Latest news with #IMDWorldCompetitivenessRanking
RTÉ News
15-05-2025
- Business
- RTÉ News
New economic indicator shows improvement in Ireland's competitiveness ranking
New research has shown that Ireland's international competitiveness ranking would improve if Modified Gross National Income (GNI*) is used as an economic indicator instead of Gross Domestic Product (GDP). GNI* is seen as a more accurate measure of the domestic economy as it excludes much of the impact of the multinational sector. The National Competitiveness and Productivity Council (NCPC) has published research re-estimating Ireland's performance in the IMD World Competitiveness Ranking 2024. The study shows that the country rises by one position in the ranking, with improvements in three of the four pillars, when key metrics are recalibrated to better reflect the scale of the domestic economy. The IMD World Competitiveness Ranking is a widely used international benchmark, assessing over 60 economies across four key pillars and 20 sub-pillars, and based on 250 individual measures. The estimate shows notable gains in economic performance and infrastructure, business efficiency is unchanged, while Government efficiency declines slightly. "This reassessment of Ireland's competitiveness provides a more accurate and meaningful picture of our economic strengths and vulnerabilities, and how these impact on our international competitiveness performance," said Dr Frances Ruane, the Chair of the NCPC. "This research highlights the importance of interpreting international indices critically, and ensuring that benchmarking exercises reflect the realities of our domestic economy," Dr Ruane added.
Zawya
07-04-2025
- Business
- Zawya
Bahrain's real estate sector ‘exhibits resilience in 2024'
Bahrain's real estate sector demonstrated resilience in 2024, navigating a slight contraction in transaction activity while maintaining overall stability, according to a new report by ASK Real Estate. The report highlights that transaction volumes in 2024 decreased by 4.82 per cent compared to the previous year, with 24,863 transactions recorded. However, the total transaction value experienced only a marginal reduction of 1.64pc, amounting to BD1.06 billion. This indicates a market trend leaning towards higher-value properties, suggesting continued interest in premium assets despite the dip in transaction numbers. Land, residential, commercial, and industrial property rates remained stable throughout 2024. This stability is seen as a positive sign, reassuring investors and developers of the market's steadiness. The hospitality sector continued its positive trend, with hotel occupancy rates rising from 52.88pc in 2023 to 54.85pc in 2024, a 1.97pc increase. The Average Daily Rate (ADR) also improved by 3.76pc, reaching BD63.80, and Revenue Per Available Room (RevPAR) increased significantly by 8.36pc, to BD37.07. These figures reflect Bahrain's growing attractiveness as a tourism destination. Karim Yazji, chief executive of ASK Real Estate, emphasised that the market's resilience reflects strong investor confidence. 'The real estate sector's consistency and reliability highlight the abundance of investment opportunities available. The government has played a pivotal role in driving sectoral growth by enhancing transparency and providing accessible, data-driven insights to stakeholders.' Mr Yazji added, 'The encouraging indicators outlined in the report reinforce the sector's contribution to national economic development, while strengthening Bahrain's position as a premier investment destination in the region. Between 2021 and 2024, we've seen exceptional growth grounded in sound fundamentals.' The report provides a broader economic context, noting that global economic growth remained moderate in 2024, around 3.2pc, and was hampered by factors like persistent inflation and tighter monetary policy in the first half of the year. In contrast, GCC economies demonstrated robust growth in 2024, driven by high oil prices and diversification efforts. Bahrain's economic highlights in 2024 include advancing to 21st globally in the IMD World Competitiveness Ranking, attracting $2.4 billion in investments through the Golden Licence initiative, and significant investments by the Abu Dhabi Fund for Development. The report delves into specific sectors, noting the stabilisation and adjustments in retail, office rentals, industrial spaces, and residential properties. Off-plan sales remain attractive, particularly to foreign and GCC national buyers. It also emphasises the growing importance of sustainability in the kingdom's real estate sector, outlining the benefits and opportunities for adopting green building practices. Looking ahead to 2025, the GCC economies, including Bahrain, are poised for continued growth, driven by diversification efforts and adjustments in oil production. avinash@
Yahoo
12-02-2025
- Business
- Yahoo
Germany: Industrial, Labour, Tax Reforms Essential to Revive Growth Amid Geopolitical Challenges
The priority for the new German government is to establish a clear industrial strategy, modernise the nation's energy infrastructure, and implement long overdue reforms in taxation, the pension system and the labour market. Together, these measures will boost economic competitiveness, raise the growth outlook and address growing defence and welfare spending pressures. After five years of near stagnation, the incoming government will have to prioritise boosting economic growth through supply-side reforms, not least because US protectionism adds to the geopolitical uncertainty challenging the German export-led growth model. A broad-based increase in US import tariffs would significantly impact Germany's automotive, machinery and equipment manufacturing industries. Such tariffs would lead to weaker export demand, higher input costs, and shrinking profit margins as companies adjust their supply chains. In addition, even if tariffs are deferred or renegotiated, the persistent uncertainty is likely to curb investment over the coming quarters. Scope Ratings has thus lowered its GDP forecast on Germany for 2025 to 0.1% from 0.9% to account for the likely impact of US tariffs and the collapse of Germany's coalition government in November, which delays potential fiscal stimulus. German GDP growth has lagged that of other major European economies (Figure 1). Since 2019, GDP expansion in Spain (+8%), Italy (+5%), France (+4%) and the UK (+3%) has outpaced that of Germany, as have growth rates in Japan (+2%) and the US (+12%). With demographic pressures mounting, Scope estimates the country's medium-term growth potential at around 0.5-0.7%. Figure 1: German economic growth is falling behind that of other large economies % Germany's weak growth outlook reflects its declining international competitiveness, dropping from 15th place in 2022 to 24th by 2024 in the IMD World Competitiveness Ranking. However, there are several ambitious reforms the next coalition government could undertake after the 23 February elections to tackle structural challenges. Access to cheap energy has been crucial for the industrial base. However, after post-pandemic price surges, EU natural gas prices in 2024 remained approximately five times as high as in the US. This compares with prices being approximately 1.8x US prices in 2019. One way to address high energy costs is through greater investment in power infrastructure to better integrate growing volumes of intermittent solar and wind-powered electricity. However, relying primarily on private sector commitments will keep German electricity prices among the highest in the EU (Figure 2) as firms pass costs to end-users. The significant investment needs for the energy transition are likely to keep electricity prices elevated compared with those in other EU countries. Still, the new government could consider reducing taxes on electricity and shifting part of the cost for upgrading the grid to the public sector. Such measures could be possible within the existing debt brake framework, if structured as a financial transaction. Figure 2: Household and non-household electricity prices EUR/kWh A more competitive personal and corporate tax regime could help raise private-sector investment and narrow the large investment gap, which Scope has estimated for Germany at more than EUR 400bn compared to the economies of other AAA Scope-rated sovereigns. Germany's corporate tax rate is high at 29.9%, above those of Italy (27.8%), France (25.8%), the US (25.6%) and the UK and Spain (both 25%). Similarly, the tax wedge – the difference between an employee's total labour cost to their employer and his/her net take-home pay – is one of the highest among developed economies. In addition, greater investments in education and labour market reforms could enable higher workforce participation by women and migrants. Given Germany's shortage of skilled workers, reforms to encourage the older generation to work after retirement would support labour supply and ease fiscal pressures stemming from the demographic challenge. Reducing bureaucracy and simplifying regulation to support private sector investment have been recognised as a priority by most political parties, although any implementation of reforms will likely be gradual. These structural reforms are still critical to raising the economy's medium-term growth. Combined with a potential reform of the debt-brake rule to allow for more growth-enhancing public-sector investment, this would create additional fiscal space to help address rising expenditure needs while ensuring long term economic resilience. Germany currently meets NATO's 2% of GDP military spending target thanks to a EUR 100bn special fund agreed in 2022. Most of this fund has already been allocated to defence expenditure. However, from 2027, an additional EUR 30bn a year will be needed, requiring higher government revenues, spending cuts or new debt issuance. In 2024, defence spending accounted for 11% of the federal budget. Without additional revenue sources, this share would have to rise to around 18% to meet the current NATO target. If NATO members were to increase the target to 3% of GDP, then 27% of the current budget would have to be allocated to defence spending. At the same time, none of the larger political parties has proposed meaningful reforms to address the rising pension burden , proposals that are unpopular in election campaigns but crucial for long-term fiscal stability. Around 27% of the total 2025 budget will be spent on pensions and this share could double by 2050 with the old age dependency ratio rising to more than 50% from 36% today. For a look at all of today's economic events, check out our economic calendar. Eiko Sievert is a Senior Director in Sovereign and Public Sector ratings at Scope Ratings GmbH, and a member of the rating agency's Macroeconomic Council. This article was originally posted on FX Empire Big Money Flows to Visa Catalyst Remains a Big Money Favorite Archrock Growth Transforming Company, Lifting Shares MACOM Technology Shares Rise on AI Sales Challenges for the Pound After Inflation and GDP Edge Down Dealer Additions Driving CarGurus Growth
What's On
07-02-2025
- Business
- What's On
More millionaires are coming to live in the UAE than anywhere else globally
'The most significant wealth migration wave ever documented'… The Henley Global Mobility Report, issued in January of this year, analyses trends in networks of private wealth and how individuals move within them. The report shows that whilst 2024 was a bumper year for the migration of millionaires (individuals with liquid investable wealth of USD 1 million) – with more than 134,000 of the cashed-up trust fund set, upping sticks and moving out – 2025 is set to be another record breaker. Ha-bling-bi come to Dubai… Forecasts predict that 142,000 members of the seven-digit alumni will hop borders in 2025. An event, Dr. Juerg Steffen, FIMC, CEO of Henley & Partners calls 'the most significant wealth migration wave ever documented and reflects fundamental changes in how affluent individuals approach geographic and financial planning'. But where are all these bank balance ballers going to? The report shows that in 2024 the country that receives the highest net influx is the UAE, with almost double the amount of the nearest competitor (USA). That trend is predicted to continue, and likely increase in 2025. Why are so many millionaires coming to the UAE? Well apart from all the *gestures broadly around* and this whole list of solid reasons, the report singled out 'the Golden visa program, coupled with crypto-friendly policies and world-class infrastructure' as the leading factors in making the UAE a 'prime example' of the new wealth migration paradigm. Real estate has also been an important factor in dictating which areas look more favourable for individuals of high net worth. The saliency of the housing and rental markets is an indicator of the more general stability, growth and outlook of a particular economy. Then there is the fact that the UAE is currently ranked third globally in the IMD World Competitiveness Ranking. A system that looks at how well countries concentrate on the prosperity and quality of life (QOI) of their residents, based on survey responses across a number of QOI indicators. The UAE is a known innovator, with a strong government possessed of a unified vision; it operates many programmes and protocols that incubate, nurture and attract entrepreneurship; it's invested in developing culture, arts and education; it has ambition and systems in place to make it easy to do business; and it has monumental, world-changing plans for the future. An uncertain world The magnitude of the movement is also in part aided by the machinations of global socio-political and economic change. Conflicts, growing uncertainty, and regional unrest have caused individuals to be more strategic about where they base their operations. Images: Getty/Henley & Partners
