“Covering 140 economies, the Global Competitiveness Index 4.0 measures national competitiveness--defined as the set of institutions, policies and factors that determine the level of productivity.”
Luxembourg performed particularly well in several categories, including its financial system (9th best in the world), health (14th best, with 97 out of 100 possible points) and macroeconomic stability (earning a perfect 100 score).
Future ready government
The country also shined in the “future preparedness” of its public sector. This, the WEF report stated, reflects:
“[A] government’s ability to prepare for the future, and covers policy stability, responsiveness to change, long-term vision and the adaptability of the legal framework to technological change. The median score is just 45, yet the most future-prepared governments are not necessarily those of the most competitive economies. Only three--Switzerland, the United States and Singapore--feature in the top 10 of both lists. The East Asia and the Pacific and Middle East and North Africa regions outperform Europe and North America, with Singapore (85.6) scoring highest followed by Luxembourg (79.0), the United States (78.3), and the United Arab Emirates (76.7).”
Dragging the grand duchy down in the overall ratings, were lower scores in worker skills (75 out of 100 points, but only 22nd best out of the 140 economies surveyed), business dynamism (38th, 66 points) and, unsurprisingly, market size (77th place, with just 50 points).