Lausanne, Switzerland, May 24, 2014: When it comes to providing a competitive arena for doing business, India is nowhere on the map of leaders -- ranking 44 out of 60 and sharing the problems of emerging markets: slowdown in foreign investment and inadequate infrastructure. This is the finding of Global business school, IMD, which announced its annual world competitiveness ranking this week, ranking the perception about 60 economies in 2014.
The US retains the No. 1 spot in 2014, reflecting the resilience of its economy, better employment numbers, and its dominance in technology and infrastructure. There are no big changes among the top ten. Small economies such as Switzerland (2), Singapore (3) and Hong Kong (4) continue to prosper thanks to exports, business efficiency and innovation.
Europe fares better than last year, thanks to its gradual economic recovery. Denmark (9) enters the top ten, joining Switzerland, Sweden (5), Germany (6) and Norway (10). Among Europe’s peripheral economies, Ireland (15), Spain (39) and Portugal (43) all rise, while Italy (46) and Greece (57) fall.
Japan (21) continues to climb in the rankings, helped by a weaker currency that has improved its competitiveness abroad. Elsewhere in Asia, both Malaysia (12) and Indonesia (37) make gains, while Thailand (29) falls amid political uncertainty.
Most big emerging markets slide in the rankings as economic growth and foreign investment slow and infrastructure remains inadequate. China (23) falls, partly owing to concerns about its business environment, while India (44) and Brazil (54) suffer from inefficient labor markets and ineffective business management. Turkey (40), Mexico (41), the Philippines (42) and Peru (50) also fall.
"The overall competitiveness story for 2014 is one of continued success in the US, partial recovery in Europe, and struggles for some large emerging markets,” said Professor Arturo Bris, Director of the IMD World Competitiveness Center. “There is no single recipe for a country to climb the competitiveness rankings, and much depends on the local context.”
Interestingly, it is all a matter of perception: Seven of the top 10 countries in the overall ranking for 2014 are also in the top 10 for having an image abroad that encourages business development. In general there is a strong correlation between a country’s overall competitiveness ranking and its international image as a place to do business.
The IMD World Competitiveness Yearbook, which will be published at the end of June, measures how well countries manage all their resources and competencies to increase their prosperity. The overall ranking released today reflects more than 300 criteria, two-thirds of which are based on statistical indicators and one-third on an exclusive IMD survey of 4,300 international executives.
PDF doc on ranking: http://www.imd.org/uupload/IMD.WebSite/wcc/WCYResults/1/scoreboard_2014.pdf