NZ moves up competitiveness ladder

New Zealand has improved two places to 16th out of 117 nations in a world competitiveness survey.

The Geneva-based World Economic Forum's global competitiveness report ranks countries on their ability to compete internationally.

Finland held its top spot, followed by the United States, Sweden and Denmark (overtaking Taiwan).

On the bottom were Chad, the Kyrgyz Republic and Guyana.

Australia rose four places to 10th, while Britain fell two to 13th and Germany fell two to be one ahead of New Zealand in 15th spot.

On the technology index, New Zealand ranked 19th, up from 24th.

New Zealand's public institutions (covering areas such as tax collection, judicial independence, property rights, absence of corruption and absence of organised crime) ranked top of all countries (up from fourth).

On the macro-economic environment index, New Zealand came 20th, up from 22nd.

On the business competitiveness index, New Zealand was unchanged in 18th spot.

In a survey of most problematic factors for doing business in New Zealand, respondents listed inadequate supply of infrastructure as the biggest problem, followed by restrictive labour regulations, tax rates, inefficient government bureaucracy and an inadequately educated workforce.

Business New Zealand chief executive Phil O'Reilly said there were some pleasing results for New Zealand, "but we still rank below Australia".

"The survey shows that in the broad areas of macro-economic environment, public institutions and technology, which make up the growth competitiveness index, New Zealand has improved in all three major groups."

O'Reilly noted that the survey showed New Zealand had disadvantages in areas such as national savings rate (83rd), recession expectations (51st), interest rate spread (44th) and the prioritising of information technology (52nd).

In terms of business competitiveness, New Zealand had advantages in areas such as legal framework, professional management, grassroots involvement in development projects and agricultural policy costs.

Disadvantages were identified with the tax burden, difficulty in hiring foreign labour, the brain-drain, shortage of scientists and engineers, centralisation of economic policy-making, and hiring and firing practices.

The top 10

1 Finland
2 United States
3 Sweden
4 Denmark
5 Taiwan
6 Singapore
7 Iceland
8 Switzerland
9 Norway
10 Australia
16 New Zealand

- NZPA