Estonia advanced one spot to 29th position in the Global Competitiveness Index (GCI), the World Economic Forum (WEF) said on September 27. Meanwhile, Lithuania and Latvia slipped.

Estonia maintained its position as the most competitive economy in Central Eastern Europe, ahead of the Czech Republic and Poland. The country’s overall score came in at 4.8 on a scale of 1-7.

Despite its small market size – only 98th in the world – Estonia fared well in most other components of GCI. Macroeconomic environment and labour market efficiency were both ranked 15th, followed by health and primary education and higher education and training, each on the 19th position. The Estonian institutions were ranked 24th, while infrastructure on 32nd. 

Respondents to the survey said tax rates were the most problematic factor in doing business in Estonia. That was followed by inadequately educated workforce, government instability, and inefficient government bureaucracy.

Estonia’s neighbours Lithuania and Latvia both slipped in the ranking. Lithuania was 41st, compared to 35th a year ago. Higher education and macroeconomic environment received top assessment, as respondents ranked them on 29th spot among 137 countries surveyed.

Tax rates topped the list of obstacles to doing business in Lithuania, followed by inefficient government bureaucracy, restrictive labour regulations, and tax regulations.

Latvia moved down to 54th position, falling from 49th in the previous report. The country’s macroeconomic environment was assessed most favourably at 23rd position. No other component of the index fared better than 42nd spot, however, with institutions notably ranked just 82nd.

What hinders doing business in Latvia is inefficient government bureaucracy, tax rates and tax regulations, as well as corruption, for which Latvia was ranked worse than its Baltic neighbours.