Switzerland has once again been ranked the world’s most competitive nation, reclaiming the top spot after recent years of trailing behind Nordic and Asian economies.
In the latest World Competitiveness Ranking by IMD business school in Lausanne, Switzerland surpassed Singapore and Hong Kong, which placed second and third respectively. While the country ranked 6th in corporate efficiency and 13th in macroeconomic performance, it claimed first place overall due to its exceptional infrastructure and political stability.
Why Switzerland stands out
IMD credits Switzerland's stable political system, efficient governance, and world-class infrastructure as key drivers of its success—factors that are increasingly vital in a geopolitically unstable world. The ranking evaluated 67 economies using 170 indicators and feedback from over 6,000 business executives globally.
The cost of polarisation
Countries marked by political polarisation and instability saw significant declines. The United States fell to 13th place after dropping four spots over two years, and Turkey dropped 15 places to 66th.
Strong currency, strong nation
Contrary to popular belief, IMD found that a strong currency correlates with competitiveness, signaling economic robustness rather than being a liability.
Global movers and shakers
Qatar broke into the top 10 for the first time, propelled by labor reforms and a solid financial framework. Asian economies like Taiwan, Malaysia, and the Philippines also saw gains, thanks to focused investments in digital technology and innovation.
Meanwhile, Ireland and the Netherlands lost ground, with IMD citing reduced productivity and lower investment. Germany made modest improvements but remains mid-tier at 19th.
Shifting priorities
The report highlights a global shift: traditional advantages like macroeconomic stability are no longer enough. Competitiveness now hinges on digital capabilities, sustainability, and resilience strategies. Photo by kuhnmi, Wikimedia commons.