Business competitiveness in Australia has declined and the country is scoring poorly in terms of business acumen, entrepreneurship and management credibility.
According to IMD’s Global Competitiveness Yearbook 2021, Australia was ranked 22nd out of 64 countries on Thursday, down four places from 2020.
The study rated Australia as one of the worst countries in terms of corporate regression, management reliability, customer satisfaction and entrepreneurship.
As Australia relies heavily on mineral resources, the country has excelled in improving its exports.
Similarly, it scored less than 40 for personal and business tax rates, ICT services exports and energy infrastructure.
Although it has been relatively successful in suppressing COVID-19 during epidemics, CIDA’s chief economist Jarrod Paul said Australia could not trust its gifts.
Paul said companies need to do more lifting in the post-epidemic period and that governments need to take stronger action on climate change to boost green innovations.
The government will need to expedite the release of the vaccine and create permanent isolated facilities to expedite the reopening of international borders.
“We need to be new, innovative and open new markets for new products and services in the future to provide the next generation with strong economic growth and more jobs and income,” Paul said in a statement.
But he said Australia’s talented staff, policy stability and good health care are all positive factors for future prosperity.
Switzerland topped the top five with Sweden, Denmark, the Netherlands and Singapore.
It comes after Australia’s unemployment rate fell to 5.1 percent on Thursday from 5.5 percent, returning to pre – epidemic levels.
“Australia’s economy is growing, strengthening and leading the world,” Treasurer Josh Friedenberg told reporters in Canberra.
But the Reserve Bank of Australia wants inflation to be within its target range of 2 to 3 percent.