After a decade long absence, the U.S. has regained the distinction of most competitive economy in the world, according to the World Economic Forum. In fact, only Japan made a bigger improvement of all 140 countries in the survey.
Under President Donald J. Trump, the United States economy has regained the crown as the most vibrant and competitive economy found anywhere in the world today. The US had been noticeably absent from this global powerhouse ranking during the entire 8 years of the Obama presidency.
World’s ‘most competitive’ economy: U.S. regains the crown it lost 10 years ago
FROM WORLD ECONOMIC FORUM: The new index measures 140 economies against 98 indicators, organized into 12 ‘pillars’ or drivers of productivity, to determine how close the economy is to the ideal state or ‘frontier’ of competitiveness. (Market Watch also contributed to this report).
The US topped the rankings, being ‘closest to the competitiveness frontier’, with Singapore, Germany, Switzerland and Japan, completing the top five. At the other end of the scale, Haiti, Yemen and Chad were found to be the least competitive economies.
Competitiveness is not only associated with higher incomes, but also better socioeconomic outcomes, including life satisfaction.
Explaining the new approach to measuring competitiveness, Thierry Geiger, Head, Research and Regional Impact, Future of Economic Progress at the World Economic Forum, said: “Productivity is the single most important driver of growth in 2018. With the Fourth Industrial Revolution in full swing, there is a need to rethink the drivers of competitiveness and therefore of long-term growth.
“Those new drivers include adaptability and agility of all stakeholders, including the governments. To what extent are they able to embrace change and adapt to change and upgrade their economies?”
The US scored 85.6 out of 100 to top the index, coming in the top three for seven of the 12 pillars. Its entrepreneurial culture saw it score highly in the business dynamism pillar. It also scored highly for its labour market and financial system.