New Business Competitiveness Index Released

by Ulrika Lomas, for LawAndTax-News.com, Brussels

30 September 2005

According to the Global Competitiveness Report 2005-2006, released on Wednesday by the World Economic Forum, Finland remains the most competitive economy in the world, with the United States taking second position, followed by Sweden, Denmark, Taiwan and Singapore, respectively.

The rankings are drawn from a combination of hard data, publicly available for each of the economies studied, and the results of the Executive Opinion Survey, a comprehensive assessment conducted by the World Economic Forum, together with its network of partner institutes (leading research institutes and business organizations) in the countries covered by the Report.

This year nearly 11,000 business leaders were polled in 117 economies worldwide.

Speaking with regard to the survey results, Augusto Lopez-Claros, Chief Economist and Director of the World Economic Forum’s Global Competitiveness Programme observed that:

“The Nordic countries share a number of characteristics that make them extremely competitive, such as very healthy macroeconomic environments and public institutions that are highly transparent and efficient, with general agreement within society on the spending priorities to be met in the government budget."

"While the business communities in the Nordic countries point to high tax rates as a potential problem area, there is no evidence that these are adversely affecting the ability of these countries to compete effectively in world markets, or to provide to their respective populations some of the highest standards of living in the world. Indeed, the high levels of government tax revenue have delivered world-class educational establishments, an extensive safety net, and a highly motivated and skilled labour force."

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