Essay Sample on Research Economics of European Countries

Six European countries in the top 10 index of global competitiveness are Switzerland, Germany, Netherlands, Finland, Sweden, and the United Kingdom. These six countries have managed to recover to their pre-crisis levels of competitiveness. The paper discusses the economic indicator that contributes to their success, recommendations for strengthening their best performance, and reasons European countries continue to dominate in global competitiveness.

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The economic indicators that contribute to the success of these six countries in global competitiveness include the following:

• Switzerland - Galvan (2015) affirms that Switzerland is Europeans top performer and also at the top globally. According to the author, economic indicators that led to its success is strong fundamentals in innovation, business, and labor market efficiency.
• Germany - Galvan (2015) asserts that Germany shares with Switzerland fundamentals in business sophistication, innovation, research, and technology. The author adds that the country has strong efficiency in the financial and labor market and an improved macroeconomic environment.
• Netherlands - Galvan (2015) avers that the Dutch economy is sophisticated and innovative as it contains an open market for its goods, high performance in the education sector, infrastructure, and institutions.
• Finland - Galvan (2015) articulates that Finland's economic indicators that contribute to its success include strong institutions, high educational system, and and excellent innovation.
• Sweden - Galvan (2015) states that institutions in Sweden are transparent and efficient. According to the author, that economic indicator teams up with excellent educational system, sophisticated businesses, and easy access to ICTs, which make them penetrate innovation easily.
• United Kingdom - Galvan (2015) affirms that the non-restrictive labor regulations in the UK are a good economic indicator which has enabled the UK to achieve success as its service sector has flourished to an extent London is established as Europe's technology and start-up pub.

The following are recommendations to the countries' economic managers to strengthen or maintain their best performance:

• Switzerland - Galvan (2015) mentions that even though Switzerland is European's top performer, the country faces uncertainty to its future immigration policy. The country's economic managers could work towards strengthening their best performance by improving their immigration policy, which will, in turn, strengthen their labor markets hence making it competitive.
• Germany - Germany has to maintain its best performance through macro-economic stability. Through that, the country would manage to maintain its currency and interest fluctuations in the labor market. Even so, the country would be able to manage inflation.
• Netherlands - Even though the country is ranked 6th in global competitiveness, its weakness is with its labor market rigidities (Galavn, 2015). Netherlands can strengthen its best performance by reducing the power of trade unions and reviewing their immigration policies as it will help them in labor shortages.
• Finland- Finland has to fix its market rigidities to help them in their labor markets. As Galvan (2015) indicates, Finland's economy has suffered because of the deficiency in information technology. The country should maintain or improve its best performance by improving its public deficit.
• Sweden - Galvan (2015) affirms that investors in Sweden are worried about its restricted labor regulations. The country should improve its best performance by reviewing its tax policies to match with international standards.
• United Kingdom - the UK is lagging behind because of its weakened macroeconomic environment. The country should work towards managing inflation and interest fluctuations in the labor market.

Overall, European countries continue to dominate the overall rankings in the global competitiveness index because of their resilience during economic crises. Besides, the countries have a strong macroeconomic environment, which makes them maintain their Gross Domestic Product (GDP). Their sustainable strategy in innovations makes the countries to become more productive and achieve economic growth. Also, their labor relations strengthen their competitiveness in the global markets.

Reference

Galvan, C. (2015). The top 10 most competitive economies in Europe. World Economic Forum.Retrieved from https://www.weforum.org/agenda/2015/09/the-top-10-most-competitive-economies-in-europe/