Economic Capital Index

The Economic Sustainability Index

Long-term Economic Competitiveness

The Economic Sustainability Index measures the extent to which an economy can support defined levels of economic activity in the long term, based on the principles outlined in the first pillar of the five capital model (Framework for Integrated Reporting). Rather than focusing on current economic performance (GDP growth, trade balance, etc.), the index emphasizes structural factors that reflect the long-term sustainability of economic output.

Economic Sustainability Indicators

Key clusters to measure structural economic strength and resilience

Economic performance sustainability

Evaluation of the current status and outlook of the economy in view of hollistic ESG considerations

Sectoral strength and balance

Analysis of the structural health and balance of the econpomy. High dependency on few sectors and/or industries can nehgatively affect development

Economic competitiveness

Evaluation of the national economic competitiveness under consideration of hollistic ESG aspects beyond generic short-term performance indicators

Innovation Competitveness

Performnce evaluation of the economy based on innovation capabilities. Sustainable economic development is based on innovation capabilites.

Financial markets sustainability

Evaluation of the stability of financial marlkets. High dependency on financial markets can lead to volatility not only in the financial markets, biut in the overall economy as well as social capital value

Import-Export balance

Evaluation of depoendency on internal and external markets for a balanced development of the economy that allows a country to propser independently of short.term global volatility

Why Economic Capital Matters

Strong economic fundamentals drive sustainable growth and long-term value creation

For Investors

  • Reduced economic volatility and market stability
  • Better infrastructure for business operations
  • Higher female workforce participation indicates larger consumer markets
  • Strong IP protection and property rights reduce investment risk
  • Long-term growth potential through sustainable economic structures

For Businesses

  • Access to diverse talent pool through inclusive workforce
  • Reliable financial infrastructure and access to capital
  • Streamlined business registration and regulatory processes
  • Stable economic environment for long-term planning
  • Competitive export markets through trade diversification

Bottom Line: Countries with high economic sustainability scores provide stable, predictable environments with robust structural factors that support long-term economic competitiveness.

The State of the World

A global snapshot of economic sustainability performance and trends

Global Scores

Lowest24%
Global Average41%
Global Best61%
Ideal World100%

Global Trends

Positive Trends55%
No Trend11%
Negative Trends34%
Overall Sentiment+20.2%
More NegativeMore Positive

Key Observations

1

Slovenia retains top position (#1) in Economic Sustainability, demonstrating strong structural economic factors

2

Central European nations dominate top rankings: Austria (#2), Czech Republic (#3), Ireland (#4), and Finland (#5)

3

Major economies show moderate performance: USA ranks 26th, China 41st, India 96th

4

Female labor participation emerges as key differentiator for top-ranked countries

5

Business climate and property rights protection correlate strongly with economic sustainability rankings

6

Emerging markets face structural challenges: Brazil ranks 78th, Nigeria 122nd, highlighting gaps in financial infrastructure

Economic Sustainability Rankings

Explore how countries compare across economic sustainability indicators

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Rank
Country
Score
1TWN61.20
2Singapore56.05
3Ireland56.05
4Costa Rica55.35
5Austria53.44
6Czech Republic53.38
7Slovenia53.37
8South Korea53.29
9Finland52.81
10Iceland52.75
11Switzerland52.63
12Lithuania52.18
13Poland52.00
14Croatia51.55
15China51.46
16Germany51.22
17Sweden51.07
18Denmark50.52
19Liechtenstein50.33
20Bulgaria50.13
21Norway49.78
22Slovakia49.58
23Hungary49.15
24Romania48.84
25Albania48.83
26Luxembourg48.68
27Latvia48.44
28Paraguay48.44
29Belarus48.41
30Israel48.07

Note: Showing top 30 countries. Click column headers to sort.

FAQ

Frequently Asked Questions

About economic sustainability and how it is measured in the GSCI

Economic sustainability in the GSCI measures the extent to which an economy can support defined levels of economic activity in the long term. Rather than focusing on current GDP growth or trade balance, it emphasizes structural factors that determine long-term economic resilience: sectoral balance, innovation competitiveness, financial market stability, import-export balance, and the overall sustainability of economic performance under holistic ESG considerations.
The GSCI Economic Sustainability Index evaluates six indicator clusters: economic performance sustainability under ESG considerations, sectoral strength and balance (since high dependency on few sectors can negatively affect development), economic competitiveness beyond short-term performance metrics, innovation competitiveness, financial markets sustainability, and import-export balance for resilient development independent of short-term global volatility.
GDP measures the current volume of economic output but says nothing about whether that output is structurally sustainable. A country can have high GDP growth while depleting its natural resources, running unsustainable debt, or depending heavily on a single volatile sector. The GSCI Economic Sustainability Index instead evaluates whether the structural foundations of the economy, such as sectoral diversity, innovation capacity, financial stability, and trade balance, can sustain growth over the long term.
Slovenia holds the top position, followed by Austria, Czech Republic, Ireland, and Finland. Central European nations dominate the top rankings. Among major economies, the USA ranks 26th, China 41st, and India 96th. Female labour participation emerges as a key differentiator for top-ranked countries, and business climate and property rights protection correlate strongly with high scores.
High dependency on a few sectors or industries creates vulnerability to external shocks and price volatility. Countries overly reliant on oil exports, for example, face severe economic disruption when energy markets shift. Diversified economies with strength across manufacturing, services, technology, and agriculture are structurally more resilient and able to sustain growth through changing global conditions.

Explore All Six Capital Dimensions

Discover how Economic Capital connects with Natural, Social, Intellectual, and Governance Capital

View All Dimensions