Global Competitiveness Report 2014 – 2015

Research on Regional Competitiveness

Global Competitiveness Report 2014 – 2015

Zagreb, 3 September 2014. – The National Competitiveness Council, as a partner of the World Economic Forum (WEF) in the Program for Global Competitiveness, today presented the most recent results of the “Global Competitiveness Report, 2014-2015.” In this year’s report Croatia is ranked 77th out of 144 countries, which is decline of two place from 2013.

The research results are based on publicly available statistical indicators (for 2013 and 2014) and perceptual data obtained through Executive Opinion Survey of enterprise managers. The WEF defines competitiveness as a set of institutions, policies and factors that determine the level of productivity of a country. Its methodology is based on an analysis of 12 pillars of competitiveness, which are: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.

Switzerland, the top-ranked and most competitive country in the world, has again maintained its position in the rankings this year. It is followed by Singapore, the United States, Finland, Germany and Japan. Of the Central European countries, the Czech Republic made a solid recovery after several years of decline. More modest recoveries were made by Hungary and Slovakia, which switched positions with Croatia. Slovenia continued its major decline in competitiveness and from a position among the 40 most competitive countries in the world has fallen to 70th place. Of the countries in Southeastern Europe, Bulgaria continues it dynamic improvement to a very solid 54th position, while Romania and Macedonia this year are among the countries that made the greatest improvement in their competitiveness grades. This year they are considerably ahead of Croatia, with whom they were ranked roughly equally in the previous two years.

Croatia is ranked in 77th place and with a grade of 4.13 it is stagnating, which is a consequence of the failure to implement the structural reforms that are critical for long-term, sustainable economic development. Furthermore, the areas in which intensive reforms are required have become even clearer, especially in the macroeconomic environment, in which Croatia’s ranking fell by 24 places.

This year’s results for Croatia show improvements in the grades for the factors of institutions (87th), health and primary education (60th), goods market efficiency (105th), labor market efficiency (106th), financial market development (74th) business sophistication (83rd) and technological readiness (44th). However, there were noticeable declines in the grades for macroeconomic environment (91st), innovation (93rd), market size (79th), higher education and training (53rd) and infrastructure (44th).

“Croatia continues to stagnate in the global competitiveness rankings. Fortunately, in some indices there have been noticeable improvements, for example in financial market development, business sophistication and institutions. Unfortunately, there is an unmistakable negative trend in macroeconomic environment and innovation, which we feel in daily business. These results are certainly a good basis for establishing the priority activities of all of the deciding factors in Croatia,” emphasized Ivica Mudrinić, President of the National Competitiveness Council.

The results of the Global Competitiveness Report, 2014-2015 emphasize the need for stimulating innovation and talent as areas in which leaders in the public and private sectors must cooperated more successfully if they wish to achieve sustainable and inclusive economic development. The report also underscores the lack of implemented structural reforms, which is the greatest challenge to sustainable global economic growth and competitiveness. The division between a very competitive northern Europe and the underdeveloped southeast is a consequence of the implementation, or the lack of implementation, of reforms.

For more information about the research please go to .