The republic lost its crown to rival financial hub Switzerland in IMD’s latest «World Competitiveness Rankings,» as it slipped to fifth place overall.
Singapore fell behind Switzerland, Sweden, Denmark, and the Netherlands in competitiveness as the city-state suffered significantly on an economic level during the pandemic, as it depends on the export and import of services and on people’s mobility, according to experts at IMD’s World Competitiveness Center.
Governments that has focused in innovation, diversifying their economies, and implementing good policies pre-pandemic triumphed, IMD said in the report. The top-performing economies were characterized by varying degrees of investment in innovation, diversified economic activities, and supportive public policy.
Singapore and Switzerland ranked highly in innovation, which takes into account education and other factors driving both a productive workforce and research, and also took top spots in health infrastructure. Singapore was also top among the 64 countries in terms of digital advancement.
Commenting on Switzerland’s strengths, IMD said both independence and access to Europe during a period when global supply chains faced major risk was important. The country is not in the European Union (EU), but part of the bloc’s single market for goods, people and services.
The health crisis – while devastating – is only temporary, while competitiveness measures longer-term impact, IMD said.
Published since 1989, The ranking analyzes and ranks countries according to how they manage their competencies to achieve long-term value creation.