Belgium climbs to 13th place (up from 27th place in 2019) in the World Competitiveness Ranking, which analyses and ranks countries based on how they manage their competencies to achieve long-term value creation.
The top three spots among 64 economies measured for their global competitiveness go to Denmark, Ireland and Switzerland, but the report shows that Belgium has also progressed on all indicators, including economy, public management and infrastructure.
"An increasing number of countries are pursuing their own interests," said Professor Arturo Bris, Director of the WCC. "We are seeing winners and losers in a context in which multiple crises are overlapping and the world is increasingly divided between protectionist and open-trade economies."
Credit: World Competitiveness Ranking 2023
Similar to 2022, Europe excelled in the ranking, with five economies in the top 10. Apart from being smaller, the most competitive economies also tend to have strong and efficient institutions.
In terms of challenges in 2023, Belgium should do its best to absorb inflation impacts and avoid a price-wage spiral. For this, the correct application of the competitiveness law that restricts real wage rises is crucial, the report said.
Additionally, it should continue its efforts to reduce the tax wedge, address labour market shortages by promoting lifelong learning and better guidance towards STEM/technical jobs, increase investments in infrastructure and green and digital technologies, and improve unsustainable government finances by lowering expenditure and activating the large share of people on long-term paid sick leave.
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The Competitiveness Ranking is a tool for evaluating highly contrasting business environments and for assessing the impact of various public policies, among other things.
It is based on a mixture of hard data – 164 criteria for competitiveness, selected through comprehensive research using economic literature, international, national, and regional sources, plus feedback from the business community, government agencies, and academics – and 92 survey questions answered by 6,400 senior executives.
More information and the complete ranking can be found here.
