Switzerland remains one of the most competitive economies in the world

The IMD ranking analyses and ranks countries according to how they manage their competencies to achieve long-term value creation. Four factors are examined: economic performance, government efficiency, business efficiency and infrastructure.

Switzerland performs well overall, even though it had to give up the top position to Denmark. The strong position is based on good results in three of the four factors. Switzerland was ranked first for infrastructure and government efficiency, and fourth for business efficiency, behind Denmark, Sweden and the Netherlands. In both Business Efficiency and Government Efficiency, Switzerland was able to improve its ranking by one place compared to the previous year.

Switzerland overall ranking

The situation is quite different with regard to the criterion economic perfomamce. Here the country was only ranked 30th. The high prices and the lack of direct investment had a negative impact. This applies to both Swiss investments abroad and foreign investments in Switzerland.

The ranking also gives a relatively low score to Switzerland's values and attitudes. This relates to public attitudes on topics such as digitalisation, structural reforms and globalisation. Overall, this indicates a risk regarding the openness of the Swiss economy - traditionally one of the country's strengths.

Denmark has reached the number one spot in the IMD World Competitiveness Ranking (WCR) for the first time in the ranking’s 34-year history. Singapore was 3^rd (up from 5^th) and Sweden fell two places to 4^th. “Denmark's economic performance has risen sharply, and this is driven by increases in investment flows in the country, a contained rise in prices compared to other developed economies and by the strengthening of public finances with a reduction in public debt and government deficit,” said Marco Pistis, Research Specialist at the WCC.

The country’s improvements in health-related indicators – such as life expectancy at birth and the universal health coverage index – were also significant to its performance, he said.

(Press release / SK)