The U.S. has lost its spot atop a ranking of the world's most "competitive" economies. Why? In part, our deficit is too high. The US trade deficit is expected to top last year's record level of $717bn (£378bn; 565bn euros) in 2006, while the budget shortfall, although expected to be significantly lower than last year, is still forecast to be close to $300bn. "US competitiveness is threatened by large macroeconomic imbalances, particularly rising levels of public indebtedness associated with repeated fiscal deficits," the report said. "Its relative ranking remains vulnerable to a possible disorderly adjustment of such imbalances."