NZ scores well in world competitiveness research

New Zealand has improved three places to 15th in a survey of economic competitiveness and also ranks well on a measure of resilience in a recession.

Australia remained static in seventh place in the IMD World Competitiveness Yearbook, with the United States number one.

See the competitiveness scoreboard here.

The survey rates government efficiency in New Zealand highly. It is easy to start up businesses, tariff barriers are low, subsidies do not distort competition, employer social security contributions are fair and the labour market is flexible.

This year the yearbook introduced a stress test on competitiveness. Denmark topped the stress test ranking and New Zealand was 12th.

"In short, the stress test shows that smaller nations, which are export-oriented, resilient and with stable socio-political environments are better equipped to benefit immediately from recovery," said professor Stephane Garelli, director of the IMD's World Competitiveness Centre.

Garelli said small economies were more able to adapt and rebound in difficult times.

Some major economies did not fare so well. The US came in at 28, Germany at 24, Japan 26, the UK 34, France at 44 and Russia at 51.

The stress test is an analysis of which countries are better equipped to cope with the current financial crisis and improve their competitiveness in the near future.

The 2009 IMD World Competitiveness Yearbook ranks countries on their ability to create and sustain enterprise competitiveness.

The New Zealand data is compiled in partnership with the New Zealand Institute of Management (NZIM).

New Zealand slipped from 18 to 21 on business efficiency, improved one place from 22 to 21 on infrastructure, climbed from 34 to 30 on economic performance and dropped one place from six to seven on government efficiency.

New Zealand has problems with its exchange rate, high collected tax revenues, unattractive foreign investment incentives, a high corporate tax rate on profits and a not-so attractive personal income tax rate.

"It is gratifying to see New Zealand make some ground in its efforts to improve its international competitiveness," said Phillip Meyer, chairman of NZIM's national board.

- NZPA