New Zealand's economic competitiveness has slipped to 20th in world rankings, dropping from 13th last year, according to a survey by the Geneva-based World Economic Forum.
The survey aims to predict rates of economic growth.
The authors said countries scored well if they were judged to be innovative and effective users of technology, had high rates of saving and investment and were well integrated in the world economy.
Locally, ANZ Bank chief economist Bernard Hodgetts said one of the reasons for the drop in New Zealand's competitiveness was that labour productivity rates were low compared with many other countries, particularly the United States and Australia.
But he said it was only one perspective on competitiveness.
"One can always debate whether or not it's actually measuring the right thing but certainly it serves as a warning that we haven't been keeping up with many of our trading partners."
The United States has become the world's most competitive nation, knocking Singapore off the top spot.
Singapore, now second, has led the list in the previous four years. The US, which ranked fourth in 1996, moved to third in 1997 and 1998 before reaching No 2 last year.
Hong Kong, now No 8, had held second place for three years before dropping last year to third.
New Zealand was flanked by Israel and Japan, who scored 19th and 21st respectively.
Filling out the top 10 this year were Luxembourg in third, followed by the Netherlands, Ireland, Finland, Canada, Hong Kong, Britain and Switzerland.
Australia was placed 12th.
- NZPA
NZ economic competitiveness ranking down to 20th
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