Slovenia Gains Six Spots in IMD Competitiveness Rankings

This means an improvement by six spots compared to 2014, mostly on account of high GDP growth and strong exports.

Presenting the institute's report in Ljubljana, Peter Stanovnik of the Institute for Economic Research explained that progress is even greater when considering the gap to the leading country, the US, has been reduced by 10 index points.

He however stressed along with other pundits present that a lot of work remains to be done, pointing out that Slovenia was still in 32nd place in 2009.

The IMD measures competitiveness in four areas, with Slovenia placing highest in infrastructure, where it ranked 33rd, down from 32nd last year.

A significant improvement was noted in economic performance, from 52nd to 42nd place, mostly on account of GDP growth, an increase in exports and better unemployment indicators. A risk noted is the potential relocation of company activities out of Slovenia.

The country is meanwhile still doing poorly in government efficiency, although it gained four spots to 52nd. The shortcomings listed include the tax burdens for labour, labour legislation, red tape, and state ownership of companies.

In business efficiency Slovenia is up two places to 56th, mostly on account of the country placing last in four categories: the effectiveness of supervisory boards, company debt, manager credibility and the openness of the national culture to foreign ideas. In bank and financial services support Slovenia places one but last.

According to the IMD, the main challenges faced by the country this year include healthcare reform, tax reform, structural challenges involving state-owned companies, the creation of a business-friendly environment and fiscal consolidation.

Source: TheSlovenianTimes