The Strategist

US loses status of the most competitive economy

10/10/2019 - 07:24

The United States lost the first place in the list of the most competitive economies in the world to Singapore, according to the World Economic Forum.

The United States dropped to second place in the annual ranking of the world's most competitive economies, which was published by the World Economic Forum (WEF). Experts noted that the performance of the United States is affected by the uncertainty of business leaders, as well as reduced openness to trade. Despite the lower position, the United States remains the leader in innovation and business mobility.

The first place was taken by Singapore. WEF praises the state for its developed infrastructure and financial system. Singapore received almost the maximum mark for macroeconomic stability and 100 points out of 100 for healthcare.

In general, the report on the economies of the world in 2019 paints a gloomy picture. 10 years after the global financial crisis, the global economy is still in a closed cycle of low or zero productivity growth, the organization said. This is happening despite the fact that central banks have invested more than $ 10 trillion in the development of economies. “Weak growth, growing inequality, and accelerating climate change are creating conditions for counteracting capitalism, technology, and the elites. The international management system is at an impasse, with growing tensions in trade and geopolitics creating uncertainty. This holds back investments and increases the risk of shocks: disruptions in global supply chains, sudden price spikes or interruptions in the availability of key resources,” said WEF.

The organization believes that governments are not sufficiently using fiscal policies and can more actively support productivity, especially in the area of investment.