Global Economic Futures Competitiveness in 2030 2025

Introduction: Understanding competitiveness The global economic landscape has been hit by uncertainty and headwinds of historic proportions. The sweeping trade policy changes announced by the US in early 20252 have destabilized the global economy, and already-tepid growth is now projected to weaken further.3 Meanwhile, geopolitical rifts have deepened and international networks are fraying, with global trade growth expected to slow this year.4 This turbulence comes at a time when policy-makers are grappling with increasing trade-offs between competing national and global priorities, tightening fiscal space and a structural slowdown in productivity. The compounding costs of climate vulnerabilities, fast-changing technologies and intensifying national security concerns are set to reshape the economic landscape further in coming years. In this context, competitiveness has returned to the top of the agenda. In the broadest terms, competitiveness can be understood as a combination of a country’s enabling economic environment and businesses’ capacity to harness this environment to innovate and grow. At the country level, it encompasses institutions, policies and factors that determine productivity levels – from macroeconomic stability to infrastructure, human capital and governance.5 At the firm level, it is a crucial precondition for success in global and domestic markets. While competitiveness has often been seen largely through the lens of cost-efficiency,6 the concept has evolved. Truly competitive economies and businesses today innovate, attract investments, develop talent, diversify economic activity, manage climate risks and remain efficient under strain. Initiatives like the EU Competitiveness Compass7 are gaining momentum as countries and regions push for accelerated innovation, reform, reskilling and investment to revive faster growth and bolster resilience. Competitiveness is not an end in itself, but a means of boosting profitability at the firm level and achieving meaningful improvements in prosperity and living standards at the country level. The World Economic Forum spent many years tracking competitiveness worldwide, and this research highlights this link, demonstrating a strong correlation between countries’ recent competitiveness performance and their current living standards (see Figure 1).1.1 The competitiveness challengeCompetitiveness is not an end in itself, but a means of achieving meaningful improvements in prosperity and living standards. The compounding costs of climate vulnerabilities, fast-changing technologies and intensifying national security concerns are set to further reshape the economic landscape in coming years.1 6 Global Economic Futures: Competitiveness in 2030