Economical trade war affects global competitiveness
The two largest economies of the world have become less competitive because of their ongoing trade conflict, which observed to have no short-term resolution. Both China and the United States have declined the global competitiveness rankings for 2020. Whereas, small economies such as Denmark, Switzerland and Singapore have topped the global competitiveness that top list.
As per the survey of the Institute for Management Development (IMD), both economies handling of the recent coronavirus pandemic helped to strengthen their positions. The United States, the globe’s biggest economy, tumbles 7th places to 10th, while China dropped 6th places to 20th. The two economic superpowers have been impacted due to a trade spat since 2018, along with import tariffs imposed on a series of goods.
The IMD stated that, the trade dispute has gained uncertainty for businesses is a key factor that weighing on both nations’ global competitiveness. Trade spats has damaged both economies, reversing their positive growth paths. The benefit of small economies in the present crisis comes from their capability to combat a pandemic and from their economical competitiveness, stated by the director of IMD, Arturo Bris.
The IMD rankings represents 63 economies on numerous factors such as employment rate, cost of government spending as well as living. It also contains inspections of leaders on topics like political stability and security of intellectual property rights.