The Netherlands has risen from eighth to seventh in the World Economic Forum's index of the most competitive economies.
The rise reflects a 'modest strengthening of its institutional framework as well as the efficiency and stability of its financial markets' the organisation said in a statement.
'Overall, Dutch businesses are highly sophisticated (5th) and innovative (12th), and the country is rapidly and aggressively harnessing new technologies for productivity improvements (5th),' the report said.
The 'excellent' educational system and efficient markets are also 'highly supportive of business activity'. In terms of infrastructure, the Netherlands is among the best in the world, with its facilities for maritime transport ranked second, railways 6th and air transport 5th.
Switzerland tops the rankings, followed by Singapore and Sweden. Seven European countries feature in the top 10.
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