IMD World Competitiveness Booklet 2023

Figure 6: Average factor rank by region in 2023. Source: IMD World Competitiveness Center (2023)

of inflation (Eastern Asia and Western Asia and Africa). Similarly, Figure 4 illustrates how increased costs of energy and commod ities have impacted current account balances which, in turn, have shifted regional competitiveness levels. Countries with positive balances have increased their competitiveness levels (Western Asia and Africa and Southern Asia & the Pacific economies) while others (Eastern European economies) have experienced a deterioration in their competitiveness. Figure 5 presents the sub-regional overall competitiveness ranking trend for 2019 to 2023. Over the past year, Western Asia and Africa, Southern Asia & the Pacific, and Ex-CIS and Central Asia have all increased their competitiveness rankings while the other sub-regions remain rela tively stagnant or decline in their overall average positions. In Western Asia and Africa, competi tiveness levels have kept rising for the second year in a row, reaching an average 34 th place in 2023. Similarly, between 2022 and 2023 economies in Ex-CIS and Central Asia and Southern Asia & the

Pacific experience increases in average competitiveness levels of three (from 52 nd to 49 th ) and one (from 30 th to 29 th ) positions, respectively. While remaining the most competitive regions in the world, both Eastern Asia (19 th in 2023) and Western Europe (21 st in 2023) reduced their average competi tiveness rankings by one point in the past year. North American economies remain stable in 26 th position in 2023. Eastern Europe is the region experiencing the largest decline in competitiveness. Econ omies in the region exhibit a reduction of three points in overall competitiveness, reaching an average 42 nd position in 2023 and therefore bringing their competitive ness back to 2021 levels. Finally, South American economies experience a slight decline in competitiveness over the past year, down to an average 51 th position in 2023. Figure 6 presents the sub-regional average rankings at the competitive ness factor level. In 2023, Eastern Asia and Western Europe sub-regions are leaders in government efficiency, business efficiency, and infrastructure factors. However, in the Economic Performance

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