Germany is no longer as competitive as it used to be, the latest global ranking of economies by Swiss business school IMD has revealed. Nor has the US been able to cling to its top position, the study emphasizes.
Germany slipped out of the top 10 most competitive economies, a study by Swiss business school IMD showed Monday. Europe's powerhouse dropped two places to 12th, down two from last year, after being in 6th position in 2014.
The latest ranking is based on a global survey of 5,400 managers assessing 342 different criteria deemed to be important for nations as business locations.
The IMD study said a diminished assessment of Germany's government and the country's economic performance were the main reasons for the drop. The survey also showed that the nation's complicated tax system was hated by many potential investors, while it was able to score because of a large number of highly skilled workers.
"The biggest danger for Germany is complacence," said IMD Director Arturo Bri. "If it drops that, it'll get back into the top 10."
US no longer leading the field
Germany's drop in the ranking was not the only big surprise this year. The US was toppled as the world's most competitive economy, with the new leader being China Hong Kong. Switzerland took second place and the US third.
Arturo Bri said a consistent commitment to a favorable business climate was central to Hong Kong's rise, while Switzerland excelled in its emphasis on quality and quick reaction to keep its economy in good shape.
He added that "the common pattern among all of the countries in the top 20 was their focus on business-friendly regulation, physical and intangible infrastructure and inclusive institutions."
hg/jd (dpa, Reuters)