NZ in 23rd place for global competitiveness

Media release
28 September 2006

NZ in 23rd place for global competitiveness

New Zealand has slipped slightly in this year’s global competitiveness ranking.

From 22nd place in last year’s survey, New Zealand is now at 23 in a ranking of 117 countries. Australia is in 19th place.

The Global Competitiveness Survey ranks countries on their ability to compete internationally and highlights factors that help or harm countries’ competitiveness.

New Zealand scores well on the basic requirements for business, including corruption-free institutions, good education systems and ease of beginning a new business.

However, New Zealand scores poorly for factors like employment law, wasteful government spending, tax, quality of electricity supply and the brain drain

Business NZ Chief Executive Phil O’Reilly said it was important for the country to move further up the rankings on the factors that made a difference to companies’ ability to begin exporting and contesting world markets.

“We need to move beyond just doing the basics well.

“The environment for doing business in New Zealand needs improving so start-up businesses don’t get bogged down by too-restrictive employment law or high tax resulting from high government spending.

“The regulatory system for electricity infrastructure needs fixing so that companies feel confident to invest in new enterprise.

“We think that improving the environment for business would make a big difference to emigration rates by educated Kiwis.”

Mr O’Reilly said the annual survey was a useful benchmark against other nations on the crucial issue of competitiveness in world markets.

ENDS

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