Australia’s economic global competitiveness has slipped for a second consecutive year according to a report released by the Committee for Economic Development of Australia (CEDA). The report found Australia slipped from 9th place to 15th in world competiveness rankings.

 

In releasing Australia's 2012 World Competitiveness Yearbook results, CEDA Chief Executive, Professor the Hon Stephen Martin said key factors in Australia's poor ranking for labour market competitiveness included the high Australian dollar, skills shortages and the re-emergence of industrial relations as a key national issue, with a number of high profile disputes.

 

"The high Australian dollar and strong terms of trade have resulted in a drop in Australia's international trade competitiveness which has occurred at the same time as many other countries' economies have slowed," he said.

 

"With the exception of the mining sector, this has made Australian exports less competitive and negatively impacted industries such as tourism, retail and manufacturing.

 

"These industries were already struggling with rising global competition and a structural readjustment has been occurring in our economy as a result, with the strong Australian dollar further exacerbating this change.

 

Despite the slip in rankings, the committee warned against governmental interference with subsides, but rather urged a reduction in regulatory burdens placed on businesses, coupled with a targeted investment in skills and innovation.

 

"In two years Australia has slipped from five to 15 in global competitiveness rankings and if we are to help protect Australia from future declines we need to increase investment in business innovation and skills," Professor Martin said.

 

The rankings can be found here