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Chart: Measuring Global Competitiveness

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competitiveness over time

Chart: Measuring Global Competitiveness

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

What makes an economy competitive at the global level, and why?

It’s a question that economists, investors, and politicians have been asking themselves for decades. And to help answer it, the World Economic Forum has created the Global Competitiveness Index, or GCI.

How can we measure competitiveness?

To figure out how countries compare on the world stage, the GCI is calculated based on 114 economic metrics ranging from the quality of infrastructure to the amount of government debt.

This wide variety of metrics is organized into a set of 12 pillars, as follows:

12 pillars of Measuring Global Competitiveness

Global Competitiveness by Country

Based on the latest edition of the report, Switzerland (5.81) is the most competitive country in the world, having held the leading position since 2010 after it outpaced the United States (5.70) in the wake of the financial crisis.

RankCountryCurrent Score (2016)Previous Score (2015)Change
1Switzerland5.815.760.05
2Singapore5.725.680.04
3United States5.705.610.09
4Netherlands5.575.500.07
5Germany5.575.530.04
6Sweden5.535.430.10
7United Kingdom5.495.430.06
8Japan5.485.470.01
9Hong Kong5.485.460.02
10Finland5.445.45-0.01
11Norway5.445.410.03
12Denmark5.355.330.02
13New Zealand5.315.250.06
14Taiwan5.285.280.00
15Canada5.275.31-0.04

Picturing Competitiveness

Global competitiveness is a multi-faceted metric, but our understanding of it becomes clearer when compared with more standard measures such as GDP per capita (PPP).

The interactive graphic below from Knoema plots GDP per capita against GCI between 2006-2015, showing how the relationship between competitiveness and wealth has changed over time for numerous countries.

It is clear that competitiveness and GDP are positively correlated. In other words, the ability to be structurally and organizationally competitive creates conditions that are ideal for economic growth.

Don’t Worry, Be Happy

Competitiveness and growth in economic output may be related, but the infrastructure needed to stay globally competitive may confer other benefits to competitive ability and quality of life that go beyond GDP.

The Happy Planet Index (HPI) measures the sustainable well-being of citizens in any given country, and is plotted here against GCI.

The correlation between these factors is still positive, but weaker.

Rwanda, for example, is by statistical measure one of the world’s unhappiest nations (3.52 HPI); it is roughly equally competitive with the comparatively jubilant Costa Rican population (7.09 HPI), which also has a much higher GDP per capita.

On the other hand, a country can still be happy without being particularly competitive on a global basis. For example, Argentina (6.65 HPI) ranks in the bottom 50% of countries for global competitiveness (3.79 GCI).

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Markets

Ranked: Top 10 Single-Day Market Cap Gains

Nvidia broke the record for the largest single-day market cap gains after adding nearly $250B on Feb. 22, 2024.

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The 10 Biggest Single-Day Market Cap Gains

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Since the COVID-19 pandemic, U.S. tech stocks have led in terms of market cap gains, sometimes boosting their valuations by hundreds of billions of dollars in a single day.

In this graphic, we’ve ranked the largest single-day gains ever recorded, using data from Bloomberg.

Top 10 List

The top 10 list includes just 5 companies, and all are based in the U.S.

RankDateCompanySingle-day
Market Cap Gain
(USD billions)
1Feb 22, 2024NVIDIA$247.0
2Feb 2, 2024Meta$196.8
3Nov 10, 2022Apple$190.9
4Feb 4, 2022Amazon$190.8
5May 25, 2023NVIDIA$184.1
6Jan 28, 2022Apple$178.9
7Jul 31, 2020Apple$169.0
8Oct 28, 2022Apple$150.5
9Mar 13, 2020Microsoft$150.4
10Apr 26, 2023Microsoft$148.3

To put these massive gains into context, consider this: As of May 2023, the average market cap of an S&P 500 company was $30.4 billion.

Meta’s $197B Record Didn’t Last Long

On Feb 2. 2024, Meta set a new record for the largest single-day gain after reporting strong quarterly earnings, as well as announcing $50B in share repurchases and its first ever dividend payment.

This record lasted only 20 days, however, as Nvidia’s massive Q4 2024 earnings beat sent it to all-time highs. The firm is now nearing a $2T valuation, firmly placing it among the world’s most valuable corporations.

More on Nvidia’s Earnings…

Nvidia reported $12.3B in net income during Q4 2024, which is 769% higher than the same quarter last year. Revenues are also up 265% from last year, largely driven by demand for its AI chips like the H100 Tensor Core GPU.

Nvidia’s earnings have seemingly shifted the AI craze into another gear, boosting other chip stocks like AMD and Super Micro Computer (SMCI) to double-digit % gains for the day (Feb 22).

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