Ireland ranked 12th most-competitive economy

Don’t take the champagne off the ice just yet. Ireland has slipped from a 7th place ranking in the world last year due to factors such as the economic fallout from Covid-19 and trade challenges due to Brexit.

The Republic of Ireland ranks among the most competitive economies in the world but is no longer in the top 10.

The latest IMD survey of 63 countries ranked Ireland 12th most competitive in the world.

“The benefit of small economies in the current crisis comes from their ability to fight a pandemic and from their economic competitiveness”

This is a slip from 7th place in the world last year. The slip is due to rising prices and falling international investment.

The highest position achieved by Ireland was fifth place in 2000. However, it fell to 24th position in 2011 as the impact of the financial crisis took its toll on the country.

In 2020 Ireland ranked fifth place for business efficiency, 12th for economic performance, 13th for government efficiency and 23rd for infrastructure.

Small, nimble economies best placed to face global headwinds

Arturo Bris, director of the IMD World Competitiveness Center and Professor of Finance, said the results show that small, nimble economies are winning right now.

“The benefit of small economies in the current crisis comes from their ability to fight a pandemic and from their economic competitiveness. In part these may be fed by the fact it is easy to find social consensus.”

The list was topped by Singapore. Singapore’s success are its strong economic performance which stems from robust international trade and investment, employment and labour market measures.

Denmark, in second place, can credit a strong economy, labor market, and health and education systems. In addition, the country performs very well in international investment and productivity, and topped Europe in business efficiency.

The UK climbed from 23rd to 19th, whilst neighbour France (32nd) slightly lost its 2019 foothold on 31st. One interpretation is that Brexit may have created the sentiment of a business-friendly environment in the making. The UK ranked 20th on the business efficiency measure, compared to 31st least year.

Written by John Kennedy (john.kennedy3@boi.com)

Published: 17 June, 2020