Norway fell from sixth to ninth place in the 26th edition of the Swiss-based forum's assessment of 117 countries. The rating is based on economic figures and questionnaires.
Finland again tops the list, for the fourth time in the last five years. The USA is ranked second, followed by Sweden, Denmark, Taiwan and Singapore. Iceland has moved into seventh place, leaving Norway worst placed of the Nordic nations as it fell back again to ninth spot.
The good news is that the Nordic nations are in many respects considered a unit under the WEF report, and with all of them listed in the top ten, they get top marks for healthy economies and their competitiveness.
WEF chief economist Augusto Lopez-Carlos lists factors such as sound macro-economic conditions, open and efficient public institutions and wide scale agreement on public budgeting priorities as the basis for the region's high marks.
Lopez-Carlos said that there was no evidence that industry's commonly listed complaint of high taxes interfered with a nation's ability to compete globally. High taxes also did not hinder Nordic nations from offering their citizens the world's highest living standard, he said.
"In reality the high tax levels have provided a world class education system, high welfare levels and a motivated and well-educated work force," Lopez-Carlos said.
Norwegian business leaders list strict regulations are the greatest hindrance to their competitiveness, followed by the tax system, tax levels and an inefficient bureaucracy.
