Nigeria drops to 127th position in global competitiveness

By IAfrica
In Nigeria
Sep 3rd, 2014
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Despite being Africa’s largest economy, Nigeria’s global competitiveness has dropped seven places to 127th position.

According to the Global Competitiveness Report 2014-2015, Infrastructure (human and physical) continue to be Nigeria’s toughest challenges.

The report attributed the decline in global competitiveness “to weakness in public finances (as a result of lower oil exports), continuing institutional frailty and deterioration in national security.”

The results the report said “are similarly mixed for other middle-income countries in the region. Lesotho (107th) and Cape Verde (114th) register the largest improvements, while Botswana (74th), Namibia (88th), Zambia (96th), Ghana (111th), Senegal (112th) and Swaziland (123rd) remain relatively stable.”

Among the oil-exporting economies, Gabon remains the highest-ranked economy (106th) followed by Cameroon (116th), with Nigeria, Angola (140th) and Chad (143rd).

Among Africa’s low-income economies, the report noted that Ethiopia made the biggest leap, rising nine places to 118th.

According to  Global Competitiveness Index, only three sub-Saharan countries (Mauritius, 39th; South Africa, 56th; and Rwanda, 62nd) scored in the top half of the world’s most competitive economies.

Of these, “Mauritius continues its strong upward trajectory of recent years, climbing six places. South Africa declined three places; it is now the third most competitive BRICS economy after China (28th) and the Russian Federation (53rd). Rwanda climbs four places.”

The report finds that “despite years of bold monetary policy, global economic growth remains at risk, as several countries struggle to implement growth-boosting structural reforms.”

In its annual assessment of the factors driving countries’ productivity and prosperity, the report stated that “the biggest obstacle to sustainable global growth is uneven implementation of structural reforms across different regions and levels of development.”

It also highlighted talent and innovation as two areas  which leaders of both public and private sectors needed to collaborate more effectively in order to achieve sustainable and inclusive economic development.

According to the report,  the United States improved its competitiveness position for the second consecutive year, climbing two places to third, on the back of gains to its institutional framework and innovation scores. Elsewhere in the top five, Switzerland led the ranking for the sixth consecutive year, Singapore remained second and Finland (4th) and Germany (5th) both drop one place.

They are followed by Japan (6th), which climbs three places, and Hong Kong SAR (7th), which remains stable. Europe’s open, service-based economies follow, with the Netherlands (8th) also stable and the United Kingdom (9th) going up one place. Sweden (10th) rounds up the top 10 of the most competitive economies in the world.

The report said: “Leading economies in the index all possess track records in developing, accessing and utilising available talent, as well as in making investments that boost innovation. “These smart and targeted investments have been possible thanks to a coordinated approach based on strong collaboration between the public and private sectors.”

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