The Netherlands has fallen three places to 14th in the International Institute for Management Development’s (IMD) World Competitiveness Rankings.

The Netherlands needs to adapt

In last year's rankings the Netherlands gained three spots to claim 11th place in the list, but it has subsequently lost those three places this year, suggesting that the recession is finally beginning to bite in the country.

The Netherlands is paired with Luxembourg and Finland in the report as European nations who, "need to adapt their competitiveness models to a changing environment."

Effect of European austerity

The progress of European economies towards increased competitiveness has once more shown to have stalled, with the stagnation being blamed on austerity measures implemented by European governments.

The report states that, "Like last year, the rest of Europe is heavily constrained by austerity programs that are delaying recovery and calling into question the timeliness of the measures proposed."

Other countries

USA has regained its position atop the ranking of 60 of the worlds most prominent economies. It is followed by Switzerland and then Hong Kong, the occupiers last year's top spot.

The so-called BRICS had mixed fortunes in the rankings, with India, Brazil and South Africa all falling but China and Russia making progress.

Japan was also shown to have put itself on the path to recovery, rising three places to 24th this year.

Top 10 competitive countries

1. USA (2)
2. Switzerland (3)
3. Hong Kong (1)
4. Sweden (5)
5. Singapore (4)
6. Norway (8)
7. Canada (6)
8. UAE (16)
9. Germany (9)
10. Qatar (10)
*2012 rankings in brackets

About the rankings

The IMD is a business school based in Switzerland which publishes its World Competitiveness Rankings in connection with the World Competitiveness Centre (WCC).

Using hard data as well as survey responses from business executives in each of the countries concerned, they rate the ability of nations to foster an environment of competitiveness.

Source: IMD Business School