In most of the global rankings countries of the European Union stands on top of the indices. Whereas precisely in the global competitive index also the European union countries lie on the top rankings. The European economy is part of the most sustainable and growing economies in the world. All the countries in the north or from the west have recovered themselves from the past historic crisis and standing very well financially today. From this article, you will get a brief view of the top 10 most competitive economies of Europe as per global standards.
If we talk about the east and south the conditions are not very much satisfactory. The countries which lag behind the rest of the competitive economies of Europe are Slovenia, Portugal, Italy, Cyprus, and Greece. The development rate of these economies is pretty slow than other countries in Europe. In the overall rankings, Greece turned out to be the least competitive country among them. The current rank of Greece in the topmost competitive economies of Europe and the points it has is around 2.58 points.
Notwithstanding there are some counties that are consistently improving their economy very well. Nations such as France, Ireland, Italy, Portugal, and Spain are some of the major examples that have brought significant financial improvements. They have reformed their market conditions and labour efficiency to achieve this.
The Monterey policies of the European Union and the existing Russian recessions have made a clear path for the countries of Europe to give a more significant push to their economies. Let’s look into the Top 10 most competitive economies of Europe. They are given below –
1. Switzerland
From the official data, Switzerland is the best globally competitive nation globally and the best in the European continent. With strong basic fundamentals, Switzerland is at the topmost position in the global rankings. There are three basic principles out of the 12, used to measure the competitive index in which Switzerland has the 1st rank. The 3 standards such as Innovation, business, and sophistication made this nation remain at the tip of the competitive index. Yet there are some sectors that need improvements such as women’s participation and immigration policy.
2. Germany
As per the current ranking of the competitive index, the rank of Germany is 7th. It has a total of 81.8 points in the report. It is one of the world leaders in many aspects of automobile manufacturing as well as trade and commerce. It has a very strong base in terms of important indicators such as innovation, manufacturing, good health & education, sophisticated production process, etc. with improved macroeconomic policies Germany is able to achieve this ranking.
3. Netherland
Recently Netherland has outperformed Germany in the top 10 most competitive economies of Europe with its unique strategy. It has the current rankings of 4th position with 82.4 overall points. The economy of this country is highly sophisticated but very simple at the same time. However, With time it has created an efficient market to sustain any kind of financial issues very well. Innovation and the use of modern techniques have pushed this European nation to such heights.
4. Finland
The country Finland is the most industrialized and has one of the best per capita GDP. the major component behind it is the high volume of export trade which accounts for almost one-third of its GDP. The policies by the state to attract more foreign investment and development in multiple sectors such as metal, engineering, electronics, etc very well. Therefore, with 80.2 points the overall ranking of Finland is at rank 11 in the index.
5. Sweden
Sweden is a country having a fusion of two strong pillars the best education system and a modernized business model. This creates an environment of best for innovation and research for the countries to perform very well in the competitive economies of Europe. The tax rates are quite high in comparison but the services the government provides are excellent.
6. United kingdom
The GDP of the united kingdom is around 2.83 Trillion dollars and it ranks 6th among the world’s largest economies in the world. It has a population of 66 lakhs and there is a huge financial diversity in this nation. It makes money from the construction, manufacturing, services, and tourism sectors.
7. Norway
Norway ranks 11th according to the European index in a competitive economy in the third year too. It has been one of the most stable economies in the world. Norway has scored very well in scoring best among 10 indicators out of 12. The major contributors behind it are higher education, professional training, financial market development, and skilled labour availability. Whereas there are some defects such as high taxation and rigid wage determination methods.
8. Denmark
The main foundation of the Danish economy is effective higher education, skilled professionals and flexible market conditions. The indicators for education are based on the efficient educational institutions from basic to the highest one. whereas the main industries are the service sector, manufacturing, trade- commerce, exports, etc. In the economy of Denmark, small enterprises play a significant role in contributing to GDP.
9. Belgium
The rank of Belgium has slipped four positions in the last four years. The overall ranking of Belgium is 19th in current out of the Top 10 most competitive economies of Europe. The major sectors of the finical ranking are health, primary education and skill training for its citizens. While it struggles with low labour availability and microeconomic activity.
10. Luxembourg
The overall ranking of Luxembourg is 18th having a total of 77 points in the global competitive index. A high rate of innovation and research-based industries are the major contributors to the overall GDP of the country. Additionally, It has the 3rd rank in Europe as per the competitive index with a GDP of 60.5 billion dollars.