LAUSANNE, Switzerland, May 30, 2016 /PRNewswire/ --
The IMD World Competitiveness Center has laid bare the plight of Latin America's economies by including only Chile in the top 40 of a ranking of the world's most economically competitive countries.
The prestigious World Competitiveness Ranking, published each year since 1989 from IMD business school , is widely regarded as the foremost analysis of its kind.
The 2016 edition ranks Chile 36th out of 61 nations - a fall of one place from its position last year - with all of the region's other representatives confined to the bottom 20.
Mexico (45th) and Brazil (56th) have both slipped down the table, with Colombia maintaining its position of 51st, and only Argentina - up from 59th to 55th - climbing. Venezuela remains in last place.
At the other end of the ranking, China Hong Kong has defied a pattern of decline in Asia to displace the USA as the world's most competitive economy for the first time in three years.
Switzerland claims second position, the USA drops to third, and Singapore, Sweden, Denmark, Ireland, the Netherlands, Norway and Canada round out the top 10.
Commenting on Latin America's woes, Professor Arturo Bris, Director of the IMD World Competitiveness Center, said: "The public sector continues to be a drag on these economies.
"It's notable that Chile is the only Latin American economy not in the bottom 20 and that Argentina is alone among the region's nations in improving its position since last year.
"The common pattern among all of the countries in the top 20 is their focus on business-friendly regulation, physical and intangible infrastructure and inclusive institutions.
"At the present time no Latin American economy comes close to possessing these qualities to anything like the extent required to make significant progress up the ranking."
IMD analyses over 340 criteria derived from four principal factors - economic performance, government efficiency, business efficiency and infrastructure - to produce its ranking.
Responses from an in-depth survey of more than 5,400 business executives are also taken into consideration.
While Brazil once showed promising hopes to develop into a superstar among Latin economies, its performance dwindles.
"The main factor for Brazil's decline is its economic performance. A sluggish GDP growth, rising unemployment, an increase in the perception about relocation-threats in combination with increasing risks for investors have greatly impacted the economy," Bris said.
A full breakdown of the ranking is available at https://worldcompetitiveness.imd.org/Press/ - Please contact IMD media relations for login credentials.
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SOURCE IMD International