
0
30 30 28 26 25 25 28 26 29 28 27 24 27 Capital Bangkok
32
Ranking

41
Population 69,625,582 (2019 est.)
Area 513,120 sq km
70 Major Languages Thai
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
GDP per capita $7,792 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Over the last four decades, Thailand has made
Neutral Starategy Basis remarkable progress in social and economic develop-
Opmal Strategy Basis ment, moving from a low-income to an upper-income
0 country in less than a generation. As such, Thailand’s
16 has been a widely cited development success story,
27 with sustained strong growth and impressive poverty
Ranking

31 22 reduction over the last 30 years.

Since 1970, Thailand’s GDP growth per capita has
45 averaged 4.2% per year in purchasing power parity
terms. In 2016, income per head stood at 42% of the
70
Cost Strategy Neutral Strategy Differenaon Strategy
OECD average. Nevertheless, faster growth is needed
for Thailand to reach its goal of high-income status
by 2036. This calls for structural reforms to boost
economic potential and inclusiveness, by improving
education and skills training in all regions, fostering in-
novation, facilitating domestic competition, reducing
cross-border barriers and accelerating public spending
on infrastructure. Overcoming past implementation
challenges requires strengthening institutions to
ensure the delivery of the critical reforms outlined in
the 12th Plan (2017-2021).

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Thailand France Thailand France

(A) (B) (A) (B)

07  COUNTRY PROFILES_Thailand 145

Turkey
Overall Performance Country Information
0
Capital Ankara
Ranking

39 40
49 49 47 44 43 Population 69,625,582 (2019 est.)
53 50 54 52
55 55
61 62 Area 783,562 sq km
70 Major Languages Turkish
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020
GDP per capita $8,958 (Oct 2019 est.)

Different Rankings with Different Strategy Turkey's growth has continued to pick up over recent
Neutral Starategy Basis months in 2019-20. Substantial government stimulus
Opmal Strategy Basis is lifting domestic demand more vigorously than
0 previously anticipated and currency depreciation is
supporting exports. Yet weak external trade demand,
geopolitical uncertainties and impaired private
Ranking

29
40 balance sheets are projected to keep GDP growth at
45 36 around 3%, well below potential growth which itself
has weakened and which may decline further due to
53
70
increased policy-related distortions in the economy.
Cost Strategy Neutral Strategy Differenaon Strategy Investor confidence remains fragile and investment
has declined sharply.
To rebuild domestic and international confidence,
the macroeconomic policy framework should be
simplified and made more transparent. Enhancing the
transparency of the general government fiscal position,
including the expanding quasi-fiscal channels, and
ensuring the credibility of central bank independence
would strengthen confidence . Further measures to
enhance labour market flexibility and product market
competition in the formal sector are needed to reverse
the weakening of medium to long-term investment
intensity and growth potential.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Turkey Japan Turkey Japan

(A) (B) (A) (B)

146 07  COUNTRY PROFILES_Turkey

 United Arab Emirates (UAE)
Overall Performance Country Information
0 12
17 17
25 25 22 21 Capital Abu Dhabi
35 35 34 31 31 31
36
Ranking

39 Population 9,770,529 (2019 est.)

Area 83,600 sq km
70 Major Languages Arabic
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $37,750 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy The economic growth recovery in 2018 was supported
Neutral Starategy Basis by a rise in net exports as the OPEC+ production cuts
Opmal Strategy Basis were eased and as imports decreased. Improvements
0 in non-oil sector had positive growth momentum early
12 4
17
in 2019. However, the hydrocarbon sector weakened
15 due to a 7% decrease in oil production in line with the
Ranking

27 renewed OPEC+ agreement. The slowdown in the real

estate sector continues due to oversupply. Oil prices
also declined early this year, which in addition to the
continued dampening of the real estate sector form an
70
Cost Strategy Neutral Strategy Differenaon Strategy
overhang for the remainder of 2019.
Growth is expected to recover over the medium
term. In 2019 however, the pace of recovery will be
muted by OPEC+ oil production cuts that have been
extended until March 2020. Growth is forecast to reach
3% by 2021 supported by the government’s economic
stimulus plans and impetus from hosting Dubai Expo
2020. However, trade, transport and tourism dynamics
will continue to be influenced by the projected global
economic slowdown.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

UAE Denmark UAE Denmark

(A) (B) (A) (B)

07  COUNTRY PROFILES_United Arab Emirates (UAE) 147

Ukraine
Overall Performance Country Information
0
Capital Kyiv
Ranking

47 Population 43,993,638 (2019 est.)

53 50 50
59 55
65 62 62 63 62 63 63 63 60 Area 603,550 sq km
70 Major Languages Ukrainian, Russian
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
GDP per capita $3,592 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy Ukraine's GDP grew by 3.5 percent in the first half
Neutral Starategy Basis of 2019 compared to 3.3 percent in 2018. The solid
Opmal Strategy Basis growth was driven by a strong agricultural harvest
0 as well as sectors dependent on domestic demand,
including services and construction. Higher consump-
tion helped reduce poverty. Real wages continued to
Ranking

grow in 2019 due to economic growth and persistent

50 45 outward labor migration. As a result, poverty declined
50
51
to 3.5 percent in 2018 from 4.9 percent in 2017 and 6.4
56 percent in 2016.
70
Cost Strategy Neutral Strategy Differenaon Strategy The growth outlook going forward depends criti-
cally on accelerating the reform momentum to address
the bottlenecks in investment and productivity. Given
the strong performance in the first half of 2019, growth
is projected to remain at 3.3 percent this year. Going
forward, if the new Government is able to deliver on
its ambitious reform goals, growth could increase to 4
percent by 2021. Ukraine will need to safeguard mac-
roeconomic stability and manage fiscal risks. The key
to safeguarding fiscal sustainability going forward is
to address the current expenditure pressures and keep
the fiscal deficit below 2.5 percent of GDP to ensure a
sustainable debt reduction.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

Ukraine Ukraine Ukraine Ukraine

(A) (B) (A) (B)

148 07  COUNTRY PROFILES_Ukraine

 United Kingdom
Overall Performance Country Information
5 7 4 8
0 15 12 13 13 13 16 Capital London
19 23 20 19 20
Population 67,530,172 (2019 est.)
Ranking

Area 243,610 sq km
Major Languages English
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $41,030 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy The economic outlook of United Kingdom is unus-
Neutral Starategy Basis ally uncertain given the risks around exit from the
Opmal Strategy Basis European Union. Assuming there is a smooth transi-
0 tion ending after 2021, activity is expected to grow at
20 12 around 1% in the next two years. In addition, persistent
weakness in investment is starting to erode long-term
19
Ranking

29 perspective as Brexit related uncertainty will keep

holding back investment until there is clarity about
43 future trading agreements. Weak global economic
prospects will slow the recovery in exports. There are
70 signs that the labor market is starting to cool with un-
Cost Strategy Neutral Strategy Differenaon Strategy
employment rate ticked upward. Inflation is projected
to slow to below 2%.
Monetary policy should continue to support activ-
ity and keep inflation close to target, but cannot fully
address all shocks. The government should stand ready
to intervene to address any Brexit-related disruption or
a weakening of economic growth. The United Kingdom
should strive to find an agreement that ensures the
closest possible trading relationship with the European
Union and high access for financial services to overseas
markets.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

United Kingdom Sweden United Kingdom Sweden

(A) (B) (A) (B)

07  COUNTRY PROFILES_United Kingdom 149

United States
Overall Performance Country Information
1 1 1 1 1 2 1 2 2 2 4 6
7 7 7
0 Capital Washington, D.C.
Population 329,065,917 (2019 est.)
Ranking

Area 9,826,675 sq km
Major Languages English
70
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019- GDP per capita $65,112 (Oct 2019 est.)
2016 2018 2020

Different Rankings with Different Strategy The current economic expansion of United States in
Neutral Starategy Basis 2019 has become the longest on record but economic
Opmal Strategy Basis growth is now slowing, partly due to increased tariffs
0 6 1 on imported goods and high trade tensions. The
8 labour market has created many jobs and unemploy-
20
ment has fallen to historically very low rates. Rising real
Ranking

30 wages and high asset prices are supporting average

household income and consumption growth. On the
other hand, in addition to intense trade tensions and
70 uncertainty, the combined effects of waning fiscal
Cost Strategy Neutral Strategy Differenaon Strategy impulse, weaker growth in trading partners, and de-
mographics pressures are weighing on confidence and
activity.
The Federal Reserve has acted to meet its dual
employment and inflation mandate. With inflation re-
turning to target only slowly and inflation expectations
slipping, no changes to interest rates are projected,
which may help meet the inflation target symmetrical-
ly. With large budget deficits and unsustainable long-
run fiscal trends, the federal government has limited
space to support the economy. Reducing barriers
to finding jobs would help boost labour supply and
productivity.

National Competitiveness Structure

Physical Factors Human Factors

Business Policians &

Context Bureaucrats
100.00 100.00
80.00 80.00
60.00 60.00
40.00 40.00
20.00 20.00
Factor Demand
0.00 Workers 0.00 Professionals
Condions Condions

Related Entrepreneurs
Industries

United States Canada United States Canada

(A) (B) (A) (B)

150 07  COUNTRY PROFILES_United States

 Vietnam
Overall Performance Country Information
0
Capital Hanoi
36 34 34 36 32
Ranking

41 44 42 42 41 Population 96,462,106 (2019 est.)

52 48 48
58
Area 331,210 sq km
70 Major Languages Vietnamese
2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015- 2017- 2019-
2016 2018 2020 GDP per capita $2,740 (Oct 2019 est.)

Different Rankings with Different Strategy Vietnam’s development over the past 30 years has
Neutral Starategy Basis been remarkable. Economic and political reforms
Opmal Strategy Basis launched in 1986, have spurred rapid economic
0 growth, transforming what was then one of the world’s
poorest nations into a lower middle-income country.
32 Between 2002 and 2018, more than 45 million people
Ranking

29
were lifted out of poverty. Poverty rates declined
41 35 sharply from over 70% to below 6% and GDP per capita
48 increased by 2.5 times, standing over US$2,500 in
70
2018.
Cost Strategy Neutral Strategy Differenaon Strategy Vietnam’s economic outlook is positive, despite
signs of cyclical moderation in growth. After peaking
at 7.1% in 2018, real GDP growth in 2019 is projected
to slightly decelerate in 2019, led by weaker external
demand and continued tightening of credit and fiscal
policies. Real GDP growth is projected to remain
robust at around 6.5% in 2020 and 2021. Vietnam is
experiencing rapid demographic and social change. Its
population reached 96 million in 2018 and is expected
to expand to 120 million before moderating around
2050. Today, 70% of the population is under 35 years
of age, with a life expectancy of 76 years, the highest
among countries in the region at similar income levels.

National Competitiveness Structure

Physical Factors Human Factors

Business
Context Policians &
100.00 Bureaucrats
80.00 100.00

60.00 80.00

40.00 60.00

20.00 40.00
Factor Demand 20.00
0.00
Condions Condions
Workers 0.00 Professionals

Related
Industries Entrepreneurs

Vietnam Japan
(A) (B) Vietnam Japan
(A) (B)

07  COUNTRY PROFILES_Vietnam 151

 LIST OF CRITERIA OF IPS NCR 2019-2020

TABLE A.1 

Factor Sub factor Criteria

1. Factor Conditions 1.1. Natural Resources 1.1.1 Crude oil reserves
1.1.2 Natural gas reserves
1.1.3 Coal reserves
1.1.4 Land area
1.1.5 Freshwater resources
1.2. Processed Resources 1.2.1 Oil production
1.2.2 Natural gas production
1.2.3 Coal production
1.2.4 Wood production
1.2.5 Meat indigenous
2. Demand Conditions 2.1. Demand Size 2.1.1. GDP
2.1.2 GDP per capita
2.1.3a Goods and services: Export
2.1.3b Goods and services: Import
2.2. Demand Quality 2.2.1 Consumer sophistication: quality *
2.2.2 Consumer sophistication: design *
2.2.3 Consumer sophistication: health and environment issues *
2.2.4 Consumer sophistication: international standard of IPR *
2.2.5 Consumer sophistication: new technology *
3. Related Industries 3.1. Industrial Infrastructure 3.1.1 Vehicles
3.1.2 Civil aviation
3.1.3 Maritime transport
3.1.4 International travel
3.1.5 Mobile phone subscribers
3.1.6 Internet users
3.1.7 Capital value
3.1.8 Capital accessibility
3.1.9 Scientists & engineers
3.1.10 Scientific research institutions *
3.1.11 Total expenditure on R&D
3.1.12 International patents granted
3.2. Living Infrastructure 3.2.1 Public spending on education
3.2.2 Students per teacher (elementary)
3.2.3 Secondary enrollment rate
3.2.4 Tertiary enrollment rate
3.2.5 Student international mobility
3.2.6 Personal security
3.2.7 Social safety net *

Appendix 155
Factor Sub factor Criteria
3.2.8 Medical service
3.2.9 GINI index
3.2.10 HDI index
3.2.11 CO2 emissions
3.2.12 Leisure, sports, and cultural facilities*
4. Business Context 4.1. Structure 4.1.1 Firm's decision process *
4.1.2 Firm's decision structure *
4.1.3 Unique brands *
4.1.4 Equal treatment *
4.1.5 Global standards *
4.1.6 Shared value *
4.1.7 Ethical and legal practices *
4.1.8 Health, safety & environmental concerns *
4.2. Rivalry 4.2.1 FDI openness (FDI inflows as % of GDP)
4.2.2 Portfolio openness (Financial inflows as % of GDP)
4.2.3 Goods openness (import as % of GDP)
4.2.4 Services openness (import as % of GDP)
4.2.5 FDI openness (FDI outflows as % of GDP)
4.2.6 Portfolio openness (Financial outflows as % of GDP)
4.2.7 Goods openness (export as % of GDP)
4.2.8 Services openness (export as % of GDP)
5. (Unskilled) Workers 5.1. Quantity of Labor Force 5.1.1 Labor force
5.1.2 Employment rate
5.1.3 Working hours
5.1.4 Monthly compensation for manufacturing workers
5.2. Quality of Labor Force 5.2.1 Literacy rate
5.2.2 Attitude & motivation *
5.2.3 Education *
5.2.4 The openness of labor market *
5.2.5 Management labor relationships *
6. Politicians & 6.1. Politician 6.1.1 The process of parliament/congress*
Bureaucrats
6.1.2 The result of legislation*
6.1.3 Ethics (e.g., bribery & corruption) *
6.1.4 Education level *
6.1.5 International experience *
6.2. Bureaucrats 6.2.1 The process of government
6.2.2 The result of policy implementation
6.2.3 Ethics (Bribery & corruption)
6.2.4 Education level *
6.2.5 International experience *

156  Appendix
 Factor Sub factor Criteria
7. Entrepreneurs 7.1. Personal Competence 7.1.1 The process of decision making *
7.1.2 The result of decision making (e.g., the ability to seize opportuni-
ties)
7.1.3 Entrepreneur's core competence
7.1.4 Entrepreneur's education level
7.1.5 Entrepreneur's international experience
7.2. Social Context 7.2.1 Availability of entrepreneurs *
7.2.2 New business
7.2.3 Support of the social system *
7.2.4 Social status of entrepreneurs
7.2.5 Openness to foreign entrepreneurs *
8. Professionals 8.1. Personal Competence 8.1.1 The process of decision making *
8.1.2 The ability to manage opportunities *
8.1.3 The professional's core competences *
8.1.4 The professional's education level *
8.1.5 The professional's international experience *
8.2. Social Context 8.2.1 Availability of professionals *
8.2.2 The mobility of professionals *
8.2.3 Professional's compensation *
8.2.4 Social status of professionals *
8.2.5 Openness to foreign professionals *

Note: * survey data

Appendix 157