Singapore has lost its number one spot in the world’s ranking of economic competitiveness, according to the latest annual IMD World Competitiveness report.
The United States took the top spot, primarily driven by recovery in its financial markets. Hong Kong came in second, while Singapore placed third.
After a 14.5 percent growth in economy last year, it is no surprise that Singapore placed second among 59 countries, in terms of the competitiveness of its domestic economy, according to The Straits Times.
But the increasing cost of living, due to steeper property prices, as well as higher energy, transport and food costs, has dragged the country from 47th to 54th place, in terms of price competitiveness.
Singapore topped the list in 2010, mainly attributed to its flexible recovery from the global economic recession. It had fought with Hong Kong for second and third place for many years, while the US had been in the number one spot since 1994.
“The world of competitiveness becomes more national. World Competitiveness 2.0 is thus characterised by a greater self-reliance of countries. It increasingly emphasises re-industrialisation, exports, and a more critical look at de-localisation,” said Dr. Stephane Garellli, Director of the World Competitiveness Centre at Swiss business school IMD.
“This trend is triggered by the rise in commodity and transport prices and higher labour costs in emerging economies.”
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