US Slips Down the Ranks of Global Competitiveness

The United States has slipped further down a global ranking of the world’s most competitive economies, according to a World Economic Forum (WEF) survey released on Wednesday.

The world’s largest economy, which was placed 5th last year, fell two positions to the 7th spot — marking its fourth year of decline.

A lack of macroeconomic stability, the business community’s continued mistrust of the government and concerns over its fiscal health were some of the reasons for the downgrade, according to the annual survey.

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The survey, which has been conducted annually for over three decades, ranks the competitiveness of 144 countries based on 12 key indicators including infrastructure, macroeconomic environment, labor market efficiency and innovation.

“If you look at competitiveness, what we are talking about is productivity. It’s countries that are productive that can support the sorts of rising living standards and high wages that everyone is looking for,” Blanke told CNBC.

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Switzerland and Singapore retained their positions as the most competitive economies, coming in 1st and 2nd, respectively.

Switzerland’s top spot was achieved as a result of its strong performance across the board, according to WEF, with notable labor market efficiency, sophistication of its business sector and its innovative capacity. The country has among the highest rates of patents per capita globally.

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Among the large emerging economies, China was ranked highest at 26, thanks to favorable macroeconomic conditions. This was significantly higher than Brazil, India and Russia which came in at 53, 56 and 66, respectively.

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