Hong Kong has consolidated its dominance of the annual World Competitiveness Yearbook compiled by the IMD World Competitive Center, taking the top spot in 2017 for the second year, while the U.S. is pushed out of the top three.
Switzerland and Singapore came in second and third out of 63 countries covered, with the U.S. ranking fourth, its lowest position in five years and down from third last year, said the report.
Completing the top 10 are Netherlands in fifth (+3), Ireland (+1), Denmark (+1), Luxembourg (+3), Sweden (-4), and UAE (+5).
Newly industrialized and developing economies in Asia covered in the ranking include Taiwan in 14th place (no change from 2016), China in 18th (+7), Malaysia in 24th (-5), Japan in 26th (no change), Thailand in 28th (+1), South Korea in 29th (no change), Philippines in 41st (+1), Indonesia in 42nd (+6), and India in 45th (-4).
Professor Arturo Bris, director of the IMD World Competitiveness Center, said the indicators that stood out among the most improved countries are related to government and business efficiency as well as productivity.
“These countries have maintained a business-friendly environment that encourages openness and productivity,” he said. “If you look at China, its improvement of seven places to 18th can be traced to its dedication to international trade. This continues to drive the economy and the improvement in government and business efficiency.”
Digital competitiveness
For the first time this year, the IMD World Competitiveness Center is publishing a separate report ranking countries’ digital competitiveness.
Aside from technology and scientific infrastructure which are already included in the overall rankings, the new Digital Competitiveness Ranking introduces several new criteria to measure countries’ ability to adopt and explore digital technologies leading to transformation in government practices, business models, and society in general.
At the top of the ranking is Singapore, followed by Sweden, the U.S., Finland, and Denmark. “There is no doubt that supportive and inclusive government institutions help technological innovation,” said Bris.
Others in the top 10 are Netherlands, Hong Kong, Switzerland, Canada, and Norway.
Many of the top 10 digitally competitive countries are also found at the top of the overall rankings, with some exceptions. “Of paramount importance in the digital ranking are issues related to how adaptive and agile economies are when faced with technological change,” Bris said.
The bottom five are Indonesia, Ukraine, Mongolia, Peru and Venezuela. Bris said: “One thing the results highlight is that these countries not only have low rankings in terms of talent but they don’t invest in developing whatever talent they have.”
The IMD World Competitiveness Center, a research group at IMD business school in Switzerland, has published the rankings every year since 1989. This year 63 countries are ranked with Cyprus and Saudi Arabia making their first appearance.
Photo: Diego Delso
