Toronto— In the Global Competitiveness Report 2009-2010 released today by the World Economic Forum, whose Canadian partner is the Institute for Competitiveness & Prosperity, results for Canada in the rankings over 2008’s results were positive. Canada moved up from 10th in 2008 to 9th in 2009 building on a jump from 13th in 2007 on the Forum’s “Global Competitiveness Index”.
“These annual indices help Canadians determine trends in the competitiveness of our economy versus our global competitors,” said Jim Milway, Executive Director of the Institute for Competitiveness & Prosperity. “This is the second year that Canada has seen an improvement in its ranking. We moved up four rankings in two years – only Singapore and Australia matched that achievement. In our improvement from 13th to 9th, we moved past the United Kingdom, Korea, Hong Kong and the Netherlands.”
The Global Competitiveness Index provides an overview of factors that are critical to sustainable growth in productivity and competitiveness. It consists of three sub-indices which measure the quality of each country’s “basic requirements”, “efficiency enhancers”, and “innovation factors”.
The first sub-index, basic requirements, measures the capacity of the economy’s public and private institutions, infrastructure, macroeconomic stability, and health and primary education, Canada did fall to 10th in 2009 from 8th in 2008. This is attributable to a decline in Canada’s rankings in all but macroeconomic stability within the basic requirements sub-index.
The second sub-index, efficiency enhancers, measures the impact on global competitiveness of higher education and training, market efficiency, and technological readiness. Canada’s rank edged closer to the top with an increase from 5th in 2008 to 4th in 2009. Factors of strength in this sub-index include the flexibility of our labour markets, the quality of our higher education and training, the availability of latest technologies, and the sophistication of our financial markets. As part of this sub-index we also see the perception of Canada’s “Soundness of Banks” holding its position as number one globally.
On the third sub-index, innovation factors, which measures business sophistication and innovation, Canada’s ranking jumped four spots from 16th in 2008 to 12th in 2009. As Milway observed, “It’s gratifying that Canada is moving up in this ranking. However, The World Economic Forum notes that Canada is still at a disadvantage in company spending on R&D, pioneering new products and processes, competing on cost and natural resource access rather than uniqueness, and excelling at a full range of capabilities like, design, service and marketing”.
Outside Canada, this year’s Global Competitiveness Index sees The United States concede the top spot to Switzerland due to the weakening of its financial institutions and macroeconomic stability. We also see Singapore moving up from 5th to 3rd position while the United Kingdom continues to drop in the rankings from 12th to 13th.
Top ranking countries for the Global Competitiveness Index were:
1. Switzerland
2. United States
3. Singapore
4. Sweden
5. Denmark
For more information about The Global Competitiveness Report and other activities and publications of the World Economic Forum’s Global Competitiveness Programme, please visit http://www.weforum.org/gcp
About the Institute for Competitiveness & Prosperity
The Institute for Competitiveness & Prosperity is an independent not-for-profit organization established in 2001 to serve as the research arm of Ontario’s Task Force on Competitiveness, Productivity and Economic Progress. It is also the Canadian partner of the World Economic Forum. Research conducted by the Institute is primarily intended to inform the work of the Task Force. In addition, it is designed to raise public awareness and stimulate debate on a range of issues related to competitiveness and prosperity.
For more information contact James Milway, Executive Director of the Institute for Competitiveness & Prosperity at 416.920.1921 ext. 222.
Upcoming Events
Institute to release Working Paper 14 on expanding trade to strengthen innovation
September 22, 2010
8:00 a.m. to 10:00 a.m.
The Royal Conservatory of Music, Telus Centre for Performance and Learning.
The Conservatory Theatre (Second floor).
271 Bloor St. West.