The United States has slipped to the 2nd position in global competitiveness behind Switzerland, according to a report just released by the World Economic Forum. China continues to gain on the United States as they now have a solid position in the ‘Top 30’
The People’s Republic of China continues to lead the way among large developing economies, improving by one place this year, solidifying its position among the top 30. Among the three other large BRIC economies, Brazil and India also improve, while Russia falls by 12 places. Several Asian economies perform strongly with Japan, Hong Kong SAR, Republic of Korea and Taiwan, China also in the top 20. In Latin America, Chile is the highest ranked country, followed by Costa Rica and Brazil.
World Economic Forum – Latest Press Releases
How is it being measured? This is from Forbes:
“…according to a survey by the World Economic Forum.
The organization, which hosts the annual Davos economic summit and is based in Geneva, Switzerland, says that the United States slipped to second place because of its weaker financial markets and faltering macroeconomic stability, while Switzerland’s economy had remained comparatively stable.
Being more competitive than the United States also has little to do with Switzerland’s low tax rate and simple tax structure, the WEF insists, although that has been a source of strength for the country’s economy.
Jennifer Blanke, a senior economist at the WEF, said Switzerland’s performance has remained “relatively stable, whereas the United States has seen a weakening across a number of areas.
The WEF said in its report that Switzerland’s economy was characterized by an “excellent capacity for innovation,” as well as high spending on research and development.
As for the United States, it said there were concerns among the business community about the American government’s ability to keep an arms-length relationship with the private sector, as well as perceptions that the government spent its resources wastefully.”