Japan’s Competitiveness Sagging as U.S. Gains : Economies: Report cites a drop in confidence among Japanese executives, slide in German and Swiss rankings.

An annual study of international competitiveness released here today said Japan’s position as the leader among developed economies is slipping, while the United States is again a contender for the top spot.

Germany has gone into decline, while Singapore tops the league of emerging economies for the fifth year in a row. Newcomer Chile is ahead of South Korea.

The authoritative World Competitiveness Report, covering 38 countries, is compiled annually by the Geneva World Economic Forum and the Lausanne International Institute of Management Development.

The analysis is based on published figures and assessments by top business figures in 38 countries--23 of which are members of the Organization for Economic Cooperation and Development and 15 of which are newly industrializing economies.

The report says Japan’s longstanding rank as the most competitive OECD country remains unquestioned, but weak data from its executives shows its dominance is slipping.

Top business figures are less confident than in the past and there is increasing protectionism. The report says there is a growing feeling among business executives that Japan’s political system needs restructuring, while the values of ordinary Japanese are no longer “ones which made the economic miracle.”

Germany, which long held a secure spot near the top in the 20-year-old rankings, dropped from second to fifth overall and from second to ninth in assessment of its business management.

The report says the change reflects the statistical impact of reunification--a fall in per capita income and a rise in inflation--and a “fight for national identity.”