Switzerland secures second spot in IMD’s 2024 World Competitiveness Ranking

Switzerland ranks as the second most competitive country in the 2024 IMD World Competitiveness Ranking, demonstrating significant improvements in economic performance and business efficiency.

The IMD World Competitiveness Ranking evaluates 67 economies based on four key factors: economic performance, government efficiency, business efficiency, and infrastructure. These factors encompass a wide range of competitiveness aspects, including macroeconomic stability, fiscal policy, institutional quality, market openness, business dynamism, innovation, education, health, and environmental performance.

The 2024 ranking highlights that the most competitive economies, such as Singapore, Switzerland, Denmark, Sweden, and the Netherlands, successfully combine robust economic performance with high-quality public and private sector efficiency, infrastructure, and human and social capital. These economies are characterized by their ability to balance productivity and prosperity, providing elevated income levels and quality of life for citizens while maintaining environmental and social cohesion.

Emerging markets like China, India, Malaysia, Thailand, and Chile are catching up with advanced economies, particularly in innovation, digitalization, and diversification.

Switzerland’s rise to the second position is attributed to improvements in economic performance (rising from 18th to 12th) and business efficiency (from seventh to fifth), while maintaining top positions in government efficiency and infrastructure.

Under economic performance, Switzerland excelled in the domestic economy sub-factor, improving from eighth to fourth place. Despite less robust performance in international trade and employment, the country advanced in both areas (from 20th to 16th and 34th to 23rd, respectively). Switzerland saw significant advancements in the growth of exports of goods (from 47th to eighth), though its terms of trade index declined (from 21st to 37th). Improvements in direct investment flows inward (as a percentage of GDP) from 51st to 43rd were accompanied by a decline in direct investment flows abroad (from 56th to 64th).

Denmark’s drop to third place is mainly due to its diminishing economic performance, particularly in employment and international trade.

Switzerland, a privileged location for international businesses

Switzerland’s consistent high ranking in the IMD World Competitiveness Ranking underscores its status as an exceptional business hub. The country’s strengths in economic performance, government and business efficiency, and superior infrastructure create a favorable environment for companies. Switzerland’s robust fiscal policies, innovation-driven culture, and top-tier education system ensure a steady stream of skilled talent. The high quality of life, coupled with political and economic stability, makes Switzerland a privileged location for businesses looking to thrive in a competitive global market. This is further evidenced by its top positions in other prestigious rankings such as the Global Talent Competitiveness Index, Global Innovation Index, and World Talent Ranking, which highlight its excellence in nurturing talent, fostering innovation, and providing an unmatched quality of life.