IMD World Competitiveness Booklet 2023

An analysis of the 2023 IMD World Competitiveness Ranking

The results of the IMD World Competi tiveness Ranking 2023 are influenced by several interrelated issues; taken together, we call it a “ polycrisis ” – an amalgam of (i) the risk of economic recession, (ii) inflation , (iii) geopolitical conflicts , and (iv) energy security . This crisis has impacted global competitiveness to different degrees. In some cases, it has led to increases in the rankings of econ omies; in others, it has been detrimental. For example, the rise in energy prices has benefitted some countries such as Saudi Arabia and Qatar, but negatively affected others, including Estonia and Latvia. Denmark remains in the top spot, Ireland comes in second place – reaching the top three for the first time since its inclusion in the rankings in 1997 – and Switzerland drops to third. • Denmark’s strong performance is based on achievements across Top 10 2023 Denmark remains at the top of the ranking with Ireland in second place. Ireland’s achievement has been building up over the years. From its lowest posi tion of 24 th in 2011, it rose to 12 th in 2020, reaching fifth (2000) and sixth (2017) place along the way. Switzerland moves down to third (from second) and Singapore also drops one position to fourth place. While the Netherlands improves, moving up to Dr. José Caballero Senior Economist IMD World Competitiveness Center

various competitiveness factors , although it has seen a decline in other areas such as economic performance . • Ireland’s rise in the ranking is mainly due to its robust economic performance . • Switzerland maintains its high ranking thanks in part to its strong perfor mance in government efficiency and infrastructure. In what follows, we will explore how the competitiveness standings of the 64 econ omies we included in the 2023 edition of the IMD World Competitiveness Yearbook have been impacted by the polycrisis of the past year. We are delighted to include Kuwait this year for the first time. As with last year’s edition, Russia and Ukraine are not included in the 2023 ranking due to the limited reliability of the data collected. Marco Pistis Research Associate IMD World Competitiveness Center

fifth (from sixth), and Taiwan, China also gains one spot (up to sixth from seventh), Hong Kong SAR declines to seventh (from fifth), and Sweden drops from fourth to eighth place. The USA improves to claim ninth place, and the UAE rises from 12 th to round up the top 10. The continuously strong performance of Denmark at the top of the ranking is

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