IMD World Competitiveness Booklet 2023

Preface

We are pleased to share with you the IMD World Competitiveness Yearbook 2023. Now in its 35 th edition, the IMD World Competitiveness Yearbook continues to serve as a beacon for governments, businesses, and individuals seeking to navigate the complex terrain of global competitiveness. Our annual assessment sheds light on the key factors that drive and shape competitiveness, providing valuable insights and benchmarks for decision-makers worldwide. The year 2022 marked a pivotal moment in history, as nations and economies were still grappling with the profound impacts of the COVID-19 pandemic when Russia invaded Ukraine. These crises exposed vulnerabilities and disrupted established norms, forcing us to reevaluate our approaches to economic growth and resilience. As we try to emerge from this challenging period, the need for a clear understanding of competitiveness has intensified because the importance of governments and policies has grown accordingly. It is crucial to acknowledge the growing uncertainty, inflationary pressures, and geopolitical conflicts that have emerged as significant challenges in the global landscape of competitiveness. The post-pandemic realignment has brought about unprecedented disruptions to supply chains, amplified economic volatility, and heightened geopolitical tensions, all of which have far-reaching implications for nations striving to enhance their competitiveness. Moreover, the specter of inflation looms large, as the global economy seeks to strike a delicate balance between stimulating growth and managing rising prices. Inflationary pressures, driven by supply chain disruptions, increased demand, and fiscal stimulus measures, pose challenges to businesses and governments alike. The ability to mitigate inflationary risks while maintaining competitiveness is a delicate balancing act that requires astute policy decisions and proactive measures. In a context in which, more than uncertainty, we are facing ignorance regarding the challenges that the future is bringing us, some themes remain on the top of the minds of policymakers and executives. First, the importance of technology as a key driver of productivity and growth. Second, a search of sustainable business models for companies, and the regulatory and institutional changes required to make them successful. Third, a rethinking of the benefits and costs of free trade, and the subsequent increase in protectionist measures in many countries. As we delve into the pages of the IMD World Competitiveness Yearbook 2023, we encourage readers to reflect upon the implications of growing uncertainty, inflation, and geopolitical conflicts. By understanding the intricacies of these challenges and their impact on competitiveness, we can collectively work towards a more stable, resilient, and prosperous future.

Professor Arturo Bris Director IMD World Competitiveness Center

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