Switzerland was overtaken by Denmark in the latest global competitiveness ranking, published on Wednesday by the IMD. After being less affected by the covid pandemic than some of its competitors, the Swiss economy has not benefited from an economic recovery as marked as in other countries. As the new most competitive country in the world, Denmark is making a difference through its efforts on sustainability.
Switzerland has fallen from its pedestal at the pinnacle of global competitiveness. Leader of the IMD ranking in 2021, the country was penalized in 2022 because the study is based on the relative performance of different economies. However, “Switzerland has experienced a less marked post-covid recovery than many other countries”, notes Arturo Bris, one of the authors of the ranking of the Lausanne executive training institute, which is in its 34th edition.
After contracting by 3% in real terms in 2020, the Swiss economy achieved growth of 3.69% in 2021. “A historically impressive level, judge Arturo Bris, but which pales in comparison to the 6, 7 or 8% take-back recorded by other countries.” This explains why Switzerland ranks 49th out of 64 on this criterion, which takes into account exports and imports, the balance of payments, unemployment and productivity.
Victim of her resilience
In reality, Switzerland “is a victim of its resilience, summarizes the professor. In difficult times, its economy suffers less than its competitors, but it does not shine extraordinarily in the recovery phases. Switzerland was the best country during the pandemic, but not afterwards.”
With its economy very close to that of Switzerland, Denmark for its part moved from third to first place this year. The Nordic economy, one of the most digitized in the world, was the most efficient in the ranking and the one with the best management practices. Its decisions in terms of sustainability, “which constitute an important element in terms of competitiveness”, also explain its first rank. Singapore completes the podium of this “World Competitiveness Ranking 2022”, after having been ranked fifth in the previous edition.
Finally, the ranking shows that inflation is considered to be the factor with the greatest influence on a company’s business, and therefore the competitiveness of a national economy. Faced with covid (and the differences in policies practiced in different parts of the world), fears linked to the environment and the invasion of Ukraine by Russia.