According to the new World Economic Forum Competitiveness Report, the biggest challenge to Colombia’s competitiveness is terrorism, followed closely by organized crime and violence.
Colombia ranks worst out of 144 countries around the world in the cost to business of terrorism, followed closely by the cost of organized crime (140th place), and the cost to business of crime and violence (136).
Colombia was ranked 69th overall with regard to competitiveness on the The Global Competitive Index (GCI), down one place from last year.
The GCI is the “accepted tool” for evaluating the potential for growth, productivity and efficiency of a country. By comparing 144 of the world’s countries it provides a picture into the comparative advantages of each. The variables used in the GCI are taken from statistical data collected from institutions such as the International Monetary Fund, the World Bank and other surveys.
Colombia’s position although it has dropped by one place is relatively stable on the index scale, the country scored 4.2 out of 7 on the GCI, the same as last year. For Colombia ranked 69th overall, any indicator ranked less than 51 is a competitive advantage
Colombia’s economy is continuing to improve steadily with a growth rate of 4.5% however this means unaddressed challenges that hinder competitiveness become more evident.
“Colombia should address these weaknesses and further leverage its strength in its increasing domestic market and relatively efficient financial market,” said the report.
“Looking forward, productivity improvements and private sector investment will be key to improving global economies at a time of heightened uncertainty about the global economic outlook,” said the report.
The Latin American and Caribbean area has put its short and medium term growth outlooks on a “glide path to steady growth,” according to the report. The region is expected to continue to outperform the rest of the world. Despite this, the area may encounter the effects of a slowing down in the rest of the world.
“Against this backdrop boosting national competitiveness by raising productivity is the best way to ensure economic growth over the longer term and increase the region’s resillience to economic shocks,” said the report.
Chile came in 33rd place in the report with, Panama in 40th, Brazil in 48th, Mexico 53rd, Argentina 94th and Venezuela 126th.
The top 10 countries were: Switzerland, Singapore, Finland, Sweden, Netherlands, Germany, United Kingdom, United States, Hong Kong and Japan.