WGS, Strategy & Middle East unveil 2nd edition of Productivity Potential Index

The World Governments Summit (WGS) unveiled the 2nd variation of the Productivity Potential Index (PPI), created successful collaboration with Strategy& Middle East, portion of the PwC network.

This latest variation builds connected past year's motorboat by expanding its scope to see 60 countries, up from 25, offering an adjacent much broad look astatine what drives productivity successful today's world.

With its innovative framework, the PPI redefines however productivity is measured, integrating dimensions captious for our age, specified arsenic biology sustainability, well-being, innovation, and organization quality.

The study estimates the untapped imaginable of Gulf Cooperation Council (GCC) economies, showing however improving their weakest productivity determinants could accelerate determination GDP maturation from 3.5 percent to 6.0 percent, adding $2.8 trillion to the region's GDP implicit the adjacent decade.

Overall, if each countries successful the PPI illustration were to amended their weakest productivity indicator to lucifer that of the best-performing peers, it could boost the planetary system by $87 trillion.

Regionally, Saudi Arabia leads among the GCC countries with the PPI people of $69.3 per hr worked, followed by Kuwait ($60.8), Qatar ($57.2), and Bahrain ($56.9). The UAE scored $48.7 per hr worked successful the analysis.

Notably, Bahrain, Qatar, Saudi Arabia and the UAE fertile among the planetary Top 10 successful the 'physical capital' pillar, adding $22-24 per hr worked to their productivity potential.

Physical superior refers to reliable infrastructure, well-maintained equipment, and appropriately applied technologies that each lend to amended productivity.

GCC's occurrence demonstrates however targeted policies and investments successful manufacturing, logistics, and net infrastructure tin thrust accelerated maturation crossed sectors.

Productivity has agelong been the motor of modern economies, influencing planetary competitiveness, prime of life, and semipermanent prosperity. Yet accepted measures often autumn short, failing to seizure the complexity of 21st-century challenges similar clime change, biodiversity loss, societal transformation, and aging populations. These outdated tools besides look backward, analysing past show alternatively than identifying aboriginal opportunities.

The Potential Productivity Index is simply a forward-looking, transformative instrumentality that enables nations to recognize their existent productivity imaginable and pinpoint the drivers that tin unlock it. The PPI expands accepted metrics—human capital, carnal capital, and innovation—to see societal capital, earthy capital, and organization quality, offering leaders a modern lens done which to tackle today's challenges.

Dima Sayess, spouse astatine Strategy& Middle East and manager of the Ideation Centre, emphasised the transformative imaginable of the findings: "Our investigation shows that non-traditional measures of productivity are shaping the absorption of alteration regionally and globally. Social trust, the prime of institutions and biology indicators each play a relation successful driving, oregon hindering, economical growth. Understanding these mechanisms tin alteration policymakers to make effectual and targeted solutions."

The PPI stands retired arsenic a cutting-edge instrumentality for 3 cardinal reasons: Pinpoints strengths and weaknesses: Countries tin easy place areas wherever they excel and wherever they lag; Focus connected crippled changers: It highlights the astir impactful levers for productivity and growth, utilizing benchmarks from top-performing nations; Actionable Pathways: The Index offers policymakers a wide roadmap to adjacent gaps, leapfrog performance, and scope the levels of the world's astir productive economies.

Powered by a machine-learning model, the PPI combines precocious analytics with the latest world insights connected productivity. Its robustness has been rigorously tested by starring planetary economists, ensuring its credibility and relevance.

"The Productivity Potential Index offers policymakers captious insights and a applicable instrumentality to place and absorption connected the areas with the top imaginable to boost productivity, and subsequently their economical growth," said Chadi Moujaes, spouse with Strategy& Middle East.

The study revealed important opportunities and trends: 'Beyond GDP' Alignment: The PPI aligns with the Beyond GDP movement, showcasing however maturation and innovation progressively intersect with decarbonisation and societal cohesion. This makes the PPI an invaluable instrumentality for driving advancement toward the UN Sustainable Development Goals (SDGs) and the 2030 Agenda.

Secondly, Effective Governance Drives Productivity: Well-functioning institutions enactment thriving entrepreneurship and innovation ecosystems whilst ensuring businesslike usage of natural, human, and intelligence capital. Traditional measures of productivity often neglect the value of organization quality, which is wherefore this caller grounds is truthful captious for policymakers.

Finally, Spotlight connected STEM: While quality superior and carnal superior are the foundational pillars for each countries erstwhile it comes to productivity, technological probe and caller patents differentiate productivity imaginable "winners" from different economies. We expect this planetary displacement towards knowledge-driven maturation to continue.

This variation features an online argumentation simulator which allows users to comparison the show of 60 countries crossed 19 indicators. The instrumentality provides actionable insights, answering the captious question: "What could a country's productivity look similar if it afloat optimised its resources and capabilities?"

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