Switzer­land ranked world’s most com­pet­i­tive econ­omy

Business Sphere - - GLOBAL ECONOMY - By G. R. Khat­tar, Edi­tor-in-Chief

Switzer­land is again top of the class in the World Eco­nomic Fo­rum (WEF)’s Global Com­pet­i­tive­ness In­dex – for the ninth year in a row – nar­rowly ahead of the United States and Singapore. It gained its high­est ever score in the past ten years of the WEF rankingex­ter­nal link, thanks to its abil­ity to in­no­vate, its so­phis­ti­cated busi­nesses, and a highly ef­fec­tive labour mar­ket. “Eco­nomic per­for­mance ben­e­fits from ex­tremely strong fun­da­men­tals in­clud­ing pub­lic health, pri­mary ed­u­ca­tion, and a com­par­a­tively solid macroe­co­nomic en­vi­ron­ment. Its econ­omy has a high level of flex­i­bil­ity, with its labour mar­kets be­ing ranked as the best­func­tion­ing glob­ally,” the au­thors wrote. Like Den­mark, Nor­way, Swe­den, the Nether­lands, and Ger­many, Switzer­land scored high for both labour mar­ket flex­i­bil­ity and pro­tec­tion of work­ers’ rights. “Gov­ern­ments that pur­sue both these ob­jec­tives can achieve ef­fi­cient labour mar­kets as well as low lev­els of in­equal­ity,” the re­port stated. De­spite drop­ping one place for higher ed­u­ca­tion (down to fourth) and fall­ing to se­cond be­hind New Zealand for tech­no­log­i­cal readi­ness, the alpine na­tion made strong progress in the health and pri­mary ed­u­ca­tion cat­e­gories, climb­ing six places from eighth to se­cond. Other G20 ma­jor economies in the WEF top 10 in­cluded Ger­many (5), Bri­tain (8) and Ja­pan (9). China is the high­est rank­ing among the BRICS (Brazil, Rus­sia, In­dia and China) group of large emerg­ing mar­kets, mov­ing up one rank to 27. As well as in­di­vid­ual com­pet­i­tive rank­ings, the WEF re­port high­lighted the risk of fur­ther fi­nan­cial shocks on the hori­zon, and ar­gued that na­tions were ill-pre­pared for the next wave of in­no­va­tion and au­to­ma­tion. “Ten years on from the global fi­nan­cial crisis, the prospects for a sus­tained eco­nomic re­cov­ery re­main at risk due to a wide­spread fail­ure on the part of lead­ers and policy-mak­ers to put in place re­forms nec­es­sary to un­der­pin com­pet­i­tive­ness and bring about much­needed in­creases in pro­duc­tiv­ity,” WEF stated.

The World Eco­nomic Fo­rum (WEF) praised Switzer­land for its `highly ef­fec­tive' labour mar­ket

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