Mumbai: The United States continues to be the world''s most competitive economy, a study by the Swiss-based International Institute for Management Development (IMD) revealed.

Singapore and Hong Kong were in the second and third position in the ranking of 55 countries in the IMD''s annual rating that measures countries'' economic performance, government efficiency, business efficiency and infrastructure.

China moved up three spots to 15th position. Other big gainers in 2007 included Germany, the Netherlands, Luxembourg and Sweden. France and Italy moved up a few places, to 28th and 42nd place, but remain well behind the top league.

However, South Africa, Japan, Finland and Australia lost ground, according to the IMD, which uses statistics and survey data to compile its World Competitiveness Yearbook.

The report said the emergence of Russia, India and others as business contenders, with their companies buying industrial assets across the world, was likely to cause unease among European and North American powers.

The emerging giants like China — which rose from 18th to 15th position in the annual ranking — and India, 27th — are also catching up on the United States at a rate of more than 2.5 per cent a year, the report said.

Although Russia is lower down the ranking in 43rd place, its competitiveness has grown by an average of nearly five percent a year over the past decade compared to the United States.

"They will not accept the loss of some of their ''business jewels'' to newcomers without a fight," said IMD professor Stephane Garelli.

"We shall thus face a year of rising protectionist measures. An increase in the number of complaints filed at the WTO for unfair practices can be expected," he added.

In 2007 and beyond, economic relations will be more tense than ever as emerging markets turn into emerging powers and challenge the established order for competitiveness," Garelli said.