The mainland, which was in 28th ranking, has advanced one place and is holding onto its position as the highest-ranked BRICS country

Hong Kong retained its seventh ranking, scoring 5.5 out of 7, in the latest World Economic Forum's (WEF) global competitiveness report released on Wednesday.

For the sixth consecutive year, Switzerland is in first place in the rankings. Singapore remains in second place, while the rise of the US to third place has pushed both Finland (fourth place) and Germany (fifth place) back one place. Japan advanced three places to gain sixth-place.

European economies round out the top 10, with the Netherlands still in eighth place, the United Kingdom moving up a notch to ninth place, and Sweden the world's 10th most competitive economy.

"Hong Kong tops the infrastructure pillar, reflecting the outstanding quality of its facilities across all modes of transportation. The economy also continues to dominate the financial market development pillar, owing to the high level of efficiency, trustworthiness, and stability of its system," the report said.

The city also took the second place for the category of goods market efficiency, right behind Singapore, and was ranked the eighth position in the category of institutions, where New Zealand and Finland bagged the first and second positions respectively.

However, Hong Kong's ranking in health and primary education was in 32nd place, and higher education and training fell to 22nd ranking.

The city's ranking in innovation fell three places to 26th this year.

"In order to enhance its competitiveness, Hong Kong must improve on (all) these areas, to address the key issues such as limited availability of scientists and engineers," the report said.

In contrast, the mainland which was in 28th ranking has advanced one place and is holding onto its position as the highest-ranked BRICS country (BRICS countries include Brazil, Russia, India, China and South Africa). The report said the mainland economy is still facing problems in financial sector and banking industry.

The mainland's competitiveness continues to suffer from limitations resulting from low sustainability, especially those pertaining to the environment, said the report.

The cost of pollution is estimated to take around 9 percent of the mainland's gross national income, according to The World Bank. On a brighter note, the report said the mainland is becoming more innovative.

Identified as an emerging market economy, Taiwan has dropped two places to 14th place. The report recommended that Taiwan further strengthens its institutional framework as well as minimizes its inefficiencies and rigidities in its labor market to improve its competitiveness.

The annual report evaluated 144 economies with focus on 12 categories to decide the various economies' productivity and prosperity, such as infrastructure, macroeconomic environment, health and primary education, higher education and training.

The leading economies all possess a track record in developing, accessing and utilizing available talent, as well as in making investments that boost innovation.

linjingcd@chinadaily.com.cn

(HK Edition 09/04/2014 page8)