Due to the conflict, Ukraine and Russia have become uncompetitive - IMD

In the annual ranking authored by the Swiss Institute of Management Development (IMD), Ukraine dropped 11 spots, landing in 60th place. Russia, on the other hand, fell from 38th to 45th place.

Russia and Ukraine have lost positions in the market of economic competitiveness amid heightened tensions in Donbas, according to the global IMD ranking.

The annual ranking associates the decline of Ukraine and Russia with events in Donbas. Ukraine, it is noted, was assigned the second-to-last place, 60th, only ahead of Venezuela.

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'There is a negative influence in the state from the conflict in Donbas and the market volatility on competitiveness in an increasingly interconnected international economy', stated IMD.

The conflict with pro-Russian separatists in eastern Ukraine has claimed more than 6,250 lives since April last year. The conflict is also significantly exacerbated by the economic difficulties that characterize Ukraine as the worst among all countries listed in the economic growth category.

Ukraine reportedly occupies the bottom position in all categories used to determine a country's competitiveness: overall economic indicators, government efficiency, infrastructure, and business.

The United States, meanwhile, has maintained its lead in the global ranking for the third consecutive year, thanks to 'business and financial sector efficiency, innovation, and effective infrastructure', stated IMD.

Next is Hong Kong, which jumped two spots to the second position. Singapore is third in the ranking.

Switzerland fell to fourth place, closely followed by Canada, which rose two positions, Luxembourg, Norway, and Denmark, which is in eighth place.

Sweden has become ninth, losing a total of four places since last year, as has Germany, which nonetheless managed to stay in the top 10 after experiencing a sharp decline in business efficiency.

'Companies in these countries are ramping up their efforts to minimize the negative impact on the environment and ensure a strong organizational structure for prosperity', reported the ranking's authors.

Among major developing economies, this year's results vary - Brazil became 54th, South Africa dropped to 53rd place, while China climbed one spot to 22nd, and Mexico jumped three places to land in 39th. India remains stable at 44th position.