The United States ceased to be the most competitive economy in the world

The return of the dragon

The US has lost first place on the competitiveness of the economy, says the report of the Swiss management Institute IMD (have). After three years of leadership in the ranking of the States is now the third line of the list, behind Hong Kong and Switzerland.

Prior to the period of American dominance leading the money list in 2012 was the Hong Kong. Now the metropolis is again ranked first (second against a year ago). On the contrary, his main rival for the title of the main financial center of Asia, Singapore lost one position in ranking, dropping from third to fourth place.

As stated by the Director of the world competitiveness Center at IMD, Arturo Bris, the study authors noted the commitment of Hong Kong support the most favorable business environment, while the Swiss economy is focused on quality. “The United States can still boast the best economic performance, but there are many other factors that we use to calculate the competitiveness,” added Brice.

Low corporate tax rates and simple taxation system, absence of bureaucratic impediments to cash flow are, according to IMD, the basis of innovative economy of Hong Kong. In addition, the city is the island for mainland China the new economic superpower — the main investment gateway. PRC fell in the rankings from 22 th to 25-th place.

Sunrise Of Europe

Only the sample is present in 61 countries with different levels of national income and different political and economic systems. The IMD study based on a survey of 5.4 thousand of businessmen from the respective States and built on the basis of 340 criteria. Publication of the annual ranking held since 1989.

Hundreds of criteria divided into four thematic groups: economic development, efficiency of authorities, business environment and infrastructure. The top five economic indicators: USA, Qatar, China, Singapore, Hong Kong. Good governance IMD recorded in Hong Kong, Switzerland, Singapore, New Zealand and Qatar. The commercial environment is most favorable in Hong Kong, Ireland, Switzerland, Sweden and Singapore. Finally, the infrastructure is better in the USA, Denmark, Switzerland, Sweden and Finland.

If you look at the regions, their positions in the ranking strengthens European countries, whereas the status of developing countries in Asia and Latin America leaves much to be desired. For example, the strongest growth within the list showed Ireland (from 16th to 7th place) and the Netherlands (from 15 th to 8-th place), and the strongest fall — Kazakhstan (from 34th to 47th place), Mexico (from 39 th to 45 th place) and Indonesia (from 42 th to 48-th place).

Overall, says Brice, in all countries the top twenty “it is possible to allocate a common set of characteristics: business-friendly regulation, tangible and intangible infrastructure, inclusive institutions”. Of the States in the top 20 ranking nine countries belong to Western and Northern Europe.

The last place ranking again took Venezuela. In 2015, the second place from the end of the IMD, the experts gave Ukraine, now the country has risen in the list on one line, up to the 59th place. Russia has also slightly strengthened its position, moving up from 45th to 44th place.

Cadres decide everything

In his review of the Russian economy experts of IMD there are five main challenges the country will face in 2016. This is a sharp drop in consumer spending and purchasing power; instability in the global energy market; low investment activity; terrorist threat; the parliamentary elections.

Despite the fact that Russia’s position in the ranking improved slightly, they are still much weaker than in 2014 (38th place, though higher than in 2012 (48th place). On the criteria of the IMD, the greatest strengths of the Russian economy are the state of public finances (13th in the world), tax policy (14th place) and the labor market (15th place). Weak hand — labour productivity, organizational structure and management practice. All of these indicators Russia is in 57th place out of a possible 61.

Of the more than 300 underlying factors Russia is the world leader in three indicators. In addition to the area of the country is the level of literacy and personal contributions of the employee to social insurance. Thus, the illiteracy of Russians over the age of 15 years does not exceed 1% (average of 61 countries (2.7%), and contributions to the social insurance Fund on the part of the employee absent.

Among the basic criteria are present such indicators as the number of Nobel prize winners since 1950 (ten people, the seventh largest in the world) or the average level of English proficiency based on TOEFL (84 points in 89 the world average, 45th place).

None of the factors Russia is not in last place, but according to three criteria occupies the penultimate place. This access of businessmen to domestic and international capital market, the number of working hours per year (1,65 thousand, making an average of 1.9 thousand) and the success of technological solutions in the “green energy”.

In addition, the participants of the IMD survey of businesspeople that formed the basis of the study, were asked to choose five of the 15 indicators of the attractiveness of a particular market. In the case of Russia, the five factors included availability of qualified staff, high level of education, political predictability, an attractive tax regime and low opportunity costs for businesses.