Latvia ranks 42nd in the World Economic Forum’s (WEF) Global Competitiveness Index, still lagging behind Lithuania and Estonia, according to the latest WEF Global Competitiveness Report.
Lithuania ranked 40th this year and Estonia ranked 32nd.
WEF said that this year the report uses new methodology to understand the full impact of the the Fourth Industrial Revolution (4IR), and finds factors including human capital, agility, resilience, openness and innovation becoming increasingly important.
The new index measures 140 economies against 98 indicators, organized into 12 “pillars” or drivers of productivity, to determine how close the economy is to the ideal state or “frontier” of competitiveness, including institutions, infrastructure, macroeconomic stability, business dynamism and innovation capability.
Among these 12 criteria, Latvia shows the best performance in macroeconomic stability, ranking 1st in the world. In total, 31 world’s economies rank first in this category.
Latvia ranks 11th in information and communication technologies adoption pillar, 23rd in skills pillar, 29th in labor market pillar, 47th in infrastructure and business dynamism pillars, 49th in institutions and product market pillars, 52nd in innovation capability pillar, 94th in market size and financial system pillars, and 76th in health pillar.
The world’s most competitive countries are the US, Singapore, Germany, Switzerland, Japan, the Netherlands. Hong Kong, the UK, Sweden and Denmark.
The least competitive countries include Chad, Yemen, Haiti and Angola.
WEF reports that the average score for the world is 60 points or 40 points away from the frontier