The World Competitiveness Center School of Business IMD in Switzerland (© IMD World Competitiveness Center) has today published the IMD World Competitiveness Yearbook 2022 which assesses the competitiveness of 63 economies. The Centre for Economic Research of the University of Cyprus and the Federation of Employers and Industrialists (OEB) participate in this project as partner organisations of the World Competitiveness Centre.
According to the announcement of the University of Cyprus, where the report of the Centre is presented in detail, this decline shows that the rise in the ranking of Cyprus in 2020 was due to temporary factors.
This year's decline is largely due to the deterioration of Cyprus' economic performance, mainly as a result of reduced domestic and international investment, increased inflation, a current account deficit and deteriorating terms of trade.
More generally, as noted, Cyprus' position is weighed down by the three factors. First, low business efficiency due to weaknesses related to, inter alia, the implementation of digital transformation, changing market conditions, corporate social responsibility and attracting talented employees.
Second, inadequate scientific and technological infrastructure, and third, the reduced efficiency of the state due mainly to deficiencies in the institutional framework.
This year's ranking of Cyprus, says the report's executive summary, highlights the factors that limit the competitiveness of businesses and the country.
Some factors are linked to exogenous disruptions such as for example the COVID-19 pandemic, Russia's invasion of Ukraine, and sanctions against Russia, which affect each country to different degrees and it is too early to determine to what extent the effects are permanent or transitory.
Nevertheless, it is noted, several factors weighing on competitiveness are related to long-standing weaknesses that are being addressed through the implementation of reforms. Reforms, it adds, that accelerate the digital transition, strengthen technological and scientific infrastructure and improve the institutional framework are expected to strengthen competitiveness and make the economy more resilient to technological and environmental challenges, as well as more resilient to crises.
Source: CNA
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