Ireland slips to fourth in competitiveness rankings

Ireland is only behind Singapore, Switzerland, and Denmark in the rankings.

Ireland has slipped two places to fourth in the latest world competitiveness rankings due in part to an economic slowdown seen last year.

The rankings are set out in the Institute for Management Development’s (IMD) World Competitiveness Yearbook 2024.

Ireland had been placed second in the world in last year’s rankings but has now dropped to fourth behind Singapore in first, Switzerland in second, and Denmark in third.

Ireland is the most competitive country in the eurozone with the Netherlands the only other country in the top 10 that uses the currency. The Netherlands has dropped four places in this year’s rankings.

Hong Kong was ranked fifth, followed by Sweden in sixth, the United Arab Emirates in seventh, and Taiwan in eight. Norway was in 10th place.

The US gained three places to 12th while the UK gained one place to 28th.

The IMD rankings assess 67 economies around the world based on their competitive business environment.

The rankings are based on hundreds of indicators across four areas such as economic performance, government efficiency, business efficiency, and infrastructure.

According to the National Competitiveness and Productivity Council (NCPC), Ireland’s ranking in the areas of economic performance dipped due to a slowdown in gross domestic product (GDP) in 2023.

GDP, which is heavily influenced by the presence of the numerous multinationals based here, slowed down largely due to pharmaceutical activity returning to normal following the covid pandemic. 

“Ireland’s performance in terms of business efficiency continues to aid our competitiveness position,” the NCPC said.

Overall, in the area of economic performance, the country was down nine places to 10th. In business efficiency it stayed at third, in government efficiency it was down three places to sixth, and in infrastructure, it was up two places to 17th.

The NCPC said that Ireland’s fourth place is the second year in a row where Ireland placed in the top five.

“The competitive strengths which Ireland has developed –including its skilled workforce, business-friendly environment and strong institutions offering stability – continue to see Ireland compete effectively despite challenges in the international trading environment,” the NCPC said.

It added that addressing long-standing infrastructure issues such investing in energy infrastructure to allay high energy costs for businesses and households will enhance Ireland’s competitiveness position further.