"World Competitiveness Report": This is Austria's Ranking
Austria is not making progress in international competitiveness. As in the previous year, Austria was also ranked 26th in 2025 in the ranking of the Lausanne Institute IMD - this time among 69 economies. Austria performed poorly in economic development and government efficiency - each with rank 40. Good marks were given for the business environment and especially for infrastructure (rank 14).
Switzerland leads in the "World Competitiveness Report"
This year, Switzerland took the top spot in the "World Competitiveness Report" ahead of Singapore and Hong Kong. They are followed by Denmark and the United Arab Emirates. The USA, still in 9th place in 2023, is now in 13th place, China follows closely behind in 16th, and Germany improved by five places compared to the previous year to 19th. The last five places are occupied by Mongolia, Turkey, Nigeria, Namibia, and Venezuela at the bottom.
The IMD notes deteriorations in Austria in the current report compared to the previous year economically, including the increased deficit and slowed growth and a sharp decline in patent applications. Negative factors also included the rise in murders or declining population growth. The IMD further points to a less favorable situation, among other things, in the resilience of the economy or the flexibility of the government. Almost at the bottom (rank 64) is Austria from the IMD's perspective in tax policy, with very poor ratings for regulations for the unemployed and the adaptability of legislation.
Improvements present
There are some improvements, such as more frequent university education, employment growth, declining inflation, or higher tourism revenues. The IMD also notes declining government subsidies on the positive side, as well as more efficient water use. Surveyed managers cited reliable infrastructure, well-trained workforce, generally good education, reliable legal framework, and stable politics as the five most common advantages in Austria.
The top priority for government policy today is to "counteract fragmentation," according to the IMD report. Countries with a lower degree of socioeconomic and political polarization (e.g., Switzerland, Denmark, and Sweden) would also achieve better competitiveness scores. However, a strong currency is also important. While weak currencies facilitate exports, a strong currency "reflects robust economic fundamentals, such as investor confidence, stable governance, and the existence of high-quality export companies that can withstand price pressures," the report states.
IV expresses "concern"
The Federation of Austrian Industries (IV) expresses "concern" in light of the stagnant position in the IMD competitiveness ranking. "Without fundamental structural reforms, the business location risks losing further attractiveness," warns IV Secretary General Christoph Neumayer. The industrial strategy currently being developed must "align location policy in the long term - with clear targets, binding implementation plans, and consistent prioritization on growth, employment, and innovation." It is particularly critical that Austria is almost at the bottom in tax policy according to the IMD. "This endangers investments, hampers business dynamics, and causes Austria to fall even further behind successful industrial locations like Germany, Switzerland, or Denmark."
(APA/Red)
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