IMD World Competitiveness Yearbook 2024

June 2024 IMD WORLD COMPETITIVENESS YEARBOOK 2024 ISBN-13978-2-940485-59-8ISSN1026-2628 Copyright © 2024IMD –International Institute for Management Development23, Ch. de BelleriveP.O. Box 915CH-1001 LausanneSwitzerland e-mail:wccinfo@imd.orgInternet:www.imd.org/wccDatabase:https://worldcompetitiveness.imd.org/ Preface I am delighted to present the 2024 IMD World Competitiveness Yearbook. In the years since thepandemic, we have seen increasing relevance to providing nations with the inspiration to optimizetheir financial strategies and the prosperity of their people, while having a significant impact on globalcollective efforts. The challenges governments and businesses face across the board in 2024 –a historic year for thenumber of elections across the globe –span the stalemate in the war between Russia and Ukraine,heightened tensions in the Middle East, the integration of emerging markets into the world economy, anddogged efforts to address global warming. The carbon crisis is costly; we can’t reduce our carbon footprint and enjoy the same level of prosperitywe’re used to. Add to today’s challenges a constant need to keep on the hamster wheel of digitaltransformation (despite the fact it’s helping the rich get richer and the poor get poorer), and the scene ofour 2024 rankings is set. There is good news, however. International organizations are happily broadening their competitivenessfocus from the mere productivity of an economy to the way its economic growth not only considers socialequity and environmental integrity but actively enhances them. I do not want to be a doom-monger, but as we witness the transition to a low-carbon and circulareconomy, plenty of private companies in the largest markets in the world have no net-zero or emissionreduction targets in place. The private sector is demanding coinvestment in new technologies togovernments, so they can de-risk the projects and guarantee returns. At the same time, public fundsare not enough to finance the transtition, meaning cooperation between public and private sectors isparamount. For now, doing so well is largely the realm of small economies that often operate as a bloc, as ourrankings continue to show. Not only do they “do net-zero better” but they also excel in equality,sustainability, quality of life, and safety measures. The biggest economies in the world have much to learnfrom them in this sense. Companies and countries alike want to be profitable and to grow and expand, to do the right thing forthe planet, and to bestow prosperity on their people. But the inherent contradictions these entail mustresult in trade-offs. The most competitive economies of the future will be those that embrace the delayedgratification of “my loss today, your gain tomorrow” while economic powerhouses that don’t adapt willsuffer. Reading our 2024 rankings requires both a macro and a micro lens. I have gone heavy on the former, butnow for the latter: put simply, our rankings help attract investment, inform policy decisions, and fostera competitive spirit among nations. Translated into the day-to-day this includes, but is not limited to,improved living standards, more and better job creation, and sustainable development. Competitiveness measures the extent to which a nation generates the prosperity of its citizens. I do notlike predicting the future. But if anything, I will say it is going to get more competitive. Professor Arturo BrisDirectorIMD World Competitiveness Center Table of Contents CompetitivenessCountry Profiles The IMD WorldCompetitiveness Center For more than thirty years, the IMD World Competitiveness Center has pioneeredresearch on how countries and companies compete to lay the foundations forsustainable value creation. The competitiveness of nations is probably one of the mostsignificant developments in modern management and IMD is committed to leadingthe field. The World Competitiveness Center conducts its mission in cooperation witha network of 58 Partner Institutes worldwide to provide the government, business andacademic communities with the following services: •Competitiveness Special Reports•Competitiveness Prognostic Reports•Workshops/Mega Dives on competitiveness•IMD World Competitiveness Yearbook•IMD World Digital Competitiveness Ranking•IMD World Talent Ranking•Hinrich-IMD Sustainable Trade Index•Smart City Index The IMD World Competitiveness Center team At IMD: DirectorSenior EconomistChief Economist & Head of OperationsResearch SpecialistData Research and Online Services SpecialistCenter CoordinatorAssociate DirectorProjects AnalystEditor Professor Arturo BrisJosé CaballeroChristos CabolisFabian GrimmMadeleine HedigerOdete MadureiraWilliam MilnerChinar SharmaAlice Tozer At KAESCO Consulting:Jean-François Kaeser We also have the privilege of collaborating with a unique network of Partner Institutes, andother organizations, which guarantees the relevance of the data gathered. Contact e-mail: wccinfo@imd.orgInternet