World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 

U.S. Economy Ranks As World's Most Competitive


U.S. Economy Ranks as World's Most Competitive

The U.S. economy has regained its ranking as the world's most competitive, largely as a result of its efficient markets and corporate innovation, according to a major report.

Following the United States were Switzerland, Denmark, Sweden and Germany in the 2007 edition of The Global Competitiveness Report, published by the World Economic Forum (WEF), an international research and policy-support group. In 2006, the U.S. economy ranked Number 6 in overall competitiveness.

"The efficiency of the country's markets, the sophistication of its business community, the impressive capacity for technological innovation that exists within a first-rate system of universities and research centers, all contribute to making the United States a highly competitive economy," said economist Xavier Sala-i-Martin, a co-editor of the report.

However, the report warns that macroeconomic imbalances, including current account deficit, and some weaknesses of U.S. institutions "pose a risk to the country's overall competitiveness potential."

In the 2007 edition, 131 countries were ranked on the quality of institutions, infrastructure, macroeconomic stability, health and primary education, higher education and training, goods and labor market efficiency, financial market sophistication, technological development, market size, and business sophistication and innovation.

The United States scored high on innovation, labor market efficiency, and higher education and training. The ranking was based on publicly available data and a survey of more than 11,000 business leaders around the world. The poll pinpointed tax rates and tax regulations as the most problematic areas of the U.S. business environment.

Economist Michael Porter, another co-author of the report, said the index helps governments identify policy areas ripe for improvements and provides motivation for reforms.

Many private-sector and government economists said the resilience the U.S. economy has shown in recent years in the face of many shocks such as the 2001 terrorist attacks, corporate scandals and high oil prices can be attributed to its competitiveness, particularly the openness and flexibility of its financial markets.

In October, U.S. Treasury Secretary Henry Paulson said he believes that with these qualities the U.S. economy will be able to weather another crisis -- the slump in the housing and mortgage markets and the related credit crunch.

His optimism was supported by an October 31 Commerce Department report that said the U.S. economy grew 3.9 percent in the third quarter. The news surprised many market observers, who expected a slower growth rate.

The chairman of the President's Council of Economic Advisers, Edward Lazear, called the growth rate "quite remarkable," in view of the fact that the housing market problems had begun to affect the economy during the third quarter.

ENDS

More: Latest World News | Top World News | World Digest | Archives

© Scoop Media

 
 
 
World Headlines

 

OECD: COVID-19 Crisis Puts Migration And Progress On Integration At Risk, Says

Watch the live webcast of the press conference Migration flows have increased over the past decade and some progress has been made to improve the integration of immigrants in the host countries. But some of these gains may be erased by the COVID-19 pandemic ... More>>


Pacific Media Watch: How Pacific Environmental Defenders Are Coping With The Covid Pandemic

SPECIAL REPORT: By Sri Krishnamurthi of Pacific Media Watch Pacific Climate Warriors - creative action to trigger better responses to climate crisis. Image: ... More>>

Reporters Without Borders: Julian Assange’s Extradition Hearing Marred By Barriers To Open Justice

After monitoring four weeks of evidence in the US extradition proceedings against Wikileaks publisher Julian Assange, Reporters Without Borders (RSF) reiterates concern regarding the targeting of Assange for his contributions to journalism, and calls ... More>>

OHCHR: Stranded Migrants Need Safe And Dignified Return – UN Migrant Workers Committee

The UN Committee on Migrant Workers has today called on governments to take immediate action to address the inhumane conditions of migrant workers who are stranded in detention camps and ensure they can have an orderly, safe and dignified return to ... More>>