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Peer2Peer Finance News | September 26, 2018

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UK slides down global competitiveness rankings

UK slides down global competitiveness rankings
Marc Shoffman

THE UK has slipped one place in the prestigious global competitiveness index, and its place could be further compromised by Brexit, economists have warned.

The annual tables, complied by the World Economic Forum (WEF), ranks 138 countries across a range of factors such as financial markets, infrastructure, regulation and innovation.

Despite its score increasing from 5.49 to 5.5 out of seven, it dropped one place to eighth, behind Sweden and Hong Kong.

“This drop does not yet reflect the outcome of the Brexit negotiations, which is likely to further undermine the country’s competitiveness,” the report said.

Read more: UK fintech is at critical juncture and needs support, says Innovate Finance

The UK scores well on technological readiness and the sophistication of its business sector, ranking in fourth and seventh place overall, but its macroeconomic environment was 68th.

The report also warns that the macroeconomic environment could become an “important constraint in the future as the timeline for a reduction of the fiscal deficit is repeatedly pushed back”.

The country’s financial market gets a score of five out of seven, and is ranked 13th overall, but is in the top three for its local equity market. Its score is lower when it comes to ease of access to loans and trustworthiness, ranking at 37th and 25th respectively.

The overall table was led by Switzerland, with the United States and Singapore in second and third place respectively.

“Global competitiveness will be more and more defined by the innovative capacity of a country,” Klaus Schwab, executive chairman of the WEF, said.

“Talents will become increasingly more important than capital and therefore the world is moving from the age of capitalism into the age of talentism.”

Read more: Chancellor sets out commitment to UK fintech

Read more: UK and Hong Kong regulators agree fintech co-operation