The Global Competitiveness Report 2014–2015

Economic, Political and Social Uncertainty Persist

The world economy’s recovery from the global financial crisis continues, if not apace then gradually and cautiously, especially since risks and uncertainties hover on the horizon. For example, analysts don’t yet know all the effects of the normalization of monetary policies, following unprecedented easing in the United States, the United Kingdom and Japan. Tense geopolitical situations in several parts of the world also cloud the global economic outlook, as does rising income inequality, which has the potential to create social pressures with worldwide consequences in the form of demonstrations, strikes and violence. Nonetheless, the advanced economies’ growth prospects were better in 2014 than in recent years.

The most important factors for determining a country’s competitiveness include increasing economic inclusiveness, fostering good relations between the public and private sectors, ensuring the presence of reliable institutions, developing a pool of skilled talent, and having an imbedded knack for innovation. As in the previous annual report, Switzerland and Singapore are the top two nations in the 2014-2015 Global...