U.S. Competitiveness Slips, Switzerland Tops in WEF Study
Switzerland Is Tops in WEF Study
Peter Frommenwiler/Bloomberg
Switzerland was credited for its innovation and business culture.
Switzerland was credited for its innovation and business culture. Photographer: Peter Frommenwiler/Bloomberg
Sept. 9 (Bloomberg) -- Margareta Drzeniek, a senior economist for the World Economic Forum, discusses the WEF's Global Competitiveness report. She talks with Andrea Catherwood on Bloomberg Television's "The Pulse." (Source: Bloomberg)
U.S. Competitiveness Slips WEF Study finds
Jin Lee/Bloomberg
A budget shortfall of more than $1 trillion and public distrust of politicians were among the weaknesses in the world’s largest economy.
A budget shortfall of more than $1 trillion and public distrust of politicians were among the weaknesses in the world’s largest economy. Photographer: Jin Lee/Bloomberg
The U.S. slipped to fourth in the annual rankings of the world’s most-competitive economies amid a record budget deficit, while Switzerland retained the top spot, the World Economic Forum said.
The U.S. fell from second, a year after losing the No. 1 position for the first time since the Geneva-based organization began its current index in 2004. A budget shortfall of more than $1 trillion and public distrust of politicians were among the weaknesses in the world’s largest economy.
“A number of escalating weaknesses have lowered the U.S. ranking over the past two years,” the study of 139 nations showed. “A lack of macroeconomic stability continues to be the United States’ greatest area of weakness.”
Switzerland, home to companies including drugmaker Novartis AG and food company Nestle SA, was credited for its innovation and business culture.
America’s loss of competitiveness represents another obstacle to an economic recovery at the same time President Barack Obama asks Congress to take up proposals to spend $50 billion to repair and rebuild the U.S. transportation infrastructure and spur business investment and research.
“We want to put more Americans back to work rebuilding America -- our roads, railways, runways,” Obama said yesterday in a speech at Cuyahoga Community College West Campus in Parma, Ohio, near Cleveland. “If we want to compete in this global economy, we need to rebuild this vital infrastructure.”
Wasteful Spender
The U.S. ranked 87th for macroeconomic stability, and American businesses also increasingly questioned the government’s ability to avoid meddling in the private sector and viewed it as a wasteful spender, the forum said. In its index of financial market development, the U.S. fell to 31st from ninth in 2008.
Switzerland held the premier position in the survey thanks to ranking fourth in the world for its business sophistication and second for its ability to innovate, the WEF said.
Sweden climbed two slots to second, surpassing Singapore which remained third. Sweden was credited for its transportation and high level of ethical behavior, while Singapore won points for its lack of corruption and for the efficiency of its government.
Germany, Japan, Finland, the Netherlands, Denmark and Canada rounded out the top 10, the composition of which was unchanged from last year. Among the other Group of Seven economies, the U.K. and France each rose one spot to 12th and 15th respectively, while Italy stayed 48th.
Developing Nations
China led the way among the large developing economies, rising to 27th from 29th, while India dropped two slots to 51st. Brazil fell to 58th from 56th and Russia stayed 63rd. In Latin America, Chile was the highest-ranked country at 30th and South Africa, 54th, was the best performer in its region.
The report -- published each year by the organizers of the annual conference of business leaders, politicians and entertainers in Davos, Switzerland -- is based on 12 measures of competitiveness and an opinion poll of more than 13,500 business leaders. Chad was ranked bottom of all the countries studied.
To contact the reporters on this story: Simon Kennedy in London at skennedy4@bloomberg.net
Rate These Stories
Rate this Page