16 de June, 2020

IMD Ranking: Chile remains the most competitive country in the region

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Chile continues to lead among Latin American countries as the most competitive economy, according to the IMD ranking, prepared by the World Competitiveness Center (Switzerland), with the collaboration of the School of Economics and Business of the Universidad de Chile.
 
The ranking put Chile in 38th place, up from 42nd place in 2019. The jump is mainly due to a drop in competitiveness by other nations, since, at the index level, Chile registered a lower score than last year.
 
The study is built on four factors: economic performance, government efficiency, business efficiency, and infrastructure.
 
In this sense, where Chile fared the worst was in economic performance, after a mere 1% growth in GDP last year, caused by the social crisis of the last quarter. Thus, the country ranked 50th in this factor, 2 notches lower than last year and 16 lower than in 2016. Within this factor, the performance of foreign investment was well evaluated, reaching position 21, as was the evolution of prices and inflation, ranking 17th in the world.

In the government's efficiency factor, Chile rose 6 positions, to 20th place, thanks to the good performance of public finances (10), the regulatory framework for doing business (13) and institutionality (19). However, the worst indicator within this factor is Social Cohesion (62). In business efficiency, the country ranked 37th, four notches higher than a year ago, due to progress made in the labor market (29) and management practices (45).
 
Finally, in the infrastructure factor, Chile came in 45th place, rising 2 places compared to last year, due to improvements in basic infrastructure (30), and in health and the environment (38).