South Korea's global competitiveness ranking fell by four notches this year due mainly to sluggish economic performance and business efficiency, an international institute said Tuesday.

    According to the 2016 report by the International Institute for Management Development (IMD), South Korea ranked 29th in terms of global competitiveness among 61 countries surveyed. IMD suggested that the South Korean government carry out structural reforms in the business and labor sectors and map out plans to boost domestic demand and create jobs for the young generation. 

    Hong Kong topped the list in terms of global competitiveness for 2016, relegating the former No. 1 United States to the third place after Switzerland. The poor rating may be attributable to a slowdown in the economy and employment, corporate restructuring issues and corporate ethics problems," the finance ministry said in a release. 

    IMD is a Swiss-based institute that releases competitiveness rankings every year based on a country's economic achievements, infrastructure, and government and corporate efficiency.

    In terms of economic achievements and infrastructure, South Korea placed 21st, down six notches from a year earlier, as the country's economic growth contracted to 2.6% last year from the previous year's 3.3% expansion.