Ireland has been ranked 29th overall in the latest Global Competitiveness Report from the World Economic Forum for the second year in a row.
But Ireland is ranked last out of 142 countries in terms of its government budget balance, because of the WEF's reading of Ireland's budget deficit at more than 32% of gross domestic product in 2010. This figure was inflated by the cost of recapitalising Anglo Irish Bank.
The WEF's report says the Irish financial market is also a concern, having fallen in the banking index from 7th place three years ago to 115th this year.
Ireland is ranked 132nd out of 142 countries for "ease of access to loans"and last under "soundness of banks".
The report says, however, that Ireland continues to benefit from a number of strengths - excellent health and primary education, strong higher education and training, and well-functioning goods and labour markets.
It says that while these attributes have fostered a "sophisticated and innovative business culture" the country's macroeconomic environment continues to raise significant concern.
