By John Revill
ZURICH, June 18 (Reuters) - Switzerland has lost its top spot to Singapore in a world ranking of economic competitiveness published on Thursday, as rising global volatility hurt its attractiveness.
Switzerland dropped to third place in the ranking by IMD business school, which assessed economic performance, business and government efficiency and infrastructure in 70 countries.
Hong Kong pipped Switzerland to second while Taiwan and the United Arab Emirates came fourth and fifth respectively.
The United States placed 10th, Venezuela was last.
Switzerland's decline was largely due to weaker economic performance amid high U.S. tariffs and lower foreign direct investment last year, said IMD professor Arturo Bris.
The Trump administration hit Switzerland with the highest U.S. tariffs in Europe until a deal was struck in November.
Switzerland's consensual approach to government meant it was slower to respond to crises, and it was hurt by increased protectionism and weakening globalisation, the study found.
"In the current global context where the rule of law has deteriorated, Switzerland has very little defence as a very small country," Bris said, noting that smaller countries not part of bigger trade blocs were particularly exposed.
A study last month showed Switzerland was overtaken by Hong Kong as a place where wealthy foreigners put their money.
Ivo Germann, head of foreign economic affairs at the Swiss economy ministry, said Switzerland remained highly competitive and scored highly in government efficiency and infrastructure.
Switzerland is addressing protectionism by pursuing more free trade, he added, citing recent agreements with India and South American bloc Mercosur.
(Reporting by John Revill)
