Ireland is the third most competitive country in the euro area and the 11th most competitive economy in the world, an improvement from 13th position last year.
However, Ireland’s poor performance in technological infrastructure remains a concern in the context of the growing importance of the digital economy and remote working.
The IMD Competitiveness Yearbook assesses and ranks 63 economies around the world based on their ability to create and maintain a competitive business environment.
The rankings are based on more than 330 indicators grouped across four pillars: economic performance, government efficiency, business efficiency and infrastructure. Its competitive metrics are based on a mixture of quantitative and qualitative data.
Ireland’s improved fiscal position, ability to attract investment and strong recovery of the labour market have contributed to the rise in international competitiveness. This improvement is reflected in a range of metrics, notably economic growth and increased employment.
The report points out that improving competitiveness and increasing productivity are essential to ensuring businesses in Ireland can compete successfully in international markets and protect the resilience of the Irish economy throughout the economic cycle.
Dr Frances Ruane, chair of the National Competitiveness and Productivity Council (NCPC), said the findings show Ireland's improving competitiveness in an international context.
“Today’s results are further evidence of our growing economy and productive work force, as indicated by our ranking
as the 3rd most competitive economy in the euro area and 11th out of 63 economies overall,” she said.
“However, we cannot be complacent and staying competitive must remain a constant focus for Government and enterprises alike. Urgently improving the key foundations of Ireland’s competitiveness performance is a vital response to the challenges presented by current challenges such as cost pressures, trade disruption, supply chain issues and infrastructural deficits.
“Improving competitiveness and increasing productivity are essential to ensuring businesses in Ireland can compete successfully in international markets and protect the resilience of the Irish economy throughout the economic cycle”.