The economy of the United States has been on the top competitiveness rankings for a very long time. But now it has had to give up the spot and make way for other nations to take its place. Singapore has muscled the United States out of the top spot in the World Economic Forum's annual competitiveness report published on 9th October.
The index, published on Wednesday, takes stock of an economy's competitive landscape, measuring factors such as macroeconomic stability, infrastructure, the labor market, and innovation capability. Singapore has managed to push the world's largest economy down to second place this year, with the Asian city-state scoring top marks for its infrastructure, health, labor market and financial system and the finances have played a major role in this. And while the United States lost out to Singapore overall, "it remains an innovation powerhouse," the report said. Singapore and Vietnam put up strong performances this year mostly due to the US-China trade war. The report noted that the two Asian economies appear to be benefiting from global trade tensions through trade diversion and good advertising of their economic safe haven. Vietnam jumped 10 spots from last year to rank 67th out of 137 countries which are a huge feat.
US imports from Vietnam rose by 36% in the first five months of this year, as companies have been shifting manufacturing from China to Vietnam and other Southeast Asian countries are being used as alternatives to avoid steep tariffs. The trade war hasn't been a clean win for Singapore, which is heavily reliant on exports and counts China as its biggest trading partner and there are some losses too but not quite significant as the US ones.
Tags : US economy, Singapore,