May 22, 2014
Australia has dropped to 17th place on the 2014 World Competitiveness Yearbook rankings, raising concerns about the state of the economy.
The Chamber of Commerce and Industry WA senior economist Ryan Buckland said it was detrimental for Australia to be behind other economies in the region in terms of foreign investment levels.
“The main concern is that foreign investors may look at Australia as a less favourable destination for investment,” he said.
The IMD World Competitiveness Center in Switzerland released the WCY figures, based on a comparison of business competitiveness among 60 countries, yesterday.
Mr Buckland said the WCY report did not look in detail at the reasons why Australia was not as competitive as other nations.
“But other studies on global competitiveness have shown that Australia’s industrial relations system, infrastructure constraints and lower levels of innovation and university collaboration are what holds Australia’s competitiveness back, particularly when compared to other developed countries,” he said.
Mr Buckland said increased productivity was the best way to boost Australia’s global competitiveness.
“Productivity is a very important facet of the economy that needs to be addressed in the long term because increasing productivity is the only way that the economy can continually grow and raise living standards for everybody,” he said.
“What the business community needs to see is a commitment to a long term, comprehensive reform to address Australia’s competitiveness as something to boost our productivity performance.”
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