Ireland ranked most competitive country in euro area
Ireland has been ranked as the most competitive country in the euro area but the country has slipped back in its global standing.
The latest annual World Competitiveness Rankings from the International Institute for Management Development reviewed 69 economies.
It has listed Ireland as the world’s seventh most competitive economy in 2025, down from fourth place last year.
The country was named the second most competitive economy as recently as 2023.
The IMD assesses and ranks economies on their “ability to create and maintain a competitive business environment.”
The rankings are based on more than 262 indicators grouped across four pillars, including economic performance, government efficiency, business efficiency, and infrastructure.
Ireland’s ranking improved in two of the four core pillars of competitiveness.
The country’s economic performance climbed from tenth place to ninth place, while the ranking for government efficiency moved from sixth place to fifth place.
However, Ireland’s ranking under the infrastructure pillar remained unchanged at seventeenth, while the ranking in the business efficiency slipped from third in 2024 to eleventh in 2025.
In response, the National Competitiveness and Productivity Council said it is clear Ireland’s ranking is “trending downwards.”
“More importantly, there is no reason to expect a significant, near-term improvement in many of the factors that are currently weighing on our competitiveness (i.e., basic infrastructure, the cost of living, indigenous energy production, listed domestic companies, etc.).”
“Whilst our headline economic metrics (i.e., tax receipts, numbers at work, etc.) remain strong, there are other signs of a potential softening in the economy,” the NCPC added.
The Chair of the NCPC, Dr Frances Ruane, said the rankings show Ireland continues to perform strongly, however, she said: “we cannot be complacent.”
“Maintaining our competitiveness must remain a constant focus of Government,” she added.
“In a challenging global trading environment, we must continue to leverage our strengths to compete effectively, while addressing areas where we are underperforming.”
Dr Ruane said she looks forward to the upcoming Action Plan for Competitiveness and Productivity, which she said “should tackle these weaknesses while building on our core competitive strengths.”
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