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 Top 10 Most Competitive Economies in the World

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PostSubject: Top 10 Most Competitive Economies in the World   Mon Feb 13, 2012 4:23 am

1. Switzerland

Strengths:
Strong collaboration between business and academia which spurs innovation and research and development.
Strong institutions and financial markets.
Solid infrastructure.

Weaknesses:
University enrollment is low at just 49.4%.

2. Singapore

Strengths:
Strong, transparent, efficient institutions (ranked 1st here).
Also ranked 1st for its financial market development.
Great infrastructure (ranked 3rd).

Weaknesses:
Needs more advanced technological development and more sophisticated companies.

3. Sweden

Strengths:
Great institutions, especially ethical private sector companies and corporate boards. In terms of business culture and innovation it is ranked 2nd.
Ranks 2nd for higher education and training.
Stable macroeconomic climate due to low public debt and a balanced budget.

Weaknesses:
Like other Nordic countries, it lacks a flexible labor market.

4. Finland

Strengths:
Has the 3rd highest ranked public institutions.
Ranked 1st for higher education.
Ranked 3rd for innovation.

Weaknesses:
A small increase in the country's budget deficit has shaken its macroeconomic footing.

5. The United States

Strengths:
Incredibly sophisticated and innovative companies.
A great higher education system that cooperates well with the private sector to spur research and development.
A huge domestic economy.
Improving financial markets (up to 22nd from 31st last year).

Weaknesses:
Business simply does not trust the country's institutions—here it ranks 39th. In terms of trust between politicians and business, it ranks 50th, and it ranks 66th in terms of government waste.
Ranks 90th in terms of macroeconomic stability, mostly because of massive public debt.
Sever macroeconomic problems

6. Germany

Strengths:
Ranks 2nd in terms of infrastructure.
A big hand goes to Germany's famous mittlestand (mid-sized companies). This report lauds the country for the low market dominance of its big corporations.

Weaknesses:
A rigid labor market (ranks 125th).
Deteriorating availability of scientists and engineers. Last year it ranked 27th in this area, this year it ranks 41st.

7. The Netherlands

Strengths:
The Netherlands has managed to make its already strong institutions even stronger.
It has improved the efficiency of its financial markets and the sophistication of its businesses (ranked 5th).
And ranks 8th in both primary and higher education/training.

Weaknesses:
Could improve upon the flexibility of its labor market.

8. Denmark

Strengths:
Denmark's institutions are ranked the 5th strongest in the world.
Has the "most flexible labor market of all the Nordic countries," and ranks 6th in the world for them.

Weaknesses:
Denmark needs to continue making its financial markets and businesses more sophisticated.

9. Japan

Strengths:
Ranked #1 for the sophistication of its businesses.
Ranked #4 for innovation.
Has the 2nd highest number of patents per capita in the world.

Weaknesses:
Severe macroeconomic problems, here it ranks 113th on the list. The public debt is 220% of GDP, that says it all.

10. The United Kingdom

Strengths:
Sophisticated and innovative businesses
Ranks 6th in market size

Weaknesses:
Weak macroeconomics (ranks 85th) because of a double digit deficit, mounting public debt (77% of GDP) and a low savings rate (12.3% in 2010).

http://www.businessinsider.com/most-competitive-countries-for-business-2011-9

http://www.weforum.org/issues/global-competitiveness
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