The World Economic Forum (WEF) said the UK had overtaken Hong Kong, Japan and Finland to climb three places in this year’s global competitiveness index, more than reversing last year’s embarrassing fall to 10th place.

The WEF hailed the UK’s strong digital landscape, world-leading institutions and infrastructure, along with its business-friendly regulation and strong connections to the international economy as powering the UK’s climb up the rankings.

The scores are an amalgam of 114 individual measures the WEF believes contributes to the competitiveness of an economy. These range from the macroeconomic environment, education systems and healthcare to business regulation, employment systems and technological penetration.

Switzerland maintained its place at the top of the rankings, with Singapore and the United States completing the top three. The Netherlands, Germany and Sweden were the only other European economies to rank as more competitive than the UK.

The WEF found the UK had the third most “technologically ready” economy in the world, with new technologies widely available, and some of the best internet coverage on the planet. The UK also has the second best management schools in the world, the second-most advanced advertising industry, strong intellectual property rights and scored top for foreign ownership of companies.

Chancellor Philip Hammond said the results “demonstrate our ability to sharpen our edge and improve our competitiveness.”

He added: “This government will build on that progress, as we demonstrate to the world that Britain continues to be highly competitive and open for business.”

David Fuller's view

These measures are subjective, not least in their sector weightings when evaluating competiveness.  Nevertheless, this is a good showing but the real test will be after the UK has been out of the EU for a year or more.  I will be surprised and disappointed if it does not move up into fourth place, assuming the Conservative government is still in charge.