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.
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.
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.
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.
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.
15 Most Competitive Countries in Europe
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.
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.
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.
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.
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.
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
