IMD World Competitiveness Yearbook

 The World Competitiveness Yearbook rankings releases Institute of Management Development (IMD) in Laussane, and it’s being published since 1989.

The research methodology is based on an analysis of four factors of competitiveness; economic performance, the efficiency of the public sector, business efficiency, infrastructure and five indicators for each region, a total of twenty indicators and over three hundred selected criteria.

In research are used hard statistical indicators and specially designed surveys (soft data), which aim is to measure the factors of competitiveness that are not available from standard statistical data. The share of hard statistical data is 2/3 vs 1/3 soft data that are fill out through „Executive Opinion Survey“ by the director of higher and middle management of all economies that were represented in the survey.  In 2013 received 4200 responses from sixty countries. In contrary to hard data, these data brings us new insides which are difficult to measure e.g.  management practices, labor relations, corruption, environmental concerns, quality of life.

 Croatia in 2013

According to IMD’s results, Croatia occupies 58th place out of the 60 countries that are represented by this research. 

Compared with the results of last year’s research, Croatia moved one place down, and it is very important to mention that the competitiveness was growing from 2006th-2009th, and later we note gradual decline (2000: 53rd, 2010: 56th, 2011: 58th. 2012: 57th)

The most competitive European countries are Switzerland (2nd), Sweden (4th), Norway (6th), and Germany (9th), whose success is based on export-oriented production, a strong small and medium enterprises and fiscal discipline. As in previous years, economic growth in other European countries is very limited by saving measures that are delaying the recovery. 

IMD noted several challenges for Croatia in 2013 year:

  • Adopt regulations that would go in favor of business and citizens, encouraging entrepreneurship and strengthening democracy
  • Provide infrastructure for building innovative business capacity (SMEs), improving their competitiveness within the EU
  • Introduce Triple Helix modality of cooperation between universities, business sector and government
  • Develop a proactive, innovative and responsible local government; building entrepreneurial and competitive capacity
  • Stimulate a lifelong entrepreneurship education

Deterioration: prices (18), productivity and efficiency (-9) and technological infrastructure (-8)

Improving: public finances (+4)

At the level of indicators there is only a small number of extremely favorable indicators which improve our overall competitiveness. Within four basic pillars of competitiveness there are following indicators:

  • Economic performance: large tourism incomes and the export of services, cost of living index and cumulative foreign investment
  • The efficiency of the public sector: low-custom barriers and low income tax, a short time of establishment of company.
  • The efficiency of the business sector: the relatively low wages, especially management and low unit labor costs in manufacturing, a relatively large number of working hours and the high share of women in employment.
  • Infrastructure: very good indicators of the use of telecommunications infrastructure (cost of mobile telephony and broadband) and secondary education (the ratio of the number of teacher and students) and participation in secondary education.

Noticed weakness refer to:

  • Poor crisis resistance and the diversification of manufacture
  • Low employment, structural unemployment, a rigid labor market, aging population
  • A state-owned  companies, bureaucracy, cost of capital, high social expenditure
  • Poor entrepreneurship, adaptability, business management, motivation and competence
  • Low level of technology, innovation, knowledge transfer and university management education

The most attractive indicators:

  • Skilled labor force
  • Reliable infrastructure
  • High level of education
  • The quality of corporate management
  • Availability of financing
  • A strong culture of research and development
GDP in 2016 – 45,58 billion € • GDP per capita 2016 – 10 929 € • Exports of goods in 2016 – 12,3 billion € • Tourism Revenue 2016 – 8,6 billion € • Average exchange rate in 2016 HRK/EUR – 7,5; HRK/USD – 6,8