According to the latest Economic Competitiveness survey by the Swiss-based Institute for Management Development (IMD)(www.imd.org), Russia fell from 38th to 45th out of 61 countries monitored.

Meanwhile its troubled neighbour Ukraine dropped 11 places to 60th, ahead of only Venezuela. The USA and Hong Kong were first and second respectively.

In a statement, the IMD said: “This highlights the negative impact that armed conflict and the accompanying higher market volatility have on competitiveness in an increasingly interconnected international economy”.

IMD CEO Arturo Bris (pictured) added: “The 2015 ranking shows that productivity and efficiency are in the driver’s seat of the competitiveness wagon.

“Companies in those countries near the top of the table are increasing their efforts to minimise their environmental impact and provide a strong organisational structure for workforces to thrive.”