Israel up 3 places in World Competitiveness rankings

Israel has risen from 40th to 25th place in the international investment category. The US remains overall number one.

Israel's economy has climbed three places to 21st place in the World Competitiveness Yearbook rankings, published by the International Institute for Management Development (IMD), which is based in Lausanne, Switzerland.

The survey, which was published today, ranks 55 countries according 323 economic criteria, and is based on data collated from business entities worldwide. Israel is ranked in 20th place for economic strength, unchanged from last year. However, it has climbed 20 places, from 45th to 25th in the ratings for international investment.

Federation of Israeli Chambers of Commerce president and IMD Israel representative Uriel Lynn said, "The ratings components clearly show a rise in the economy's service and personal entrepreneurship components, leveraging the relative advantages that Israel's economy has."

The survey assesses each country's performance according to four main measures: economic efficiency, government efficiency, business efficiency, and infrastructure. Israel dropped two places to 33rd in the economic efficiency rankings. It rose two places to 25th place in the government efficiency rankings, and climbed to 16th from 24th place in the rankings for business efficiency. It rose by just one place to 14th place in the infrastructure rankings.

Israel fell eight places to 26th place in the rankings of real increase in GDP. It also dropped eight places to 33rd place in the rankings of GDP per capita in dollar terms. However, it climbed 29 places to 6th place in the rankings of the proportion of direct foreign investment to GDP.

The US continues to top the tables, followed in second place by Singapore and in third place by Hong Kong. China rose three places to 15th place. Other countries that have climbed up the IMD rankings this year are Germany, the Netherlands, Luxembourg, and Sweden. On the other hand, South Africa, Japan, Finland and Australia were all ranked lower than last year.

IMD World Competitiveness Center director Prof. Stephane Garelli said, "Economic and business power is shifting to new countries: China, Russia and India have together stacked up more than $1,700bn in foreign currency reserves. Local companies from South-East Asia, India, China, Russia and the Gulf countries are buying industrial assets the world over.

"In all likelihood, industrialized nations will find it hard to tolerate such a power shift. They will not accept the loss of some of their “business jewels” to newcomers without a fight. We shall thus face a year of rising protectionist measures. An increase in the number of complaints filed at the WTO for unfair practices can be expected.

"But the new faces of protectionism will be subtler than in the past: corporate governance, environmental protection, intellectual property or social rights are the new key words. In 2007 and beyond, economic relations will be more tense than ever as emerging markets turn into emerging powers and challenge the established order for competitiveness," Professor Garelli warned.

Published by Globes [online], Israel business news - www.globes.co.il - on May 10, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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