SINGAPORE has lost its top spot in a closely watched ranking of economic competitiveness.
A recovery in financial markets pushed the United States (US) back to first place alongside Hong Kong, while higher cost of living pressures dragged Singapore down to third place, in the annual IMD World Competitiveness report.
After growing 14.5 per cent last year, it is no surprise that Singapore ranked second among 59 countries in terms of the competitiveness of its domestic economy.
But rising cost of living pressures from steeper property prices, and higher food, energy and transport costs showed up in the index, where the Republic fell from 47th to 54th in terms of price competitiveness.
Singapore edged into first place last year, on the back of a resilient recovery from the global economic recession. It had alternated with Hong Kong for second and third place for many years, while the US had been top since 1994.
Dr Stephane Garellli, director of the World Competitiveness Centre at Swiss business school IMD, said: '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. This trend is triggered by the rise in commodity and transport prices and higher labour costs in emerging economies.'
