Switzerland remains one of the most competitive economies of the world despite a strong Swiss currency, a new survey by IMD institute showed.
Switzerland moved up into second place last year, after claiming the fourth spot in 2014, according to an analysis of the survey conducted by IMD, the world competitiveness center based in Lausanne.
U.S. Drop
Switzerland overtook the U.S., which dropped into third position after claiming the top spot for three years running (see table below).
The success of Switzerland as a country can be explained by an unwavering dedication to quality by the smallish Swiss economy, said Artur Bris, director at IMD, in the report. It helped business adapt quickly to the shock of the sudden appreciation of the franc in January 2015 after the central bank did away with the peg to the euro.
Infrastructure and Business-Friendly Policies
Switzerland has a good level of infrastructure, a business-friendly labor market policy, an efficient and transparent government administration as well as a high productivity rate. IMD criticized the monetary policy of the central bank, the protection of some services industries, subsidies as well as high IT costs and high rents.
Hong Kong Claims No. 1 Spot
Hong Kong moved to the top of the table last year. The financial center has dedicated itself to a beneficial economic environment, innovation as well a low and easy-to-administer taxation system. Capital can also be freely moved into and out of the territory, which is part of China. IMD also commended the creation of an anti-corruption police force.
The table shows that the Asian economies in general have become less competitive compared with a year earlier. Taiwan dropped 3 places to 14, Malaysia ranked 19 (-5), South Korea was 29th (-4), Indonesia took 48th place (-6). Singapore meanwhile was 4th (-1).
