Skip to comments.U.S. boots Hong Kong from top spot and reclaims title of world’s most competitive economy
Posted on 05/29/2018 7:15:29 PM PDT by Eddie01
President Trump is making good on his promise to make America great again as the nation roared back to reclaim the title of the worlds most competitive economy.
The U.S. beat Hong Kong for the top spot, retaking the position for the first time since 2015, according to Switzerland-based IMD World Competitiveness Centers annual rankings, Bloomberg reported.
Faster economic growth as well as scientific and technological innovation launched the U.S. up from 4th place last year, as the nation scored best in international investment, domestic economy and scientific infrastructure sub-categories.
The renewed top ranking aligns with the positive U.S. growth narrative over the past year, Bloomberg reported. Growth averaged 2.9 percent in the four quarters through March, versus 2 percent in the prior period."
Singapore maintained its third place position from 2017 in the annual rankings by the Swiss group, as Hong Kong scored top spot in categories for government and business efficiency.
The Netherlands, which jumped up one spot, and Switzerland, which fell three spots, rounded out the top five.
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More winning through sound Trump policy.
This is why the Democrat Party wants “resist”
I am shocked, stunned, and amazed!
Thank you Obama. < / Sarc>
What in the world does this survey measure?
I see America at the top. But I do not see ANY Asian competitors, despite the fact that basically we import everything from Asia. Other than Hong Kong.
Hong Kong, was a competitive place. But not as much now. It is being taken over by China. WHICH IS NOT EVEN ON THE LIST.
I really challenge this study. It seems like a site with a very specific agenda, to me.
Trump you are on the right track, but this is not what we want to “lead” in.
We need to bring back manufacturing to America once again.
Sorry Singapore, is on there as well.
But this doesn’t even list any major Asian competitors. Korea is not on there. Japan. Not on there. China is not on there.
China is not on there.
This list is way, offbase, in my view.
Since 2004, the report ranks the world’s nations according to the Global Competitiveness Index. The report states that it is based on the latest theoretical and empirical research. It is made up of over 110 variables, of which two thirds come from the Executive Opinion Survey, and one third comes from publicly available sources such as the United Nations. The variables are organized into twelve pillars, with each pillar representing an area considered as an important determinant of competitiveness.
One part of the report is the Executive Opinion Survey which is a survey of a representative sample of business leaders in their respective countries. Respondent numbers have increased every year and is currently just over 13,500 in 142 countries (2010).
The report notes that as a nation develops, wages tend to increase, and that in order to sustain this higher income, labor productivity must improve for the nation to be competitive. In addition, what creates productivity in Sweden is necessarily different from what drives it in Ghana. Thus, the GCI separates countries into three specific stages: factor-driven, efficiency-driven, and innovation-driven, each implying a growing degree of complexity in the operation of the economy.
The report has twelve pillars of competitiveness. These are:
Stable macroeconomic framework
Good health and primary education
Higher education and training
Efficient goods markets
Efficient labor markets
Developed financial markets
Ability to harness existing technology
Market sizeboth domestic and international
Production of new and different goods using the most sophisticated production processes
In the factor-driven stage countries compete based on their factor endowments, primarily unskilled labor and natural resources. Companies compete on the basis of prices and sell basic products or commodities, with their low productivity reflected in low wages.
To maintain competitiveness at this stage of development, competitiveness hinges mainly on well-functioning public and private institutions (pillar 1), appropriate infrastructure (pillar 2), a stable macroeconomic framework (pillar 3), and good health and primary education (pillar 4).
As wages rise with advancing development, countries move into the efficiency-driven stage of development, when they must begin to develop more efficient production processes and increase product quality.
At this point, competitiveness becomes increasingly driven by higher education and training (pillar 5), efficient goods markets (pillar 6), efficient labor markets (pillar 7), developed financial markets (pillar 8), the ability to harness the benefits of existing technologies (pillar 9), and its market size, both domestic and international (pillar 10).
Finally, as countries move into the innovation-driven stage, they are only able to sustain higher wages and a higher standard of living if their businesses are able to compete by providing new or unique products. At this stage, companies must compete by producing new and different goods using the most sophisticated production processes (pillar 11) and through innovation (pillar 12).
Thus, the impact of each pillar on competitiveness varies across countries, in function of their stages of economic development. Therefore, in the calculation of the GCI, pillars are given different weights depending on the per capita income of the nation. The weights used are the values that best explain growth in recent years For example, the sophistication and innovation factors contribute 10% to the final score in factor and efficiency-driven economies, but 30% in innovation-driven economies. Intermediate values are used for economies in transition between stages.
The Global Competitiveness Index’s annual reports are somewhat similar to the Ease of Doing Business Index and the Indices of Economic Freedom, which also look at factors affecting economic growth (but not as many as the Global Competitiveness Report).
Oh thanks. Very, very helpful.
But let’s just say. This is not a measurement of competitiveness.
It is a heavily skewed, measure of something or other. Completely biased, in favor of suggesting the world is one way, when for the entire last generation, it has been becoming something else entirely.
Just my opinion.
obama’s economic policies must finally be kicking in ...
Maybe how much a country exports and imports isnt really a good measure of the soundness of its economy.
And maybe its not really meaningful to talk about countries competing.
I mean, compared to other things one could measure and talk about.
Maybe these questions deserve some consideration. Just a thought.
“President Trump is making good on his promises”...and he’s got six years left...
Except this article is supposed to be measuring the “Competitiveness of the economy”. Look at the title.
Not the health of the economy. Not anything else. COMPETITIVENESS.
Asia is eating our lunch on this. Have been for the entire last generation.
The rest is up to you. All the detail is available.
You have no data to back up your feelings.
Go get data. Make an argument.
I sent you everything you need.
All I am saying is, this is a very intricate design.
Very intricate. I have no question at all, it is elaborate. It is well thought out. It is any number of things, all of which are important and critical to cover in global news.
I however, do not at all, think this described competitiveness.
That is what we are losing, for the entire last generation and a half.
America is not competitive, anymore.
We are skating, basically.
Much of our massive industrial capability, has been offshored. Many, many US jobs as well.
I do not at all think, this truly described competitiveness.
Not at all.
It is important. America is still formidable.
But we are selling our competitiveness, to countries such as China.
We have been, for a long time.
Computers, are basically all made in China. Phones are basically made in China.
Everything manufactured, which is sold in Walmart from coast to coast.
(I know not literally, but close enough)
We have sold out what used to be our industry.
That is why Donald Trump was elected. BECAUSE PEOPLE GET THIS.
Competitiveness. Is not selling out globally.
Competitiveness, is what we had.
BEFORE we sold out.
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