
How will currency fluctuations impact competitiveness?
The latest currency fluctuation wave in Europe will indeed impact several competitiveness criteria. In terms of the World Competitiveness Yearbook hard statistics, such an impact will be felt in the long-term. Changes in exchange rates will resonate, for example, in indicators such as stock prices and export sales for 2016 (if not later).
Currency stability, however, is fundamental for the degree of confidence that economic actors have in a particular economy. In this sense, there are competitiveness indicators that will display the impact of fluctuations more substantially in the short-term. We expect therefore that data gathered through our 2015 Executive Opinion Survey will exhibit such an impact. For example, we largely expect survey participants residing in directly affected countries to conceive of exchange rates as a hindrance for the competitiveness of enterprises. In addition, opinions about the resilience of those economies to withstand economic cycles could become unfavourable.
The image abroad or branding of some countries may be affected negatively, which could eventually impact business development in those economies. Respondents may take an adverse stand in regards to the government. For example this could affect their impressions about the adaptability of government policy to changes in the economy, the effectiveness of the implementation of government decision and, in some cases, the likelihood of an increased risk of political instability.
Perceptions about credit availability and the financing of companies could also suffer. It could be the case that respondents find that credit is not easily available for businesses and that the levels of financing to companies are inadequate. In addition, opinions about the banking and financial services could shift. Respondents may perceive a decline in the support that these institutions provide to businesses. Undoubtedly, assessments of risk factors in the financial system will be affected as well as the relationship between the cost of capital and business development. Capital markets (foreign and domestic) could be found as inaccessible. At the same time, survey respondents may find that the investment environment in their respective countries lacks attractiveness for foreign investors.
To sustain competitiveness it is fundamental for countries to maintain the levels of confidence that their institutions enjoy which in turn depends on the perceptions of market agents. In this sense, our Executive Opinion Survey is an accurate tool to gauge and capture market sentiments about current economic events. Be ready then for a “reality check,” we compile the 2015 survey results by the end of May.
Research Information & Knowledge Hub for additional information on IMD publications
The Great Trade Hack by Richard Baldwin explains how Trump’s 2025 tariff blitz wasn’t economic strategy. It was grievance politics. Tariffs, Baldwin shows, are political placebos that won’t fix the U.S. economy but could fracture the global trade ...
On 12 May 2025, China and the United States released a joint statement that ended the recent escalation in tariffs. For 90 days each agreed to lower their tariffs by 115%. This only applies to import taxes imposed since 2 April 2025—all prior tari...
This paper presents a compact and intuitive framework that consolidates, simplifies, and extends results on the links between technology, trade, and labour market outcomes. It makes three main contributions. First, it presents closed-form solution...
This introduction offers a revisionist view of necessity entrepreneurship (NE). The volume editors are thereby challenging orthodox perspectives that equate NE solely with financial poverty and lack of employment and self-sustenance alternatives. ...
IMD produces a yearly Smart City Index offering a balanced focus on economic and technological aspects of smart cities on the one hand, and “humane dimensions” of smart cities (quality of life, environment, and inclusiveness) on the other. In this...
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in Journal of International Economics May 2025, vol. 155, 104065, https://doi.org/10.1016/j.jinteco.2025.104065
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD 24 April 2025
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in Smolka, Katrin M. (Ed.); Heugens, Pursey (Ed.); Bacq, Sophie (Ed.); Slade Shantz, Angelique (Ed.) / Necessity entrepreneurship: Getting beyond the binary (Research in the sociology of organizations, vol. 92), pp: 1-10 / Leeds: Emerald, 2025
Research Information & Knowledge Hub for additional information on IMD publications
IMD World Competitiveness Center Report, 8 April 2025
Research Information & Knowledge Hub for additional information on IMD publications