IMD World Competitiveness Booklet 2021

China joins the top 10 (8 th from 11 th ); and the UAE and the USA remain in the same position (9 th and 10 th , respectively). Switzerland’s improvement is largely down to its economic performance, particularly in international investment and employment. In addition, under government efficiency, it boosts its position to the top of the ranking in public finance and institutional framework. Switzerland also progresses in productivity and efficiency, labor market, management practices, and attitudes and values, all components of business efficiency. The country advances to lead the rankings in infrastructure; more specifically it reaches the top in education and takes the third spot in health and environment. Sweden also performs well in economic performance, specifically in domestic economy and employment. It also strongly progresses in government efficiency with advances in public finance. Under business efficiency, Sweden slightly improves in productivity and efficiency and management practices but greatly advances in labor market. It remains at the top of the ranking in health and environment and performs strongly in education. Despite performing soundly in international trade, overall economic performance overall and business efficiency (in which it ranks first), Denmark slightly drops in the rankings. The decline stems from a relatively poor performance in government efficiency (mainly tax policy and, to a lesser extent, public finance). In addition, Denmark’s display in infrastructure shows a slight decline in all of its components, with the exception of the basic infrastructure. The Netherlands shows relative declines in economic performance

(particularly in the domestic economy, international trade and employment) and government efficiency. In the latter, the largest decline is in tax policy but there are other less sharp drops in public finance and business legislation. Despite this relative slump, the Netherlands retains its position in the top five. This is due mainly to hanging on in the top five in business efficiency with a strong improvement in attitudes and values, and also due to a slight advancement in infrastructure, particularly noteworthy in the cases of technological infrastructure and education. Singapore’s downturn is largely the result of its display in the domestic economy and employment in which it declines. Under government efficiency, public finance shows the same dipping pattern. With the exception of management practices (which stagnate), all components of business efficiency drop to different degrees. The deterioration is greater in productivity and efficiency, finance, and attitudes and values. Singapore’s performance is similar with respect to infrastructure; only one component (technological infrastructure) does not decline but remains in the same spot. The largest dip is in education followed by the basic and scientific infrastructures, and health and environment. In the case of Norway, the improvement comes on the back of progress in all competitiveness factors. The improvement in economic performance is down to advancements in employment and prices, and comes in spite of slight declines in domestic economy and international trade. The trend is similar under government efficiency, with drops in public finance and tax policies compensated with rises in institutional framework and business

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IMD WORLD COMPETITIVENESS BOOKLET 2021