Performance overview: United States
The United States remains stable overall in 3rd position, showing improvement in areas including macroeconomic stability, the result of a declining budget deficit. Non-tariff barriers appear less burdensome than in the past. However, stagnating productivity has called for a downward revision of growth prospects, highlighting the need for a renewed competitiveness agenda even in the top-ranking economies. Despite being in the top 10 best-ranked economies and recent positive news showing recovering income growth across all income groups,23 the United States does not rank in the top 10 on any of the basic requirements pillars (institutions, infrastructure, macroeconomic environment, health and primary education). On the efficiency enhancers subindex, it is not within the top 10 on goods market efficiency or technological adoption. The position of the United States is driven by innovation, business sophistication, market size, financial market development, labor market efficiency, and higher education and training. These findings highlight important challenges if the country is to remain in the top 10 over the long term, and possible bottlenecks indicating the supply-side constraints that are holding back progress and reducing the effectiveness of monetary policy for jump-starting growth.