Taiwan drops 2 spots to 8th in IMD World Competitiveness rankings

Taipei, June 18 (CNA) Taiwan has fallen two spots to eighth in the latest world competitiveness rankings, according to a yearbook released Tuesday by the International Institute for Management Development (IMD).

Despite the setback after five consecutive years of rising in the rankings, Taiwan still outperformed most major economies, including the United States (ranked 12th), China (14th), South Korea (20th), and Japan (38th), according to the IMD.

Additionally, Taiwan remained the most competitive economy among those with a population of more than 20 million for the fourth year in a row, IMD data showed.

Among the four main indicators used to compile the rankings, Taiwan ranked sixth in business efficiency (down from fourth a year earlier), eighth in government efficiency (unchanged), and 10th in infrastructure (up from 12th), according to the IMD.

The biggest change came in the economic performance category, in which Taiwan slid six spots to rank 26th, the third year in a row its ranking in the category fell.

Among specific indicators, it fell four places to 13th for its "domestic economy," down four places to 14th for "prices," and down three places to 48th for "international trade."

There was improvement, however, in the "employment" and "international investment" indicators.

Taiwan's Cabinet-level National Development Council (NDC) said the slide was the result of weak market demand caused by high inflation and high interest rates worldwide in 2023.

Companies have adopted a more cautious approach, and their ongoing efforts to draw down inventory in 2023 also affected Taiwan's overall export performance, the NDC said.

Future challenges for Taiwan will involve accelerating digital and net-zero dual transformation, as well as diversifying supply-chain networks to strengthen economic resilience, the IMD said, citing the NDC.

Taiwan should also deepen international cooperation to address geopolitical and climate change challenges, and strengthen the cultivation of domestic talent and recruit foreign professionals for key industries, according to the IMD.

The 2024 IMD rankings identified Singapore the most competitive economy out of 67 surveyed.

Rounding out top 10 were Switzerland, Denmark, Ireland, Hong Kong, Sweden, United Arab Emirates, Taiwan, the Netherlands, and Norway.