Switzerland, Finland and Sweden are the world’s most competitive economies, according to The Global Competitiveness Report 2006-2007, released by the World Economic Forum. Denmark, Singapore, the US, Japan, Germany, the Netherlands and the UK complete the top 10, but the US shows the most pronounced drop, falling from first to sixth.
The rankings are drawn from a combination of publicly available hard data and the results of the Executive Opinion Survey, a comprehensive annual survey conducted by the World Economic Forum, together with its network of Partner Institutes (leading research institutes and business organisations) in the countries covered by the report. This year, more than 11,000 business leaders were polled in a record 125 economies worldwide.
The US, previously in first place, continues to enjoy an excellent business environment, efficient markets and is a global centre for technology development. However, its overall competitiveness is threatened by large macroeconomic imbalances, particularly rising levels of public indebtedness associated with repeated fiscal deficits. Its relative ranking remains vulnerable to a possible disorderly adjustment of such imbalances, including historically high trade deficits.