Compared to other rich countries, Denmark saw more investments flowing in, kept prices down and strengthened its public finances even during the trying times of COVID. For these and many more reasons, Denmark has shot to the top of the “2022 World Competitiveness Ranking” compiled by the Swizz business school IMD. By Jes Andersen.
Many factors contribute to first place
IMD (International Institute for Management Development) describe themselves as an independent academic institution with Swiss roots and global reach. They have published their data driven index for 34 years and Denmark has placed in the top ten for a decade. This year, however, the country shot to the top, thanks to a combination of qualities.
Denmark is the most digitally advanced country in the world and now takes the top spot thanks to good policies, advantages afforded by being a European country, a clear focus on sustainability and a push from its agile corporate sector”: Arturo Bris, professor, IMD.
Encouraging value creation
According to the IMD World Competitiveness Center, an economy’s competitiveness cannot be reduced only to GDP and productivity. Enterprises also must cope with political, social and cultural dimensions. Governments therefore need to provide an environment characterized by efficient infrastructures, institutions and policies that encourage sustainable value creation by the enterprises.
Efficient government, healthy people
Denmark performed robustly in government efficiency – particularly in its institutional framework (2nd), business legislation (3rd) and societal framework (2nd). The country’s improvements in health-related indicators – such as life expectancy at birth and the universal health coverage index was also significant to its excellent performance in the rankings.
Wealth and stability leads to higher return on investment
Competitiveness describes a country’s level of productivity. More productive countries can create greater wealth, higher living standards and more happiness for their citizens. They also offer greater returns on investment. Finally, competitiveness implies economic stability and resilience.
Outstanding business performance
The World Competitiveness Ranking is based on 333 competitiveness criteria. Denmark won this year’s place because it performed outstandingly in the business efficiency factor (1st), in productivity and efficiency (1st) and in management practices (1st) sub-factors. Denmark pushes Switzerland from the top spot.