Although the grade itself has improved slightly, not enough is being done to keep up with other developing countries
The Global Competitiveness Report for 2015-2016 rates Croatia in 58th place, same as in the last report, with only three countries below it (Venezuela, Mongolia and Ukraine). Although the grade itself is slightly higher this year, Croatia has been in a downward trend since 2011, reports Tportal.hr on May 30, 2016.
“The report indicated that processes are changing rapidly on a global scale and our steps are inadequate to raise Croatia’s competitiveness rating, as other countries have advanced as well. Despite a better grade we’re still quite low, the weakest of all new EU members. Therefore, it is necessary to start processes which will improve our position and create conditions for investments and creating new jobs,” says President of the National Competitiveness Council Ivica Mudrinić.
The new report cites Hong Kong as the leading economy for the first time, jumping over the United States, currently in third place, with Switzerland in second, followed by Singapore, Sweden, Denmark, Ireland, The Netherlands, Norway and Canada.
The International Institute for Management Development from Lausanne, the publisher of the report, states the methodology is based on four factors of competitiveness – economy results, public sector efficiency, business sector efficiency and infrastructure as well as five indexes for each area.
Croatia’s improvements are seen in the improvement of the price index due to very low inflation, decline of rental prices for apartments and office space and an improvement of the social environment index due to favourable indicators of gender equality.
Declines are seen in the index of fiscal politics due to an increase in public debt and much lower poll estimates of public finances management and retirement politics as well as a deterioration of foreign investment index due to quite low level of foreign investment, a decrease in the index of technological infrastructure due to lower investments in ICT and lower poll estimates of policies of technological development.
Qualified work force, high education level, dependable infrastructure and price competitiveness are the most positive indicators, while the tax system, stability and predictability of politics, capability of government and efficiency of legal and business environments are the most negative ones, according to entrepreneurs taking part in the poll.