Index to measure economic potential

The United Nations Conference on Trade and Development (UNCTAD) launched on Tuesday a new generation Productive Capacities Index (PCI) to help countries make more accurate diagnostics and measurements of their economic performance. In turn, this can shape more effective policies and their implementation. The PCI measures countries’ abilities to produce goods and deliver services, which are critical for international trade and global production value chains. The new index is a dynamic and practical tool to support developing countries in understanding the status of their productive capacity and how this can be improved, the UN agency says. It builds on UNCTAD’s long-standing work on productive capacities, which are essential for generating inclusive and sustained economic growth and achieving sustainable development.