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Latin America Less Competitive

Chile and Colombia are most competitive in Latin America, while Venezuela and Argentina are least competitive.


Latin America is losing ground to other economies when it comes to competitiveness, according to the World Competitiveness Scoreboard 2007 from the Swiss-based business school IMD.

"Argentina, Brazil [and] Mexico...have tended to lose ground compared to the top league," the IMD said in a statement last week. "Despite some real and specific competitive advantages, these nations will, sooner or later, lose their standing in world competitiveness if they do not improve their overall performance."

In fact, all six Latin American countries included in the scoreboard fell on the ranking of 55 economies worldwide.

The scoreboard looks at four key criteria to measure competitiveness: economic performance, government efficiency, business efficiency and infrastructure.


Chile again topped the Latin American ranking, but its 26th place was a fall from 23 last year. That means Chile has lost ground to economies like Israel, Germany and Belgium which last year were lagging the South American country, but this year are ranked ahead.
Chile is still more competitive than countries like India, France and Spain, according to IMD.

Colombia continues to be the second-most competitive economy in Latin America despite falling four places to 38th place. It is more competitive than EU countries like Portugal,  Slovenia and Italy, but lags Jordan and Greece.

Mexico replaced Brazil as the third-most competitive economy. The change was caused not by Mexico becoming more competitive, but Brazil falling more places (five) than Mexico (two) on the ranking. Mexico ended up in 47th place and Brazil in 49th place.

Mexico is more competitive than Turkey, but less so than the Ukraine. Brazil is more competitive than South Africa.

Argentina is again the second-least competitive economy, falling four places to 51. It's economy is less competitive than South Africa, but more so than Poland, Croatia and Indonesia.

But Venezuela remains the least competitive country, with a global ranking of 55 - the last and worst position on the ranking.

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