The IMD World Competitiveness Yearbook measures how well countries manage all their resources and competencies to facilitate long-term value creation. The overall ranking reflects more than 300 criteria, two-thirds of which are based on statistical indicators, and one-third on an exclusive survey of 6,234 international executives.
Canada (5), Norway (7), Denmark (8), Sweden (9) and Germany (10) remain in the top 10. Luxembourg moves to the top (6) from 11th place in 2014.
Ireland has lost one place from 15th to 16th. The UK has lost three places to 19th from 16th. in saying that Ireland and UK are ahead of Austria (26), Belgium (23), France (32), Portugal (36), Spain (37), Italy (38). Surprisingly, Greece has only lost seven points to 50th.
IMD said that maintaining focus on cost competitiveness and public sector reform, strengthening competition for foreign direct investment, and investment in infrastructure were among Ireland’s challenges in 2015 as well as disimproving in areas such as office rents, health infrastructure, access to water and political stability.
One country to be added to the competitiveness ranking for the first time, however, was Mongolia at 57th - which had 11.6 per cent GDP growth in 2013. Venezuela is the bottom of the heap at number 61, losing one slot from last year.