SA’s competitiveness slips in global rankings

SOUTH Africa’s global competitiveness has slipped to position 62 out of 64 countries rated, according to the 2021 World Competitiveness Yearbook (WCY).

The slide is attributed to deteriorating headline and youth unemployment, rising public debt levels amid a shrinking fiscal space, the lack of decisive plans to revive the struggling economy, electricity supply problems, the slow rate of vaccinations to fast track the post Covid-19 recovery.

“Covid-19 pandemic has presented countries with new and far-reaching challenges for their local economies. Over and above the health crisis wrought by the pandemic, Covid-19 has diminished the ability of countries to facilitate a conducive environment in which business can thrive,” said the chief economist at Productivity SA, Leroi Raputsoane. The report is based on statistical data obtained from international and national sources.

The Institute of Management Development (IMD) WCY is an annual report that ranks the international competitiveness of 64 countries. Productivity SA is the information partner institute for the IMD in South Africa.

The report evaluates each country’s data based on about 346 distinct criteria, which are grouped into four factors, where South Africa, out of 64 selected countries, scored 61st on economic performance, government efficiency and infrastructure, but dipped to 58th on business efficiency.

The IMD said Switzerland topped the rankings, followed by Sweden, Denmark, the Netherlands and Singapore.

South Africa’s peers – the Brazil, Russia, China and South Africa (BRICS) bloc – were topped by China (20th), followed by India (43rd), Russia (45th) and Brazil (57th).