The Netherlands is a small country but ranks fourth in the list of most competitive economies in 2019. This ranking is prepared annually by the World Economic Forum (WEF). With the fourth position, the Netherlands is the most competitive economy in Europe and has even surpassed Switzerland.
The Netherlands is now the most competitive economy in Europe for the first time
The WEF’s Global Competitiveness Index (GCI) is a particularly interesting indicator because it reveals something about whether the Netherlands is one of the most competitive economies in the world. The Netherlands held fourth place in 2019 and has risen two positions compared to last year. The top 5 of the global rankings are Singapore, USA, Hong Kong, the Netherlands and Switzerland. With the 4th position, the Netherlands is the most competitive economy in Europe for the first time and surpassed Switzerland. In 2016 and 2017, the Netherlands was already fourth and the most competitive of the European Union, but then still had to leave Switzerland. According to the WEF, the Dutch economy has become much more agile due to an entrepreneurial culture, flat organizations and the encouragement of the growth of innovative companies.
The GCI components explained in more detail
According to the GCI, the Netherlands has a very open dynamic economy (2nd position) with a high-quality physical infrastructure (2nd position), a stable macroeconomic policy (1st position), an efficient government with well-functioning institutions (4th position), and a very well-trained workforce (4th position).
There are also a number of GCI components where the Netherlands scores less internationally. For example, the Netherlands lags behind in the application of ICT (position 24). There is a decrease in seven positions compared to 2018. The low position of the Netherlands in the application of ICT is remarkable because the Netherlands scores well in the application of ICT in other rankings, such as the DESI. The Netherlands also lags behind in innovation, and in particular in terms of R&D investments (position 17).