U.S. Slips To Number Two In Global Competitiveness

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The United States economy has lost its top position as the most competitive economy in the world, according to the World Economic Forum's 2009-2010 Global Competitiveness Report.

In data released Tuesday, the Geneva-based WEF reported that Switzerland has the most competitive economy--scoring on 5.60 on its Global Competitiveness Index--and that the U.S. dropped to the second position--scoring a 5.59--because of weaker financial markets and less macroeconomic stability.

"Given that the financial crisis originated in large part in the United States, it is hardly surprising that there has been a weakening of the assessment of its financial market sophistication," the survey said. "The country's greatest weakness continues to be related to its macroeconomic stability."

Switzerland was ranked higher because its economic performance has been "relatively stable," according to the survey, which also gave the country high marks for innovation, a sophisticated business culture, and public services, among other attributes.

This is the first time the U.S. has been second on the survey since the current CGI was introduced in 2004, though it still received praise for its flexible labor and product markets. However, in an assessment of bank soundness, the U.S. fell to 108, one spot behind Tanzania.

The WEF survey polled 13,000 business leaders in 133 world economies on economic data, and in other areas such as health and technology.

Filling out the top 10 most competitive nations in the survey were Singapore, finishing in the third position, followed by Sweden, Denmark, Finland, Germany, Japan, Canada and the Netherlands.

The United States economy has lost its top position as the most competitive economy in the world, according to the World Economic Forum's 2009-2010 Global Competitiveness Report. In data released Tuesday, the Geneva- based WEF reported that Switzerland has the most competitive economy--scoring on 5.60 on its Global Competitiveness Index--and that the U.S. dropped to the second position--scoring a 5.59--because of weaker financial markets and less macroeconomic stability. (Market News Provided by RTTNews)