• Switzerland's news in English
Switzerland drops in 'global competitiveness'
Photo: IMD

Switzerland drops in 'global competitiveness'

The Local · 27 May 2015, 22:24

Published: 27 May 2015 22:24 GMT+02:00

Facebook Twitter Google+ reddit

The Unites States remains on top in the annual ranking, ahead of Hongkong and Singapore, which overtook Switzerland.

Canada (fifth), Norway (seventh), Denmark (eighth), Sweden (ninth) and Germany (tenth) remain in the top ten, while Luxembourg moves to sixth from 11th place in 2014.

The rankings of 61 countries are based on statistical indicators, as well as a survey of 6,234 international executives.

One of the crucial factors in the ranking is the “question of business efficiency,” IMD said.

This concerns “the extent to which the national environment encourages enterprises to perform in an innovative, profitable and responsible manner”.

IMD assess this through indicators related to productivity such as the labour market, finance, management practices and the attitudes and values of the business environment.

"Simply put, business efficiency requires greater productivity and the competitiveness of countries is greatly linked to the ability of enterprises to remain profitable over time," Professor Arturo Bris, IMD World Competitiveness Centre director, said in a statement.

The strengthened franc undoubtedly has cast a shadow on Switzerland’s competitiveness.

The latest ranking came out on a day when a survey of economists by the ATS news agency showed the Swiss economy stagnating this year.

The negative effects of the Swiss National Bank’s abandonment in January of a euro floor of 1.20 francs is expected to be felt in growth figures for the next few quarters, most economists said.

Foreign exchange traders have reacted to the SNB’s decision to stop intervening in FX markets to prevent the franc from strengthening by driving up the Swiss currency to near parity with the euro.

Story continues below…

This is bad news for Swiss exporters in particular, making their products more expensive for customers in the eurozone.

“Overall, the Swiss economy will have to contend with a quite marked competitive slowdown in 2015, with two consecutive quarters of negative growth likely,” Bernard Lambert, chief economist for Banque Pictet told ATS. 

For more news from Switzerland, join us on Facebook and Twitter.

The Local (news@thelocal.ch)

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
Illegal immigrant dies after setting himself on fire
The victim was treated at University Hospital Zurich. Photo: University Hospital Zurich

The 45-year-old Tunisian was threatened with deportation.

Swiss government rejects call for second immigration vote
Photo: Justus Blumer/Christophe G

The Swiss government has rejected a popular initiative calling for a revote on plans to limit immigration.

Bern: companies should report salary inequality by law
File photo: Fabrice Coffrini/AFP

The Swiss government wants to force small companies to examine their rates of pay every four years.

Husband in custody after Orbe body identified
File photo: Bas Leenders

The deceased is a 55-year-old woman who lived in the house with her husband.

Presented by MoneyPark
How to get a mortgage in Switzerland
Houses in Zürich. Photo: Pixabay.

Ready to buy? Here’s what you need to know as an expat about Swiss regulations, how to finance your purchase, and why you should use a broker.

Autumn in Switzerland: ten stunning Instagram photos
Photo: Swiss Tourism/Jan Geerk

Switzerland is beautiful in all seasons, but as these photos show, autumn is a special time in the alpine country.

Report: Swiss progress slows on gender equality
File photo: David Soulivet

Globally, it will take 170 years to achieve gender equality, according to the World Economic Forum.

Brothers go to court to stop suicide of sibling
File photo: Lisa Edmonds

Two men have filed a legal bid to prevent the Swiss assisted suicide association Exit from helping their older brother to kill himself.

Wawrinka snubs past form to reach Basel second round
Wawrinka beat local wildcard Marco Chiudinelli. Photo: Fabrice Coffrini/AFP

US Open champion Stan Wawrinka has reached the second round in Basel after going out in the first round for the past four years.

Villagers asked to help fund bridge renovations
The bridge links the two villages of Veltheim (pictured) and Holderbank. Photo: Lutz Fischer-Lamprecht

The crowdfunding campaign by the two communes is the first of its kind in Switzerland.

Photo: Unterirdisch Ueberleben
Inside Switzerland’s largest nuclear bunker – 40 years on
Sponsored Article
Last chance to vote absentee in the US elections
Photo: The Local
Ticino firefighters rescue cow from swimming pool
Photo: Antoni Da Campo
Vegan wins battle to be accepted by Swiss army
Photo: Swiss Tourism
Ten Swiss ski resorts named most expensive in Europe
Photo: Randy Kashka
Swiss women will ‘work for free’ for the rest of year
Photo: Swiss Tourism
Montreux throws hat in Olympic rings
Photo: Swiss Tourism
Seven things you’ll miss about Switzerland if you leave
Photo: Richard Juilliard/AFP
Man makes Geneva airport bomb threat ‘for a joke’
Photo: AFP
Solar Impulse team reveals plans for unmanned plane
File photo: Martin Abegglen
Swiss to vote on passport rules for 3rd gen foreigners
Photo: AFP
Swiss wingsuit hotspot Lauterbrunnen won’t impose ban
Photo: Swiss Tourism
Six reasons Switzerland isn’t as boring as you might think
Photo: Swiss Tourism
Report: Switzerland one of world’s best places for girls
Photo: The Local
Thief returns Swiss cow bells worth thousands
File photo: Wikimedia Commons
One in three rapists isn’t locked up: statistics
Photo: activistin.ch
Tampon-tax protest turns Zurich fountains red
Photo: AFP
Geneva police to lift ban on bearded officers
Photo: Marcel Gillieron/AFP
Suicide chef’s restaurant keeps Michelin stars
Photo: Lara de Salis
11 things the Swiss get tired of hearing abroad
Photo:  Ivo Scholz/Swiss-image.ch
Survey: expats in Switzerland have money but few friends
Photo: AFP
Swiss press criticize Bern’s 'capitulation' on immigration
Photo: Jura Trois Lacs tourism
German ex-policeman is Swiss city’s new hermit
Photo: Dmitry A. Mottl
Ticino votes to favour local workers over foreigners
jobs available