Australian has the third most dynamic business environment in the world, behind Singapore and Israel, according to new research.
Grant Thornton’s Global Dynamism Index (GDI) ranks 60 leading economies on their dynamism in five key areas – business operating environment, economics & growth, science & technology, labour & human capital and financing environment.
The latest results see Australia drop from its previous number one ranking.
According to the research, while global leaders see Australia as a gateway to Asia with business-friendly regulation and an attractive labour market, their propensity to invest is slipping as Australia loses its top ranking down to number three.
“The GDI reflects exactly what we’ve seen in the local M&A market, as reported in our Dealtracker earlier this year. Australia has the fundamentals to be a great place to do business, and is in a prime position for companies looking to enter the APAC region,” said Paul Gooley, National Head of Corporate Finance, Grant Thornton Australia.
“We’re seeing interest from the US, Canada and Europe. On the flip side, we’re also seeing increased interest from companies in China, looking to invest in Australian businesses, particularly agribusiness to supply to its growing middle class.
But the drop to third place suggests particular attention must be paid to regulatory reform to keep global investors interested in doing business on our shores.
“Despite the country’s stable regulatory environment, legislation of the ChAFTA is pivotal in ensuring a gateway to doing business with China. Developing a simpler, more efficient tax system must also be top of the Government’s agenda to ensure we remain competitive on the global stage,” said Gooley.
The GDI top ten:
- Canada, Taiwan (equal)