Netherlands Drops to Ninth Place in World Competitiveness Ranking 2024
The Netherlands has slipped to ninth place in the 2024 World Competitiveness Ranking, down from fourth three years ago, highlighting significant emerging challenges in maintaining its competitive edge.
Understanding the Decline
The 2024 World Competitiveness Ranking, published by the International Institute for Management Development (IMD), reveals that the Netherlands has experienced a notable drop in its competitive standing. This year’s ranking places the country in the ninth position, a substantial decline from its fourth-place ranking three years ago[1]. The dip signifies broader underlying issues that affect various sectors of the Dutch economy.
Factors Contributing to the Decline
Several factors have been identified as contributing to the Netherlands’ reduced competitiveness. Both business and government efficiency have seen downturns, and infrastructure scores have also dropped. The only area showing slight improvement is economic performance[2]. This overall result marks the worst performance for the Netherlands since 2015, when it was ranked fifteenth[2].
Leadership Responses
CEO Rinke Zonneveld of Invest-NL acknowledged the slip, stating, ‘There is work to be done. For all of us.’ He emphasizes the need for collaborative efforts to regain the country’s competitive edge[1]. Similarly, Tjeerd Jegen, former CEO of Hema, is currently tasked with restructuring the Accell Group due to high debt and declining demand for e-bikes, reflecting broader economic challenges[1].
Strategic Adjustments and Future Outlook
To address these challenges, the Netherlands must focus on key areas such as improving infrastructure, deregulation, and enhancing the valorization of academic research. Additionally, aligning measures to meet the Paris Agreement climate goals and fostering a welcoming international business climate are critical steps[2]. These strategic adjustments are vital for the Netherlands to regain its competitive stature.
International Comparisons
In contrast, countries like Singapore, Switzerland, and Denmark have secured the top three positions in the 2024 ranking, demonstrating robust economic performance and business efficiency[1]. Switzerland, for instance, has improved its standing due to its strong infrastructure and government efficiency, despite facing challenges like high costs of living and office rents[3]. These countries serve as benchmarks for the Netherlands as it strives to enhance its competitiveness.