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No. 1: U.S.

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No. 1: U.S.

Market Size: 1
Innovation: 1
Education/Training: 5

The U.S. retains its position this year as the world's most competitive country. Many robust structural features, such as business systems, formidable universities, and top-ranked innovation make the American economy remarkably powerful and productive. They also help to soften economic shocks such as routine business downturns and, with luck, the current financial crisis. However, despite having the largest economy on the planet, fiscal deficits in recent years have weakened the country's global standing and increased public indebtedness. That could limit flexibility in fiscal policy in the future and leave the U.S. more vulnerable to outside influences.