The report, presented on 30 September, ranks a total of 140 countries on a wide range of criteria, which include but is not limited to research and development, the financial state, infrastructure and innovation. Taking this into account, the WEF creates an index of these figure to rate the progress and growth of the worlds economies. The report itself states that The Netherlands' high position is thanks to its tertiary education system, its infrastructure, and continual support for innovation.
Professor Henk Volberda, lead researcher at the InScope Institute stationed at Erasmus University, said, the Netherlands is one of the most advanced and innovative economies in the world with competitive and open markets. In addition to this, the states macro-economic policy and the various reformation taken on the financial state as well as the job market also improved the economy extensively, leading to the rise.
While the Netherlands has made leaps and bounds in terms of its global competitiveness, there are still various sectors in which it has yet to prove itself. In terms of efficiency of the financial markets, the Netherlands ranked thirty-first, having not changed since 2007. While the banking sector is in a more stable condition compared to its state after the financial crisis, their reluctance to make out loans to smaller firms and their risk assessment towards start-ups has proven to be a downside in terms of its ranking. In addition to this, while the labour market has improved, the high employment costs to employers has given The Netherlands a position of eighty-ninth, and in terms of wage flexibility, The Netherlands is in one-hundred and first place.
Nevertheless, with the 2016 Budget Memorandum The Netherlands has acknowledged the issues of the labour market and are attempting to alleviate the strain to decrease the employment costs as well as improve the wage system.