October 29, 2018

Data Spotlight: United States Top In Competitiveness, But Challenges Are On The Horizon Link

Earlier this month, the World Economic Forum released a study ranking countries based on their economic competitiveness. For the first time in a decade, the United States was the top-rated nation.

As Forbes contributor Niall McCarthy explains, the WEF ranks the world’s countries by looking at the institutions, policies, and other factors that determine the level of productivity within a country. While the WEF praised the United States for its business dynamism and entrepreneurial culture, flexible labor markets, and the stability of its financial system, McCarthy said the nation still “has a lot of work to do” when it comes to strengthening its institutions.

McCarthy also outlined the more general challenges the WEF highlighted this year, arguing companies must continue to proactively address technological change. McCarthy said the study’s “core finding” is that “economic competitiveness is changing and becoming more demanding in a world that’s being transformed by new, digital technology” and “that is resulting in major risks for governments and businesses who face the prospect of poor future growth and productivity unless they overcome current technological challenges.”