New Zealand has clawed its way back to 16th place out of 60 countries on a world competitiveness scoreboard, at the same time narrowing the gap with Australia, which slipped to ninth place.
New Zealand rose two places after slipping to 18th spot last year on the International Management Development(IMD) World Competitiveness Yearbook.
IMD is a Swiss international business school. It annually ranks 60 countries on their ability to create and maintain an environment that sustains business competitiveness.
Its New Zealand partner is the Institute of Management, which surveys 100 senior business people and provides statistical data to the IMD.
This year, the US topped the poll, Hong Kong improved from 6th to 2nd and Australia slipped five to 9th. At the bottom were Venezuela (60), Indonesia (59) and Argentina (58).
New Zealand scored in the top 21 in a range of business and government efficiency, economic performance and infrastructure measures, but towards the bottom in other measures.
IMD and the management institute concluded New Zealand must tackle five challenges this year:
* Enhance the corporate tax structure to attract foreign investment.
* Adopt policies to encourage more skilled migrants.
* Ensure the security of supply and affordability of energy and water.
* Increase investment and fix bottlenecks in road and rail infrastructure.
* Encourage workplace productivity and improve business capability.
