Ireland 2nd in Competitiveness Ranking, but Infrastructure deficits persist
Much has been written on what Government should do with windfall surpluses in Budget 2024, with talk of tax cuts and sovereign wealth funds dominating much debate. However, the latest World Competitiveness Report, where Ireland's ranking on basic infrastructure remains stubbornly low, makes a compelling case for infrastructure investment.
The International Institute for Management Development recently published the World Competitiveness Rankings for 2023. Each country’s ranking is based on an analysis of 333 indicators derived from four main factors: economic performance, government efficiency, business efficiency and infrastructure. The Top 20 countries for 2023 is shown below. Ireland is at number 2, up 9 places on 2022.
Table 1: IMD World Competitive Rankings 2023, Top 20
| 2023 Ranking | Country | 2022 Ranking | Ranking Change |
| 1 | Denmark | 1 | - |
| 2 | Ireland | 11 | +9 |
| 3 | Switzerland | 2 | -1 |
| 4 | Singapore | 3 | -1 |
| 5 | Netherlands | 6 | +1 |
| 6 | Taiwan, China | 7 | +1 |
| 7 | Hong Kong, SAR | 5 | -2 |
| 8 | Sweden | 4 | -4 |
| 9 | USA | 10 | +1 |
| 10 | UAE | 12 | +2 |
| 11 | Finland | 8 | -3 |
| 12 | Qatar | 18 | +6 |
| 13 | Belgium | 21 | +8 |
| 14 | Norway | 9 | -5 |
| 15 | Canada | 14 | -1 |
| 16 | Iceland | 16 | - |
| 17 | Saudi Arabia | 24 | +7 |
| 18 | Czech Republic | 26 | +8 |
| 19 | Australia | 19 | - |
| 20 | Luxembourg | 13 | -7 |
Source: IMD World Competitiveness Center, www.imd.org
While our overall high ranking is good news, our ranking on basic infrastructure remains stubbornly low, at just 29th.
Challenges relating to Ireland identified in the report refer to:
- Global economic uncertainty and sector-specific headwinds.
- Persistent inflation, including high energy costs.
- Rising interest rates.
- Continued capacity constraints, including in housing, construction sector, and infrastructure.
- Risk of geopolitical economic fragmentation.
As we approach Budget 2024, it is crucial that Ireland invest in basic infrastructure to address deficits in areas such as housing, healthcare, energy and transport.