IMD World Competitiveness Booklet 2020

and Southern Asia and the Pacific. Western Europe tops the rankings in productivity and efficiency while performing very strongly in all other sub-factors. Eastern Asia has the strongest position in finance while Southern Asia and the Pacific as well as North American fair very strongly in the labor market sub-factor. Each of these regions shows strengths in all the sub-factors of business efficiency. Finally, in the infrastructure factor, Western Europe, Eastern Asia and North America dominate the regional rankings. While Western Europe tops the regional rankings in the health and environment and education sub-factors, Eastern Asia leads in technological and scientific infrastructures. North America performs well in all the sub-factors Despite its decline in the rankings (as discussed previously), Hong Kong SAR leads the Eastern Asian sub-region. Taiwan, China, rises to the 11 th spot (from 16 th ). Similarly, Korea Republic moves up to 23 rd (from 28 th ) and the Philippines to 45 th (from 46 th ). Other countries in the region experience a deterioration in their competitiveness rankings. China declines from 14 th position to 20 th . Similarly, Japan moves down from 30 th to 34 th . Eastern Asia

with their greatest strength being scientific infrastructure. Ex-CIS and Central Asia, together with South America, has room for improvement in all the sub-factors. For Ex-CIS and Central Asia, the highest ranking came in the tax policy and prices sub factors while the lowest was in institutional framework, and health and environment. Similarly, for South America the highest ranking was captured in tax policy and prices and the lowest in productivity and efficiency, technological infrastructure, international trade and societal framework.

Competitiveness trends at the country level

Taiwan, China, rises as a result of the strong performance of its economy, and slight improvements in international trade and investment, as well as business legislation. In addition, it experiences improvements in productivity in its labor market and technological infrastructure in combination with a strong display in management practices and scientific infrastructure. Despite improvements in its health and education systems, China experiences a downturn in competitiveness which is mainly the

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IMD WORLD COMPETITIVENESS BOOKLET 2020