U.S. No Longer World’s Most Competitive Economy
By: Martin Lukac
The recent study of the world’s economies reveals that the U.S. has fallen from first place last year to sixth place this year.
Switzerland replaces the U.S. as the most competitive economy in the world. It is followed by Finland and Sweden to make up the top three, according to a survey of 125 countries by the Geneva-based World Economic Forum (WEF).
The Global Comptetitiveness Report for 2006-2007 said that the top three ranked high due to sound institutions, competent macroeconomic management, world-class education systems and their focus on technology and innovation.
Augusto Lopez-Claros, chief economist and director for the World Economic Forum’s Global Competitiveness Network, said that these factors have combined to form a “successsful strategy for boosting competitiveness in an increasingly complex global economy.”
This year’s index points to the importance of education and training, said Lopez-Claros.
“Countries that, like the Nordics, are investing heavily in education are likely to see rising levels of income per capita, growing success in reducing poverty and an increasing ability to establish a presence in the global economy,” he observed.
The U.S. actually showed the most alarming decline in competitiveness this year. According to the WEF, the US still enjoys an excellent business environment and efficient markets, yet it is vulnerable to a possible disorderly adjustment of imballances, including historically high trade deficits.
Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!