The World's Most Competitive Countries (2019-2023)
Ranking the Most Competitive Countries Around the World
Just as a well-made ship needs fair weather for a smooth voyage, businesses need a supportive ecosystem to start and stay successful.
Rankings for the most competitive countries attempt to quantify this support directly, seeing which economies have the best frameworks for business to thrive. Examining how the rankings change over time can also tell us a lot about how countries are progressing relative to others.
In the above graphic, Julie Peasley uses the World Competitiveness Ranking report by the International Institute for Management Development (IMD) to chart the top 20 most competitive countries between 2019 and 2023.
How is Business Competitiveness Measured?
IMD examines countries on the basis of four metrics across multiple sub-factors:
Economic performance:
Domestic economy, international trade, international investment, employment, prices
Domestic economy, international trade, international investment, employment, prices Government efficiency:
Public finance, tax policy, institutional framework, business legislation, societal framework
Public finance, tax policy, institutional framework, business legislation, societal framework Business efficiency:
Productivity & efficiency, labor market, finance, management practices, attitudes & values
Productivity & efficiency, labor market, finance, management practices, attitudes & values Infrastructure:
Basic infrastructure, technological infrastructure, scientific infrastructure, health & environment, education
These metrics are scored on a mix of hard statistics, surveys from partner institutes, and supplementary data.
Which Countries are the Best and Worst for Business?
Denmark holds on to the top spot as the most business-friendly country in 2023, after it ranked number one for the first time in 2022. The Scandinavian country has been a perennial top 10 performer since 2018 but really began its ascent to the summit in the last four years.
The country excels in the categories of business efficiency, government efficiency, and infrastructure metrics, despite comparatively average economic performance next to some of its geographic peers.
Rank (2023) Country 2019 2020 2021 2022 1 🇩🇰 Denmark 8 2 3 1 2 🇮🇪 Ireland 7 12 13 11 3 🇨🇭 Switzerland 4 3 1 2 4 🇸🇬 Singapore 1 1 5 3 5 🇳🇱 Netherlands 6 4 4 6 6 🇹🇼 Taiwan 16 11 8 7 7 🇭🇰 Hong Kong 2 5 7 5 8 🇸🇪 Sweden 9 6 2 4 9 🇺🇸 U.S. 3 10 10 10 10 🇦🇪 UAE 5 9 9 12 11 🇫🇮 Finland 15 13 11 8 12 🇶🇦 Qatar 10 14 17 18 13 🇧🇪 Belgium 27 25 24 21 14 🇳🇴 Norway 11 7 6 9 15 🇨🇦 Canada 13 8 14 14 16 🇮🇸 Iceland 20 21 21 16 17 🇸🇦 Saudi Arabia 26 24 32 24 18 🇨🇿 Czech Republic 33 33 34 26 19 🇦🇺 Australia 18 18 22 19 20 🇱🇺 Luxembourg 12 15 12 13 21 🇨🇳 China 14 20 16 17 22 🇩🇪 Germany 17 17 15 15 23 🇮🇱 Israel 24 26 27 25 24 🇦🇹 Austria 19 16 19 20 25 🇧🇭 Bahrain N/A N/A N/A 30 26 🇪🇪 Estonia 35 28 26 22 27 🇲🇾 Malaysia 22 27 25 32 28 🇰🇷 South Korea 28 23 23 27 29 🇬🇧 UK 23 19 18 23 30 🇹🇭 Thailand 25 29 28 33 31 🇳🇿 New Zealand 21 22 20 31 32 🇱🇹 Lithuania 29 31 30 29 33 🇫🇷 France 31 32 29 28 34 🇮🇩 Indonesia 32 40 37 44 35 🇯🇵 Japan 30 34 31 34 36 🇪🇸 Spain 36 36 39 36 37 🇰🇿 Kazakhstan 34 42 35 43 38 🇰🇼 Kuwait N/A N/A N/A N/A 39 🇵🇹 Portugal 39 37 36 42 40 🇮🇳 India 43 43 43 37 41 🇮🇹 Italy 44 44 41 41 42 🇸🇮 Slovenia 37 35 40 38 43 🇵🇱 Poland 38 39 47 50 44 🇨🇱 Chile 42 38 44 45 45 🇨🇾 Cyprus 41 30 33 40 46 🇭🇺 Hungary 47 47 42 39 47 🇹🇷 Türkiye 51 46 51 52 48 🇷🇴 Romania 49 51 48 51 49 🇬🇷 Greece 58 49 46 47 50 🇭🇷 Croatia 60 60 59 46 51 🇱🇻 Latvia 40 41 38 35 52 🇵🇭 Philippines 46 45 52 48 53 🇸🇰 Slovak Republic 53 57 50 49 54 🇯🇴 Jordan 57 58 49 56 55 🇵🇪 Peru 55 52 58 54 56 🇲🇽 Mexico 50 53 55 55 57 🇧🇬 Bulgaria 48 48 53 53 58 🇨🇴 Colombia 52 54 56 57 59 🇧🇼 Botswana N/A N/A 61 58 60 🇧🇷 Brazil 59 56 57 59 61 🇿🇦 South Africa 56 59 62 60 62 🇲🇳 Mongolia 62 61 60 61 63 🇦🇷 Argentina 61 62 63 62 64 🇻🇪 Venezuela 63 63 64 63
Close behind in second place is Ireland, jumping five spots since 2019. The country’s strong economic performance helped it break into the upper echelon after bouncing around the top-15 rankings in the last few years.
Ranked third is Switzerland which has been in the top five since 2018, and reached first place in 2021. While the country scores well on several key indicators, it loses points on subfactors like the lack of business development and IPO offerings.
Singapore, which also was previously ranked as the most competitive country in 2019 and 2020, secured fourth place in 2023. In contrast to Denmark and Switzerland, the Asian financial heavyweight scores well on economic performance but loses ground on government efficiency.
At the bottom of the list, Venezuela, Argentina, and Mongolia face significant challenges in business competitiveness in 2023. These countries suffer from a trifecta of poor economic performance, low business and government efficiency, and substandard infrastructure, hindering business growth and development. Macro developments also play a key factor in their fortunes. For example, Mongolia has suffered in the aftermath of sanctions on Russia, a key trade partner.
Changing Rankings for the Most Competitive Countries
Though some countries have placed consistently in the rankings of the most competitive countries, there are also countries that have seen more noteworthy fluctuations.
China and Germany were both in the top 20 rankings pretty consistently until 2022, but both fell just short of that benchmark in the 2023 rankings.
And the U.S. is still in the top 10 but has dropped six spots compared to other economies in the last five years. The country’s economic might is unimpeachable, but rankings slipped in the business landscape and government efficiency metrics.
Here are the five-year changes in rankings for all countries scored in the IMD report, sorted from biggest increase to largest decrease:
Country Change (2019-2023) Rank (2023) 🇨🇿 Czech Republic +15 18 🇧🇪 Belgium +14 13 🇹🇼 Taiwan +10 6 🇭🇷 Croatia +10 50 🇸🇦 Saudi Arabia +9 17 🇪🇪 Estonia +9 26 🇬🇷 Greece +9 49 🇩🇰 Denmark +7 1 🇮🇪 Ireland +5 2 🇫🇮 Finland +4 11 🇮🇸 Iceland +4 16 🇹🇷 Türkiye 4 47 🇮🇳 India 3 40 🇮🇹 Italy 3 41 🇯🇴 Jordan 3 54 🇨🇭 Switzerland +1 3 🇳🇱 Netherlands +1 5 🇸🇪 Sweden +1 8 🇮🇱 Israel +1 23 🇭🇺 Hungary +1 46 🇷🇴 Romania +1 48 🇰🇷 South Korea 0 28 🇪🇸 Spain 0 36 🇵🇹 Portugal 0 39 🇸🇰 Slovak Republic 0 53 🇵🇪 Peru 0 55 🇲🇳 Mongolia 0 62 🇦🇺 Australia -1 19 🇧🇷 Brazil -1 60 🇻🇪 Venezuela -1 64 🇶🇦 Qatar -2 12 🇨🇦 Canada -2 15 🇫🇷 France -2 33 🇮🇩 Indonesia -2 34 🇨🇱 Chile -2 44 🇦🇷 Argentina -2 63 🇸🇬 Singapore -3 4 🇳🇴 Norway -3 14 🇱🇹 Lithuania -3 32 🇰🇿 Kazakhstan -3 37 🇨🇾 Cyprus -4 45 🇭🇰 Hong Kong -5 7 🇦🇪 UAE -5 10 🇩🇪 Germany -5 22 🇦🇹 Austria -5 24 🇲🇾 Malaysia -5 27 🇹🇭 Thailand -5 30 🇯🇵 Japan -5 35 🇸🇮 Slovenia -5 42 🇵🇱 Poland -5 43 🇿🇦 South Africa -5 61 🇺🇸 U.S. -6 9 🇬🇧 UK -6 29 🇵🇭 Philippines -6 52 🇲🇽 Mexico -6 56 🇨🇴 Colombia -6 58 🇨🇳 China -7 21 🇱🇺 Luxembourg -8 20 🇧🇬 Bulgaria -9 57 🇳🇿 New Zealand -10 31 🇱🇻 Latvia -11 51 🇧🇭 Bahrain N/A 25 🇰🇼 Kuwait N/A 38 🇧🇼 Botswana N/A 59
The Czech Republic and Belgium have made huge strides in improving their business environments since 2019, moving up 15 and 14 spots in the rankings over the last half a decade, respectively.
Saudi Arabia has also been making steady gains thanks to a series of pro-business reforms in recent years. Together with the Czech Republic, 2023 marked the first year both countries cracked the top 20 list for the most competitive countries.
On the other hand, Latvia and New Zealand have slipped the most in competitiveness, dropping 11 and 10 spots respectively. Latvia and its Baltic neighbors are dealing with a tough geopolitical environment and risk of a recession with instability in the region, while New Zealand was noted as dealing with both a brain drain and a lack of resiliency to climate change.
An Examination of Business Competitiveness
Business competitiveness is one of many measurements for country performance, including gross domestic product (GDP), income, livability, and even happiness rankings.
And as with other measurements, it is important to consider the nuances and disparities among countries when applying a one-size-fits-all ranking system.
For instance, the most populous countries rank comparatively poorer. The U.S. ranks #2 when only considering countries with a population greater than 20 million, and China is the most competitive country with a GDP per capita of less than $20,000.
And while criticisms about the subjectivity of these rankings may be valid, looking at these kinds of breakdowns can bring unique insights to broad sociological questions, and be used as a tool to help policymakers.
Where Does This Data Come From? Source: The International Institute for Management Development’s World Competitiveness Booklet 2023.
Source: Visual Capitalist
