The United States is at its most competitive in a decade, based on the index prepared by the World Economic Forum. The nation has not been on this top position since 2008. However, not only can the country do so much better on social issues based on this index, analysts believed that the top economic position of the nation is not likely to last long.
Some analysts remain uncomplacent about the gains made by the US economy, especially its "most competitive" position. In particular, there are those wondering why the federal deficit is at its highest level since 2012 when the US economy is booming. The deficit has increased by 17% in the 2018 fiscal year to $779 billion, which should not be the case if the economy is performing that well.
There are also reports that the US economy is not safe from the impact of a disorderly Brexit. If Britain exits the European Union in a chaotic manner, the US Federal Reserve Chairman believes that the adverse effects can positively affect the US economy. Jerome Powell clarified that American financial institutions' exposure in the European banking system is quite significant, and therefore, vulnerable.
Analysts, even the most optimistic ones, are also giving up hope that the United States' trade war with another economic giant, China would be resolved soon. Investors and economists believe that the war may well continue until 2019 and beyond, which can have a negative impact on the global financial and economic community.
If the trade war continues on, economic and investment energy can be drained. The United States probably would not be immune to the negative effects, no matter its competitive position.
All these are just negative speculations, however. In general, there is rejoicing of US economic competitiveness, especially since it regained that top spot.
According to the World Economic Forum, America is the most competitive country among 140 countries this year. Making it to the top five list is Singapore, Germany, Switzerland, and Japan. Common to the five economies is that their scores all rose from what they posted in 2017, with the United States achieving the second-biggest gain, and Japan experienced the most improvement.
This is a breakthrough considering the United States simply vanished from the spot since the financial crisis in 2008. The crisis understandably stalled the nation's productivity and output and even triggered a global economic slowdown.
With the regaining of this top spot, the report also claimed that economic recovery is already undeniably underway. In relation to the United States' improvement and recovery, the global economy is also expected to grow by nearly 4% in 2018 and 2019.
