Eastern European countries are increasingly rivalling their more established Western counterparts in terms of economic competitiveness, a new study from the IMD World Competitiveness Center has revealed.
According to the latest edition of the World Competitiveness Ranking, the economies of Latvia, the Slovak Republic and Slovenia are among the fastest-improving in the world.
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Each has bettered its 2015 position by six places – a rise beaten only by Ireland and the Netherlands – with Latvia moving to 37th, the Slovak Republic to 40th and Slovenia to 43rd.
IMD World Competitiveness Center director Professor Arturo Bris said: "The impressive performance of Eastern European economies as a whole is to be welcomed. The common pattern among all of the countries in the top 20 is their focus on business-friendly regulation, physical and intangible infrastructure and inclusive institutions.
"These are qualities that many Eastern European economies are increasingly recognising and embracing, and a breakthrough into the top 20 might not be too far away."
"The main driver of the general improvements across Europe is the efficiency of the public sector, which is now recovering in earnest after the financial crisis. Ireland and the Netherlands have recorded the biggest jumps of any economy, while Sweden, Belgium, Spain and Italy are among those that also continue to improve," Bris added.
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By GlobalDataIMD business school has published the ranking each year since 1989. The latest edition ranks China Hong Kong first, Switzerland second and the USA third, with Singapore, Sweden, Denmark, Ireland, the Netherlands, Norway and Canada completing the top 10.
Besides China Hong Kong and Singapore, the research suggests Asia’s competitiveness has declined markedly overall since the publication of last year’s ranking.
Taiwan (14th), Malaysia (19th), Korea Republic (29th) and Indonesia (48th) have all suffered significant falls from their 2015 positions, while only China Mainland stayed in the top 25.
Bris commented: "On the whole, there has been a significant drop in Asia’s competitiveness since our last ranking. This general decline has been caused by the fall in commodity prices, a strong dollar and the deterioration of balance sheets in both the private and public sectors."
Bris added that China Hong Kong’s consistent commitment to providing a favorable business environment had been central to its ability to defy the region’s wider woes.
