U.S. still leads world in competitiveness

GENEVA — The U.S. economy maintained its position atop world competitiveness rankings, despite a record trade deficit, its high corporate tax rate on profit and low confidence in the government’s handling of public finances, according to an annual survey released Wednesday.

Singapore was ranked just behind, with Hong Kong, Luxembourg and Denmark rounding out the top five most competitive national economies, said the Lausanne, Switzerland-based IMD business school, which publishes the World Competitiveness Yearbook.

The study lists 55 economies according to 323 criteria that measure how the nations create and maintain conditions favorable to businesses.

Project director Stephane Garelli said the United States’ position was cemented by the dynamism of its financial market, which drives what is the world’s strongest domestic economy, topping all others in its amount of investments, stock purchases and commercial service exports.

The U.S. also ranked as the easiest place to secure venture capital for business development and surpassed all other economies in key technology criteria such as computers in use and high-tech exports, according to the report.

But Garelli said the U.S. economy has been hurt by its record trade deficit, which combined with the budget deficit brings the national debt to $8.7 trillion. High dollar reserves in foreign countries, particularly in Asia, mean the U.S. is relinquishing its grip on monetary policy.

The U.S. is also scoring poorly in other sectors such as investments in telecoms, youth interest in science, mobile telephone subscriptions and language skills among its work force, according to the report. The shortcomings were some of the same as those cited in a similar competitiveness study last year by the World Economic Forum, which dropped the U.S. in its table from the top position to sixth.