Nepal still is the third competitive economy in the South Asia after India, Sri Lanka snd Bangladesh, though with 51.9 score, Nepal has stepped up by one rank – to to 108 – from last year, in the Global Competitiveness Index 2019. Nepal ranked at 109 with 50.8 score in the Global Competitiveness Index 2018.
Nepal was the 109th most competitive nation in the world out of 140 countries ranked in the 2018 edition of the Global Competitiveness Report. Competitiveness rank in Nepal averaged 115.42 in a decade – from 2007 until 2018 – reaching an all time high of 130 in 2011 and a record low of 100 in 2016.
Likewise, In South Asia, India ranks in 68th followed by Sri Lanka (the most improved country in the region at 84th), Bangladesh (105th), Bhutan (82-2018 ), Nepal (108th) and Pakistan (110th). India has moved down 10 places to rank 68th on an annual global competitiveness index, largely due to improvements witnessed by several other economies, while Singapore has replaced the US as the world's most competitive economy.
Despite recording three successive years of high economic growth, macro-economic stability and average annual gross domestic product growth of 4 per cent in the past decade, Nepal ranks 108th out of 141 economies and is the worst performer in South Asian region in terms of competitiveness, the report by the World Economic Forum (WEF) revealed. The annual assessment report, Global Competitive Report 2019 published today measures national competitiveness based on the state of institutions, policies and factors that determine an economy’s productivity.
Out of the total competitiveness score of 100 or the ‘frontier’ where productivity constraints cease to exist, Nepal has gained 51.6 points – far below India (68th) with 61.4 points and Srilanka (84th) with 57.1 points – and the global average of 60 points.
The economy performed poorly in terms of innovation capability, information, communication and technology adoption, product market development, judicial independence and government’s long-term vision, iut reads, adding that Nepal has performed better in indicators such as macro-economic stability, road connectivity, electricity access and supply, despite its low rank.
The report appears amid fears of slowing economic growth in Nepal owing to a drop in manufacturing and foreign direct investment, despite government claims that it has improved the investment climate by reforming over a dozen laws in a year. Figures show that the country's investment outlook has remained bleak despite political and macroeconomic stability. According to the central bank, the inflow of foreign investment plummeted by 25 per cent to Rs 13.07 billion in the last fiscal year from Rs 17.5 billion in 2017-18. Likewise, industry registrations fell to 436 in the last fiscal year from 498 in the previous year, the total committed investment dropped to Rs 282 billion from Rs 350 billion in the previous year, and foreign direct investment (FDI) pledges also nosedived to Rs 24 billion from Rs 56 billion, according to the Department of Industry.
The 2019 index that offers insight into economic prospects ranks 141 economies accounting for 99 per cent of the world’s GDP based on 103 factors of productivity related to 12 pillars of infrastructure, institutions, ICT adoption, macroeconomic stability, health, skills, product market, labour market, financial system, market size, business dynamism, innovation and capability.
According to the World Economic Forum, the report demonstrates that despite central banks injecting nearly $10 trillion into the global economy 10 years on from the financial crisis, productivity-enhancing investments such as new infrastructure, research and development and skills development in the current and future workforce have been suboptimal.
“The global economy is ill-prepared for a downturn after a lost decade for productivity-enhancing measures,” the report reads, adding that monetary policy may have run out of steam and some countries are facing a liquidity trap. “Furthermore, the geopolitical context is more challenging than in 2007, with gridlock in the international governance system, and an escalating trade and geopolitical tensions fuelling uncertainty, which holds back investments, and increases the risk of supply shocks.”
According to the report, Asia-Pacific is the most competitive region in the world with Singapore as the most competitive economy, followed closely by economies in Europe and North America and Nordic countries are among the world’s most technologically advanced, innovative and dynamic while also providing better living conditions and social protection.
With a score of 84.8 out of 100, Singapore is the country closest to the frontier of competitiveness
Other G20 economies in the top 10 include the United States (2nd), Japan (6th), Germany (7th) and the United Kingdom (9th) while Argentina (83rd, down two places) is the lowest ranked among G20 countries
The Global Competitiveness Report 2019: How to end a lost decade of productivity growth paints a gloomy picture, yet it also shows that those countries with a holistic approach to socio-economic challenges, look set to get ahead in the race to the frontier.
Persistent weaknesses in the drivers of productivity growth are among the principal culprits. In advanced, emerging and developing economies, productivity growth started slowing in 2000 and decelerated further after the crisis. Between 2011 and 2016, ‘total factor productivity growth’ – or the combined growth of inputs, like resources and labour, and outputs – grew by 0.3 per cent in advanced economies and 1.3 per cent in emerging and developing economies.
Nepal was the 109th most competitive nation in the world out of 140 countries ranked in the 2018 edition of the Global Competitiveness Report. Competitiveness rank in Nepal averaged 115.42 in a decade – from 2007 until 2018 – reaching an all time high of 130 in 2011 and a record low of 100 in 2016.
Likewise, In South Asia, India ranks in 68th followed by Sri Lanka (the most improved country in the region at 84th), Bangladesh (105th), Bhutan (82-2018 ), Nepal (108th) and Pakistan (110th). India has moved down 10 places to rank 68th on an annual global competitiveness index, largely due to improvements witnessed by several other economies, while Singapore has replaced the US as the world's most competitive economy.
Despite recording three successive years of high economic growth, macro-economic stability and average annual gross domestic product growth of 4 per cent in the past decade, Nepal ranks 108th out of 141 economies and is the worst performer in South Asian region in terms of competitiveness, the report by the World Economic Forum (WEF) revealed. The annual assessment report, Global Competitive Report 2019 published today measures national competitiveness based on the state of institutions, policies and factors that determine an economy’s productivity.
Out of the total competitiveness score of 100 or the ‘frontier’ where productivity constraints cease to exist, Nepal has gained 51.6 points – far below India (68th) with 61.4 points and Srilanka (84th) with 57.1 points – and the global average of 60 points.
The economy performed poorly in terms of innovation capability, information, communication and technology adoption, product market development, judicial independence and government’s long-term vision, iut reads, adding that Nepal has performed better in indicators such as macro-economic stability, road connectivity, electricity access and supply, despite its low rank.
The report appears amid fears of slowing economic growth in Nepal owing to a drop in manufacturing and foreign direct investment, despite government claims that it has improved the investment climate by reforming over a dozen laws in a year. Figures show that the country's investment outlook has remained bleak despite political and macroeconomic stability. According to the central bank, the inflow of foreign investment plummeted by 25 per cent to Rs 13.07 billion in the last fiscal year from Rs 17.5 billion in 2017-18. Likewise, industry registrations fell to 436 in the last fiscal year from 498 in the previous year, the total committed investment dropped to Rs 282 billion from Rs 350 billion in the previous year, and foreign direct investment (FDI) pledges also nosedived to Rs 24 billion from Rs 56 billion, according to the Department of Industry.
The 2019 index that offers insight into economic prospects ranks 141 economies accounting for 99 per cent of the world’s GDP based on 103 factors of productivity related to 12 pillars of infrastructure, institutions, ICT adoption, macroeconomic stability, health, skills, product market, labour market, financial system, market size, business dynamism, innovation and capability.
According to the World Economic Forum, the report demonstrates that despite central banks injecting nearly $10 trillion into the global economy 10 years on from the financial crisis, productivity-enhancing investments such as new infrastructure, research and development and skills development in the current and future workforce have been suboptimal.
“The global economy is ill-prepared for a downturn after a lost decade for productivity-enhancing measures,” the report reads, adding that monetary policy may have run out of steam and some countries are facing a liquidity trap. “Furthermore, the geopolitical context is more challenging than in 2007, with gridlock in the international governance system, and an escalating trade and geopolitical tensions fuelling uncertainty, which holds back investments, and increases the risk of supply shocks.”
According to the report, Asia-Pacific is the most competitive region in the world with Singapore as the most competitive economy, followed closely by economies in Europe and North America and Nordic countries are among the world’s most technologically advanced, innovative and dynamic while also providing better living conditions and social protection.
With a score of 84.8 out of 100, Singapore is the country closest to the frontier of competitiveness
Other G20 economies in the top 10 include the United States (2nd), Japan (6th), Germany (7th) and the United Kingdom (9th) while Argentina (83rd, down two places) is the lowest ranked among G20 countries
The Global Competitiveness Report 2019: How to end a lost decade of productivity growth paints a gloomy picture, yet it also shows that those countries with a holistic approach to socio-economic challenges, look set to get ahead in the race to the frontier.
Persistent weaknesses in the drivers of productivity growth are among the principal culprits. In advanced, emerging and developing economies, productivity growth started slowing in 2000 and decelerated further after the crisis. Between 2011 and 2016, ‘total factor productivity growth’ – or the combined growth of inputs, like resources and labour, and outputs – grew by 0.3 per cent in advanced economies and 1.3 per cent in emerging and developing economies.
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