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U.S. Drops in Global Competitiveness Rankings

According to the Geneva, Switzerland-based World Economic Forum, the United States have slipped to number six on the list of most competitive economies. "With a low savings rate, record-high current account deficits and a worsening of the U.S. net debtor position, there is a non-negligible risk to both the country`s overall competitiveness and, given the relative size of the U.S. economy, the future of the global economy," a report released on Tuesday said of the U.S.

The United States, possessing the world`s largest economy, had been at the top of the World Economic Forum`s 2005 global competitiveness rankings. This year, though, Switzerland took the top spot, followed by Finland, Sweden, Denmark and Singapore. After the U.S., at sixth, comes Japan, Germany, the Netherlands and Great Britain. Fans of massive Chinese economic growth might not have been cheered by the news that over the past year China`s ranking slipped, as did the rankings of Russia and Brazil.

India, a democracy with a population that is expected in the second decade of the 21st century to overtake that of China (which is a single-party authoritarian state), saw its competitiveness ranking rise this year. The World Economic Forum gives credit to America`s advantages, but the group`s chief economist says worries about tax policies and defense spending in America "could allow other countries in a highly competitive global economy to challenge the U.S.`s privileged position".