Harmonised competitiveness indicator
UNCTAD, Eurostat, Institute of National Accounts (INR), Statistics Flanders
Flemish Harmonised Competitiveness Indicator (HCI): a measure of competitiveness, based on weighted exchange rates and inflation differences with respect to the 56 main trading partners. The weights are based on trade flows, specifically the export and import (separately) of a number of industrial products. The calculation of the exports also takes into account the competition from all other trading partners on the export market of a specific country.
Remarks on quality
The practical implementation of the Flemish HCI follows the methodology of the European Central Bank (ECB).
The HCI only focuses on price and cost competitiveness, not on other factors that can determine competitiveness, such as the evolution in product quality and marketing efforts. The HCI gives an indication of general competitiveness, not of the competitive position with regard to specific trading partners (for example, the three neighbouring countries separately).