Zimbabwe's economic competitiveness tumbles

The country needs to move mountains to ensure that the local economy is globally competitive if the report released last week by World Economic Forum (WEF), which saw Zimbabwe's ranking dropping to 124 out of the 144 economies considered, is anything to go by.

Last year, Zimbabwe was ranked at 123. The toxic environment that has been precipitated by sanctions from the United States of America (USA) and the European Union (EU) bloc has been a put-off for investors.

Independent estimates suggest that the country has lost more than $42 billion through sanctions that have been in force since 2001.

According to the World Economic Forum's Global Competitiveness Report 2014-2015 published on September 2, the overall assessment of the 144 economies that were evaluated were collated from 12 key variables.

Zimbabwe ranked poorly in terms of labour market efficiency (137 out of 144), which measures the efficient allocation of labour within the economy; goods market efficiency (133), an evaluation of domestic and foreign market competition; and market size (132).

The country ranked 106, 109, 113 and 118 in key pillars such as health and primary education; technological readiness; institutions; and higher education and training respectively.