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Chart of the Week

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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Chart of the Week

Ranked: The Richest Countries in the World

These countries hold 74% of the world’s $204 trillion in private wealth. See the 10 richest countries, and how their totals have changed over time.

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Ranked: The Richest Countries in the World

Since the 2008 financial crisis, global private wealth has been steadily growing.

In fact, overall private wealth worldwide reached $204 trillion in 2018, which is a 26% increase over the past decade.

This week’s chart, which uses numbers from the Global Wealth Migration Review 2019, examines the top 10 richest countries and the growth of private wealth from 2008 to 2018.

RankCountryPrivate Wealth in $USD (2018)10-yr change (%)
#1🇺🇸 United States$60.7 trillion27%
#2🇨🇳 China$23.6 trillion130%
#3🇯🇵 Japan$19.1 trillion18%
#4🇬🇧 United Kingdom$9.1 trillion4%
#5🇩🇪 Germany$8.8 trillion7%
#6🇮🇳 India$8.1 trillion96%
#7🇦🇺 Australia$6.0 trillion48%
#8🇨🇦 Canada$6.0 trillion23%
#9🇫🇷 France$5.9 trillion-7%
#10🇮🇹 Italy$3.8 trillion-14%

Combined, the 10 countries above represent 74% of total private wealth worldwide.

These trends are staying consistent with the numbers seen in 2017. Asian countries such as China and India showed the highest uptick in wealth gains, holding their #2 and #3 spots on the list, while European countries such as France and Italy actually saw a decrease.

Trends in the Wealth Landscape

Over the last 10 years, China has experienced the largest increase in wealth at 130%. This growth also means that China now boasts more high-net-worth individuals (HNWIs) than any other country except the United States.

While India doubled its total private wealth over the 10-year period, wealth per adult remains at just 22% of the global average.

The U.S. continues to lead in wealth numbers, holding 30% ($60.7 trillion) of the world’s total private wealth. Unsurprisingly, the U.S. remains home to the most millionaires in the world.

The World’s Millionaires: Top 3 Countries

  • United States: 17,350,000
  • China: 3,480,000
  • Japan: 2,809,000
  • World total: 42,155,000

Source: Credit Suisse

Australia now tops the above list in terms of highest wealth per adult, and it is second in the world only to Switzerland in the context of major nations.

Despite the recent turmoil and uncertainty stemming from Brexit, the United Kingdom still saw overall growth in the past decade, moving from #5 to #4 rank on the list of countries with the highest private wealth.

Projections from New World Wealth estimate that total global wealth will reach $291 trillion by 2028, driven by strong growth in Asia.

Rising Wealth Inequality

Unfortunately, this growth is also linked to the growing problem of wealth inequality gap across the globe, and the gap seems to get bigger every year.

The average global wealth per adult is approximately $27,000 – but of the total adult population, 64% have a net worth of less than $10,000. The bottom half of adults in the world now own less than 1% of all household wealth.

By contrast, 85% of all household wealth is owned by the richest 10%, and the top 1% own almost half (47%) of the world’s household wealth.

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Chart of the Week

The eSports Boom, and the Numbers Behind the Sector’s Explosive Growth

Everything you need to know about the eSports Boom, including the sector’s rapid growth, massive prize pools, and the most valuable eSports companies today.

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The oldest professional sport teams can trace their start back to the mid-19th century, a period when casual past times such as baseball or football transitioned into more organized leagues.

Since this tipping point, pro sports has thrived around the world, and the business of sports has evolved into a multi-billion dollar ecosystem for teams, leagues, players, merchandisers, sponsors, broadcasters, and event spaces.

Today, this evolution still continues – and it is being driven by the emergence of eSports (electronic sports), an exciting frontier for fans and business alike.

eSports Extravaganza

Today’s chart breaks down the eSports boom, including data on the sector’s rapid growth, prize pools, and the most valuable eSports companies today.

Visualizing the eSports Boom, and the Numbers Behind Its Explosive Growth

Despite having a reputation in the media and in popular culture as being on the fringes, it is clear that gaming is now a truly mainstream phenomenon.

In fact, the global gaming industry has now eclipsed $135 billion in revenue worldwide – a figure that is twice as much as the film and music industries combined.

With hundreds of millions of avid fans around the world, demand to watch the most elite gamers has reached a fever pitch – and now, it’s not uncommon to see sold-out arenas, big name sponsorship deals, and massive prize pools in the name of eSports.

Defining the eSports Ecosystem

Like any professional league, eSports creates the foundation for an entire ecosystem of opportunities.

Players
Players are central to the ecosystem, since they are the stars and they have their own personalities. One famous star is Kuro Takhasomi (KuroKy), who has brought in a whopping $4.2 million in prize money from Dota 2 tournaments so far. He has earned more than any other player in eSports.

Teams
Because the games played are mostly team-based, there is a crucial element of teamwork involved. eSports franchises are currently selling for millions of dollars. It’s worth noting that these franchises don’t just employ players – they also hire staff that can better ensure the success of players, such as coaches, trainers, and personal chefs.

Games and Developers
Some of the most important games in the eSports world right now include: Dota 2, Counter-Strike, League of Legends, Overwatch, Fortnite, and Call of Duty.

Competitions
Leagues and tournaments can offer massive prize pools for players. The biggest single pool so far was $25.5 million, offered for a Dota 2 tournament in 2017 (“The International”). It’s the second-largest prize pool offered in any kind of sport, behind the U.S. Open (tennis).

Organizers
Running eSports events is big money, and organizers of events can tap into sponsorship and fan revenue. Sometimes game publishers will organize the events, but third-party ones also exist in the ecosystem.

Sponsors
Sponsors like Coca-Cola, Intel, and Mercedes-Benz have shelled out millions of dollars to sponsor events and reach the massive audiences associated with eSports. In more recent news, SAP signed a deal to sponsor one of the biggest names, Team Liquid.

Broadcasters
Broadcasters, both traditional and online (YouTube, Facebook Live, Twitch, etc.), are also in to get a part of the action. Recently, game developer Blizzard signed a broadcasting deal with Disney to broadcast Overwatch League playoffs on ESPN, ABC, and Disney XD.

What do you think is the most exciting part of the eSports boom, and why?

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