KPMG’s 2019 edition of the Growth Promise Indicators (GPI) index ranks 180 countries to assess their productivity potential, rating them from zero to 10, based on 26 indices. The report finds that the front-runners are truly global, with countries in Asia and Europe accounting for the top 10 places.
Switzerland leads the way, followed by the Netherlands. Elsewhere in the top 10, Luxembourg and Finland have left Norway behind, while this year’s ranking has also seen Mauritius, the Bahamas and South Korea make significant ground. Norway has dropped two spots from last year, reflecting lower scores for its institutional quality in areas such as business rights and transparency of policymaking.
Elsewhere, investment in infrastructure, particularly in technology readiness has paid off for South Korea who has seen the biggest improvement in its GPI ranking of any developed economy, while India’s commitment to greater transparency and improved business rights has helped it rise four places. The UAE has also moved up four places due to advances in infrastructure. Cyprus is now positioned at the 26th place, out of 180 participating countries.
Yael Selfin, Chief Economist at KPMG in the UK and author of the report, said: “The index shows that globally, the top performing countries lay the foundations for solid growth for others to follow. Smaller nations, such as South Korea and the UAE, are also moving quickly up the rankings, while developing economies are often making progress faster than their developed counterparts. Globally, many countries still lag behind on important indicators, such as the transparency of policymaking and the quality of regulation. The importance of stable institutions and their role in promoting sustainable economic growth is paramount, given that we are living in a climate of volatility, where political tensions make rational, cool-headed decision making increasingly difficult.”
