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The London tech sector is “the epicentre of the European tech and startup scene” with Tech City continuing to help make the UK become one of the most competitive technology markets on the planet, according to a new report from the World Economic Forum.

The Global Competitiveness Index  2015-2016 ranks the UK fifth in the world for the availability of latest technologies, eighth for cluster development and 10th for capacity for innovation, the report found.

However the report found that the UK’s overall economy slipped one place to 10th in the index, despite improving its performance in many areas. Strengths include solid institutions and some of the best universities in the world but weak spots include its macroeconomic environment, with high government deficits meaning the public debt has doubled since 2007.

The report said: “The UK has created a good set of conditions for its vibrant service sector to develop and for London to become the epicentre of the European tech and startup scene.

“Although still recovering from the global financial crisis, the UK financial market remains one of world’s best developed, able to provide venture capital and equity financing to start-ups and entrepreneurs.

“In the long run, the country will have to continue efforts to improve its macroeconomic environment (108th); the government deficit is still very high (5.7% of GDP, ranked 118th) and its public debt has doubled since 2007, now accounting for almost 90% of GDP (123nd).”

The report also warned that the global economy could be finding a new normal of suppressed economic and productivity growth and persistently high unemployment, damaging resilience and leaving the world vulnerable to another period of slow growth.