Arrow-right Camera
The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Study indicates U.S. competitiveness slipping

LONDON – The United States slipped to fourth in the annual rankings of the world’s most-competitive economies amid a record budget deficit, while Switzerland retained the top spot, the World Economic Forum said Thursday.

The U.S. fell from second, a year after losing the No. 1 position for the first time since the Geneva-based organization began its current index in 2004. A budget shortfall of more than $1 trillion and public distrust of politicians were among the weaknesses in the world’s largest economy.

“A number of escalating weaknesses have lowered the U.S. ranking over the past two years,” the study of 139 nations showed. “A lack of macroeconomic stability continues to be the United States’ greatest area of weakness.”

Switzerland, home to companies including drugmaker Novartis and food company Nestle, was credited for its innovation and business culture.

America’s loss of competitiveness represents another obstacle to an economic recovery at the same time President Barack Obama asks Congress to take up proposals to spend $50 billion to repair and rebuild transportation infrastructure and spur business investment and research.

“We want to put more Americans back to work rebuilding America – our roads, railways, runways,” Obama said Wednesday in a speech at Cuyahoga Community College West Campus in Parma, Ohio, near Cleveland. “If we want to compete in this global economy, we need to rebuild this vital infrastructure.”

The U.S. ranked 87th for macroeconomic stability, and American businesses also increasingly questioned the government’s ability to avoid meddling in the private sector and viewed it as a wasteful spender, the forum said. In its index of financial market development, the U.S. fell to 31st from ninth in 2008.

Switzerland held the premier position in the survey thanks to ranking fourth in the world for its business sophistication and second for its ability to innovate, the WEF said.