Global Economic Diversification Index 2023

Abstract

Economic diversification has gained traction in major commodity producing nations given its multiple benefits including to macroeconomic stability, economic growth, job creation and development alongside promoting greater private sector activity, more sustainable public finances as well as greater skill diversity in the labour force. However, despite policy interest in economic diversification, there is no uniformly agreed or available measure or index of economic diversification. The first edition of the Global Economic Diversification Index (EDI) was published in 2022, specifically aiming to fill this gap in terms of data, thought-leadership and the availability of data-driven policy instruments to track economic diversification. The first edition of the EDI measured and ranked 89 countries on the extent of their economic diversification from a multi-dimensional angle, exploring diversification of economic activity, international trade as well as of government revenues (away from a dependence on natural resource or commodity revenue).