Irish economy slips two places to 19th in world competitiveness rankings

IRELAND has become less competitive, slipping two places in global rankings and out of the top 20.

The World Competitiveness Yearbook 2010, published by Swiss business school Institute for Management Development, placed Ireland in 21st spot.

It said it will take more than 10 years for the country’s public debt load to become manageable. It believes Ireland’s national debt will not fall below 60% of GDP until 2021.

The institute ranks the Republic at number 13 on another list that rates the seriousness of individual countries’ debt problems. Greece was in seventh spot and Portugal at number three. Spain was ranked at number 17.

The yearbook said Ireland entered the real estate and the financial crisis earlier than other locations and has already implemented a recovery plan. It said Ireland traditionally has a strong export performance but its “reasonable” debt level of 64% will deteriorate with a 14.3% budget deficit.

The US has been ousted from the top spot by Singapore and Hong Kong, according to the findings.

It said Greece, Portugal and Spain have a credibility problem because of their low economic growth rates. These growth rates, it said, will reduce their ability to pay off their debts.

The institute excuses Ireland on this front but said debts will still limit Ireland’s competitiveness and citizens’ purchasing power.

Fine Gael finance spokesman Richard Bruton said Ireland has undergone eight years of competitive decline because the Government “simply forgot what it takes for a small, open economy to survive in a fixed currency regime”.