Singapore has taken over the United States as the world’s most competitive country, according to the World Economic Forum’s flagship Global Competitiveness Report.
The report, which ranked 141 economies, revealed that Singapore scored 84.8 percent. That’s slightly higher than the 83.7 score the U.S. received.
The index used 12 assessment pillars including infrastructure, in which Singapore ranked first. The island city-state also came in at number one for two other pillars – citizens’ healthy life expectancy years and labour markets.
Other top contributing factors included the financial system, market efficiency and macroeconomic stability.
In terms of quality of public institutions, the report showed that Singapore ranked second, just behind Finland. “But its performance is undermined by limited checks and balances,” the report noted.
The report also indicated some areas where Singapore has to improve. These include the promotion of entrepreneurship and improvements in the country’s skills base to become a global innovation hub.
Despite ranking second, the position of the U.S. as the largest economy in the world remains in place. “Despite an overall weaker performance this year, the US remains one of the most competitive economies in the world. It is still an innovation powerhouse, ranking second on the innovation capability pillar and first in terms of business dynamism… and home to one of the most dynamic financial systems in the world,” the report said.
From seventh place last year, Hong Kong rose to third spot, swapping places with Germany which ranked seventh in this year’s report. The city ranked first on four pillars – macroeconomic stability, health, financial system and product market.
“Hong Kong’s biggest weakness is undoubtedly its limited capability to innovate,” the report said.
European countries the Netherlands and Switzerland got the fourth and fifth place, respectively.
Global Competitiveness Report
This year’s Global Competitiveness Report is the latest edition of the series that provides an annual assessment of the drivers of productivity and long-term economic growth.
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