Family Life

09.09.10 | FL News Team

The U.S. is sliding when it comes to being competitive in the global economy.  That's according to an annual review by the World Economic Forum that states large deficits and a weakened financial system have played roles in putting the U.S. in fourth place in its survey of competitiveness.  It's fallen behind Switzerland, Sweden and Singapore.

Last year the U.S. ranked second after falling from first place the year before.  Various statistical measures are considered as well as a survey of business owners that compare countries.  They cite concerns such as access to credit and government regulation.  

Senior economist at the forum, Irene Mia emphasized it was government debt and the overall economic outlook that tripped up the U.S. in the rankings.  Government debt affects competitiveness by hampering a country's ability to respond to crises or make infrastructure and other investments that could improve productivity in the future.  Higher interest rates may also be a result.

The survey of 139 countries took into account such factors as the strength of institutions and laws, the quality of infrastructure, public health and education and levels of technology and innovation.