Competitiveness in the Republic fell over past year, according to the results of a worldwide survey by the World Economic Forum.
Its Global Competitiveness Index 2009 to 2010 ranks Ireland at number 25 in its overall league table, down three places on the previous year.
Switzerland tops the league, with the United States in second place out of 133 countries. The UK is ranked 13th, a fall of one place on last year’s position.
There are five European Union states in the top 10: Sweden (4), Denmark (5), Finland (6), Germany (7) and Netherlands (10) and Norway (9).
The index measures the macroeconomic environment, hurdles faced by businesses and technological innovation.
It said access to finance was the biggest problem facing businesses operating in the State with 25 per cent of firms ranking this as their main problem.
The second most problematic factor was “inefficient Government bureaucracy” followed by an “inadequate supply of infrastructure”.
Ireland’s infrastructure is ranked 52 out of 133 and its macroeconomic stability is ranked 65th.
The soundness of the State’s banks are ranked 121, ahead of Timor-Leste, Russian, Burundi, the UK, Algeria, Kazakhstan, Kyrgyz Republic, Iceland, Zimbabwe, Mongolia and Ukraine.