The United States dropped from first to sixth place in the World Economic Forum’s annual rankings.
In the Global Competitiveness Index released Tuesday, Switzerland took the lead position in the rankings, followed by Finland, Sweden, Denmark and Singapore. After the U.S., Japan, Germany, The Netherlands and the United Kingdom rounded out the top 10.
According to the report, Switzerland landed the top spot due to a combination of factors. “A capacity for innovation and the presence of a highly sophisticated business culture” was cited in the report as reasons it ranked first on the list.
Russia, China and Italy all slipped in the rankings due to private sector issues.
“It (The U.S.) remains a world leader in a number of key categories assessed by the GCI, such as market efficiency, innovation, higher education and training and business sophistication,” the report said. “However, growing imbalances have dented a number of macroeconomic indicators, and the levels of efficiency and transparency underpinning its public institutions do not match those of the most developed industrial countries.”
The Index examines nine different areas and their underlying factors in determining the rankings. Over 11,000 business leaders in 125 countries took part in the survey.
Scandinavian countries continue to rank as top performers, taking the all top four spots. These nations have better ranks in macroeconomics, since they all have budget surpluses. Finland and Sweden rank one and two respectively when it comes to health and primary education.
The survey said, “The Nordic countries show that transparent institutions and excellent macroeconomic management, coupled with world class education attainment and a focus on and technology and innovation are a successful strategy for maintaining competitiveness in small, highly developed economies.”
The entire report can be reviewed by clicking here.