Finland has dropped four places to 15th in the IMD Institute’s ranking of international competitiveness, according to a recent study. The decline was attributed to weak economic success, where Finland fell to 50th place. Despite improvements in international trade, other areas of the comparison saw a weakened ranking. In the overall index, Finland has fallen seven places since 2022, indicating a negative trend in its competitiveness.
The IMD competitiveness index evaluates how countries and companies utilize their resources to create wealth or profits. It considers economic success, public administration efficiency, business performance, and infrastructure as key factors. According to researcher Ville Kaitila from Etla, Finland’s economic situation was impacted by factors such as GDP, investments, and the unemployment rate and contributed to its lower ranking. However, with expected improvements in these areas, Finland is predicted to rebound in the coming years.
Economic challenges such as rising interest rates and external events like the Russian war of aggression influenced Finland’s economic performance. Despite these difficulties, optimism remains for improvement in the near future. The fluctuations in competitiveness rankings can vary each year but Finland’s decline by a total of seven places in two years is significant according to Kaitila.
Finland’s ranking in the IMD comparison was also affected by public administration efficiency, business performance and infrastructure each crucial factor that determines a country’s overall competitiveness. With continuous monitoring and improvement efforts