The UK has climbed one place in a list of the world’s top performing economies, a global thinktank has said.
The World Economic Forum (WEF) has placed Britain ninth in its list of the top performing economies, one place ahead of Sweden, but a place behind the Netherlands.
This represents a step up from tenth in last year’s ranking, a move that that has been welcomed by the Treasury.
The WEF said Britain had a wealth of sophisticated businesses and was willing to adopt the latest technologies, which put it in a healthy position to improve productivity over the next few years.
It also said that a reduction in public sector deficit and the creation of one of the most flexible labour markets in the developed world had made the UK a popular place to invest, pushing the country further up the list.
However the WEF warned that Britain could not continue to rise up the ranks unless businesses were given greater access credit and finance.
It also said that in order for the country to prosper economically it needed to simplify tax rates, which it said are currently to complex and too high.
The Geneva-based thinktank rewarded Switzerland with the top spot among the 144 countries included in the index, while Singapore ranked second.
The Chancellor of the Exchequer, George Osborne, said the index was further evidence that Britain’s long term economic plan was delivering a more competitive economy.
He highlighted the direct link drawn by the WEF between a credible fiscal policy and “our country’s ability to attract business and create jobs”.