- Australias economy lagging behind Morocco, Uganda and Senegal sitting at 93 - Expert study found Australia is unable to develop products due to resources- While Australia ranks high for income, it is low on the complex country rankings - The nation...
- Australia's economy lagging behind Morocco, Uganda and Senegal sitting at 93
- Expert study found Australia is unable to develop products due to resources
- While Australia ranks high for income, it is low on the complex country rankings
- The nation failed to develop sophisticated products and industries, report found
- Because of this, Australia dropped 22 positions on the rankings in just a decade
By LAUREN FERRI FOR DAILY MAIL AUSTRALIA
ustralia's economy is lagging behind Morocco, Uganda and Senegal - and experts say it isn't expected to get any better.
While Australia is a country with generally high incomes, the nation has one of the least complex economies, ranking 93rd out of 133.
Australia dropped 22 positions in just one decade due to having a small amount of key exports and industries.
The Harvard Kennedy School's Centre for International Development developed the Atlas of Economic Complexity which measures how a varied a country's economy is.
In order for countries to get richer they need to continue to develop sophisticated products and industries, which Australia has failed to do.
The report outlines that Australia does not have a diverse range of simple products.
However, to become a richer country Australia will have to develop more products to export, which will make the economy more complex.
Despite being rich with iron ore, coal, oil and gas, the report outlines that Australia may be wealthy, but is getting dumber.
'Compared to a decade prior (1995), Australia's economy has become less complex, worsening 22nd positions in the ECI ranking,' the report reads.
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'Australia's worsening complexity has been driven by a lack of diversification of exports'
Moving forward, the report advises Australia to take advantage of existing recourses and diversify production.
The report also outlined that Australia is far less complex than expected for its income level, which means income is expected to grow slowly.
ATLAS OF ECONOMIC COMPLEXITY RANKINGS:
1. Japan
2. Switzerland
3. Korea
4. Germany
5. Singapore
6. Czech Republic
7. Austraia
8. Finland
9. Sweden
10. Hungary
93. Australia
The economy is expected to grow just 2.2 per cent each year in the next decade and is forecast to rank in the bottom half of countries globally.
The report explains that counties that want to become richer need to be looking at creating new products.
'Research finds that countries whose exports are more complex than expected for their income level, grow faster,' the report says.
'Growth can therefore be driven by a process of diversifying knowhow to produce a broader, and increasingly more complex, set of goods and services.
Original Source: https://www.dailymail.co.uk/news/article-7549315/Australia-economy-lagging-Morocco-Uganda-Senegal-key-areas.html
