In this article, we will discuss the 25 most competitive economies in the world. If you want to skip our detailed analysis, you can go directly to 5 Most Competitive Economies in the World.
The Global Economy
The economies in 2023 reflect the global economic uncertainties that appeared since the beginning of the COVID-19 pandemic. While economies across the globe are showing signs of recovery, growth is very moderate. In 2022, the global economic focus gradually shifted from the protracted pandemic to increasing concerns about inflation and geopolitical risks. In early 2022, the Russia-Ukraine war began which had severe economic impacts on the European economy, causing disruptions in energy and food markets. Now, the ongoing oppression of Gaza’s citizens from Israel has further elevated concerns surrounding geopolitical risk.
Despite the looming threats, the global economy continues to improve from the bottom level of the COVID-19 pandemic. With new challenges, new opportunities emerge for the global competitive markets in both the public and private sectors. Europe made a remarkable improvement in the 2023 global competitive ranking, with five economies from the continent making it to the top 10, as per the 2023 IMD World Competitiveness Ranking. The most competitive economies tend to attract more immigrants. Europe remains a key market for immigrants despite economic uncertainties in the region. Some of the top countries with the most immigrants include Germany, France, Russia, Spain, Switzerland, and the United Kingdom, among others.
European and Asian economies continue to dominate among the top 20 most competitive economies in the world. According to online resume builder Resume.io, Doha, Dubai, and San Francisco were among the cities that had the highest number of candidates per LinkedIn job posting, as of February 2023. The most competitive job markets in the world mainly belong to the most competitive countries in the world. With the improvement in global economic conditions, competitive economies will have more freedom to power their human capital in the most competitive industries.
As we mentioned earlier, headline inflation is expected to drop from 9.2% in 2022 to 5.9% and 4.8% in 2023 and 2024, respectively. While, core inflation, excluding food and energy prices, is projected to drop down to 4.5% in 2024. There are signs that the global economies will have a “soft landing” scenario in the next year. On the other hand, global economic growth is forecasted to slow from 3.5% in 2022 to 3% in 2023 and 2.9% in 2024. Advanced economies are estimated to have a growth rate of 1.5% in 2023 and 1.4% in 2024. The growth momentum is slow in advanced economies due to weaker-than-expected growth in the euro area. Emerging markets and developing economies have a better growth outlook for 2023 and 2024 compared to advanced economies. Emerging markets and developing economies are projected to record a modest decline, from 4.1% in 2022 to 4% in both 2023 and 2024.
Key Players in the Most Competitive Countries
Some of the companies that are the backbone of the most competitive countries in the world include Novo Nordisk A/S (NYSE:NVO), Nestlé S.A. (OTC:NSRGY), and DBS Group Holdings Ltd (OTCMKTS:DBSDF). These are the top-tier companies of their respective economies that have global operations.
Novo Nordisk A/S (NYSE:NVO) is a leading Danish multinational pharmaceutical company. On November 10, Novo Nordisk A/S (NYSE:NVO) announced that it plans to invest approximately DKK 42 billion in its manufacturing facilities in Kalundborg, Denmark. The company intends to expand the manufacturing facilities for its product portfolio within serious chronic diseases. The construction of the Kalundborg manufacturing facilities is expected to create almost 800 new jobs after its completion. On November 23, Novo Nordisk A/S (NYSE:NVO) announced another investment of almost DKK 16 billion to expand its existing production site in Chartres, France. The company projects to create around 500 jobs at the production facility in France.
Nestlé S.A. (OTC:NSRGY) is a consumer products giant that has global operations in 77 countries with 340 factories. On November 4, Nestlé S.A. (OTC:NSRGY) announced the appointment of four new members to its Creating Shared Value (CSV) Council including Dr. Martin Bloem, Paul Hawken, Gonzalo Muñoz, and Jennifer Morris. The CSV Council is the company’s external advisory group that engages with the Executive Board on important measures of Nestlé S.A.’s (OTC:NSRGY) sustainability initiatives. On November 6, Nestlé S.A. (OTC:NSRGY) announced that it is shifting half of its global shipping needs to lower-emission fuels with immediate effect. The company is working with three of the world's largest shipping companies including Hapag-Lloyd, AP Moeller - Maersk A/S (CPH:MAERSK-B), and CMA CGM. The company’s Executive Vice President and Head of Operations, Stephanie Hart, said:
"Reaching net zero requires changing many aspects of how we source, make, and distribute our products. The agreements we've signed with our shipping partners will help us cut emissions and immediately reduce our carbon footprint. We know this is an interim solution and continue to encourage the development of longer-term decarbonization solutions in shipping and distribution."
DBS Group Holdings Ltd (OTCMKTS:DBSDF) is Singapore’s largest multinational banking and financial services corporation. On November 30, DBS Group Holdings Ltd (OTCMKTS:DBSDF) said that its digital payment service, DBS MAX QRIS, is driving the expansion and digitalization of the food business in Indonesia. DBS MAX QRIS has helped the PT Hoki Distribusi Niaga (PT HDN), owner of Indonesia’s rice brands such as Topi Koki, to increase its customers by 9% since February 2023. PT Hoki Distribusi Niaga’s 6% of customer payment transactions were made through DBS Group Holdings Ltd’s (OTCMKTS:DBSDF) digital payment platform.
These were a few leading companies operating out of some of the most competitive economies in the world. Now, let’s take a look at the list of the most competitive economies in the world
20 Most Competitive Economies In The World
20 Most Competitive Economies In The World
Our Methodology
For the list of the most competitive economies in the world, we used the IMD World Competitiveness Ranking 2023. The IMD World Competitiveness Ranking presents 64 competitive economies with scores of 0 to 100 and the higher score shows more competitiveness. The IMD’s rankings are based on four main factors: economic performance, government efficiency, business efficiency, and infrastructure, which evaluate the competitiveness of an economy. We have ranked the most competitive economies in the world in ascending order of the IMD competitiveness score.
Note: We have also added GDP (PPP) and GDP per capita to reflect the overall economy of the most competitive countries in the world. As a simple definition, PPP is calculated by subtracting price differences and nominal changes in the local currency and the US dollar. The GDP (PPP) and GDP per capita figures are from 2023 and were sourced from the International Monetary Fund.
20 Most Competitive Economies In The World
20. Luxembourg
Competitiveness Score: 82.46
Luxembourg is one of the strongest economies in Europe. The country has a GDP of $94.15 billion and a GDP per capita of $143,300. Luxembourg is ranked 20th among the most competitive economies in the world.
19. Australia
Competitiveness Score: 83.02
Australia is one of the most advanced economies in the world. Australia has a GDP of $1.72 billion and a GDP per capita of $64,670. The country ranks among the most competitive economies in the world.
18. Czech Republic
Competitiveness Score: 83.48
The Czech Republic is one of the most competitive economies in the world having a GDP of $539.32 billion. With a GDP per capita of $49,030, the Czech Republic is ranked 18th among the most competitive economies in the world.
17. Saudi Arabia
Competitiveness Score: 86.06
Saudi Arabia is one of the largest economies in the Middle East. The country has a GDP of $2.25 trillion and a GDP per capita of $68,450. Saudi Arabia is one of the most competitive economies in the world.
16. Iceland
Competitiveness Score: 86.71
Iceland is a Nordic island nation in Europe having a GDP of $27.08 billion. The country has a GDP per capita of $69,830 and is one of the most competitive economies in the world.
15. Canada
Competitiveness Score: 88.21
Canada is one of the wealthiest and largest economies in the world. The country has a GDP of $2.38 trillion and a GDP per capita of $59,810. Ranked 15th on our list, Canada is one of the most competitive economies in the world.
14. Norway
Competitiveness Score: 88.43
The Scandinavian country is one of the most competitive economies in the world. Norway has a GDP of $452.96 billion and a GDP per capita of $82,240. Norway ranks among the most competitive economies in the world.
13. Belgium
Competitiveness Score: 89.69
Belgium is located in Western Europe and is one of the largest economies in the region. Belgium has a GDP of $769.68 billion and a GDP per capita of $65,810. Belgium is placed 13th among the most competitive economies in the world.
12. Qatar
Competitiveness Score: 89.72
Qatar’s capital, Doha, is the most sought-after and competitive job market in the world. Qatar has a GDP of $328.13 billion and a GDP per capita of $114,210. The Arab country ranks among the most competitive economies in the world.
11. Finland
Competitiveness Score: 89.73
Finland is one of the most competitive economies in the world. Finland has a GDP of $335.76 billion and a GDP per capita of $59,870.
10. United Arab Emirates
Competitiveness Score: 90.52
The United Arab Emirates has a GDP of $895.17 billion. The country is one of the largest and most advanced economies in the Middle East. With a GDP per capita of $88,960, the United Arab Emirates is ranked 10th among the most competitive economies in the world.
9. United States
Competitiveness Score: 91.14
The world’s largest economy, the United States has a GDP of $26.95 trillion. The country has a GDP per capita of $80,410. The United States ranks among the most competitive economies in the world.
8. Sweden
Competitiveness Score: 91.86
Sweden is another Scandinavian country on our list of the most competitive economies in the world. Sweden has a GDP of $716 billion and a GDP per capita of $66,210.
7. Hong Kong
Competitiveness Score: 92.05
Hong Kong is one of the most advanced economies in Asia. The country has a GDP of $549 billion and a GDP per capita of $72,860. Hong Kong is ranked 7th among the most competitive economies in the world.
6. Taiwan
Competitiveness Score: 93.11
Taiwan is one of the richest states in Asia. The country has a GDP of $1.69 trillion and a GDP per capita of $72,490. Ranked sixth on our list, Taiwan is one of the most competitive economies in the world.
