Japan's economic competitiveness is slipping, according to the most recent World Economic Forum's world rankings. Japan came in 10th, continuing its slide from ninth place last year and sixth in 2010.

The results for many areas of the economy were even lower. Considering that Japan remains the third or fourth (if the European Union is considered a single country) economy in the world, the ranking indicates that serious changes are needed to restore Japan's competitiveness.

Most disappointingly, Japan's overall macroeconomic environment is ranked 124th out of 144 countries. That ranking is driven down by high public debt, an area in which Japan ranks absolute last. The government's budget imbalances, along with areas such as financial market development, where Japan ranks 36th, are in need of immediate improvement.