Singapore, United States lead world's most competitive economies
09 October, 2019, 17:29
That's according to the World Economic Forum, which has been assessing economic competitiveness for the past 40 years, looking at how "institutions, policies and factors" determine levels of productivity of a country.
The WEF said that while rising trade tensions, such as the ongoing US-China trade war as well as Brexit, is "fuelling uncertainty", some countries are "benefiting from the trade feud through trade diversion" - Singapore and even Vietnam, which ranked 67th and is the most improved country in this year's index.
In the overall ranking, India is followed by some of its neighbours including Sri Lanka at 84th place, Bangladesh at 105th, Nepal at 108th and Pakistan at 110th place.
The study highlighted that the global economy is unprepared for a major slowdown. It ranked 64th out of 141 economies from 56th in 2018.
Hong Kong, the Netherlands and Switzerland rounded out the top five places in the rankings.
WEF founder Klaus Schwab called the index a "compass for thriving in the new economy where innovation becomes the key factor of competitiveness".
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The report also noted the country's edge in human capital, highlighting the good skills sets of graduates as well as the digital abilities of the population, as it maintained its rank at 67th.
The report is then used as a tool by over 100 of the world's leading companies and 100 worldwide, civil society and academic organisations to see how they can make the economy, workforces, and businesses more productive and integrate equality and inclusion into the new economy, aiming to reach 1 billion people with improved economic opportunities.
The Asia Pacific region took the crown for the world's most competitive region, the WEF said.
Under markets, the country improved in all four indicators: product market, labor market, financial system and market size. The country leapfrogged the USA from second to first, as it had benefitted "from global trade tensions through trade diversion", as had Vietnam, which the WEF found was the most improved country in its rankings.
"As monetary policies begin to run out of steam, it is crucial for economies to rely on fiscal policy and public incentives to boost research and development, enhance the skills base of the current and future workforce, develop new infrastructure and integrate new technologies, among other measures", it added.
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