Swiss-based business school The International Institute for Management Development (IMD) publishes an annual ranking of the business competitiveness of 63 countries, measuring their ability to attract businesses and enable them to compete in the local and global markets. The rankings are based on the criteria of economic performance, government efficiency, business efficiency, and infrastructure.
In the past few years, Israel has fallen in the ranking, from 21st place in 2018 to 27th in 2021. In the 2022 ranking, however, Israel has managed to break the trend, and to rise to 25Th place, behind Saudi Arabia in 24th place and the United Kingdom in 23rd, and above the Czech Republic in 26th place and the Korean Republic in 27th.
The ranking is based upon executive opinion surveys in each country. The analysis for Israel is carried out by the Federation of Israeli Chambers of Commerce. Israel has risen in the ranking thanks to improvements under headings such as GDP growth, bribery and corruption, bureaucracy, and transparency. Some of the headings under which Israel’s economic competitiveness has declined are government subsidies, women in management, entrepreneurial activity, and sustainable development.
Israel places first for investment in R&D, second for exports of technology services, and sixth for founding of startup companies. On the other hand, it is in 53rd place for participation in the workforce, 46th for labor productivity, and 58th for investment in communications infrastructure.
IMD recommends Israel to take action to raise productivity in trade and services, raise the rate of participation in the workforce, cut government bureaucracy, and encourage business competition.
The rankings are topped by Denmark, which is up from third in 2021, and displaces Switzerland, which falls to second. Third place goes to Singapore. The US is in tenth place, Germany is fifteenth, China is seventeenth, France is 28th, and Japan is 34th. The lowest ranked countries are Mongolia, Argentina, and Venezuela.
Published by Globes, Israel business news - en.globes.co.il - on June 15, 2022.
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