ZAGREB, October 17, 2018 – Croatia ranks 68th in the 2018 Global Competitiveness Index among 140 economies, with a score of 60.1, the World Economic Forum (WEF) said in its Global Competitiveness Report 2018 released on Wednesday.
The Croatian National Competitiveness Council (NVK), a partner to the World Economic Forum in the Global Competitiveness Programme, said that the WEF had considerably changed its methodology this year, as a result of which Croatia ranks better than last year, when according to the previous methodology it placed 74th among 137 countries with a score of 60.1. “Compared to last year, Croatia’s score remained unchanged (60.1). We lost two positions because of progress made by Serbia and Georgia,” the NVK said.
“The latest survey again shows and confirms the necessity of implementing reforms and adopting a long-term vision for Croatia … and clear sectoral strategies that support such a vision,” NVK chairman Ivica Mudrinić said, adding that such an approach to public policy management would restore hope in a better future.
“That would probably have a positive effect on keeping young people in Croatia and encouraging many of our citizens to become entrepreneurs and get involved in economic development and consequently in the realisation of our desired common future. The time of fast technological changes presents a great challenge to our society, but also a great opportunity for exponential and fast development. All society stakeholders are responsible for getting actively involved in making such development possible,” Mudrinić concluded.
According to the WEF’s new methodology, the total number of indicators has been reduced from 114 to 98, and the proportion of “firm” statistical indicators, along with surveys conducted among businesses, has been increased from 31-43 percent to 70 percent, meaning that the overall ranking now depends considerably less on perception and more on numerical indicators.
This year’s survey covers 140 countries accounting for 99 percent of the global GDP and 94 percent of the world’s population.
The methodology is based on 12 competition pillars – institutions, infrastructure, ICT adoption, macroeconomic stability, health, education and skills, product market, labour market, financial system, market size, business dynamism and innovation capability.
The report says the slow implementation of reforms in Croatia resulted in the further stagnation of Croatia on the global level. On the global competition rankings, Croatia is lowest in macroeconomic stability (106th), the labour market (96th), market size (78th), and institutions (76th). On the other hand, Croatia ranks best in infrastructure (36th), health (51st) and innovation capacity (63rd).
According to the new methodology, on a scale from 0 to 100, Croatia fared worst in innovation capability (38 out of 100), business dynamism (56), and market size (50), while ranking best in health (86 out of 100), infrastructure (77) and macroeconomic stability (69).
As in previous years, the report shows Croatia ranks worst in efficiency of legal framework in settling disputes (139th), ease of hiring foreign labour (139th), burden of government regulation (138th), hiring and firing practices (135th).
As competition advantages, Croatia ranks best in terms of electrification rate (1st), trade tariffs (6th), quality of roads (17th), workers’ rights (32nd), mean years of schooling (37th), and female participation in labour force (40th).
As for countries in Croatia’s neighbourhood, Slovenia ranks 35th, Hungary 48th, Bulgaria (51st), Romania (52nd), Serbia (65th), Montenegro (71st) and Albania (76th).