ECONOMY

Greece drops another place in IMD competitiveness chart

greece-drops-another-place-in-imd-competitiveness-chart

Greece last year found itself back at its worst ever level in terms of competitiveness – last seen in 2012 – according to the global chart compiled by the International Institute for Management Development (IMD).

The results of the Swiss-based institute’s survey, published on Tuesday, showed Greece was sixth worst among 63 countries, or 58th from the top, down from 57th in last year’s chart.

Greece’s slide back to the 2012 level – where the results concerned the year 2011 – is worrying for two main reasons: First, because the intense fiscal adjustment has done nothing to improve the competitiveness of the Greek economy or render the country an attractive investment destination; and second because Greece’s economy, which is experiencing weak growth, desperately needs investments to sustain and increase its expansion rate.

According to IMD, the main challenges for the Greek economy this year are the application of a tax mix that is growth-friendly, overcoming obstacles that are burdening the business climate and delaying investments, strengthening the cash flow in the private sector, increasing employment via the implementation of pro-industry policies, and the reform of the social security system to make it sustainable.