US loses status as the world’s most competitive economy
TAX haven Switzerland has knocked the US off its position as the world’s most competitive economy, after the financial crisis exposed longstanding weaknesses in the giant economy.
The UK, the world’s sixth-largest economy by gross domestic product, has slipped one place and now ranks a dismal 13th, according to the World Economic Forum’s (WEF) latest Global Competitiveness Report.
That means the UK is now outranked by several smaller nations including Taiwan, the Netherlands, Finland and Denmark.
The study, which takes into account a wide range of data like growth, health data and the number of internet users, underscores the damage done to economies that rely heavily on financial services.
“There are problems on the financial market that we were not aware of before. These countries (like the US and Britain) are getting penalised now,” she said.
The study also factors in a survey among business leaders, assessing for example the government’s efficiency or the flexibility of the labour market. The WEF applauded Switzerland for its capacity to innovate and its sophisticated business culture.