Hungary up to three places from last year on the list of the world’s most competitive economies, Finance Minister Mihály Varga said on Monday, citing information from Swiss competitiveness research institute IMD.
The IMD World Competitiveness Yearbook (WCY), first published in 1989, is a comprehensive annual report and worldwide reference point on the competitiveness of countries. It provides benchmarking and trends, as well as statistics and survey data based on extensive research. It analyzes and ranks countries according to how they manage their competencies to achieve long-term value creation. An economy’s competitiveness cannot be reduced only to GDP and productivity because enterprises also have to cope with political, social and cultural dimensions. Governments therefore need to provide an environment characterized by efficient infrastructures, institutions and policies that encourage sustainable value creation by the enterprises.
The IMD World Competitiveness Rankings emphasize a long-term trend highlighted in past editions – that the countries on the top of the list each have a unique approach to becoming competitive.
The Yearbook provides extensive coverage of 63 economies, chosen based on the availability of comparable international statistics and our collaboration with local Partner Institutes, which contribute to the collection of survey data and ensure that all data are reliable, accurate and as up-to-date as possible. This year, we have the privilege of collaborating with a unique global network of Partner Institutes in 56 countries.
The World Competitiveness Ranking is based on 333 competitiveness criteria selected as a result of comprehensive research using economic literature, international, national and regional sources and feedback from the business community, government agencies and academics. The criteria are revised and updated on a regular basis as new theory, research and data become available and as the global economy evolves.
Since 2017, Hungary has improved its position by 13 places, the minister said on Facebook.
With 39th position, Hungary up 3 places compared to 2021.
Concerning the National Competitiveness Council, whose tasks have recently been transferred to the economic development ministry, Varga said its work had helped the government implement significant tax cuts and reduction in red tape, and take measures aimed at promoting electronic procedures and simplify the administration around employment and investments. All those measures have contributed significantly to the country’s improving competitiveness, he added.
Varga noted that Hungary was ahead of Slovakia and Poland in the competitiveness ranking, but added that “there is still room for further improvement”.