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China has slipped six places to 54th in the World Economic Forum's (WEF) global competitiveness rankings, a report said yesterday.

The WEF's Global Competitiveness Report (2006-07) highlighted positive aspects of China's economy, largely due to its cautious macro-economic management such as buoyant growth rates, low inflation and manageable levels of public debt. However, structural weaknesses across several areas, including the primarily state-controlled banking sector, need to be corrected. the report warned.

Low penetration rates for the Internet and personal computers persist in China and secondary and tertiary school enrolment rates are low by international standards.

China also needs to improve environmental qualities of various institutions both private and public, said Augusto Lopez-Claros, Chief Economist and Director of the WEF's Global Competitiveness Network.

Switzerland, Finland and Sweden are the world's most competitive economies, according to the report. Denmark, Singapore, the United States, Japan, Germany, the Netherlands and the United Kingdom complete the top 10 list. The biggest loser is the United States, dropping from first to sixth.

The rankings are drawn from a combination of hard data in the public sphere and the results of a comprehensive annual survey conducted by the WEF among 125 economies worldwide.

"By providing detailed assessments of the economic conditions of nations worldwide, the report offers policy-makers and business leaders an important tool in the formulation of improved economic policies and institutional reforms," said Klaus Schwab, the WEF Founder and Executive Chairman.

However, the WEF rankings differ from a report released by the Lausanne-based International Institution for Management Development in May, which indicated China's global competitiveness rose from last year's 31st place to 19th this year.

(China Daily September 28, 2006)