Ireland has slipped from fifth to seventh place in the world competitiveness rankings in 2000, according to the latest results from Swiss business school IMD.

Ireland's allure as a location for manufacturing slipped as did the number of days lost to industrial disputes. IMD also criticised the lack of openness by banks and other financial institutions as well as the lack of priority for employee training.

Infrastructure was described as generally inefficient, while discrimination was cited as posing a handicap.

On the upside, low taxes and education at second and third level boosted our position as did productivity in industry and the management of public finances.

Hong Kong and Luxembourg have both overtaken Ireland to finish in sixth and fourth places respectively. The US has maintained its top ranking for the third year while Singapore remains in second place.

Overall, there are six European countries in the top 10 - Finland which has moved up a place to third; Luxembourg; the Netherlands in fifth place; Ireland; Sweden in ninth place; and Switzerland in 10th place.

Germany is higher ranked than the other major European economies in 12th place, followed by Britain in 19th, France in 25th and Italy in 32nd.

Japan and other Far Eastern states continue to suffer, with Japan in 26th place from 24th last year. Korea, Malaysia, China and Thailand are all ranked further down, underlining their vulnerability to an economic downturn.

The World Competitiveness Yearbook covers 49 economies using 286 criteria extracted from statistics produced by international and regional organisations, private institutions and national institutes. According to Mr Stephane Garelli, professor at IMD and director of the World Competitiveness Project 2001: "2000 was an exuberant year for economic performance. We have seldom seen in the past so many good results."

Hong Kong posted a remarkable 10.5 per cent GDP growth, slightly more than Singapore at 9.9 per cent. Ireland continues to lead Europe's growth league at 9.9 per cent. Of the 49 economies analysed this year in the World Competitiveness Yearbook, 41 are growing faster than 3 per cent.

However, he warned that the US slowdown would have a marked impact. "The US and Japan represent 46 per cent of the world economy. Their loss of momentum is likely to affect every nation around the world."

But he also noted that "in a knowledge-based world economy, the most competitive nations [and companies] have to be attractive to the best people".