The World Economic Forum in its Global Competitiveness report today said that the US had been knocked down by Switzerland this year as the most competitive economy. So far, this is not really surprising.
But the fact that the US is at the 108th spot for “soundness of banks” just before Tanzania is a bit more startling. On a slightly different measure of bank solvency, the US lands at the 106th spot, on par with Albania and Mali.
From the WEF report:
A number of weaknesses particularly related to public and private institutions, as well as continuing burgeoning macroeconomic imbalances, have somewhat eroded the country’s overall competitiveness potential over the past years.
These weaknesses, which some observers consider to be the root cause of the financial crisis, have been further emphasised by the present fall in the US ranking, as the loss of confidence infinancial markets has now been added to the list of challenges to be addressed.