IMD World Competitiveness Yearbook:  Taiwan finishes sixth out of 64 economies

　Switzerland-based International Institute for Management Development (IMD) released the 2023 IMD World Competitiveness Yearbook showing that Taiwan comes in sixth among the 64 economies assessed in the latest world competitiveness rankings, achieving its highest ranking in the World Competitiveness Yearbook since 2012.  Taiwan’s ranking in overall performance has been improved for five straight years, and hence, makes Taiwan the most competitive for three consecutive years among the economies with a population of 20 million or more.  

　Of the four main categories used to grade an economy’s overall competitiveness, Taiwan advances two spots in the rankings of the main categories of “government efficiency” and “business efficiency” to the 6th and 4^th, respectively, and also moves up one place to the 12^th in the category of “infrastructure”.  The country does not display its competitiveness in the category of “economic performance”, declining nine places to the 20^th.   

　In the rankings compiled by the 20 medium-categories, Taiwan places among the top five worldwide for “business management” and “scientific construction”, and also ranks among the top three in the rankings of a number of subcategories; for example, Taiwan tops the rankings of the subcategories of “4G & 5G market, % of mobile market” and “R&D personnel per thousand people”.  
　　
Summary of Taiwan’s showing in the four main categories:  

1.  Economic Performance:  Drop in the ranking from no. 11 in 2022 to no. 20 in 2023 

Taiwan’s ranks slip in the medium-categories of “domestic economy” and “international trade” due to the stagnant global economy, the drop in market demand, the inventory adjustments in the manufacturing industry, and the country’s relatively high baseline of economic growth rate seen in 2022.  On the contrary, Taiwan places 3^rd in the subcategories of “complexity index”, 5^th in “economic resilience”, and 9^th in “gross fixed capital formation to GDP ratio”, the high rankings that are attributable to Taiwan government’s policies for enhancing economic resilience and elevating domestic investment.  Also with respect to the issue of inflation, Taiwan advances seven spots to the 10^th in the subcategory of “prices”, and such improvement comes after Taiwan government’s efforts to stabilize the prices of commodities and the prices of oil and electricity.  

2.  Government Efficiency:  Rise in the ranking from no. 8 in 2022 to no. 6 in 2023

Taiwan makes progress in the medium category of “public finance” to no. 6, which reflects Taiwan government’s sustained efforts to lower government debts and bolster financial soundness.  As opposed to the slight retreat in the rankings of “institutional framework”, “business legislation”, and “societal framework”, Taiwan’s performance in the subcategories of “consumption tax rate”, “real personal taxes”, and “cost of capital” ranks highly at no. 4.  

3.  Business Efficiency:  Improvement in the ranking from no. 6 in 2022 to no. 4 in 2023

  Taiwan’s progresses in the medium categories of “business efficiency” is reflected in its improved positions in the rankings of “productivity & efficiency” (at no. 7), “finance” (at no. 6), “management practices” (at no. 3), and “attitudes & values” (at no. 7).  The country beats other global peers to grab the top spot in the rankings of sub-categories of “managers’ entrepreneurship”, “credibility of managers in society”, “companies are very good at responding quickly to opportunities and threats”, “use of big data and analytics to support decisions-making”, “corporate boards supervise the management of companies effectively”, and “customer satisfaction”.  Also, Taiwan presents its excellent performance by ranking 4^th in the sub-categories of “banking sector assets”, “use of digital tools and technologies”, etc..  However, Taiwan is comparatively weak in the sub-category of “labor market”, falling from no. 8 to no. 25.  In addition, Taiwan’s outstanding workforce that keeps up and sustains the country’s development is recognized in the ranking of “worker motivation” to claim the 4^th position.  

4.  Infrastructure:  Progress from no. 13 in 2022 to no. 12 in 2023 

  Taiwan remains stable at no. 37 in the main category of “infrastructure”, and its advancement in the rankings of “technological infrastructure”, “scientific infrastructure”, and “health & environment” manifests that Taiwan’s scientific research ability, technological strength, and innovative achievements have been fully affirmed.  Moreover, Taiwan surpasses other countries in the sub-categories of “4G & 5G market, % of mobile market” and “R&D personnel per 1000 people”, and also remains strong to be among the best of the rankings of “total expenditure on R&D”, “business expenditure on R&D (%)”, “medium- and high-tech value added”, and “sustainable development”.  (Released 2023.06.20) 
/CCS