Turkey 44th most competitive: Index

Turkey 44th most competitive: Index

Strong innovation and institutional environments are increasingly influencing economies’ competitiveness, according to The Global Competitiveness Report 2013-2014, which was released on Sept. 4.

The report’s Global Competitiveness Index (GCI) places Switzerland at the top of the ranking for the fifth year running. Singapore and Finland remain in second and third positions, respectively. Germany moved up two places to fourth while the United States reversed a four-year downward trend, climbing two places to fifth.

Turkey fell by one position to 44th, following its significant improvement last year from 59th to 43rd. “The macroeconomic environment has deteriorated slightly, with a rising fiscal deficit and inflation nearing double digits, although the situation remains better than in many other European economies,” the report said.

Turkey’s vibrant business sector derives important efficiency gains from its large domestic market (ranked 16th), which is characterized by intense local competition (15th). Turkey also benefits from its reasonably developed infrastructure, particularly roads and air transport, although ports and the electricity supply require additional upgrading, according to report.

In order to further enhance its competitiveness, Turkey must focus on building up its human resources base through better primary education, higher education and training, among others.