Canada rises up the global competitiveness ranks, World Economic Forum says

Canada has risen two notches into 13th position in the latest Global Competitiveness Report issued by the Geneva-based World Economic Forum (WEF).

The report says Canada improved its ranking mainly because of a lower budget deficit based on 2014 data and a more favorable assessment of its financial market development.

The report also attributes Canada’s competitiveness to “highly efficient labor markets” and a sound banking system, but also warns that exposure to a potentially overvalued housing market could become a risk in the near future.

“Canada should continue to foster innovation at the company level,” the report said, while noting that Canadian company spending on R&D is ranked 26th and its capacity to innovate is 23rd.

Overall, says the report, global economic growth remains low and unemployment “persistently high” despite efforts to re-ignite a recovery in the seven years since the beginning of the world financial crisis in 2008.

The agency says the recovery has been “less robust, more uncertain and taken longer than many expected,” suggesting a “new normal” of subdued economic growth, lower productivity growth and high unemployment.

Switzerland remains No. 1 on the list, a position it has held since 2007. Singapore is second in the annual ranking, followed by the U.S., Germany, and The Netherlands.

The bottom five consists of Burundi, Sierra Leone, Mauritania, Chad, and last-place Guinea.