ISP: Slovakia Falls to 63rd Place in Competitiveness Ranking

Bratislava, 21 June (TASR) - Slovakia dropped to 63rd place out of 69 countries in this year’s global competitiveness ranking, falling four spots from last year’s 59th place, due to growing structural challenges and insufficient response to changing global conditions, according to the Swiss Institute for Management Development (IMD) published by the Institute of Freedom and Entrepreneurship (ISP) earlier this week. “The evaluation points to a slowdown in economic growth, high energy costs, a shortage of labour in key sectors, as well as inefficient consolidation of public finances. According to the survey respondents — owners and managers of companies in Slovakia — the main factors contributing to Slovakia’s attractiveness still include the presence of qualified labour, cost competitiveness compared to other countries, and access to finance,” clarified ISP chairman Jan Oravec. On the other hand, entrepreneurs view the country most negatively due to political instability, exchange rate developments, and a slowdown in gross fixed capital formation. To reverse these negative trends, Slovakia must invest more in research, innovation, and technological development, reduce energy intensity, and reform the tax system to support entrepreneurship and productivity, Oravec said. The state should also strengthen the labour market and improve conditions for the return and retention of skilled workers. Slovakia’s economy faces major challenges, including high energy costs, inflation, a shortage of skilled workers, ineffective tax-focused consolidation, and slowing growth — with the automotive sector particularly vulnerable to U.S. tariffs. Switzerland ranked first in the competitiveness index, followed by Singapore and Hong Kong. Other countries in the top ten included Denmark, the United Arab Emirates, Taiwan, Ireland, Sweden, Qatar, and the Netherlands. The Czech Republic in 25th place, improved by four spots compared to last year. lin/mcs/ko