Australia has lost its number one ranking on Grant Thornton’s Global Dynamism Index with global leaders less interested in investing within the country.
Tax and specialist advisory firm Grant Thornton ranks 60 leading economies every year on dynamism in five areas; business operating environment, economics and growth, science and technology, labour and human capital and financing environment.
Across the five areas, 22 indicators are then analysed to assess the dynamism of business growth environments. For the purpose of the index dynamism is defined as changes in an economy over the past year which are likely to lead to a faster future rate of growth.
For 2015, Australia came third in the ranking with Singapore taking out the top spot followed by Israel.
Grant Thornton’s research found that many global leaders see Australia as a gateway to Asia with business-friendly regulation and an attractive labour market.
“The GDI reflects exactly what we’ve seen in the local M&A market, as reported in our Dealtracker earlier this year,” National Head of Corporate Finance at Grant Thornton.
“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.”
“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,” Gooley continued.
“For Australian mid-size businesses looking to sell, now is the time to maximise the value of the business by ensuring scalability and a good management team is in place as global leaders look to Australia to invest.”
“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.
