Institute for Management Development (IMD) has released the much-awaiting data on IMD World Competitiveness Ranking 2020. Singapore was number one for the second year in a row. In second to fifth place, in order, came: Denmark, Switzerland, the Netherlands and Hong Kong SAR.
What is IMD World Competitiveness Index?
The World Competitiveness Yearbook is an annual report published by the Swiss-based International Institute for Management Development (IMD) on the competitiveness of nations and has been published since 1989. The yearbook benchmarks the performance of 63 countries based on 340 criteria measuring different facets of competitiveness.
Arturo Bris, Director of the IMD World Competitiveness Center and Professor of Finance, says, “The benefit of small economies in the current crisis comes from their ability to fight a pandemic and from their economic competitiveness. In part, these may be fed by the fact it is easy to find social consensus.”
IMD World Competitiveness Index 2020
Factors behind Singapore’s success are its strong economic performance which stems from robust international trade and investment, employment, and labor market measures. Stable performances in both its education system and technological infrastructure – telecommunications, internet bandwidth speed, and high-tech exports – also play key roles.
Denmark, in 2nd, can credit a strong economy, labor market, and health and education systems. In addition, the country performs very well in international investment and productivity and topped Europe in business efficiency.
Switzerland has been gradually edging towards a podium position, from 5th to 4th, and now 3rd in 2020. Robust international trade fuels its strong economic performance, whilst its scientific infrastructure and health and education systems show steadfast displays.
For the second year in a row, the USA failed to fight back having been toppled from its number one spot last year by Singapore and coming in on 10th (3rd in 2019). Trade wars have damaged both China and the USA’s economies, reversing their positive growth trajectories. China this year dropped to 20th position from 14th last year.
India at IMD World Competitiveness Ranking 2020
India continues to remain ranked 43rd on an annual World Competitiveness Index. Among the BRICS nations, India is ranked second after China, followed by Russia (50th), Brazil (56th), and South Africa (59th).
Arturo Bris, Head of Competitiveness Center at IMD Business School, said India continues to struggle on the list and the recent country rating downgrade by Moody’s reflects the uncertainties regarding the economy’s future.
“In our ranking this year, we again emphasize the traditional weaknesses of India — poor infrastructure, an important deficit in education, investment, and a health system that does not reach everybody. For India to follow the path of China, it must stress its intangible infrastructure,” Bris said.
Top 20 Countries in IMD World Competitiveness Ranking 2020
|5.||Hong Kong SAR|
Source – IMD News