Australia suffers slight drop in Global Competitiveness Ranking
The most comprehensive assessment of national competitiveness across the globe, the Global Competitiveness Report 2014-15 takes an in-depth look at the competitiveness landscape of 144 different economies. By its definition, competitiveness is the set of institutions, policies and factors that determine a countries level of productivity.
The report gives observations of things that help drive productivity and prosperity, while also providing a place for conversation between government, business and civil society about what it takes to improve economic prosperity. After all, the level of productivity sets the level of prosperity that can be earned by a country’s economy.
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The Global Competitiveness Index is made up of 12 separate pillars that show different aspects of competitiveness. This edition has an emphasis on innovation and skills, which are the keys to economic growth. Although these factors impact competitiveness and the global economy begins to recover from economic problems, there are still significant risks due to strained geopolitical situation, increased income inequality and possible tightened financial condition.
Because of this, it is important to address these structural challenges in order to ensure more sustainable and inclusive growth. Now more than ever, the need to re-establish sustainable growth and improve living standards throughout the globe is needed through cooperative leadership from business, government and civil society.
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While Singapore came in second globally behind Switzerland and holds the top spot in the Asia-Pacific region, Australia dropped to 22nd in the world and sixth in the Asia-Pacific. The report believes excessive government regulation and a lack of wages and hiring flexibility were some of the reasons for Australia’s drop in the rankings.
Below is a look at the Asia-Pacific rankings: