Hungary has moved up five spots to 47th place in this yearʼs IMD World Competitiveness Ranking. Hungaryʼs competitiveness was boosted in part by a reduction in corporate taxes and growth in overall productivity, IMD said.
IMD noted investments, the cost of living and exports among Hungaryʼs economic strengths. In terms of the corporate tax rate alone, Hungary was ranked first among the 63 economies covered by the IMD World Competitiveness Yearbook.
Among the challenges facing Hungary in 2018, IMD listed uncertainties over the structural reform plans of the new government, a high dependency on European Union funds, administrative burdens over the EU average, and a shadow economy with a high volume of GDP.
Among Hungaryʼs regional peers and co-members of the Visegrád Four, the Czech Republic appears in 29th place on the new World Competitiveness Ranking, Poland in 34th, and Slovakia behind Hungary in 55th.
The top five most competitive economies in the world in the IMD ranking remain the same as in the previous year, but their order has changed. The United States returns to top spot, followed by Hong Kong, Singapore, the Netherlands and Switzerland. The Netherlands moves up one place to 4th, swapping with Switzerland which moves down to 5th.
The IMD press release can be read here.