Bad: Argentina is the third least competitive country in the world

The IMD ranking, established since 1989 and in which Argentina has been considered since 1994, ranks the country 61st out of 63 nations.. It's true that he's always stayed in the last places. In fact, between 2002 and 2004, he was placed in the second most unfavorable stage and, after going back in 2012 and 2013, he returned to the last places. Then, there was an improvement in 2016, but the devaluation and the crisis caused a further collapse.

IMB Competitiveness Ranking 2019.jpg

Report of the DGI.

The ranking is based on 235 indicators, between "essential" statistics such as unemployment, GDP and public spending on health and education, and "general" data from a survey conducted by Opinion among the leaders and who were 70 in the case of companies. Argentina This information is divided into four categories: economic performance, infrastructure, government effectiveness and trade efficiency, to give a final score for each country.

The best ratings for the country were in the infrastructure and efficiency of the business. The report highlights as positive the concentration of exports, fuel prices, cost of living and direct investment flows relative to Argentina's GDP. The negative is inflation and the current account balance, among other variables.

In addition, in the category "government efficiency", the IMD highlights immigration policies, disposable income, the effective rate of personal income tax, tax revenues collected and foreign investors. The main weaknesses are the instability of the exchange rate and the cost of capital, the policy of the Central Bank, subsidies, investment incentives, public finances, the financing of pensions and the regulation of the economy. job.

With respect to business efficiency, the study highlights executive pay – as devaluation wages fell in dollars -, changing market conditions, compensation for professional services, levels of compensation, threats and opportunities, skilled work, flexibility and adaptability. And it has its worst credit ratings and the need for economic and social reforms, where it ranks last, banking and financial services, image of the country abroad and customer satisfaction, among others.

IMD positively qualifies investment in telecommunications, the cost of electricity for industries and the relationship between the number of teachers and students, among others. But he considers low the number of graduates in science and engineering, and the total investment in education.

The entity recommends that Argentina maintain the expected rate of reduction of the real government deficit, taking into account the rate of economic growth, and reduce the monetary costs of creating jobs in the sector. formal. It also argues that economic recovery and stability must also take into account the social safety net.

Asia at the top, Latin America relegated

As for the overall standings, Singapore was ranked first at the top of the standings, which put the United States in third place ahead of Hong Kong. The top five is completed with Switzerland and the United Arab Emirates.

Among Chile's neighbors, Chile stands out as the best in the region. Brazil is in 59th place after climbing one stage compared to 2018.