IMD World Competitiveness Booklet 2021

displays a sharp decrease with finance, management practices and attitudes and values experiencing declines. South America All countries in the South American sub-region included in our sample decline in the rankings, with the exception of Venezuela which remains in the bottom spot (64 th ). Whereas Chile remains as the best ranking economy in the region (44 th down from 38 th ), the rest of the countries rank in the bottom 10. Colombia experiences a downturn decreasing to 56 th (from 54 th ). Similarly, the positions of Brazil (57 th from 56 th ), Peru (58 th from 52 nd ) and Argentina (63 rd from 62 nd ), deteriorate. Chile’s deterioration in the ranking comes on the back of declines in economic performance, and government and business efficiency. Employment (under economic performance) and the labor market (under business efficiency) sub-factors plummet. Southern Asia & The Pacific Most economies in this sub-region improve this year, with the exception of Singapore (as stated previously), Australia which moves down to the 22 nd place (from 18 th ) and the Philippines which declines to 52 nd (from 45 th ). Conversely, New Zealand advances from the 22 nd to the 20 th rank. Likewise, Malaysia from 27 th to 25 th , Thailand from the 29 th to the 28 th and Indonesia from the 40 th to 37 th position. India remains at 43 rd . Indonesia’s improvement is mainly due to progress in government efficiency, particularly in public finance and business legislation which see sharp increases, and business efficiency. In the latter, labor market, finance and attitudes

and values advance. Thailand, likewise, improves as a result better performance in government and business efficiency but also in infrastructure. In government efficiency, all public finance, tax policy, institutional framework and business legislation increase. In regard to business efficiency, productivity and labor market progress (with the latter showing the largest improvement). Finance and attitudes and values remain in the same position. Thailand displays some gains in basic and scientific infrastructures. Western Asia and Africa While the UAE leads this sub-region at 9 th , Botswana joins the competitiveness rankings at 61 st . Qatar 17 th , Israel 27 th , Saudi Arabia 32 nd , Turkey 51 st , and South Africa 62 nd all show at dip in their performance (from 14 th , 26 th , 24 th , 46 th and 59 th , respectively). Qatar decline is the result of a relatively weaker economic performance with significant declines in domestic economy, and international trade and investment, although it remains in the top ranking in employment. Another contributing factor to Qatar drop is its performance in business efficiency, mainly in productivity, management practices and attitude and values. Jordan is the only country in this sub- region that sees an improvement (49 th from 58 th ). Overall, such an advancement comes on the back of increases in government and business efficiency, and infrastructure. It shows robust performance in public finance (within government efficiency), and productivity and labor market (under business efficiency). Western Europe Several Western European economies are among the top-ranking countries (as discussed previously). The rest of

24

IMD WORLD COMPETITIVENESS BOOKLET 2021