Portugal in 39th place in WCR
Portugal has risen three places from 42nd to 39th place in the IMD World Competitiveness Ranking which evaluates how competitive countries are around the world.
For the eighth consecutive year Porto Business School has been the exclusive partner in Portugal for IMD.
Denmark has once again come top of the ranking, followed by Ireland and Switzerland which occupy second and third place at the top of the league table.
IMD points out that the Portuguese economy has posted more positive results across all IMD macro indicators, particularly in economic performance, highlighting here international trade, government efficiency — particularly in the legislative and social structure of companies — and the efficiency of productive companies. The only exception was the quality of infrastructures which suffered a slight fall despite its contribution in the education sector.
In terms of macro indicators Portugal has a strong showing in some indicators in the ranking such as real growth in GDP per capita (4th), the concentration of exports per product (4th), revenues from tourism (9th), immigration laws (6th), the female labour force (5th), numbers enrolled in secondary education (3rd), and medical assistance (5th).
On the other hand, the main weaknesses in Portugal’s competitiveness was in direct foreign investment flows (57th), the credibility of Portugal’s company managers (60th), fuel prices (57th), and in technology exports (51st).
The World Competitiveness Ranking 2023 also identified four key challenges for the Portuguese economy in terms of competitiveness. The first is getting national GDP growth above the European Union average, supporting a real increase in wages and reversing the fall in GDP per capita.
It also recommends the development of a national strategy to promote management skills, digital transformation and energy transition to drive company competitiveness, the optimisation of reforms in the public sector, justice, health, education, and social security, quality public service provision, and reducing economic debt are also some of the aspects identified.
Finally, it calls for the application of a cross-party agreement on strategies for issues such as demographics and population ageing and the low birth rate.