Switzerland, Finland and Sweden are the world's most competitive economies, according to a latest report released by the Geneva-based World Economic Forum (WEF) on Tuesday.

The top 10 competitive economies also include Denmark, Singapore, the United States, Japan, Germany, the Netherlands and Britain, says the Global Competitiveness Report 2006-2007, which covers a list of 125 economies.

"The top rankings of Switzerland and the Nordic countries show that good institutions and competent macroeconomic management, coupled with world-class educational attainment and a focus on technology and innovation, are a successful strategy for boosting competitiveness in an increasingly complex global economy," says Augusto Lopez-Claros, chief economist of the WEF, in the report.

According to the annual report, the U.S. competitiveness ranking drops from first in 2005 to sixth in 2006, mainly because of the country's large macroeconomic imbalances, particularly rising levels of public indebtedness associated with repeated fiscal deficits.

Leading within Asia are Singapore and Japan, ranked fifth and seventh respectively.

The annual rankings are drawn from a combination of publicly available data and the results of an annual survey conducted by the WEF together with partner research institutes and business organizations.

Source: Xinhua