The Next Wave of Growth:How to Unlock $87 Trillionin Global Productivity Gains Ideation Center Insight To Inspire and EnableThe Next Generationof Governments The World Governments Summit is a global platform dedicated toshaping the future of governments worldwide. Each year, the Summitsets the agenda for the next generation of governments with a focuson how they can harness innovation and technology to solve universalchallenges facing humanity. The World Governments Summit is a knowledge exchange center atthe intersection of government, futurism, technology, and innovation.It functions as a thought leadership platform and networking hub forpolicymakers, experts and pioneers in human development. The Summit is a gateway to the future as it functions as the stage foranalysis of future trends, concerns, and opportunities facing humanity.It is also an arena to showcase innovations, best practice, and smartsolutions to inspire creativity to tackle these future challenges. Table of Contents 01Foreword 03Executive Summary 07Productivity Potential Index 2025 at a Glance Key Insights15 Productivity Potential Framework Principles29Components of the Productivity Potential Index33Calculating Productivity Potential Scores39 43Productivity Potential Index 2025: Country Scorecards 107References 109Contacts 110About the Authors Foreword This is the second edition of the Strategy& Productivity PotentialIndex (PPI), in which we assess the performance of 60 countriesacross six productivity pillars to highlight tangible opportunitiesfor productivity gains and sustainable economic growth. The data, insights, and trends presented inthis year’s PPI report shed new light on theglobal productivity potential, and they aresupported by an interactive website whereyou can learn more about the framework andsimulate productivity scenarios by country.Whether you are a policymaker, economist,researcher, investor, business leader, orcitizen looking to be informed, we hope thisinformation helps you draw data-drivenconclusions and serves as a valuable resourcefor productivity-enhancing initiatives. When we launched the Index at the World Governments Summit inFebruary 2024, we could not have forecast all the pivotal events thatshaped the trajectory of the year that followed. But as that momentousyear unfolded, we observed how three of the pillars that make ourIndex distinctive—institutions, natural capital, and social capital—strongly influenced how well nations coped with internal and externaluncertainties. These developments underscored an urgent need to movebeyond traditional measures of economic potential, a conviction thathad motivated our decision to compile the Index in the first place. The Ideation Center at Strategy& MiddleEast and the World Governments Summit arecommitted to supporting all stakeholdersin their efforts to achieve sustainable,productivity-driven growth in the regionand around the world. The goal of the PPI is to provide a road map that can spur actionsleading to greater productivity for the benefit of all sectors of society.In compiling it, we consider the trends that will continue to shapethe direction of change around the world, such as the rise of artificialintelligence and growing risks associated with climate change, as well aseach country’s unique geographic, historical, social, and cultural context.All this is underpinned by meticulous, innovative, and forward-lookinganalysis of the six pillars of productivity, enhanced this year to assessthe potential for productivity-driven growth in 60 global economies,more than double the number in last year’s inaugural edition. We have identifieda multitude ofopportunities tobring US$87 trillionin value to theglobal economy. Amid all the uncertainty, we have identified a multitude of opportunitiesto bring US$87 trillion in value to the global economy, by tapping intonew technological advancements, strengthening critical institutions,developing talent for emerging market needs, and reinforcing collectivecommitments to sustainable production and consumption. Executive Summary Productivity is a key indicator of a country’s economic health.How effectively each nation allocates and uses its resourcesdetermines its growth trajectory and competitiveness, thussupporting the development of prosperous, equitable, and healthysocieties. Amid an ongoing global slowdown in productivitygains, governments worldwide are seeking innovative approachesin order to generate the next wave of economic progress. Strategy&’s Productivity Potential Index (PPI),compiled by the Ideation Center, is inspiredby this forward-looking perspective, using thelatest multidisciplinary thought leadership,applied expertise in driving regionaltransformation programs, and advancedpredictive analytics capabilities to construct adefinition of productivity fit for the new era.By introducing institutions, social capital,and natural capital to the traditional inputs ofhuman capital, physical cap