Denmark comes out on top in the 34th edition of the IMD World Competitiveness Ranking, followed by Switzerland and Singapore. Luxembourg is in 13th position, losing one place compared to 2021 when it ranked 12th.
Strong economic performance
In terms of economic performance, Luxembourg ranks as the most competitive country in the world. This is a considerable improvement from 2021, when it ranked 10th. The country ranks 13th for government efficiency, 20th for business efficiency and 24th for its infrastructure.
The World Competitiveness Ranking is based on statistical analyses as well as on an opinion survey answered by 5,500 executives in the 63 countries covered. The opinion survey indicates that the three most important trends impacting business in 2022 are inflationary pressures, geopolitical conflicts and supply-chain bottlenecks.
Mitigating the effects of the rising inflation on business profitability and household purchasing power is also one of the challenges that Luxembourg needs to rise to in 2022 according to the Luxembourg Chamber of Commerce, which cooperates with IMD in the realisation of the study. Other Luxembourg challenges listed by the Chamber of Commerce include accelerating the green transition towards a sustainable and decarbonised economy, moving from an extensive economy to an economy characterised by more qualitative growth, addressing difficulties faced by companies to find and retain talent and significantly increasing the housing supply to meet the high demand.