In the World Economic Forum’s “2017–2018 Global Competitiveness Report,” Azerbaijan moved up two positions to rank 35th overall. As a result, in one of the world’s most prestigious rankings, Azerbaijan outperformed three out of every four countries assessed and maintained its leadership among CIS countries.

Moreover, several G20 member states—including Italy, Russia, Indonesia, India, Turkey, and South Africa—ranked below Azerbaijan in terms of the Global Competitiveness Index. In the same ranking, Russia placed 38th, Kazakhstan 57th, Georgia 67th, and Armenia 73rd.

According to the “2017–2018 Global Competitiveness Report,” Azerbaijan improved its position in nine out of twelve pillars:

• Institutions – up 15 places to 33rd

• Infrastructure – up 4 places to 51st

• Health and Primary Education – up 1 place to 74th

• Higher Education and Training – up 10 places to 68th

• Goods Market Efficiency – up 19 places to 31st

• Labor Market Efficiency – up 9 places to 17th

• Financial Market Development – up 18 places to 79th

• Business Sophistication – up 20 places to 40th

• Innovation – up 11 places to 33rd

Azerbaijan recorded its largest improvement in the Business Sophistication pillar, advancing by 20 positions, particularly due to progress in cluster development and competitive advantage indicators.

In the Infrastructure category, Azerbaijan’s transport system ranked 43rd among 140 countries. Under Labor Market Efficiency, Azerbaijan placed 17th globally in the “efficient use of talent” indicator, outperforming countries such as Israel, Ireland, Belgium, Austria, and Estonia.

Within the Goods Market Efficiency pillar, Azerbaijan ranked 32nd in terms of competitive intensity and 31st in terms of buyer sophistication.

Declines were observed in only two pillars—Macroeconomic Environment and Technological Readiness. Despite external shocks, Azerbaijan ranked 37th among 140 countries in the “government budget balance” indicator and 43rd in terms of “government debt” within the macroeconomic environment category. One of the declining indicators in this pillar was inflation.

There was no change in Azerbaijan’s position under the Market Size pillar.

Although structural problems were identified as a key global challenge in the “2017–2018 Global Competitiveness Report,” Azerbaijan ranked 33rd worldwide in the Institutions pillar. The report notes that while the Fourth Industrial Revolution presents innovation-related challenges for many countries, Azerbaijan has strengthened its position in this area, advancing to 33rd place. Notably, Azerbaijan ranked 14th in the government procurement of advanced technology products indicator, outperforming Hong Kong, Netherlands, Norway, and United Kingdom.

While “rising inequality” was highlighted as one of the most concerning global trends, Azerbaijan was assessed as one of the countries with the lowest levels of social inequality due to its relatively low Gini coefficient.

The improvement of Azerbaijan’s position in one of the world’s most authoritative rankings reflects the high international recognition of the comprehensive economic reform policy pursued under the leadership of President Ilham Aliyev.

In particular, following the Presidential Order dated July 13, 2016, on additional measures to improve the business environment in Azerbaijan and further enhance the country’s position in international rankings, comprehensive reforms have been carried out. Within a short period, legislative and administrative improvements have been implemented to create a competitive business environment ensuring optimal profitability for entrepreneurial activity, enhance the country’s investment attractiveness, and further strengthen Azerbaijan’s standing in international rankings.

Furthermore, the monitoring and evaluation results of the Strategic Road Maps approved by President Ilham Aliyev on December 6, 2016, demonstrate that the systematic economic policy course is yielding positive outcomes. Azerbaijan’s two-position advancement in the “2017–2018 Global Competitiveness Report” indicates that its standing in other reputable international rankings is also expected to strengthen further.