Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - Croatia is a high-income country with solid macroeconomic fundamentals, experiencing accelerated income convergence with the EU, with GDP per capita increasing from 64.8% of the EU27 average in 2018 to 76% in 2023 [14][43] - Economic growth averaged 3.5% from 2018 to 2023, supported by strong export performance and fiscal measures post-COVID-19 [14][39] - The country faces structural challenges, including demographic decline, low labor productivity, and public sector inefficiencies, which could hinder long-term growth [17][19][20] Summary by Sections 1. Updated Country Context - Croatia has made significant progress in economic growth and inclusion since joining the EU in 2013, with a large services sector where tourism accounts for nearly 25% of GDP [32][33] - The economy has shifted from domestic demand-driven growth to export-led growth, with exports rising from 39% of GDP in 2012 to 54% in 2023 [16][35] 2. Constraints to Sustainable Growth - Public sector inefficiencies and weak institutional capacity hinder service delivery and governance, with Croatia lagging behind the EU average in regulatory quality and corruption control [19][20] - Demographic challenges, including a declining population and low labor market participation, particularly among marginalized groups, pose significant risks to labor supply [20][21] - The education system's shortcomings contribute to a low skills base, affecting long-term productivity and growth potential [21][23] 3. Priorities for Improvement - Effective public service delivery is crucial, requiring improvements in public administration and the justice sector [26][27] - Enhancing human capital and social protection is necessary to increase labor force participation and improve educational outcomes [28] - Promoting better-paid jobs through higher productivity involves supporting private sector innovation and improving the business environment [29] - Environmental sustainability and a green transition are essential for long-term growth, necessitating investments in renewable energy and waste management [30][31]

olic Disclosure Autha olic Disclosure Author | --- | --- | --- | --- | --- | --- | |-------|-----------------------------------|---------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Leveraging | | | | | | | Private Sector Solutions in Large | | | | | | | | Hydropower Projects | | | | WORLD BANK GROUP © 2024 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000 | www.worldbank.o ...

Industry Investment Rating - The report highlights Mexico as a prime candidate for nearshoring, particularly for the automotive industry, due to its competitive advantages such as lower labor, energy, and transport costs, as well as proximity to the US market [4][11][12] Core Viewpoints - Mexico has become a leading destination for automotive companies due to its significant cost advantages, strong supplier base, and favorable trade agreements [4][11][12] - The country received USD 43.9 billion in foreign direct investment (FDI) in 2023, making it one of the top 15 FDI-receiving countries globally [3][16] - Mexico offers a 35% total landed-cost advantage over China, with labor costs 30% lower than in China, and this gap is expected to widen through 2030 [19][20][21] - 78% of surveyed automotive OEMs and suppliers are either conducting or assessing nearshoring to Mexico, with assembly operations being the most cited fit [5][6] Summary by Sections Introduction: Nearshoring – Coming to a Place Near You - Globalization has faced challenges due to geopolitical tensions, the COVID-19 pandemic, and the Ukraine war, leading companies to shift production closer to major markets like the US and China [9] - Nearshoring is becoming a trend, with Mexico emerging as a key destination for automotive companies [9][10] Why Mexico? Competitive Advantages - Mexico offers lower nominal hourly wages and electricity costs compared to China and Vietnam, making it a cost-effective manufacturing hub [12][14] - The country benefits from its proximity to the US, lower transport risks, and a robust automotive supplier base [4][11] - US FDI outflows to Mexico have surged, surpassing those to China, with USD 10 billion in 2022 and USD 43.9 billion in 2023 [3][16] Manufacturing Costs in Mexico vs. China - Mexico has a 35% landed-cost advantage over China, driven by lower labor and freight costs, with the gap expected to grow to 45% by 2030 [19][20][21] - Shipping costs from Mexico to the US are 56% lower than from East Asia, with 90% of freight traveling by ground transport [20] Automotive Industry Opportunities - Mexico's proximity to the US enhances its appeal for automotive manufacturers, offering benefits such as improved quality control, cost efficiency, and supply chain visibility [27] - Recent US regulations, including the USMCA and the Inflation Reduction Act, further boost Mexico's attractiveness for automotive production [28][29] Investment Trends in Mexico - Major automotive companies like GM, Tesla, BMW, Volkswagen, and ZF Group have announced significant investments in Mexico, focusing on electric vehicle production [34] - Vehicle production in Mexico is expected to grow at a CAGR of 4.3% between 2021 and 2029, outpacing North American production growth [35][36] Best-Fit Automotive Sectors for Nearshoring - Assembly operations, wiring, chassis, and body structures are the most viable components for nearshoring to Mexico, with significant cost savings compared to China [6][40][41] - EV powertrains are expected to become a high-potential category for nearshoring as EV production increases [42][43] Planning and Execution for Nearshoring - Key success factors for nearshoring to Mexico include navigating bureaucracy, mitigating security risks, adapting to cultural differences, and ensuring cost-competitive production [44] - Companies must also consider access to a capable supply base, skilled labor, and key resources like energy and water [44][45]

E WORLD BANK RD . IDA | WORLD BANK GROUP ublic Disclosure INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT YEMEN FINANCIAL SECTOR DIAGNOSTICS FINANCE, COMPETITIVENESS AND INNOVATION GLOBAL PRACTICE MIDDLE EAST AND NORTH AFRICA REGION © 2024 The International Bank for Reconstruction and Development/The World Bank 1818 H Street NW Washington, DC 20433 USA All rights reserved. This analytical work is a product of the staff of the World Bank. The findings, interpretations, and conclusions expressed in this ...

Policy Research Working Paper 10961 How Regulations Impact the Labor Market A Review of the Literatures on Product and Labor Market Regulations | --- | |--------------------| | | | | | | | David Alzate | | Eliana Carranza | | Joana Duran-Franch | | Truman Packard | | | Celina Proffen WORLD BANK GROUP Social Protection Global Practice October 2024 lic Disclosure Authori Disclosure Authori Policy Research Working Paper 10961 Abstract This paper provides an extensive review of the literatures on product and la ...

Policy Research Working Paper 10964 Yielding Insights Machine Learning-Driven Imputations to Filling Agricultural Data Gaps Ismaël Yacoubou Djima Marco Tiberti Talip Kilic WORLD BANK GROUP Development Economics Development Data Group November 2024 lic Disclosure Authori ic Disclosure Authori Policy Research Working Paper 10964 Abstract This paper addresses the challenge of missing crop yield data in large-scale agricultural surveys, where crop-cutting, the most accurate method for yield measurement, is ofte ...

Industry Overview - The report focuses on the Middle East and North Africa (MENA) region, particularly Egypt, where public sector employment is disproportionately high, with 22% of total employment in the public sector (18% for men and 42% for women) [11] - The public sector in Egypt employs a significant share of highly educated workers, with 25% of men and two-thirds of women with college education working in the public sector [11] - The study develops a general equilibrium model to analyze the optimal size of the public sector and the public sector premium, which is the wage premium paid to public sector workers compared to private sector workers [5] Core Findings - Aligning the public sector premium with its optimal level could result in aggregate efficiency gains of 12% for output per worker and 8% for total factor productivity (TFP) in Egypt [5] - The optimal public sector premium is positive for women but approaches zero for men, preventing a shift of mid-high-level skilled women from the public sector to non-market activities and a contraction of the male entrepreneurial sector [5] - A reduced female public sector premium fosters greater female labor force participation in market activities through an expansion of the female entrepreneurial sector, which increases the demand for production labor and drives wages up [5] Model Insights - The model incorporates three sectors: private, public, and home production, with women having the option to engage in home production [9] - In the private sector, individuals can run their own businesses or work as production workers, while in the public sector, individuals are employed as production workers or managers, with managerial roles receiving a gender-specific premium [10] - The optimal size of the public sector depends on the efficiency level of public goods in increasing the productivity of the private sector, with higher elasticity of private output to public goods leading to a larger optimal public sector size [8] Calibration and Results - The model is calibrated using data from Egypt, where public sector employment is significantly higher than the average of 108 non-MENA economies [11] - Reducing the public sector premium from the current level to the optimal level would decrease the size of the public sector from 22% to about 8% and increase female entrepreneurial activities [13] - The optimal talent allocation in Egypt requires a decrease in the average public sector premium from 22% to 13%, with the premium remaining positive for women and close to zero for men [13] Efficiency Gains - The study shows that reducing the public sector premium and the size of the public sector to their optimal levels yields aggregate efficiency gains of 12% for output per worker and 8% for TFP in Egypt [12] - The lower the elasticity of private sector output to public goods, the higher the productivity gains from reducing the public sector premium and the share of public sector employment [12] - The optimal public sector premium and employment share vary by gender, with women requiring a higher premium and a larger share of public sector employment compared to men to maximize aggregate productivity [92]

ORLD BANK GROUP 6 R UE 2024 ★ GHANA RBON Public Disclosure Authorized ublic Disclosure Authorized ublic Disclosure Authorized Public Disclosure Authorized © 2024 The World Bank Group 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000 | Internet: www.worldbank.org Disclaimer The content of this report does not reflect the official opinion of the project sponsors or their partner organization. Responsibility for the information and views expressed therein lies entirely with the authors. Please cite ...

pn | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------|--------------------------------------------------------|-------|-------|-------|-------|-------|-------|-----------------| | IFC 2024 \nANNUAL REPORT | | | | | | | | ORLD BANK GROUP | | LEADERSHIP PERSPECTIVES | | | | | | | | | | RESULTS | | | | | | | | | | STRATEGY IN ACTION | | | | | | | | | | CRITICAL FUNCTIONS | ACCELERATINGIMPACT | | | | | | | | | | MOBILIZING INVESTMENT AT SCALE IFC ANNUAL REPORT 2024 | | | | | | | ...

Investment Rating - The report does not explicitly provide an investment rating for the Australian general insurance industry Core Insights - Australian general insurers are facing challenges such as frequent natural disasters, rising claims costs, and regulatory scrutiny, which are impacting their financial performance and making insurance less affordable for consumers [2][4] - To improve productivity, insurers should consider three major levers: enhancing labor productivity, improving IT productivity, and optimizing third-party spending [5][10] Summary by Sections Industry Challenges - The underwriting costs for general insurers have increased by approximately 20% over the last seven years due to climate risks and the need for compliance and technology modernization [3] - Costs have risen by about 20% for incumbents and 37% for international insurers, while challenger businesses have seen costs more than double [4][6] Productivity Levers - Insurers are expected to focus on efficiency and productivity improvements over the next three to five years, learning from global peers [5] - The three primary levers identified for driving productivity are: 1. **Labor Productivity**: Aligning 50-60% of the cost base to global best practices can lead to productivity improvements of 20-40% through zero-based redesign and strategic partnerships [11][12] 2. **IT Productivity**: Targeting 20-30% of the cost base through technology modernization and simplification can yield significant productivity gains [15][17] 3. **Third-Party Spend**: Optimizing procurement and external spending can target an additional 10-20% of the cost base [10][15] Implementation Strategies - Effective performance management is crucial for translating strategy into action, with global insurers demonstrating success through ambitious targets and visibility of key performance indicators [18] - Insurers are encouraged to ask critical questions regarding their productivity strategies and the role of technology in enhancing efficiency [18]