Russia dropped in the ranking of most competitive economies

Russia fell two positions in the ranking of most competitive economies according to the version of the Swiss business school IMD. Kazakhstan has strengthened the separation from Russia, rising to 32 th place, while Ukraine dropped to 60

Russia’s positions in the annual ranking of most competitive economies in the world by Swiss business school IMD, down from 44th place to 46th, according to the study, IMD (.pdf). This is the lowest position of Russia in the ranking in 2012.

For the year of Russia in terms of competitiveness, ahead of Indonesia and Kazakhstan above Russia is Saudi Arabia with Cyprus, for which the IMD was first calculated ratings.

The authors assess the competitiveness of 20 parameters divided into four categories (index): performance of the economy, government efficiency, business efficiency and infrastructure. Parameters are, in turn, consist of 323 multiple variables — from contribution to world GDP, gasoline prices and tax rates to cost of capital, transparency of government policy and openness of national culture to foreign ideas.

Of the 20 options it is best to have Russia, the situation with the tax policy (17-th place out of 63) and public finances (20th place), employment (23-e a place) and scientific infrastructure (25 th place). Worst of all — social welfare (which includes, for example, protection of the right to private property, the crime rate, the coefficient of stratification), international trade and management methods in business (all for 57th place), institutional framework and business legislation (both at the 56th place), as well as productivity and efficiency (54-e a place).

Sharply improved the positions of Kazakhstan, rising from 47 to 32. the Greatest progress over the past year Kazakhstan showed by the “public Finance”, leaping from 51-th place on 4-e; the index of “internal economy” rose from 51 to 40. the Country also rose significantly for all items in the category “business efficiency”.

Ukraine slipped one place to 60th place. Lower Russia’s rating dropped Turkey and Slovakia, which a year earlier ahead of Russia. The ranking of this year represented 63 countries.

The five main achievements of Russia during the reporting year, IMD highlights the improvement in the dynamics of GDP, real GDP per capita, the growth in the number of mobile Internet users, an increase in the number of foreign students and cheaper labor.

The five main record of Russia over the past year is the deterioration in the balance of payments, the Federal budget deficit, the cost of electricity for industrial consumers, a slower decline rate of the Central Bank than inflation, and the deterioration of Russia’s image abroad.

IMD believes that the key challenges for Russia in 2017 in terms of competitiveness will increase in the public sector, sanctions and the volatility of oil prices, high interest rates and perioralny the ruble, reducing the financial reserves of the government and social instability ahead of presidential elections and the terrorist threat.

First place in the ranking for the second year in a row, was Hong Kong. On the second and third places — Switzerland and Singapore. The US fell from third spot to the fourth — worst record in the country over the past five years. Completing the top five most competitive economies in the Netherlands, has risen to fifth place from eighth.

The authors also interviewed local respondents and based on their responses ranked the most attractive aspects of the Russian economy. In the first five included a high level of education, a highly qualified workforce, cost competitiveness, dynamism of the economy, and the stability and predictability of policy.

Digital competitiveness

Along with an overall competitiveness ranking of the IMD introduced a new index–the rating of digital competitiveness, reflecting the assessment of capability and willingness of countries to adapt to the development of digital technologies, explore them and use maximum. In the new digital index, Russia took the 42nd place, Ukraine-60s, and Kazakhstan — 38-E.

The index is based on 50 criteria that ultimately boil down to three key factors: knowledge, technological environment and openness to the future.

 

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