"Korea Slips in Global Competitiveness Ranking in 2023, Report Shows"
Key Highlights :
Korea's global competitiveness rank slipped by one notch from a year earlier in 2023, according to a report released Tuesday by the International Institute for Management Development (IMD). The decline was largely due to a decrease in government efficiency, the report showed.
Korea ranked 28th in terms of global competitiveness among 64 countries surveyed by the IMD, a Switzerland-based international institution. The IMD has been releasing the report every year since 1989 based on a country's economic achievements, infrastructure, and government and corporate efficiency.
Among 27 nations with a population of more than 20 million or more, South Korea ranked ninth this year, unchanged from 2022. The country's economic performance rose from 22nd place to the 14th spot, reaching an all-time high level. This was mainly due to robust performance in terms of the domestic economy, international investment, employment and prices, which offset losses from trade activities.
In contrast, the government efficiency of Asia's No. 4 economy dropped two spots over the period to 38th place. This was mainly due to weaker performances in public finance, tax policy and institutional framework. The business efficiency and infrastructure held steady at 33rd and 16th place, respectively, throughout the period.
The finance ministry said it was notable that the country's economic achievement rose to a record-high level on the back of the government's efforts to address global challenges. It added that Korea will continue to improve its health by adopting the fiscal rule, which centers on capping the deficit to 3 percent of the country's gross domestic product.
Korea has been making efforts to improve its global competitiveness ranking, such as by introducing a more flexible labor market, increasing foreign direct investments, and promoting innovative startups. It remains to be seen if these efforts will be enough to reverse the decline in Korea's global competitiveness ranking.
