While Switzerland remains in the top five with the same other four countries in this year’s IMD World Competitiveness Ranking, it slipped from second to fifth place.
The United States rose from fourth to first, second and third places went to Hong Kong and Singapore, and fourth place to the Netherlands.
America’s comeback was due to its economic performance and infrastructure said IMD.
Switzerland’s slide was down to an export slowdown and the risk of losing research and development activities, particularly in the context of Swiss politics around immigration and trade.
Christos Cabolis, chief economist at IMD, told CNN Money that Switzerland is still strong on long term structural things like infrastructure and government and business efficiency, but relatively weak on cyclical things like the economy.
Unsurprisingly, Venezuela (63rd) was ranked at the bottom, followed by Mongolia (62nd) and Croatia (61st).