Global Competitiveness Report 2012/2013

Global Competitiveness Report 2012/2013

What you will learn from this report ?

  • Provide you with a comparative overview of the economic and business potential of the included countries. (Closer look on the MENA region)
  • Estimation of the productivity of individual sectors and the economy as a whole.
  • Providing an assessment of the value of investing in the listed countries based on the identification of comparative advantages.
  • Highlight the strengths and weaknesses of national economies, and identify the elements of the economy that stimulate or inhibit growth.

I- Introduction

In the current challenging economic environment, Policymakers are struggling to find ways to manage the present economic challenges while preparing their economies to perform well in an increasingly complex global landscape. After a number of difficult years, a recovery from the economic crisis is tentatively emerging, although it has been very unequally distributed: much of the developing world is still seeing relatively strong growth, while most advanced economies continue to experience sluggish recovery, persistent unemployment, and financial vulnerability, with no clear horizon for improvement. Over the years, the Global Competitiveness Report has become the most authoritative and comprehensive assessment of the strengths and weaknesses of national economies throughout the world.

II- What is the GCR?

A-  A yearly report published by the World Economic Forum. B- The first report was released in 1979. In recent years, the Reports have been produced in close collaboration withHarvard University and other leading institutions to ensure that the latest thinking and research of scholars on global competitiveness are incorporated. C- Competitiveness is defined as “the set of institutions, policies, and factors that determine the level of productivity of a country & the level of ROI (return on Investment)” & hence GSR studies and benchmarks those factors underpinning national competitiveness.

III- What is it used for?

It is useful because it identifies the strengths and weaknesses of national economies & it is used to:

  • Provide a comparative overview of the economic and business potential of the included countries.
  • Estimate the productivity of individual sectors and the economy as a whole.
  • Provide an assessment of the value of investing in the listed countries based on the identification of comparative advantages.
  • Highlight the strengths and weaknesses of national economies, and identifies elements of the economy that stimulate or inhibit growth.

VII- How Global Competitiveness Index is measured

The GCI provides a weighted average of over 100 different variables, where each variable is considered to reflect one aspect of competitiveness. The GCI also provides sub-indexes measuring three main components of competitiveness; “Basic requirements”, “Efficiency enhancers”, “Innovation and sophistication factors”. Under each sub-index include different pillars, where the variables are found underneath them

In a Glance: The Global Competitiveness Report 2012–2013;

gci heat

At the time of releasing The Global Competitiveness Report 2012–2013, the outlook for the world economy is once again fragile. Global growth remains historically low for the second year running with major centers of economic activity—particularly large emerging economies and key advanced economies—expected to slow in 2012–13, confirming the belief that the global economy is troubled by a slow and weak recovery. As in previous years, growth remains unequally distributed. Emerging and developing countries are growing faster than advanced economies, steadily closing the income gap. The International Monetary Fund (IMF) estimates that, in 2012, the euro zone will have contracted by 0.3 percent, while the United States is experiencing a weak recovery with an uncertain future. Large emerging economies such as Brazil, the Russian Federation, India, China, and South Africa are growing somewhat less than they did in 2011. At the same time, other emerging markets—such as developing Asia—will continue to show robust growth rates, while the Middle East and North Africa as well as sub-Saharan African countries are gaining momentum.

A closer look on the Middle East and North Africa Status

The Middle East and North Africa region continues to be affected by political turbulence that has impacted individual countries’ competitiveness. Countries that embarked on partial reforms such as Jordan and Morocco move up in the rankings, while economies that were more significantly affected by unrest and political transformations tend to drop or stagnate in terms of national competitiveness. Addressing the unemployment challenge will remain the key economic priority of the region as a whole for the foreseeable future… Top three countries are:

Qatar

Qatar reaffirms its position as the most competitive economy in the region by moving up three places to 11th position, sustained by improvements in its macroeconomic environment, the efficiency of its markets for goods and services, and its institutional framework. Its strong performance in terms of competitiveness rests on solid foundations made up of ahigh-quality institutional framework, a stable macroeconomic environment, and an efficient goods market.

Saudi Arabia

Saudi Arabia maintains the second-best place in the region. The country has seen a number of improvements to its competitiveness in recent years that have resulted in a solid institutional framework, efficient markets, and sophisticated businesses. Higher macroeconomic stability (6th) and more prevalent use of ICT for productivity improvements contribute to maintaining Saudi Arabia’s strong position in the GCI.

United Arab Emirates

UAE gains three places in the GCI to take the 24th position. The improvement reflects a better institutional framework as well as greater macroeconomic stability.Higher oil prices buoyed the budget surplus and allowed the country to reduce public debt and raise the savings rate. Overall, the country’s competitiveness reflects the high quality of its infrastructure, as well as its highly efficient goods markets