A recently published survey of business executives from across the world has revealed Colombia has lost economic competitiveness in the last year, according to local media reports on Thursday morning.
On Thursday, the IMD World Competitiveness Center announced the findings of its annual World Competitiveness Yearbook. The rankings measure how well countries manage their economic and human resources to increase their prosperity.
Strong economic results have not translated into success in the international rankings in competitiveness, that is, how well Colombia does in comparison to other countries in the same markets.
According to the report, Colombia regressed from 48th place in 2013 to 51st in 2014.
In the rankings of economic performance, Colombia jumped from 37th to 40th position, despite being the sixth country with the best rate of global growth last year at 4.3%.
The Swiss Institution makes its measurements based on perception surveys of company executives.
Regarding Colombia, they have reflected a lack of confidence in the institutions of the country.
The worst results were those of perception, and the one that had the greatest deterioration was the risk of political instability in the country which was ranked at 50. Other issues such as personal security, private property and equality of opportunity also listed as factors which influenced people when ranking Colombia for economic competitiveness.
Arturo Bris, director of the World Competitiveness Center at IMD, speaking with El Colombiano said that perceptions largely determine the overall performance, as foreign investment depends on the brand and country.
He said that, “in Colombia it is now improved.”
Colombia’s “image abroad” was ranked 39th ahead of Mexico and Israel.
However, he emphasized that often the poor image among executives is due to the lack of confidence that they have in political and economic institutions, which is often a symptom of instability and risk.
The IMF predicted economic growth of 4.3% for 2014, however as the IMD report suggested this will not necessarily lead to a higher ranking in economic competitiveness