Israel jumps to 15th place in WEF competitiveness rankings
The US fell to sixth place after placing first last year.
The WEF ranks countriesí competitiveness according to a set of criteria, arranged into nine groups: macroeconomic policy, market efficiency, business sophistication, technological readiness, innovation, infrastructure, health and primary education, higher education and training, and institutions. The WEF believes that these factors affect an economyís productivity, which in turn affects its ability to maintain sustained growth over many years. The rankings include figures for the criteria derived from surveys of business managers.
The WEF says the jump in Israelís ranking was primarily due to the reforms led by the Bachar committee, which instilled in Israel a considerable degree of competitiveness and professionalism, and laid the groundwork for a revolution in asset management. The reportís author, WEF chief economist Augusto Lopez-Claros says Israel is attracting a growing number of foreign investors, and that there were extremely impressive developments in Israelís financial markets and that it now had developed along regional and international standards.
The WEF goes on to say that Israel benefits from innovation, supported by top-of-the-line higher education and scientific research institutions. Israel has become a global technology powerhouse, which has a huge impact on the rest of the economy, and is good news for the future. High-tech products comprise 70% of Israelís industrial exports, the highest proportion in the world.
Israelís lowest ranking is for macroeconomic policy, where is ranked 50th. Israel was ranked 29th in the institutions and basic requirements subindex. The report favorably notes Israelís fiscal policy and tax cuts. Israelís public spending/GDP ratio was 47.3% in 2005, above the OECD average of 41.8%, but the WEF favorably cites Israelís efforts to cut this ratio to 34.4% by 2010. Tax reforms instituted in mid-2005 boosted Israelís rating in the macroeconomic index to 17th place.
The WEF attributed the plunge in the USís ranking to sixth place, behind Switzerland, Finland, Sweden, Denmark and Singapore, to growing imbalances in some macroeconomic indicators, and the USís huge fiscal deficit is jeopardizing the countryís competitiveness.
The WEF ranking Switzerland as the worldís most competitive country, thanks to ďa combination of a world class capacity for innovation and the presence of a highly sophisticated business culture.Ē Rapidly growing emerging markets, which are changing the global balance of economic power, got middling rankings: India is ranked 43rd, China 54th, Russia 62nd, and Brazil 66th.
Published by Globes [online], Israel business news - www.globes.co.il - on September 27, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006
- Tel Aviv market report
- Tel Aviv Stock Exchange
- Israeli stocks in NY
- Arbitrage gaps for dual-listed stocks
- Israeli stocks in Europe
- Israeli stocks on other markets
- Tel Aviv 25 options
- Mutual funds
- Current representative shekel rates
- Historical representative shekel rates
- Bank shekel rates
- Shekel/dollar options