The authors of the World Economic Forum's report attributed Russia's growing competitiveness to a major revision of Purchasing Power Parity (PPP) estimates by the International Monetary Fund, which in turn resulted in a 40-percent increase in Russia’s Gross Domestic Product when valued at PPP.
"The country improves on some market efficiency aspects, such as the regulatory business environment and domestic competition, reflecting the government’s efforts to improve domestic conditions for doing business," the report said.
Also contributing to the growth were 32 import tariffs being significantly reduced as "an effect of Russia’s accession to the World Trade Organization in 2012," according to the report.
At the same time, the survey cited an array of negative factors that may potentially affect the growth of Russia's competitiveness in the future.These include "weakening domestic demand, economic sanctions on the part of certain countries, and the uncertainty regarding future prices for mineral commodities," according to the report.
Notably, Ukraine, which has also seen costs drop along with currency prices, slipped to 79th place.
The World Economic Forum report assessed the countries' competitiveness in line with more than 110 indices, including those related to infrastructure, the efficiency of product and labor markets, the quality of education and health, the macroeconomic situation in the country, innovation, and the development of the financial market.
