Each year, experts from the Institute for Management Development, one of the most prestigious business schools in the world, compose the “Global Competitiveness Yearbook”. According to economists, a country's competitiveness is a key factor in its long-term economic strength, as it enables companies to achieve sustainable growth, create jobs and, ultimately, improve the well-being of the population.
IMD research methodology
The ranking in the list of 63 countries of the world is "made up" of a wide range of statistics, such as:
- unemployment;
- GDP;
- government spending on medicine and education;
- and the results of an international survey of corporate executives on topics such as social cohesion, globalization and corruption.
The experts then categorize the information received into four categories:
- economic indicators;
- infrastructure;
- government effectiveness;
- business efficiency.
And, having studied the points scored in each category, they give the final assessment for each country.
World Competitiveness Ranking 2019
| 2019 | Country | 2018 | Difference |
|---|---|---|---|
| 1 | Singapore | 3 | 2 |
| 2 | Hong Kong SAR | 2 | - |
| 3 | United States of America | 1 | -2 |
| 4 | Switzerland | 5 | 1 |
| 5 | UAE | 7 | 2 |
| 6 | Netherlands | 4 | -2 |
| 7 | Ireland | 12 | 5 |
| 8 | Denmark | 6 | -2 |
| 9 | Sweden | 9 | - |
| 10 | Qatar | 14 | 4 |
| 11 | Norway | 8 | -3 |
| 12 | Luxembourg | 11 | -1 |
| 13 | Canada | 10 | -3 |
| 14 | China | 13 | -1 |
| 15 | Finland | 16 | 1 |
| 16 | Taiwan, China | 17 | 1 |
| 17 | Germany | 15 | -2 |
| 18 | Australia | 19 | 1 |
| 19 | Austria | 18 | -1 |
| 20 | Iceland | 24 | 4 |
| 21 | New Zealand | 23 | 2 |
| 22 | Malaysia | 22 | - |
| 23 | United Kingdom | 20 | -3 |
| 24 | Israel | 21 | -3 |
| 25 | Thailand | 30 | 5 |
| 26 | Saudi Arabia | 39 | 13 |
| 27 | Belgium | 26 | -1 |
| 28 | The Republic of Korea | 27 | -1 |
| 29 | Lithuania | 32 | 3 |
| 30 | Japan | 25 | -5 |
| 31 | France | 28 | -3 |
| 32 | Indonesia | 43 | 11 |
| 33 | Czech | 29 | -4 |
| 34 | Kazakhstan | 38 | 4 |
| 35 | Estonia | 31 | -4 |
| 36 | Spain | 36 | - |
| 37 | Slovenia | 37 | - |
| 38 | Poland | 34 | -4 |
| 39 | Portugal | 33 | -6 |
| 40 | Latvia | 40 | - |
| 41 | Cyprus | 41 | - |
| 42 | Chile | 35 | -7 |
| 43 | India | 44 | 1 |
| 44 | Italy | 42 | -2 |
| 45 | Russia | 45 | - |
| 46 | Philippines | 50 | 4 |
| 47 | Hungary | 47 | - |
| 48 | Bulgaria | 48 | - |
| 49 | Romania | 49 | - |
| 50 | Mexico | 51 | 1 |
| 51 | turkey | 46 | -5 |
| 52 | Colombia | 58 | 6 |
| 53 | The Slovak Republic | 55 | 2 |
| 54 | Ukraine | 59 | 5 |
| 55 | Peru | 54 | -1 |
| 56 | South Africa | 53 | -3 |
| 57 | Jordan | 52 | -5 |
| 58 | Greece | 57 | -1 |
| 59 | Brazil | 60 | 1 |
| 60 | Croatia | 61 | 1 |
| 61 | Argentina | 56 | -5 |
| 62 | Mongolia | 62 | - |
| 63 | Venezuela | 63 | - |
10 most competitive countries in the world in 2019
We present you with the top ten most competitive countries in the world in 2019. The rating will remain relevant in 2020, until the IMD draws up a new list.
10. Qatar
This country entered the top 10 for the first time since 2013. In such a category as "economic indicators", which measures the competitive advantages of the domestic economy and its macroeconomic indicators, Qatar ranks third, and in terms of "government efficiency" - fifth. Whereas a year earlier it occupied only 5th and 10th places for the same indicators, respectively.
9.Sweden
In 2019, Sweden did not pass, but did not improve its position in the ranking of the most competitive countries. She consistently scores high in the provision of technology and human resources for the business. And in terms of infrastructure, it follows its neighbor Denmark, taking fourth place.
8. Denmark
The country of Hamlet and the Little Mermaid dropped 2 positions down compared to the 2018 ranking. But despite its decline, Denmark still took third place in terms of infrastructure, yielding the first two places to the United States and Switzerland.
7. Ireland
In one fell swoop, this "high jumper" overcame five places and climbed to seventh position in the list of the most competitive countries in the world. This was made possible by the strengthening of the Irish economy and, consequently, an improved business environment.
Ireland has emerged as a global leader in investment promotion, public sector contract processing, image, branding and talent management, according to IMD.
6. Netherlands
It is one of the main European destinations for businesses and individuals who are attracted by a stable and predictable political environment.
The country is distinguished by a large number of qualified labor force and transparent access to European capital, which attracts a significant volume of foreign investment.
However, in the Netherlands, as in all other European markets, there is serious uncertainty surrounding Brexit and how this will affect the value of the euro and trade with the UK.
5. United Arab Emirates
The UAE has entered the top five for the first time due to increased productivity and entrepreneurship. In last year's top 10 competitiveness of the UAE countries occupied only 7th line.
4. Switzerland
The homeland of Wilhelm Tell continues to benefit from economic growth, the stability of the Swiss franc and good infrastructure, improving its ranking by one position compared to 2018.
3. USA
Higher fuel prices, lower high-tech exports and fluctuations in the value of the dollar amid the ongoing trade war with China have led to a drop in the US rating. However, America is still second to none in terms of business agility and is one of the top three countries in terms of innovation opportunities.
These two factors have always been the keys to the success of the US economy and made it second the most competitive economy in the world.
2. Hong Kong
The Special Administrative Region of China took the second position in the ranking of the competitiveness of countries, as in the last year. Its presence in the top three was due to favorable fiscal and business policies.
At the same time, Hong Kong retained first place in terms of "government efficiency", ranked second in "business efficiency", 10th in "economic efficiency" and 22nd in "infrastructure".
Commenting on the IMD's results, a Hong Kong government official said that “in a highly competitive global economy, we must continue to strive to consolidate our dominant competitive advantage, including an open and free market, an efficient public sector and a favorable business environment with a level playing field.”
1. Singapore
For the first time in 9 years, Singapore topped the country competitiveness rankings in 2019, overthrowing Hong Kong and the United States in the fight for first place. In 2018, the city-state only got the third place.
IMD experts attributed Singapore's leadership to its advanced technology infrastructure, large pool of skilled workforce, friendly immigration laws and efficient business opportunities.
It is good in Singapore not only for adult businessmen, but also for children. For the second year in a row, the NGO Save The Children has named Singapore the World's Best Place for Children. The report says Singapore has the lowest out-of-school activity rate in the world at 0.1 percent and has an infant mortality rate of 2.8 for every 1,000 births.
Russia's place in the IMD study
Compared to 2018, Russia did not surrender, but did not improve its position in 2019, remaining in 45th place on the list, between Italy and the Philippines, and far ahead of Ukraine (54th place).
However, if we look at the past years, we will see that our country is gradually improving its competitiveness. For example, in 2014, her rating corresponded to 53rd place.
And the most uncompetitive country in the world remains Venezuela, which suffers from high inflation, difficult access to credit and a weak economy.