Canada and the U.S. are losing ground on the global stage when it comes to competitiveness.
According to the World Economic Forum’s (WEF) Global Competitiveness report, which is now in its 40th year, Singapore has taken over the top spot from the United States.
Competitiveness is based on “the set of institutions, policies and factors that determine the level of productivity of a country.”
The report’s authors say “Singapore is the most open economy in the world,” praising it for its infrastructure, sea and airports, financial system, and macroeconomic stability.
Even though it dropped down to second, the WEF says the U.S still has a lot going for it.
“Despite an overall weaker performance this year, the United States remains one of the most competitive economies in the world,” reads the report.
“It is still an innovation powerhouse, ranking 2nd on the innovation capability pillar and 1st in terms of business dynamism, boasting the second-largest market, and home to one of the most dynamic financial systems in the world.”
Hong Kong, the Netherlands, and Switzerland round up the top five.
Canada fell two spots to 14th, partially due to conditions outside of its borders.
“Canada’s economy has been hit by external shocks stemming from global trade tensions. The less favourable economic environment has been reflected in somewhat more negative business leaders’ views across several dimensions,” reads the report.
With that said, the report says Canada remains a competitive economy with stable macro-economic conditions, a sound financial system, and well-developed human capital.
But there is always room for growth, so the report offers some tips to help Canada climb the ladder.
“Further improvements in mobile broadband infrastructure and usage (67th), greater investments in R&D (23rd) and collaboration between companies, universities and research centres (15th) would benefit Canada’s competitiveness going forward,” reads the report.
Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.