Invest
Australia’s competitiveness falls to 2-decade low
Despite a strong economic recovery from the COVID-19 pandemic, Australia’s global ranking on competitiveness has fallen to a 25-year low, as an overreliance on the mining sector and a lack of climate resilience see Australia fall behind its global peers.
Australia’s competitiveness falls to 2-decade low
Despite a strong economic recovery from the COVID-19 pandemic, Australia’s global ranking on competitiveness has fallen to a 25-year low, as an overreliance on the mining sector and a lack of climate resilience see Australia fall behind its global peers.

Judged on economic performance, government efficiency, business efficiency and infrastructure, Australia has fallen four places in the latest results.
The latest IMD World Competitiveness Yearbook 2021 now ranks Australia 22nd out of the the 64 nations measured as part of the study.
Australia’s business competitiveness has slipped due to the country ranking poorly on company agility, entrepreneurship and management credibility.
One of the main drivers in Australia’s recovery, the mining sector has worked against Australia when it comes to competitive ranking, with the lack of sophistication of its exports acting as a headwind for Australia's rankings.

CEDA chief economist Jarrod Ball said Australia’s fall in ranking shows the country cannot “waste time getting match-fit in a post pandemic era”.
“We are among the lowest-ranked of 64 nations on company agility, entrepreneurship, customer satisfaction and credibility of managers,” he said.
“But it is not just our management practices that are deteriorating. Our heavy reliance on mineral resources and a narrow set of markets sees us rank in the 50s for our export sophistication.
Mr Ball particularly highlighted Australia’s 11th place fall on technological infrastructure, which now sees the country in 44th position for ICT services.
“Governments also need to play their part,” Mr Ball said. “Australia’s tax regime is called out in the survey as a drag on competitiveness, with Australia ranking 54th and 57th, respectively, for its corporate and personal income tax burdens.”
He also pointed to Australia’s poor ranking on energy infrastructure, which showed Australia ranks close to the bottom (56th) of the category.
“We must boost our climate resilience and regain our energy advantage,” Mr Ball said.
“The federal government should commit Australia to net zero by 2050 and announce more ambitious policies to get us there.”
However, he pointed out Australia’s continuing wins on the health front can help reverse the damage, including a faster COVID-19 vaccine rollout and fit-for-purpose quarantine facilities to help in the safe reopening of international borders.
“On the positive side, Australia limited the economic damage of COVID-19 far more than other economies, which saw us move up the rankings on economic performance,” he said.
Overall, Switzerland rose to first place from third in 2020, while Sweden jumped from sixth to second and Denmark slipped one place to third. Rounding out the top five, the Netherlands remained in fourth place, while Singapore dropped from first to fifth in 2021.
The report found that globally, this year highlighted the importance of “innovation, digitalisation of the economy, welfare benefits and social cohesion”.
“Highly competitive countries have been able to tackle these challenges by strengthening their institutional and social frameworks,” the report found.
It also found that “trends in highly ranked economies show that the health and education systems remain at the core of competitiveness, contributing to having successfully endured the pandemic – so far”.
About the author

About the author


Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more

Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more

Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more

Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more

Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more

Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more

Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more

Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more

Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more

Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more

Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more

Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more

Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more

Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more

Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more

Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more