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Iceland ranked the fourth most competitive nation by a survey done by a Swiss business school
As reported by Reuters on May 11th, 2006
GENEVA (Reuters) - The United States will be the world's most competitive nation for the coming years, but Hong Kong and Singapore are catching up, a Swiss business school said in a survey published on Thursday.
Vibrant U.S. companies have offset the government's inertia over its huge budget deficits and debt, the International Institute for Management Development (IMD), said in its annual World Competitiveness Yearbook.
The Lausanne-based school ranked the United States first in its assessment of 61 world economies based on four factors: economic performance, government efficiency, business efficiency and infrastructure.
Hong Kong and Singapore came second and third -- the same order as last year -- followed by Iceland and Denmark. Venezuela was deemed least competitive of the group.
The United States is likely to retain the top spot for years to come, IMD Professor Stephane Garelli said citing its huge domestic market and business-friendly policies like low tax rates.
Still, he said Asian countries were gaining ground thanks to their balanced macroeconomic stance and efforts to attract new companies, as well as a regional economic boost led by China.
"We are seeing a much more compact race in terms of competitiveness," Garelli said in a telephone interview.
"Singapore and Hong Kong are becoming highly competitive and there is a lot that other nations can learn from them about how to do it," he said.
Turning to worst-ranked Venezuela, Garelli said buoyant oil and gas revenues from a commodity price boom had masked the country's restrictive investment policies and other measures making it difficult for companies to thrive there.
"The attitudes toward foreign investment are very, very negative," he said.
IMD's rankings were designed to measure countries' attractiveness for business and their economic growth potential.
© Reuters 2006. All Rights Reserved.
