U.S. drops to 6th in world competitiveness ranking [View All]

[Judi Lynn]

U.S. drops to 6th in world competitiveness ranking
Tue Sep 26, 2006 5:17am ET

GENEVA (Reuters) - The United States fell to sixth place in the World Economic Forum's 2006 global competitiveness rankings, ceding the top place to Switzerland, as macroeconomic concerns eroded prospects for the world's largest economy.

In a report released on Tuesday, the World Economic Forum said Washington's huge defense and homeland security spending commitments, plans to lower taxes further, and long-term potential costs from health care and pensions were creating worrisome fiscal strains.

"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," it said.

Switzerland was deemed the most competitive economy in the 2006 rankings, followed by Finland, Sweden, Denmark and Singapore. The United States had topped the 2005 index.
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