Sustainable Trade Index 2023

Pillar-by-pillar analysis

There were, nevertheless, some improvements. Hong Kong enjoyed low consumer price inflation, moving up to the third place in trade costs. It retained first place in domestic credit to the private sector as a percentage of GDP and technological infrastructure and is fourth in technological innovation. The United States remained in fourth in the economic pillar. It improved in several indicators including consumer price inflation, labor force growth, and attracting foreign direct investment. In addition, the country’s rankings advance in foreign trade and payment risk, monetary policy intervention, export concentration, and technological infrastructure. That said, it declined due to trade costs (ninth), exports of goods and services (second), and sharply fell due to trade barriers. Other areas that experienced a downturn include growth of real GDP (ninth to 18th, 1.70% of GDP), gross capital formation (19th to 22nd, 21.19% of GDP), and exchange rate stability (seventh to 11th). However, trade liberalization and domestic credit to the private sector (fifth and second, respectively) as well as technological innovation (sixth), remain stable. The United Kingdom retained fifth position in this pillar. It rose to the top rank in exchange rate stability and improved in labor force growth (20th). Its rank fell due to real GDP growth (eighth to ninth, 3.26% of GDP) and consumer price inflation (13th to 24th). Gross fixed capital formation (26th to 27th, 17.38% of GDP) and foreign direct investment (21st to 29th, 0.19% of GDP) brought the United Kingdom close to the bottom of the ranking in both indicators. Its position also fell in domestic credit to the private sector (ninth to 10th) and foreign trade and payment risk (10th to 13th). Although the United Kingdom remained top in trade liberalization, second in export concentration, and third in exports of goods and services, it still maintains significant barriers to trade (24th). Figure 7 Economic pillar rankings

HINRICH-IMD SUSTAINABLE TRADE INDEX 2023

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