Singapore is world's most competitive economy
Singapore has regained its crown as the world's most competitive economy, according to the latest IMD World Competitiveness Ranking for 2024.
The city-state last topped the rankings in 2020, after which it fell to fifth, third, and finally fourth place in subsequent years.
The annual assessment of 67 economies conducted by the IMD World Competitiveness Center analyses a combination of hard data and executive perceptions to gauge an economy's ability to generate long-term value.
Singapore excelled particularly in government efficiency (the extent to which government policies are conducive to competitiveness) and business efficiency (how well enterprises are performing in an innovative, profitable, and responsible manner).
“The best-performing economies balance productivity and prosperity, meaning they can generate elevated levels of income and quality of life for their citizens while preserving the environment and social cohesion,” said IMD World Competitiveness Center director Arturo Bris.
While Singapore currently holds the top spot, maintaining this position will require the country to manage the opportunities and challenges presented by new technologies like AI, ensuring workers have the skills and businesses the capacity to adapt.
At the same time, it needs to navigate growing geopolitical instability and overcome its resource limitations to enhance its competitive edge.
The report paints a more sombre picture for other regions. Western Europe's competitiveness remains stagnant, reaching its lowest average ranking since 2020. Meanwhile, Eastern Asia shows signs of improvement, reflecting the region's dynamic economic landscape.
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