Ireland’s global ranking in terms of economic competitiveness has declined, according to the latest World Competitiveness Yearbook.
This year’s rankings, compiled by the Swiss Institute for Management Development (IMD), ranked Ireland 21st out of 58 countries, down from last year's placing of 19th.
The rankings also saw the US pushed from the top spot for the first time in several decades by Singapore and Hong Kong.
The report said Ireland entered “the real estate and the financial crisis earlier” than other countries and has already implemented a recovery plan.
“Traditionally it has a strong export performance. However, its ‘reasonable’ debt level at 64 per cent will quickly deteriorate with a 14.3 per cent budget deficit,” it noted.
The IMD suggested it would take more than ten years for State's public debt to become “manageable”.
Despite falling from top sport, the US has “weathered the risks” of the financial and economic crisis thanks to the sheer size of its economy, a strong leadership in business and an unmatched supremacy in technology, it said.
The IMD said Singapore and Hong Kong have displayed “great resilience” through the financial crisis – despite suffering high levels of volatility in their economic performance
Germany, ranked 16th, led the larger “traditional” economies such as the UK (22), France (24), Japan (27) and Italy (40).
Despite a significant budget deficit and growing debt, “Germany’s performance is
driven by strong trade (second largest exporter of manufactured goods), excellent infrastructure and a sound financial reputation,” the report said.
IMD world competiveness rankings for 2010:
1. Singapore (3)
2. Hong Kong (2)
3. USA (1)
4. Switzerland (4)
5. Australia (7)
6. Sweden (6)
7. Canada (8)
8. Twaiwan (23)
9. Norway (11)
10. Malaysia (18)
11.Luxembourg (12)
12. Netherlands (10)
13. Denmark (5)
14. Austria (16)
15. Qatar(14)
16. Germany (13)
17. Israel (24)
18. China (20)
19. Finland (9)
20. New Zealand (15)
21. Ireland (19)
22. UK (21)