Robert Troy (Longford-Westmeath, Fianna Fail)
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147. To ask the Minister for Jobs, Enterprise and Innovation her views on the fall of the position of Ireland in the 2019 WEF competitiveness rankings. [42379/19]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The World Economic Forum’s Global Competitiveness Report is an annual assessment of the factors driving productivity and prosperity in selected countries. The WEF Global Competitiveness Index (GCI) combines 103 indicators derived from both qualitative surveys and quantitative data to assess the drivers of productivity and long-term prosperity. The findings of the report serve as a critical reminder of the importance of competitiveness in laying the foundation for future prosperity.

In the 2019 Global Competitiveness Index, Ireland is ranked 24th out of 141 countries. Over the 10-year period since 2010, Ireland’s overall ranking has ranged from 29th (2010) to 23rd (2018). Ireland’s 2019 score means that it is currently the 9th most competitive economy in the euro area and the 12th most competitive economy in the EU28, according to the WEF.

Rankings can be useful, but they must be treated with caution, especially when examining year-on-year changes. The WEF’s Global Competitiveness Rankings is one of a number of international competitiveness indicators that my Department uses to assess Ireland’s competitiveness performance. Although Ireland’s ranking fell by one place in the 2019 WEF Competitiveness Rankings, Ireland is ranked 7th in the 2019 IMD World Competitiveness Rankings which measures the performance of countries across four dimensions: Economic Performance; Government Efficiency; Business Efficiency; and Infrastructure. Moreover, 30% of the WEF’s GCI score is derived from survey-based indicators which are subjective in nature, calculated using the WEF annual Executive Opinion Survey.

International rankings should be understood in the much wider context of competitiveness. To assess Ireland’s overall performance, my department looks at several aspects of competitiveness indicators, including those in the National Competitiveness Council's (NCC) annual Cost of Doing Business report, the NCC’s Competitiveness Scorecard, the Central Bank’s Harmonised Competitiveness Indicator, the CSO’s nominal unit labour cost indicator, in addition to Ireland’s performance in other competitiveness indicators. On this basis, the NCC has concluded that Ireland remains a competitive economy.

Competitiveness rankings reflect the interaction of a range of factors that, combined, determine the ability of firms to compete successfully in international markets. Advanced economies, such as Ireland, at the upper end of competitiveness rankings, can find it harder to get high impact from the improvements being made as they are already near the top score. Nonetheless, enhancing Ireland’s competitiveness by investing in areas where deficiencies have been identified is crucial to bolster our resilience to shocks, especially in the context of Brexit.

Improving our competitiveness and ensuring that Ireland is an attractive location to do business remains a key economic priority for this Government. We continue to monitor Ireland's competitiveness and analyse its underlying factors. The NCC will issue recommendations in its forthcoming 2019 Ireland's Competitiveness Challenge report in this regard.

My officials will establish the actions we can take to further improve our competitiveness, particularly in the areas where we are lagging competitors.