Britain is again clambering up the global rankings of countries with the most competitive economies, according to a report by the World Economic Forum.
It rose one place to ninth in the 144-strong league table of nations after the organisation judged that Britain had improved its performance “thanks to gains derived from lower levels of fiscal deficit and public debt”.
The improved ranking was underpinned by its “especially strong” record in adopting technology to enhance productivity in business, a category in which it came second only to Luxembourg.
The forum said that, overall, the UK had “one of the most sophisticated business environments in the world”, underpinned by an efficient labour market and the capacity for innovation among its businesses.
Switzerland held first place for a sixth consecutive year as a result of its “top-notch” academic institutions, scientific prowess, strong infrastructure and heavy spending on research.
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The other leading countries in the forum’s Global Competitiveness Report, published today, were the United States , which rose from fifth to third place, and Japan, which climbed from ninth to sixth place. Both improvements were a result of high levels of innovation and spending on research and development.
The report from the Geneva-based think-tank assesses factors such as innovation by businesses and labour market flexibility and gives cause for optimism about Britain’s economy.
George Osborne said: “This is great news and further evidence that our long-term economic plan is seen by the world to be delivering a more competitive economy. The direct link the WEF draws between our credible fiscal policy and our country’s ability to attract business and create jobs is compelling.”
Germany slipped from fourth to fifth amid concerns about institutions and infrastructure and its education system. Finland fell to fourth from third place as a result of a higher deficit, while Sweden dropped from sixth to tenth place because of concerns over labour regulations and high taxes.
Outside of Europe, some large emerging economies have struggled to improve their competitiveness. China rose only one place to 28th.
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