Taiwan moved up three spots from last year to place eighth, its best performance since 2013, in the latest annual world competitiveness rankings, released yesterday by the International Institute for Management Development (IMD).
Innovation, digitalization, welfare benefits and social cohesion are critical to economic performance, with Switzerland, Sweden, Denmark, the Netherlands and Singapore making up the top five on the list this year, the Switzerland-based institute said, after grading 64 countries and regions based on economic performance, infrastructure, and government and business efficiency.
“Leading performers are characterized by varying degrees of investment in innovation, diversified economic activities and supportive public policy,” IMD World Competitiveness Center director Arturo Bris said in a statement.
Strength in these areas prior to the COVID-19 pandemic allowed these economies to cope with the economic implications of the virus crisis more effectively, Bris said.
Taiwan improved in all four areas, with its economic performance making the biggest leap from 17th to sixth place, the report showed.
It is one of the few economies that registered concrete GDP growth last year and continues to thrive this year.
Taiwan’s business efficiency also improved significantly, moving from 12th to seventh place, IMD said, adding that the nation moved up one place in government efficiency and infrastructure to eighth and 14th place respectively.
Taiwan faces various challenges, including the promotion of technology innovation and enhancing its international cooperation, as well as improving domestic and foreign investment, to seize opportunities created by a global recovery in the post-pandemic era, IMD said.
Taiwan needs to cultivate, retain and recruit digital talent, the institute said, adding that it also needs to foster social cohesion and social inclusion.
In addition, Taiwan has to reinforce energy saving and carbon reduction to ensure environmental sustainability, in line with a major global trend, it said.