National competitiveness slips slightly, despite robust economic performance

Korea's global competitiveness moved down a notch to place 28th out of 64 countries this year, due mostly to a decline in government efficiency, a report showed Tuesday.

The result marks the country's lowest finish since 2019 when the country finished at the same rank due to lower marks in fiscal soundness and corporate regulations.

Overall, energy-exporting countries such as Qatar, Saudi Arabia and Bahrain made advancements in their ranking while European countries like Germany, UK and France had lower rankings, according to the 2023 report by the International Institute for Management Development (IMD).

The IMD, a Switzerland-based international institution, has been releasing the report every year since 1989 based on a country's economic achievements, infrastructure and government and corporate efficiency.

Among 27 nations with a population of 20 million or more, Korea ranked ninth this year, unchanged from last year.

By segment, Korea jumped from 22nd place to 14th in terms of economic performance despite global challenges, reaching an all-time high level.

The improvement was mainly attributable to robust performance in terms of the domestic economy, international investment, employment and prices, which offset losses from trade activities.

In contrast, Asia's No. 4 economy slipped two spots in terms of government efficiency over the period to 38th place, due mainly to weaker performances in public finance, tax policy and institutional framework.

The data also showed that business efficiency and infrastructure held steady at 33rd and 16th place, respectively, throughout the period.

The finance ministry said it was notable that the country's economic achievement rose to a record-high level on the back of the government's efforts to address global challenges.

Korea will continue to improve its health by adopting the fiscal rule, which centers on capping the deficit to 3 percent of the country's GDP, it added.

BY PARK EUN-JEE, YONHAP [park.eunjee@joongang.co.kr]