World Competitiveness Index

About World Competitiveness Index:

• The IMD World Competitiveness Yearbook (WCY), was first published in 1989.
• It is a comprehensive annual report and worldwide reference point on the competitiveness of countries.
• It analyzes and ranks countries according to how they manage their competencies to achieve long-term value creation.
• It is based on 336 competitiveness criteria and four factors namely Economic performance, Government efficiency, Business efficiency and Infrastructure.

Key Points of the Index

• Denmark, Ireland and Switzerland have been named the top three among 64 economies measured for their global competitiveness.
• India fell 3 rungs to finish 40th but is still in a better position than it was between 2019-2021 when it was placed 43rd three years in a row.
• India improved in government efficiency but fared slightly poorer than other countries in business efficiency, infrastructure, and economic performance.
• Specifically, the top three measures that helped India in its score are exchange rate stability, compensation levels and improvements in pollution control.

Q1) What is Economic efficiency?

Economic efficiency refers to the optimal allocation of resources to maximize the overall welfare or output within an economy. It is a concept that assesses how well resources, such as labor, capital, and natural resources, are utilized to generate goods and services.

Source: Singapore falls one spot to 4th in the 2023 global competitiveness index, India ranks 40th

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