Economic performance and business efficiency place Portugal among the 40 most competitive countries in the world – Executive Digest

Portugal has moved up three places in the IMD Global Competitiveness Ranking and now occupies the 39th position. The country records improvements in economic performance and business efficiency, which are two of the main indicators of the study, but infrastructures have a worse rating than in 2022.

After falling six places last year, Portugal regained its strength, and thus appeared in the 39th place in the study published by the International Competitiveness Center (IMD), an annual analysis of 64 global economies and their ability to achieve prosperity.

Portugal recorded improvements in two of the four main indicators: economic performance (rising from 46th to 42nd) and business efficiency (from 42nd to 41st). The government efficiency rating remains the same (43rd) but the score on the infrastructure factor drops two places.

Our country also stands out favorably in terms of education (23rd), membership (24th), international trade (26th), and health and environment (27th). Fiscal policy (54th), labor market (51st), business practices (51st) and public finance (49th) score the worst.

“Portugal’s improvement in the overall ranking is largely due to the significant progress it has made in terms of economic performance, specifically in the sub-factors of the national economy and international trade. Portugal also performs well in some aspects of business efficiency, such as overall productivity, and long-run workforce growth , stock index, and the effectiveness of the private sector’s response to market opportunities and threats.However, there are areas that could negatively affect Portugal’s long-term competitiveness.

According to IMD, one of Portugal’s main challenges is to ensure GDP growth above average for the European Union and its peers, in order to support the increase in real income and reverse the decline in per capita GDP.

This study also shows that it is necessary for the state to develop a national strategy to enhance managerial skills, digital transformation and energy transition, and to enhance the competitiveness of companies.

The International Institute for Democracy (IMD) is also calling for cross-party agreement on strategies to address urgent demographic issues such as aging and a low birth rate, as well as promoting reforms in the areas of justice, health, education and social security that can enhance the quality of public services and reduce economic indebtedness. “.

According to the study, Denmark, Ireland and Switzerland are the most competitive economies in the world, followed by Singapore and the Netherlands, in a year in which winners and losers emerge clearly from a set of political, economic and social events of global scope.

“Political fragmentation is a consequence of Covid-19 and the war in Ukraine, and one of the main consequences is that more and more countries — Singapore, Saudi Arabia and India, for example — follow their own interests. With inflationary pressures easing and uncertain stock markets, we can now see the winners.” and the losers in a context where multiple crises overlap,” says Professor Arturo Bres, Director of the World Council of Churches.

Results of the IMD Global Competitiveness Ranking 2023: