CARACAS – Plagued by a harsh economic recession since 2013 and rampant hyperinflation since 2017, Venezuela led the rankings as the world’s least competitive economy for fourth year in a row, a report by the Institute for Management Development (IMD) World Competitiveness Center showed on Tuesday.
Notwithstanding, the South American nation showed some signs of improvement with regards to business efficiency as it ranked 60th this year from 62nd in 2019, supported by the progress in two sub-items: a) “attitudes and organizational values,” moving into the 52nd position from 61st a year ago and driven by “greater flexibility and adaptability of people when facing new challenges”; and b) “labor market,” also moving down to 56th from 61st a year ago.
This improvement is also explained by the results obtained by IMD’s “Executive Survey,” which is part of the report as well. Of a list containing 15 items, the people surveyed were asked to select 5 they perceived as key factors to their economy. Most responses went to: positive and open attitude (63.4%); effective labor relationships (61%); skilled labor (58.5%); high education level (56.1%); and cost competitiveness (48.8%).
The IMD rankings are based on four competitiveness aspects: economic development, government efficiency, business efficiency and infrastructure, taking also into account the results from the “Executive Opinion Survey,” in which business leaders are invited to share their views on the key factors driving their companies.
In other Latin American countries, Chile remained atop the rankings in the 38th place while the rest stood between the 50th and 60th positions, with Peru and Brazil faring slightly better than other nations such as Colombia and Argentina.