Like their Appenzeller cheese, the Swiss economy is the best in the world
The Independent Australia The Economic Management Ranking (IAREM) for 2022 reveals that Switzerland is now the best managed economy in the world, with the United States languishing outside the top forty.
The global picture published today by the online journal of political and social analysis Independent Australia shows Switzerland first, Singapore very close second, Ireland third and United Arab Emirates fourth.
This year’s results reflect the ability of governments to take advantage of extraordinary growing conditions as the world recovers from the Covid pandemic. They confirm that countries with small populations, great economic freedom and a culture of ingenuity and enterprise generate the best overall economic results.
Switzerland’s winning score was achieved thanks to its impressive employment rate, exceptionally low inflation, the world’s second most freedom of enterprise and sustained economic growth after a decline in 2020.
Swiss ingenuity and entrepreneurship
In recent years, Switzerland has effectively translated research and development successes into commercial sales. It has also built on its historical status as an international banking hub to become today the world’s leading exporter of gold, other precious metals, jewelry and rare stones.
Switzerland has taken full advantage of the post-pandemic recovery period to increase its trade. Only twice before the pandemic, total monthly exports exceeded 20 billion Swiss francs (CHF). But since February 2021, exports have topped 20 billion francs ($20.7 billion) each month, peaking at 23.9 billion francs ($24.8 billion) in February this year. See blue and green chart above.
With a population of just 8.6 million, the same as Virginia, Switzerland has become the world’s second largest exporter of pharmaceuticals and a major supplier of medical equipment, organic chemicals and industrial machinery. He no longer only sells cuckoo clocks, chocolates and cheese. In fact, dairy products are no longer among the top thirty export categories by total value.
The top ten economies in the world
In order, the best performing economies in 2022, with ARIEM scores achieved, were:
1. Switzerland 26.56
2. Singapore 25.59
3. Ireland 24.29
4. United Arab Emirates 21.73
5. Luxembourg 20.74
6. Taiwan 19.01
7. Norway 17.25
8. Denmark 17.22
9. Israel 17.14
10. South Korea 16.70
The next ten were Portugal, Saudi Arabia, Malaysia, Iceland, Panama, Guatemala, Germany, the Netherlands, Slovenia and Vietnam. Most of them have progressed thanks to exceptionally strong economic growth and strong demand for jobs.
The IAMR note
The Independent Australia Economic Management Ranking is a composite index that measures all of the world’s economies on eight key indicators. These are national income per person, GDP growth, median wealth per adult, jobs, inflation, tax levels, public debt and economic freedom. This transparent formula can easily be reproduced with basic spreadsheet software:
AREM = ip + gr + mw + j – in – t – gd + ef
The data comes from publicly available tables published by the World Bank, Credit Suisse, Heritage Foundation, CIA Factbook, International Monetary Fund and tradingeconomics.com. It is the world’s only index of overall economic performance based on multiple variables.
America’s Sad Decline
The United States has generally ranked between 10th and 20th in the world since the compilation of the first ARIEM table in 2007. The highest ranking was tenth in 2014, as the United States recovered strongly from the Great Recession. of 2008. Other countries have gradually overtaken the United States thanks to this boom. period, so the ranking was a modest 23rd when the Obama period ended in 2016.
However, things went downhill from there as multiple disastrous decisions by the Trump administration — on trade, tariffs, tax revenue, spending and federal debt — took their toll. In 2018, the United States had fallen to 29th place. This year’s ranking of 41st is the lowest ever.
The losers of the 2022 ranking
Other economies that have fallen in the IAREM rankings over the past year include China, France, UK, India, Hong Kong and Canada. Among the large improving countries are Portugal, Japan, Vietnam, the Philippines, Israel and the United Arab Emirates.
Switzerland deserves first place. It is the only country to have ranked among the world’s top six economies every year since IAREM’s first publication in 2013.
Its economy is robust, reflecting decades of experience and discipline, and the older it gets, the spicier it becomes. Just like its raw milk cheese from Appenzell.
The original IAREM article is available for free here:
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