South Africa slips as global competitor
South Africa has slipped in the IMD World Competitiveness ranking, placing 53rd out of 60 countries.
In 2012, South Africa ranked 50th on the index which analyzes how an economy manages the totality of its resources and competencies to increase the prosperity of its population.
Whem IMD first issued the rankings in 1997, South Africa was listed in 42nd place.
Having shown recent signs of a sustainable economic recovery, the USA placed first on IMD’s list – taking the top spot from Hong Kong, which slipped to 3rd place. The IMD pointed to the USA’s rebounding financial sector, an abundance of technological innovation and successful companies.
Competitiveness world ranking
The most competitive European nations include Switzerland (2nd), Sweden (4th) and Germany (9th).
“[Europe’s] success relies upon export-oriented manufacturing, diversified economies, strong small and medium enterprises (SMEs) and fiscal discipline,” IMD said, noting that the rest of the region is heavily constrained by austerity programs that are delaying its recovery.
“While the euro zone remains stalled, the robust comeback of the US to the top of the competitiveness rankings, and better news from Japan, have revived the austerity debate,” said Professor Stéphane Garelli, director of the IMD World Competitiveness Center.
According to the rankings report, Europe has lost the most ground and accounts for more than half of the “losers” (dropping 5 places or more) since 1997.
When looking at the BRICS economies – which South Africa forms part of – the regions bore mixed results.
While China (21st) and Russia (42nd) rose in the rankings, India (40th), Brazil (51st) and South Africa (53rd) all fell.
“Emerging economies in general remain highly dependent on the global economic recovery, which seems to be delayed,” IMD said.
“Brazil, Russia, India, China and South Africa are immensely different in their competitiveness strategies and performance, but the BRICS remain lands of opportunities.”
On Tuesday (28 May), Statistics SA reported that South Africa’s real Gross Domestic Product (GDP) increased by 0.9% in the first quarter of 2013.
The increase in GDP was lower than the 2.1% achieved in the fourth quarter of 2012; however, when compared to the first quarter of 2012, the GDP increased by 1.9%.
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