London - Switzerland remained the most competitive economy while the US and Germany gained ground lost in recent years, the World Economic Forum (WEF) said yesterday.
Switzerland held the top spot for a fifth year, while Germany and the US rose two slots to fourth and fifth, respectively, in the organisation’s 148-nation league. Singapore and Finland retained their respective second and third places.
The US clambered back amid an improvement in the status of its financial market and public institutions even as questions lingered about the stability of its economy, the WEF said in a report published yesterday. Germany was rewarded for the quality of its infrastructure and sophistication of its business sector.
“Having declined for four consecutive years in the ranking, the US reverses its downward trend,” the report said. “While the economy is getting back on track, the deleveraging process in the banking sector continues to show positive effects on the stability and efficiency of the country’s financial markets.”
Switzerland was credited for encouraging innovation and an efficient labour market.
As emerging economies weaken, only Russia of the Brics (Brazil, Russia, India, China, South Africa) nations improved its standing, rising three places to 64th. China held on to 29th rank, South Africa lost one spot to 53rd, Brazil fell eight slots to 56th and India slipped one place to 60th.
Europe’s bailed-out nations were advised to address weaknesses in their markets and boost innovation.
Of all the nations studied, Chad was ranked bottom after falling nine places. The report – published by the organisers of the annual conference of business leaders, politicians and entertainers in Davos – is based in part on 12 measures of competitiveness. – Bloomberg