The US economy is no longer the most competitive in the world: what happened

The United States lost the title of the most competitive economy in the world, giving it to Singapore, follows from the updated ranking of the Swiss business school IMD. For the first time, two economies of the Middle East - Qatar and the United Arab Emirates - were in the top ten.

Фото: Depositphotos

Ten years later singapore returned to the top ranking of the most competitive economies in the world According to the Swiss business school IMD. The United States did not stay long in the first place, rolling back to the third position. The second line, like the year before, occupied Hong Kong, writes RBC.

Singapore has been helped by a developed technology infrastructure, skilled workers, favorable immigration legislation, and efficiency in setting up new businesses.

Middle East is coming

For the first time in the top ten most competitive economies were two Middle Eastern countries - Qatar (tenth place) and the United Arab Emirates (fifth place). Three years ago, they were, respectively, in the 13 and 15 positions.

"Now the UAE is ranked first in the world in business performance, surpassing other economies in areas such as labor productivity, digital transformation and entrepreneurship," the IMD release said.

In addition, Saudi Arabia has risen in the rankings on 13 lines - the largest jump of this year - to 26 place. She received the highest global rating for public investment in education.

On the subject: The US economy under Trump has shown incredible growth

The United States, having held on for a year at the top of the ranking, dropped to third place. The impetus that was given by Donald Trump's tax reform (business tax cuts) “seems to have dried up,” explains IMD. Although the United States holds the first place in the world in terms of infrastructure efficiency and macroeconomic indicators, the competitiveness of the American economy has suffered due to rising fuel prices, weakening high-tech exports and fluctuations in the dollar exchange rate.

The global competitiveness ranking, compiled from 1989, is represented by 63 of the country. The authors of the rating assess the competitiveness of 20 parameters, divided into four categories (index): economic performance, government efficiency, business performance and infrastructure. The parameters themselves, in turn, consist of more than 300 of various variables - from the contribution to world GDP, gas prices and the level of tax rates to the cost of capital, transparency of state policy and openness of the national culture to foreign ideas.

Ireland is a bright spot in Europe

Northern European countries, traditionally occupying high places in this rating, have somewhat lost their positions this year. Denmark dropped from 6 to 8, Norway from 8 to 11. In addition, the Netherlands rolled back from fourth to sixth, Germany - from 15 to 17.

However, Ireland has risen from place 12 to the seventh due to improved conditions for business and the strengthening of the economy as a whole. Ireland ranks first in the world, according to IMD, in terms of investment incentives for foreign investors. The country, in particular, is distinguished by a favorable tax regime for corporations, characterized by the youngest population in Europe (one third of the population does not reach the age of 25 years) and at the same time an educated highly skilled workforce.

Russia has stagnation in rating

As for Russia, the country froze on the 45 line, not moving from it for a year. Compared to 2015 in the year, Russia's position in the ranking has also not improved. If in the World Bank’s Doing Business ranking, which the government officially focuses on, Russia is consistently growing (31 has a place in the 2018 rating of the year), then in the IMD rating it has stagnated.

On the subject: Ten best and worst for the life of US states

At the same time, the variables of competitiveness, according to which countries are rated, have changed over the year from Russia:

The most significant improvements were recorded in macroeconomic parameters (budget surplus, current account surplus, export of goods), but also in a number of non-monetary indicators (for example, introduction of big data and analysts, bureaucratization, tax evasion, the image of the country abroad).

At the same time, the country's position has deteriorated in terms of population growth, patent applications per capita, development of venture capital, and shareholders' rights.

As part of a global survey, IMD also surveyed Russian business executives on key factors for the attractiveness of the Russian economy:

• 74,3% called a highly skilled workforce a key advantage of Russia;
• 66,2% - a high level of education in society;
• 37,8% - cost competitiveness.

Ukraine took 54 a place, having strengthened its position on the 5 lines compared to last year (59 in 2018 year).

Improved performance and Kazakhstanby rising to the 4 line and settling on the 34 ranking position (against 38 in the 2018 year).

On the 24 line of the 2019 rating of the year is Israel, which lost three positions over the year - in 2018, the economy of this country ranked 21st in the world.

Read also on ForumDaily:

Americans are ready to choose a socialist president: what exactly do they mean by this term

The United States will postpone the introduction of duties on European cars: what are the terms and conditions

From soy sauce to computers: what products will rise in price after the introduction of duties on imports from China

Immigrants founded half of US billionaire startups: the most inspirational stories

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.