Thinktank the World Economic Forum’s (WEF’s) Global Competitiveness Report sees the UK rise to ninth on the list.

Switzerland and Singapore keep their positions in first and second place, while the US, praised for boosting its competitiveness, rises two places to third. Finland and Germany both dropped a place, to fourth and fifth respectively.

It is the sixth straight year Switzerland has topped the rankings.

The UK improved its position among the best-performing economies after being recognised for embracing technology to enhance productivity, its efforts to reduce public sector debt, and for its general business environment.

“The leading economies in the index all possess a track record in developing, accessing and utilising available talent, as well as in making investments that boost innovation,” the report stated.

“These smart and targeted investments have been possible thanks to a co-ordinated approach based on strong collaboration between the public and private sectors.”

However, the WEF warned the global economic recovery was “still tentative”.

WEF founder and chairman Klaus Schwab said: “The strained global geopolitical situation, the rise of income inequality, and the potential tightening of the financial conditions could put the still tentative recovery at risk.”