U.S. Economy Still Most Competitive Despite Crisis, WEF Says
By Simon Kennedy
Oct. 8 (Bloomberg) — The U.S. retained the title of most competitive nation for a fifth year even as its economy is roiled by the biggest financial crisis since the Great Depression, the World Economic Forum said.
The U.S. led Switzerland, Denmark and Sweden in the Geneva- based organization’s annual rankings of 134 nations, receiving top marks for innovation, the size of its markets and labor productivity.
The efficiency of the world’s largest economy may provide it with a cushion as it slides towards a recession and its banking sector continues to be hurt by last month’s collapse of Lehman Brothers Holdings Inc. The U.S. government is beginning to implement a $700 billion finance-rescue package.
“Despite rising concerns about the soundness of the banking sector and other macroeconomic weaknesses, the country’s many other strengths continue to make it a very productive environment,” the report said of the U.S.
The U.S. was still ranked only 66th for macroeconomic security with the forum warning its overall productivity may wane in coming years because its federal budget deficit and debt suggest it is “not preparing” for the retirement of the baby boom generation.