World Economic Forum report: Japan maintains sixth place in competitiveness index

World Economic Forum report: Japan maintains sixth place in competitiveness index

GENEVA — Japan guarded its place as the sixth most competitive economy in this year’s World Economic Forum global index.

     In the competitiveness index’s subcategory of basic requirements, which assesses aspects such as infrastructure and institutions, Japan moved up one spot to 24th. But it dropped a notch to eighth place in the subcategory of efficiency enhancers.

     Though Japan ranks high in infrastructure, health and primary education, the nation is close to last in the macroeconomic environment. Budget deficits and massive public debt continue to drag down its overall ranking.

     Japan’s inflation ranking made the most remarkable turnaround, shooting up 61 places to first as the annual inflation rate came closer to the forum’s standards. Though the improvement could be seen as a result of Abenomics, the report did note that the “third arrow” of structural reforms is not moving fast enough and that more needs to be done for productivity and technological innovation.

     Among emerging countries, India and Vietnam made huge leaps from last year, now ranking 55th and 56th, respectively. Russia moved from 53rd to 45th. However, Brazil, with its fluctuating currency, dropped 18 places to 75th.

     The index based this year’s rankings mostly on 2014 data. The effects from falling crude oil prices will be fully reflected in next year’s report. Switzerland, Singapore and the U.S. remain the top three competitive countries.

     The World Economic Forum is an organization known for hosting the annual meeting in Davos, Switzerland, that brings together top business and political leaders. The forum has published its global competitiveness report since 1979, putting Japan at the top from the late 1980s to the early 1990s. The sixth spot represents Japan’s highest rank since the index started using its current methodology in 2005.

World Economic Forum report: Japan maintains sixth place in competitiveness index