Singapore takes No. 2 spot in world competitiveness report

The Straits Times, May 9, 2007


SINGAPORE is one of the world's most competitive economy in the world, second only to the United States.

Hong Kong, Luxembourg and Denmark round out the top five most competitive national economies in the World Competitiveness Yearbook, published by the Lausanne, Switzerland-based IMD business school.

The study lists 55 economies according to 323 criteria that measure how the nations create and maintain conditions favorable to businesses.

Project director Stephane Garelli said the United States’ position was cemented by the dynamism of its financial market, which drives what is the world’s strongest domestic economy, topping all others in its amount of investments, stock purchases and commercial service exports.

The US also ranked as the easiest place to secure venture capital for business development and surpassed all other economies in key technology criteria such as computers in use and high-tech exports, according to the report.

Mr Garelli said the 2007 results highlight how many of the world's emerging economic powers were catching up with the US because of government policies better tuned to economic performance.

The US has topped the list every year since 1994.

'London is becoming a very big competitor to New York in investment banking, while Singapore is challenging the U.S. in wealth management,' Mr Garelli said.

China jumped three places to 15th in the report.

Losing ground to the US are 15 of the countries

They include Indonesia, Italy, Argentina, Brazil, Mexico, Turkey, the Philippines and France.

Venezuela was ranked last for the second year in a row, immediately preceded by Indonesia, Croatia, Poland and Argentina. -- AP