In September, the World Economic Forum (WEF) released its highly anticipated 2015-2016 Global Competitiveness Index. The Index is based on the policies, institutions, and other factors that influence a nation’s productivity and relative level of prosperity. The World Economic Forum looks at indicators such as labor market efficiency, market size, education level, and technological readiness. A number of Asian countries moved up on the global competitiveness scale, reflecting Asia’s growing importance as a manufacturing and service region.
- Singapore, Japan, and Hong Kong were in the top 10 and gained the 2nd, 6th, and 7th spots respectively.
- Malaysia moved up to the 18th position, making it the highest ranked out of developing Asian countries.
- China moved up to the 28th position. Low levels of innovation and inefficient bureaucracy continue to drag down China’s competitiveness level.
- India moved up 16 places to reach the 55th position. Its higher ranking indicates its strong macroeconomic environment and gradually improving infrastructure.
- Vietnam improved by 12 spots to grab the 56th position. The WEF pointed to indicators that suggest Vietnam is moving towards an efficiency driven economy.
- Other Asian notables include Taiwan (15), South Korea (26), Thailand (32), and Indonesia (37).