US economy tops competitive table

Flying the flag - the US has the world's most competitive economy

The US economy has remained the world's most competitive, despite the country's soaring trade deficit, a study says.

The world's biggest economy topped the rankings of 55 nations compiled in the Swiss-based IMD World Competitiveness Yearbook 2007.

Singapore was the second most competitive nation, moving up a place from last year, followed by Hong Kong, Luxembourg and Denmark.

Britain came in 20th place in the rankings, unchanged from 2006.

The least competitive nation was Venezuela, whose government has recently embarked on a forced nationalisation drive.

MOST COMPETITIVE ECONOMIES 2007 1. US (1) 2. Singapore (3) 3. Hong Kong (2) 4. Luxembourg (9) 5. Denmark (5) (Figure in brackets denotes last year's ranking)

Among the leading developing nations, China rose two places to 15th place, while India remained unchanged at 27th place.

Russia rose to 43rd place from 46th, although South Africa slipped back to 50th place from 38th in 2006.

The study ranks nations by how well they create and maintain conditions favourable to business.

Project director Stephane Garelli said the US's position was supported by the strength of its financial market and the ease with which venture capital for business development could be secured.

The upbeat assessment came despite recent record levels in the nation's budget deficit.