On Wednesday, the World Economic Forum said that the economy of the United States has become less competitive than it was one year ago and the economy all across the globe has remained affected by the low productivity in spite of a decade of cheap money from the Central banks.
In the latest assessment by the Forum of the factors that impact productivity and the long term growth of economy, it has found that Singapore has now overtaken the United States as the world’s most competitive country which has been aided majorly by the modern infrastructure that it has and the strong cooperation between management and labor.
The report of Global Competitiveness in its 40th year has said that United States is losing the ground in its measures like healthy life expectancy as well as the preparedness for futures skills which are needed in the 21st century.
The top five ranks also included Switzerland, Hong Kong and Netherlands.
The index of the report maps out the landscape of 141 competitive economies on the basis of over 100 indicators across a dozen categories.
These categories include financial systems, health, size of the market, business dynamism and innovation capacity.
The US though does remain a powerhouse when it comes to innovation and is still the most competitive large economy in the world and ranks high in the ease of finding skilled employment.
The index was called as a compass for thriving in new economies where innovation is the key factor for competitiveness by Klaus Schwab, the founder of WEF.
The authors have said that it is early to assess the full impact of the world economy’s operative factors over the previous year.
