In this article, we will look at the 15 most competitive countries in Europe. If you want to skip our detailed analysis, you can go directly to the 5 Most Competitive Countries in Europe.
Economic Outlook of Europe
The competitiveness of a country is determined based on economic performance, business efficiency, government efficiency, infrastructural development, and overall human development. The economic outlook of Europe is poised for a soft landing amidst a series of regional shocks, geopolitical tensions, low consumption rates, weaker private demand, an aging population, and climate-related challenges. In economics, a soft landing refers to a gentle cool down of an economy by decreasing inflation and maintaining growth, thereby avoiding a recession.
According to the April 2024 Regional Economic Outlook for Europe Report by the IMF, advanced and emerging economies of Europe grew by 0.5% and 3.2% in 2023. These economies are projected to maintain a steady growth streak, with advanced economies expected to experience a growth rate of 0.8% and 1.6% in 2024 and 2025, respectively. Whereas, for emerging economies of Europe the growth is expected to steadily cool down to 3.1% in 2024 and 2.8% in 2025. In one of our recent articles on the most competitive countries in Asia, we saw how a stable global economy fosters business development and drives growth for regional economies. Moreover, to read about the global competitive landscape you can look at the 20 Most Competitive Economies In The World.
Easing inflation rates, a strong labor market, and steadily recovering consumption rates are fostering a soft landing for the European economies. On April 30, Reuters reported inflation in 20 eurozone countries sharing the European currency held steady at 2.4% in April after decreasing by 0.2% in March. Meanwhile, the core inflation, exempting the prices of volatile commodities slowed 0.2% from 2.9% in March to 2.7% in April. These steadily easing inflation rates are reinforcing the European Central Bank’s promise to cut interest rates in June. The officials say they are still waiting for reassuring data related to wages to implement the interest rate cut decision.
Key Players in the European Economy
TotalEnergies SE (NYSE:TTE), Volkswagen AG (OTC:VWAGY), and Uniper SE (OTC:UNPRF) are some of the most valuable European companies. Let’s discuss some recent updates from them.
TotalEnergies SE (NYSE:TTE) is a multi-energy company that produces and markets hydrocarbon products internationally. The company was founded in 1924 and is based in Courbevoie, France. On April 22, TotalEnergies SE (NYSE:TTE) signed an agreement to acquire 50% of SapuraOMV, an upstream gas operator in Malaysia. Previously on January 1, TotalEnergies SE (NYSE:TTE) acquired 50% interest in SapuraOMV, after the completion of both of these transactions the company will successfully acquire 100% of SapuraOMV. The current transaction under consideration is expected to be worth $530 million, however, it is subject to closing conditions. This acquisition will make TotalEnergies SE (NYSE:TTE) one of the top gas operators in Malaysia.
Volkswagen AG (OTC:VWAGY) is a leading automobile company based in Germany. The company manufactures and sells automobiles in Europe and international markets. The company sells passenger, luxury, and sports cars under the brand names of Lamborghini, Audi, Bentley, Porsche, and Ducati. On January 8, Volkswagen AG (OTC:VWAGY) announced that it presented the first artificial-intelligence-based ChatGPT-powered integrated IDA voice assistant vehicles. The voice assistant chatbot’s database is expected to grow constantly and provide seamless access to Volkswagen AG (OTC:VWAGY) users. This integration is expected to go far beyond mere voice control and will enable drivers to control infotainment, navigation, and temperature, and ask questions while driving.
Uniper SE (OTC:UNPRF) is a key energy company based in Germany. The company operates in three segments including green generation, greener commodities, and flexible generation. Uniper SE (OTC:UNPRF) engages in the provision of hydroelectricity, wind power, solar, nuclear energy, and more. On May 2, Uniper SE (OTC:UNPRF) announced its partnership with the Energy Transition Fund of Copenhagen Infrastructure Partners (CIP) to bring green hydrogen from the HØST PtX Esbjerg project to Germany. Copenhagen Infrastructure Partners (CIP) is one of the leading dedicated fund managers for green renewable energy investments, whereas the HØST PtX Esbjerg project is a Danish power project that is under development. The project is expected to use electrolysis technology to produce green hydrogen on a gigawatt level. Entirely powered by renewable energy, the project will have the capacity to produce 140,000 tons of green hydrogen per year and will predominantly be marketed in Germany.
With this context, let’s look at the 15 most competitive countries in Europe.
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Our Methodology
To curate the list of the 15 most competitive countries in Europe we relied on the Global Sustainable Competitiveness Index 2023 by Solability, the Global Talent Competitiveness Index 2023 by Insead, and the World Competitiveness Ranking by IMD. The Global Sustainable Competitiveness Index ranks countries based on 190 indicators including but not limited to governance, economic stability, intellectual capital, natural resources, and social capital. On the other hand, the Global Talent Competitiveness Index measures how countries attract, grow, and sustain their human resource talent, depicting the talent potential of different countries. Finally, the World Competitiveness Ranking takes into account the economic, government, business, and infrastructure efficiency of various countries and ranks them based on their performance in each of these indicators.
We used the overall score for each country from these 3 indices and averaged them to compile a global Insider Monkey Competitiveness ranking. From this index, we shortlisted the European countries and ranked them in ascending order of their Insider Monkey competitiveness score. Moreover, we have also included the GDP per capita growth rates in 2024 in the description for each country sourced from the IMF.
Please note that the scores are calculated on a scale of 0 to 100 where a greater score represents a more competitive country.
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15 Most Competitive Countries in Europe
15. Estonia
Insider Monkey Competitiveness Score: 65.94
The Global Sustainable Competitiveness Index 2023 Score: 56.7
The Global Talent Competitiveness Index 2023 Score: 64.29
IMD World Competitiveness Score 2023: 76.84
Estonia is a Northern European country that ranks 15th on our list of most competitive countries in Europe. The country has a GDP per capita growth of 6.52% in 2024 and an Insider Monkey competitiveness score of 65.94. Estonia is also one of the top digital countries in the world.
14. Czech Republic
Insider Monkey Competitiveness Score: 66.87
The Global Sustainable Competitiveness Index 2023 Score: 54.7
The Global Talent Competitiveness Index 2023 Score: 62.43
IMD World Competitiveness Score 2023: 83.48
The Czech Republic is a Central European country with a GDP per capita growth rate of 6.29% in 2024. The country ranks 14th on our list of most competitive countries in Europe with an Insider Monkey competitiveness score of 66.87. On February 9, Reuters reported a cut of 50 base points in interest rates by the Czech bank to maintain the rate at 6.25%. The Czech government has been following a tight fiscal policy that has helped keep inflation projections below 3% in 2024 and expects further cuts in the cost of borrowing.
13. Austria
Insider Monkey Competitiveness Score: 67.80
The Global Sustainable Competitiveness Index 2023 Score: 56.2
The Global Talent Competitiveness Index 2023 Score: 69.05
IMD World Competitiveness Score 2023: 78.16
Austria is a landlocked country in Central Europe that ranks as the 13th most competitive country in Europe. Austria has a GDP per capita growth rate of 4.45% in 2024 and an Insider Monkey competitiveness score of 67.80. On February 12, Reuters reported that Austria is seeking to end its decade-long dependency on Russian oil due to high prices after the Russia-Ukraine conflict and will seek alternative providers to meet its demand.
12. United Kingdom
Insider Monkey Competitiveness Score: 68.01
The Global Sustainable Competitiveness Index 2023 Score: 54.8
The Global Talent Competitiveness Index 2023 Score: 73.75
IMD World Competitiveness Score 2023: 75.48
Comprising England, Scotland, Wales, and Northern Ireland, the United Kingdom is situated in the northwestern part of Europe. It ranks 12th on our list of most competitive countries in Europe. The UK’s GDP per capita rate for 2024 is 7.18% and it has an Insider Monkey competitiveness score of 68.01.
11. Germany
Insider Monkey Competitiveness Score: 68.45
The Global Sustainable Competitiveness Index 2023 Score: 55
The Global Talent Competitiveness Index 2023 Score: 69.88
IMD World Competitiveness Score 2023: 80.47
Germany is a Western European company that ranks 11th on our list of the 15 most competitive countries in Europe. It has a GDP per capita growth rate of 6.08% as of 2024. On April 30, Reuters reported that the German GDP grew by 0.2% during the first quarter of 2024 above the expectations of a 0.1% growth rate. The growth of the German economy is attributed to a robust construction sector and exports. If you want to read about German companies you can look at the Top 20 Most Valuable German Companies.
10. Luxembourg
Insider Monkey Competitiveness Score: 69.65
The Global Sustainable Competitiveness Index 2023 Score: 53.6
The Global Talent Competitiveness Index 2023 Score: 72.88
IMD World Competitiveness Score 2023: 82.46
Luxembourg is a small European country bordered by Belgium, France, and Germany. The country ranks 10th on our list of most competitive countries in Europe. Luxembourg has a GDP per capita growth rate of 3.47% as of 2024 and an Insider Monkey competitiveness score of 69.65.
9. Belgium
Insider Monkey Competitiveness Score: 70.17
The Global Sustainable Competitiveness Index 2023 Score: 51.7
The Global Talent Competitiveness Index 2023 Score: 69.12
IMD World Competitiveness Score 2023: 89.69
Belgium ranks as the 9th most competitive country in Europe. It is situated in the western part of Europe and has a GDP per capita growth rate of 4.53% in 2024. The country performs well on our Insider Monkey Competitiveness Index and has a score of 70.17.
8. Iceland
Insider Monkey Competitiveness Score: 71.77
The Global Sustainable Competitiveness Index 2023 Score: 59.2
The Global Talent Competitiveness Index 2023 Score: 69.38
IMD World Competitiveness Score 2023: 86.74
Iceland is a Nordic island country that ranks 8th on our list. The country has a GDP per capita growth rate of 11.45% and an Insider Monkey Competitiveness score of 71.77.
7. Norway
Insider Monkey Competitiveness Score: 73.36
The Global Sustainable Competitiveness Index 2023 Score: 57.7
The Global Talent Competitiveness Index 2023 Score: 73.96
IMD World Competitiveness Score 2023: 88.43
Norway is a Scandinavian country in Europe that ranks as the 7th most competitive country in Europe. The GDP per capita of Norway is growing at 3.22%. On May 3, Reuters reported that the Norges Bank has decided to keep the Interest rate stable at 4.50%. Following the announcement, the Norwegian Krone appreciated against the Euro, rising from 11.77 NOK, just before the announcement to 11.74 NOK.
6. Finland
Insider Monkey Competitiveness Score: 74.49
The Global Sustainable Competitiveness Index 2023 Score: 59.4
The Global Talent Competitiveness Index 2023 Score: 74.35
IMD World Competitiveness Score 2023: 89.73
Finland ranks as the 6th most competitive country in Europe. The country has a GDP per capita growth rate of 3.03% in 2024 and ranks well on our Insider Monkey competitiveness ranking with a score of 74.49.
Click to continue reading and see the 5 Most Competitive Countries in Europe.
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Disclosure: None. 15 Most Competitive Countries in Europe is originally published on Insider Monkey.