[Monitor] S. Korea ranks 26th in global competitiveness: WEF report

India is ranked as the 40th most competitive economy, falling one place from its past year ranking on the World Economic Forum’s global competitiveness index.

Bangladesh has been ranked 99th out of 137 countries in the latest Global Competitiveness Index published by the World Economic Forum.

Indonesia has increased its standing to 36th place in the Global Competitiveness Index due to the country’s large market, robust macroeconomic environment and notable efforts to improve business sophistication over the past year.

According to the 12 criteria used by the WEF, Switzerland retained its place as the world’s most competitive country in this year’s standings.

The World Economic Forum said that according to the current methodology, India’s score, this year, is the highest ever.

These include market size (6th rank) infrastructure (35), labour market efficiency (60), health and primary education (54), macroeconomic environment (53), higher education and training (32) and technological readiness (57), innovation (49), goods market efficiency (80), institutions (83), financial market development (107).

It also noted that, based on a 2017 survey on the opinion of business executives across the world, restrictive labour regulations, insufficient capacity to innovate and inflation ranked as the top three problematic factors for doing business in the country.

“At the same time, Africa’s financial markets and infrastructures remain underdeveloped, and institutions’ improvement process hit a setback this year as political uncertainty is growing in key countries”, the report said.

The body that organises the annual gathering of the global elite in Davos each January used its annual league table of competitiveness to stress that the failure to push through growth and productivity-friendly policies since the crash of 2007-08 had jeopardised chances of a sustained recovery.

Among the 17 East Asia and Pacific economies covered, Singapore continued to remain the most competitive. “We have strong economic fundamentals to sustain, or if not better this performance”, Soco said. Hong Kong SAR is closing the gap, rising from 9th to 6th, while Japan slipped back one place for the second year in a row, to 9th. All the countries ranked above Malaysia are developed and are of high income.

It said: “In general, there is still too much debt in parts of the private sector, and top global banks are still “too big to fail”. While basic drivers of competitiveness such as infrastructure, health, education and well-functioning markets will always be important, data in the GCI suggests that a nation’s performance in terms of technological readiness, business sophistication and innovation is now as important in driving competitiveness and growth.

The World Economic Forum has been publishing the index since 1979.

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