Switzerland regained its position as the second most economically competitive country globally according to a new report, behind only Hong Kong. The report evaluates 61 countries across criteria like economic performance, government efficiency, and infrastructure. The US placed third, while Sweden was the second highest ranked European country after Switzerland. Switzerland performed well in areas like government efficiency but still faces challenges around issues such as immigration reform, economic growth heightening inequality, and developing policies to reduce poverty and wealth disparity.

1. COMPARING THE
SWISS ON A GLOBAL
SCALE
ETIENNE KISS-BORLASE

2. With Switzerland regaining their second place on the
global competitive economic scale, Hong Kong
continues to be the only country more competitive
than this EU country.
The rankings, that were first conducted in 1989, is a
comprehensive report that evaluates countries across
all over the world on a wide range of criteria. This
report assesses 61 countries, according to criteria
covering areas such as economic performance,
government & business efficiency, and infrastructure.

3. The US in third place, Sweden took fifth place, which
made this EU country the second most economically
competitive European country after Switzerland.
Other countries that are included on this list are
Denmark, Ireland, the Netherlands, Norway and
Canada.

4. Last year Switzerland’s economy suffered due to the
strength of the franc, which was unpegged from the
euro in January 2015. Recently, IMD director, Arturo
Bris said the country’s efficiency and small size have
allowed it to recover quickly from the short-lived
economic stagnation.
Among all the areas the report evaluated, Switzerland
ranked the highest in government efficiency.

5. “The common pattern among all of the countries in the
top 20 is their focus on business-friendly regulation,
physical and intangible infrastructure and inclusive
institutions,” added Bris.
This same comprehensive report also shed light on a
few challenges that the country needs to improve on to
maintain economic strength moving forward.

6. Within the past year, the country’s attempt to preserve
bilateral relations with the EU, along with focusing on
immigration reform has proved to be tough for the
nation.
The country must also adjust to changes brought about
by the strong franc, strength competition domestically
and reconcile its energy and environmental policies
with economic objectives, said the report.

7. In September, a recent report had praised Switzerland’s
innovation, efficient market (in terms of labor), and
the overall transparency of the labor instructions.
At the same time, the increased economic growth can
also heighten disparity between the economic classes
within the financial system.

8. “Unfortunately, the problem for many countries is that
wealth accumulation by the rich doesn’t yield any
benefits for the poor in the absence of proper social
safety nets.
While Switzerland has no doubt become more
competitive than the U.S., it is fair to state that
developing countries would need to develop more high-
level financial policies to tackle issues such as poverty
and wealth disparity.