The United States is a superpower in many aspects, especially in terms of economy, and for quite a while, it has held the title of being the most competitive economy in the world. However, according to the IMD World Competitiveness Rankings, Uncle Sam has finally been dethroned by one of the most technologically advanced and fastest developing nations in Asia – Singapore.
This rise can be attributed to the immense availability of skilled labor in Singapore, as well as favorable immigration policies that enable an influx of foreign labor, and a boost in advanced technological infrastructure.
The US has dropped down to third on this list, which isn’t surprising to watchful economists considering the increasing fuel prices, weaker high-tech exports, and uncertainty in the value of the dollar. Furthermore, President Donald Trump’s tax policies have hardly had a long-term positive impact that was being expected.
Hong Kong continues to hold its ranking as the second most competitive economy in the world, courtesy of relaxed taxation and business policy environment coupled with easy unhindered access to business finance.
Arturo Bris, Director of IMD World Competitiveness Rankings, explained the results with the stability of existing institutions. He said, “In a year of high uncertainty in global markets due to rapid changes in the international political landscape as well as trade relations, the quality of institutions seems to be the unifying element for increasing prosperity. A strong institutional framework provides the stability for business to invest and innovate, ensuring a higher quality of life for citizens.”
Economic competitiveness matters, simply because economists regard it as an essential contributor the long-term health of a country’s economy since it empowers businesses to achieve stable growth, generate jobs and improve the overall standard of living for citizens.
Here is the full list released by IMD:
