Switzerland leapfrpogs Singapore and Hong Kong in the new ranking
Keystone / Peter Schneider
Switzerland has been ranked as the most competitive country in the world, having lost the title to Nordic and Asian rivals in recent years.
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According to an annual study by the Lausanne-based IMD business school, Switzerland has pushed Singapore and Hong Kong into second and third place in the latest World Competitiveness Ranking.
Although the Alpine state ranks only 6th and 13th respectively in terms of corporate competitiveness and macroeconomic competitiveness, it takes first place in infrastructure and political environment, IMD said.
+ How competitive are competitive rankings?
The ranking annually compares the economic performance and institutional strength of 67 economies. Switzerland took second place last year.
According to IMD, the key factors for Switzerland’s top ranking this year were stable political structures, efficient governance, and a first-class infrastructure. These factors are increasingly crucial in a geopolitically fragmented world.
Polarisation negative trend
Such countries are better able to absorb external shocks and remain attractive for investment in the long term, says IMD.
The ranking is based on the evaluation of 170 internationally comparable indicators and a survey of more than 6,000 executives worldwide. Polarisation and domestic political instability were rated particularly negatively this year.
The United States has lost four places in the past two years and now ranks 13th while Turkey slipped 15 places to 66th.
+ The world’s strongest currency is also super-competitive
According to IMD, a strong currency has a positive effect. This contradicts the widespread belief that a strong currency is economically damaging. In fact, the opposite is true – it signals strength, said the business school.
Reforms and investment
In addition to Switzerland, other countries also benefited from clear political structures and strategic decisions. Qatar rose into the top 10 for the first time – thanks in part to labour market reforms and a solid financial infrastructure.
Several Asian countries, such as Taiwan, Malaysia, and the Philippines, also improved, driven by targeted investments in digitalisation and future technologies.
Developments in Ireland and the Netherlands were less positive. Both countries lost competitiveness, which IMD attributes to declining productivity and investment.
Germany improved slightly after a weak previous year but remains only in the upper midfield strata at 19th place.
The report emphasizes that traditional location advantages such as macroeconomic stability and a business-friendly environment are no longer sufficient. Digital skills, active management of ecological transition, and strategies to strengthen resilience to global crises are needed.
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Switzerland ousted as world’s most competitive country
Translated from German by DeepL/mga
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