Russia has been ranked as the 38th most competitive economy - moving 5 places up - on the World Economic Forum's global competitiveness index, which is topped by Switzerland.
“The Russian Federation improves five positions, mostly driven by the macroeconomic environment, rebounding strongly from the 2015–16 recession. However, its economy remains highly dependent on mineral exports and prospects remain uncertain,” the report read.
Weak links continue to include financial markets, in particular the banking sector, along with property rights, judicial independence, and corruption, which remains one of the most problematic factors for doing business, the organization said.
Russia has passed new laws to increase the minimum wage and protect temporary employment, which have lowered labor market flexibility, but may have a beneficial overall effect by restoring domestic purchasing power, which had been hit by inflation and the weak ruble, it added.
These include market size (6th rank) infrastructure (35), labour market efficiency (60), health and primary education (54), macroeconomic environment (53), higher education and training (32) and technological readiness (57), innovation(49), goods market efficiency (80), institutions (83), financial market development (107).
On the list of 137 economies, Switzerland is followed by the US and Singapore in second and third places, respectively. Other countries in the top 10 are the Netherlands (4th rank), Germany (5), Hong Kong SAR (6), Sweden (7), United Kingdom (8), Japan (9) and Finland (10).
China is the highest ranking among the BRICS group of large emerging markets, moving up one rank to 27.
South Africa and Brazil are placed at 61st and 80th spots, respectively.
In South Asia, India has garnered the highest ranking, followed by Bhutan (85th rank), Sri Lanka (85), Nepal (88), Bangladesh (99) and Pakistan (115).
The Global Competitiveness Index (GCI) is prepared on the basis of country-level data covering 12 categories or pillars of competitiveness.
