Singapore Drops One Spot on Global Competitiveness Index, Now Ranked 4th

Singapore has slipped one position in the 2023 World Competitiveness Ranking published by the International Institute for Management Development (IMD), now holding the fourth spot. The city-state previously ranked first in 2019 and 2020, before falling to fifth in 2021 and third last year.

Denmark has secured the top position for the second consecutive year, followed by Ireland and Switzerland. Singapore is now followed by the Netherlands in fifth place, with Taiwan, Hong Kong, Sweden, the USA, and the UAE rounding out the top ten.

Notably, Ireland has made a significant leap from 11th place in 2022 to second this year. The IMD report indicates that the top four economies effectively leverage their access to markets and trading partners.

The rankings assess each nation’s competitiveness based on criteria such as business efficiency, economic performance, government efficiency, and infrastructure. This year’s evaluation covered a total of 64 economies and highlighted how countries that delayed reopening after Covid-19, like Thailand, Indonesia, and Malaysia, are beginning to show improvement, while those that opened earlier, such as Sweden and Finland, are experiencing declines.

Smaller nations often rank higher due to their robust and efficient institutions. According to Professor Arturo Bris, Director of the IMD’s World Competitiveness Centre, a nation’s ability to generate prosperity for its citizens is a crucial determinant of success.

In the report, Singapore performed well in various categories, ranking second for international trade and employment, and third in technological infrastructure. However, the city-state faced challenges, ranking 51st in pricing, 23rd in management practices, and 26th in health and environmental factors.

Christos Cabolis, Chief Economist at the WCC, emphasized that agility and adaptability are essential for navigating today’s unpredictable environment. He noted that countries like Ireland, Iceland, and Bahrain are building resilient economies through timely policy adaptations, alongside the UAE, Saudi Arabia, Qatar, and Singapore.