By Emily Ward | October 17, 2018 | 3:42 PM EDT
(CNSNews.com) — The United States has the most competitive economy in the world, according to the 2018 Global Competitiveness Report published by the World Economic Forum.
“The United States is the closest economy to the frontier, the ideal state, where a country would obtain the perfect score on every component of the index,” the report reads.
The United States obtained a competitiveness score of 85.6% on the scale of zero to 100, which places it in the top spot among 140 countries, states the report.
According to the Wall Street Journal, the U.S. has not reached the №1 spot “since 2008,” when “the financial crisis stalled output and triggered a global economic slowdown.”
Singapore occupies the №2 spot (83.5%), followed by Germany in third place (82.8%).
The report “assesses the competitiveness landscape of 140 economies” and “provides insight into the drivers of economic growth in the era of the Fourth Industrial Revolution.”
(Screenshot: World Economic Forum.)
The new Global Competitive Index (GCI) 4.0, which is featured in the document, includes 98 indicators that are grouped into “12 pillars of competitiveness.” The pillars are “Institutions, Infrastructure, ICT adoption; Macroeconomic stability; Health; Skills; Product market; Labour market; Financial system; Market size; Business dynamism; and Innovation capability.”
Among these pillars, the U.S. ranks the highest in three, including Labour market, Financial system and Business dynamism. It ranks second in Market size and Innovation capability, and third in Skills and Product market.
Despite the U.S.’s glowing competitiveness score, however, the report pointed out that there is still “room for improvement.”
“With a competitiveness score of 85.6, it is 14 points away from the frontier mark of 100, implying that even the top-ranked economy among the 140 has room for improvement.”
Some areas of improvement include Health, in which the U.S. scored 47th, as well as Homicide rate (92), Complexity of tariffs (108) and Imports % of GDP (136).
The median competitiveness score of all 140 countries is only 60.0%, according to the report. Chad, with 35.5%, holds the lowest spot.
According to the report, the GCI 4.0 weighs pillars “equally rather than according to a country’s current stage of development. In essence, the index offers each economy a level playing field to determine its path to growth.”