TAIPEI (Taiwan News) – IMD, a famous business school based in Lausanne, Switzerland published their annual World Competitiveness Rankings for 2018 on Wednesday, May 23.
According to the report Taiwan’s ranking has dropped three places from its 2017 spot to number 17 globally in terms of economic competitiveness out of 63 listed countries. In Asia, Taiwan ranks fourth behind Hong Kong, Singapore, and China.
Topping the list this year was the United States, which edged out Hong Kong at number two and Singapore at number three, as the most competitive global economy with the most efficient business and government practices in 2018.
The top five countries remained the same as in 2017, but their order shifted. Following the top three, the Netherlands and Switzerland round out the top five competitive economies, according to the Switzerland-based institute.
The report measures four areas to determine the overall ranking; Economic Performance, Government Efficiency, Business Efficiency, and Infrastructure. According to IMD, Taiwan has declined slightly in all four categories over the previous year.
The most notable decline suggested by IMD was in the area of “Business Efficiency” where Taiwan’s ranking dropped five spots to number 20. The report suggests that labor issues, along with “attitudes and values” are primarily the cause for the lower ranking.
In “Economic Performance” which saw a decline of two spots to 14th: a slight drop in international trade and investment is the main reason. However the assessment for employment numbers and price of goods improved slightly over 2017.
“Government Efficiency” also saw a drop of two percent, dropping from 10th to 12th, reportedly due to a qualitative decline in business regulations and institutional frameworks.
In the category for “Infrastructure” Taiwan’s rank dropped by a single spot to number 22.
According to CNA, Taiwan’s ranking has fluctuated over the past decade by one or two points every year over the past decade, with the exception of the shift between 2009 and 2010, when Taiwan went from its worst rank ever in 2009 at number 23, jumping all the way to number 8 the following year in 2010.
Taiwan’s highest rank on the IMD World Competitiveness Report was in 2011, coming in at number 6. Taiwan’s rank has declined each year since, with the exception of 2015, when Taiwan moved from 13 in 2014 to number 11 in 2015.
Taiwan was ranked number 14 consecutively in 2016 and 2017.