According to a new research that was published today, the potential o Britain for future productivity is still higher compared to France, Germany, and the United States in spite of the threat of political instability.
The United Kingdom came 13th overall in the growth promise index of accountants KPMG, which makes use of a range of indicators, which includes openness to innovation, the quality of institutions and infrastructure in order to measure which nations have the highest potential for sustained growth.
The Netherlands maintains its top spot in the ranking, with high-quality infrastructure, highly trained workers, and strong institution counting in favour of the country.
The top of the table of the countries that are best prepared for future growth is dominated by nations in Europe, with only six of the strongest 20 coming from outside of the continent. Switzerland came in at second, which was followed by Luxembourg and Hong Kong.
While the said rankings does not take into account political uncertainty – including the impacts of the Brexit vote in the United Kingdom – it aims to reveal the countries that has the best environment for future growth. The United Kingdom remains well above other rival economies such as the United States and France, while Germany also slid down the ranking from the previous year.
However, the research also discovered that the United Kingdom is less open to technological catch-up compared to other comparable nations due to the relatively low amount of inbound investment from other countries, which can help improve productivity by bringing in new technologies.
The ranking is shockingly led by richer nations, even though some of the biggest improvements have come from the less advanced economies. Indonesia improved by seven places following its investment in transport infrastructure, while Serbia rose by six places as the nation reformed property rights.
However, KPMG warn ed that lower and middle income nations tend to prioritise investment in transport over tech infrastructure, which may make it more difficult for them to capitalise on latest innovations that are related to the internet of things or artificial intelligence.
The chairman of KPMG UK, Bill Michael, stated: “it is critical that countries also invest in the right education and training to equip future generations with skills they need to thrive in 10 or 20 years time. Business has a central role to play in helping governments deliver this: we need to invest in our workforce and upskill our staff as technological advancements start to rewrite the rules of the global economy.”