October 19, 2018–The most competitive economies in the world today are the United States, Singapore, Germany, Switzerland and Japan, according to an annual assessment by the World Economic Forum.
The annual report provides a snapshot of the business landscape within 140 countries based on a criteria thought to support economic growth.
U.S. Innovation & Dynamism
Rising one spot over last year’s number two spot, the United States ranks the highest this year. The high score of 85.6 on a 100-point measurement scale is due mainly to it business culture, labor market and financial system.
The United States ranked less well, however, on other quality measures such as health, judicial independence, corruption and checks and balances. It’s life expectancy of 67.7 years ranks 46th on the list of 140 economies.
Singapore: Open & Functional
Singapore jumped from the third spot in 2017 to the second ranked this year, eclipsing Switzerland.
Singapore scored highly due to its economic openness, relative ease of regulations, government administration and “world beating” transportation system, including air, seaport, roads, shipping and electric grid.
Background: Globalization & Technology Valued
The World Economic Forum (WEF) values the idea that economic growth is “a core driver of human development,” and therefore, should rank high on policymakers’ objectives. It also supports technological development and openness to globalization.
High-income countries typically score well on the index.
The new measurement scale that emphasizes “adaptability and agility,” based on evaluations of factors like entrepreneurial culture, disruptive innovation, collaboration and meritocracy. These are added to its original measures of communication technology, infrastructure, macroeconomic stability, property rights and education.
