World Economic Forum: UK competiveness drops behind peers

The WEF said that an over-reliance on imports ­- where the UK is ranked 115th - and weak exports has affected its competitiveness.

(AFP/Getty)

Britain has slipped down to 10th position in an influential annual ranking of global competitiveness despite being a leader in the innovation sector, according to the World Economic Forum.

The fall back below Sweden to the position Britain occupied in 2013 was largely caused by the country’s levels of government debt and the size of the budget deficit, according to the WEF, which organises the annual conference on global politics and business in Davos each winter. This left the UK ranking 108^th out of the 140 countries surveyed in terms of its macroeconomic environment.

The WEF said that an over-reliance on imports ­- where the UK is ranked 115th - and weak exports has also affected its competitiveness.

Overall, the UK’s competitiveness measure was unchanged at 5.4 out of 7. It was praised for the quality of its scientific research institutions and came sixth in the ‘business sophistication’ pillar.

The UK is also a leader in terms of digital transformation, ranking third in the ‘technological readiness’ pillar, while its relative openness and integration into the global economy makes it an easy place to attract talent to.

Switzerland remained the world’s best place to do business for the seventh year running. The country leads the innovation pillar, thanks to its world-class research institutions, high spending on research and development as well asstrong cooperation between the academic world and the private sector.

Singapore ranked second for the fifth year in a row with one of the most consistent performances of all economies, while the United States retained its third place.

The WEF also warned that persistently high unemployment is damaging resilience and leaving the world vulnerable to another protracted slump with emerging markets being the greatest cause of concern.

The Global Competitiveness report, a survey of the best places in the world to do business, assesses the competitiveness of 144 economies based on 12 “pillars” which include institutions, infrastructure, health and education, labour market efficiency, technological readiness, innovation and business sophistication.