The future of Australia as a smart economy is looking bleak.
In a recent report by the IMD World Competitiveness Yearbook measuring the global competitiveness of 61 countries, Australia slipped yet another place to 18 — marking a “concerning” drop over the last five years.
The study draws on four key areas — economic performance, government efficiency, business efficiency and infrastructure — to assess the ability of nations to sustain competitive businesses.
The Committee for Economic Development of Australia (CEDA) is worried about the trend it sees emerging.
“Worsening domestic economic conditions, rising unemployment and lower international investment have been the biggest contributors to the drop in the overall economic performance ranking this year,”says CEDA Chief Executive Stephen Martin.
The decline marks a downward trend that began in 2009 when Australia was still ranked fifth for global competitiveness.
While Australia only slipped one place compared to last year, the bigger story, according to Martin is that technological infrastructure and scientific infrastructure suffered the worst decline.
“Our ability to innovate and be a ‘smart’ economy with a highly skilled and innovative workforce has been a comparative advantage for Australia and is becoming even more important as our economy shifts away from mining and resources and looks to services to pick up the slack,” he said.
Australia will need to pick up its game especially after Martin — less than subtly — said Australia risked being the “dumb white trash of Asia” last year.
For the first time in 19 years, New Zealand has edged past Australia jumping 3 places in one year to 17th.
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