BEIJING, Sept. 26 (Xinhuanet) -- 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 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.
Switzerland grabbed the top spot in the World
Economic Forum's global competitive ranking, while the U.S. tumbled to sixth
place.
"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 2006, followed by Finland, Sweden, Denmark and Singapore. After the United
States, which had topped the 2005 index, Japan, Germany, the Netherlands and
Britain rounded out the top 10.
The Geneva-based World Economic Forum said
Switzerland's well developed infrastructure, plentiful scientific research,
intellectual property protection and sophisticated business culture helped
launch the country to the index's leading position.
As in Switzerland, it said high-ranking Nordic
countries benefited from strong institutions and excellent education and
training, but said they lagged in labor market flexibility.
Most European Union countries saw stable
competitiveness readings over the past year, but Italy's competitiveness ranking
fell to 42nd - compared to 38th last year - because of ongoing macroeconomic and
institutional weakness.
Russia slipped nine places for a 62nd-place ranking
this year, largely due to private sector misgivings about the independence of
the country's judiciary, according to the report based on surveys of more than
11,000 business leaders worldwide.
"Legal redress is Russia is neither expeditious,
transparent nor inexpensive, unlike in the world's most competitive economies,"
it said. "Partly because of this, the property rights regime is extremely poor
and worsening."
China's ranking also fell - to 54 from last year's
48.
Fellow Asian powerhouse India gained two places to
rank 43rd in the World Economic Forum ranking, with persistent poverty, weak
health infrastructure and a large public sector deficit offsetting advances in
technological services.
Chile, ranked 27th, led Latin America's showing in
the 2006 index, while Brazil slipped nine places to 66th as a result of a
worryingly large budget deficit, the report said.
Regional neighbors Bolivia, Ecuador, Nicaragua and
Paraguay ranked much lower and were listed as "among the worst performers for
basic elements of good governance, including reasonably transparent and open
institutions."
Venezuela slipped four places to 88 despite the
emergence of a budget surplus in the oil exporter. The World Economic Forum said
the OPEC member needed stronger institutions to fight graft and reduce
government interference in the economy.
In the Middle East, oil price gains have improved
business confidence in countries such as the United Arab Emirates and Qatar,
ranked 32nd and 38th. The report said more investments in human capital would
help the energy-dominated region diversify its economies and further improve its
competitive prospects. Enditem
(Agencies)
