Regulatory environment FIGURE 3 -1.5 -0.5 0 0.5 1.5 2 1 2.5 Ease of compliance with government regulation, difference between 2024 and 2018 scoresEase of compliance with government regulation, score (1-7, extremely easy), 20247 6 45 3 2 -1GermanyEasy compliance and worsening Complex compliance and worseningComplex compliance and easingEasy compliance and easing 1 Saudi ArabiaRwanda United Arab Emirates USA IndonesiaNorwayAustralia France Türkiye Nigeria BrazilMexicoIndia Central Asia Eastern Asia Europe Latin America and the Caribbean Middle East and Northern Africa Northern America Oceania South-eastern Asia Sub-Saharan Africa Southern Asia Notes: Based on the answers to the following question: In your country, how easy is it for companies to comply with government regulation and administrative requirements (e.g. permits, reporting, legislation)? [1 = Overly-complex; 7 = Extremely easy]. Source: World Economic Forum. Executive Opinion Survey 2024. In recent years, regulation has increasingly been used as a tool for geopolitical and industrial strategy. The intensification of technological competition and the race to secure critical supply chains have sparked a wave of new industrial policies. Major initiatives – such as the US’ Inflation Reduction Act (IRA)26 and CHIPS and Science Act,27 the EU’s Green Deal Industrial Plan28 and India’s National Manufacturing Mission29 – reflect a regulatory shift towards a more active government role in promoting national champions and shaping strategic industries like energy and semiconductors. Nearly half of executives globally say industrial policy is now essential for countries to remain competitive in the industries of the future, and 42% highlight its role in generating good jobs.30 Concerns persist, however. Many warn of distortions – such as benefits going to owners and politically connected firms rather than to local communities. Meanwhile, a minority believe that industrial policy is likely to crowd out private investment and increase financial risks in the coming years.31 As the COVID-19 pandemic and other recent disruptions have shown, boosting domestic resilience can be a prudent objective. However, it is crucial to ensure that regulation doesn’t become a source of rigidity or over-insulation. For example, while the final scale and impact of trade policy turmoil in early 2025 remains unclear, evidence shows that tariffs often lead to lost productivity and innovation, misallocated resources, increased market concentration and rent-seeking behaviour.32 In the years ahead, how governments strike a balance between openness and control will be a defining factor for global competitiveness. Nearly half of executives globally say industrial policy is now essential for countries to remain competitive in the industries of the future. Global Economic Futures: Competitiveness in 2030 10

Global Economic Futures Competitiveness in 2030 2025