Last year the country was 27th in the rankings. This year it has dropped to 30th, just behind France but ahead of Estonia and Kazakhstan.
Heading the table on 100 points is Hong Kong, with the US and Switzerland second and third, and Singapore fourth with 95.923 points. Thailand scored 69.001.
Placings for other Asian nations in the list of 59 countries are: Taiwan 7 (down 1 place), Malaysia 14 (up 2), Korea 22 (no change), China 23 (down 4), Japan 27 (down 1), Indonesia 42 (down 5), and the Philippines 43 (down 2).
IMD explains that the WCY rankings “measure how well countries manage their economic and human resources to increase their prosperity”.
Although the IMD applies its own measurements to the listings, it also includes the results of a survey of more than 4,200 international executives.
It warns of “growing skepticism in some of the 59 economies toward globalisation and the need for economic reforms.
“Globalisation is still seen as a positive development in Ireland, Scandinavia, Chile, the UAE and many Asian economies.
“But attitudes are much more negative in Greece, Russia, most of Eastern Europe, a growing part of Latin America, and France.”
In an explanation released with the listings, Prof Stephane Garelli, director of IMD’s World Competitiveness Center, says, “The recession has made the world economy more fragmented and diverse than ever, forcing companies to operate several parallel business models.
“Emerging economies are relying on domestic demand and national champion companies to insulate themselves from economic turmoil, while the ‘submerging’ developed economies are turning to re-industrialisation.
“In both cases, economic nationalism is back and protectionism is tempting,” she warns.