U.S. Economy Most Competitive

L.A. Times Archives

Sept. 7, 1994 12 AM PT

The United States, boosted by its emergence from recession, has replaced long-dominant Japan as the world’s most competitive economy, according to an international study released today.

Singapore comes a close second in a league table covering 41 developed and major developing countries. Japan, wracked by political and economic woes, was pushed into third place, the annual World Competitiveness Report says.

The report, widely used as a key guide for business and investment, was prepared by analysts at the Lausanne Institute for Management Development and published with the Geneva-based World Economic Forum.

The IMD defines international competitiveness as “the ability of a country to proportionally generate more wealth than its competitors in world markets.” It compiles its tables from hard statistics and evaluations by business leaders.

About 16,500 executives around the world were surveyed for their views on key factors affecting each country’s competitiveness, from government policies to business infrastructure to management and work force quality.

The report says the U.S. outlook is clouded by relatively low educational standards and poor work force attitudes, as well as the volatility of the dollar.

The rankings:

1. United States

2. Singapore

3. Japan

4. Hong Kong

5. Germany

6. Switzerland

7. Denmark

8. Netherlands

9. New Zealand

10. Sweden

11. Norway