“The global trade system is experiencing fragmentation that threatens to erode the achievements of 70 years of globalization,” says Kathryn Dioth, CEO of the Hinrich Foundation. “Protectionist trade policies are being implemented under the guise of responding to the headwinds of post-pandemic inflation and geopolitical tensions. And while global trade continues to expand in value, that is mainly due to higher commodity prices.”

The STI measures 30 economies’ readiness and capacity to participate in the global trading system by analyzing 71 indicators grouped into three “pillars” that align with the long-term goals of economic growth, societal development, and environmental protection.

High-ranking economies share discernible commonalities: Under the economic pillar, those with robust infrastructure and a strong inclination towards technological innovation stand out. In the societal pillar, the index rewards economies characterized by political stability, economic equality, high educational attainment, and social mobility. In the environmental pillar, the top ranks are occupied by economies that uphold high environmental standards and effectively address challenges related to wastewater, air pollution, carbon, and energy intensity.

For more on STI 2023, visit the IMD site for the detailed results of each economy filtered by the pillars, specific indicators, and demographics, as well as the Hinrich Foundation page for a full suite of downloadable resources.

Since 2022, the STI has been produced annually as a partnership between IMD’s World Competitiveness Center (WCC) and the Hinrich Foundation, which published the first three editions with biennial frequency.

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