Home Business NewsEconomic News Investment in technology infrastructure and effective institutions key to economic prosperity

Investment in technology infrastructure and effective institutions key to economic prosperity

by LLB Reporter
22nd Jan 18 10:01 am

Western European countries top KPMG’s Growth Promise Indicators ranking

Ahead of the World Economic Forum at Davos, KPMG International has launched the Growth Promise Indicators (GPI) index. Each of the 180 countries in the index has been assigned a GPI rating (from zero to 10), which is based on 15 individual categories selected to assess their productivity potential.

According to the study, lower and middle income countries tend to prioritise investment in transport over tech infrastructure, which may make it harder for them to capitalise on latest innovations related to artificial intelligence and the Internet of Things. Unpicking the wider trends in the analysis suggests that the real strides made by countries have been driven by improvements in infrastructure, and in particular in tech-readiness.

Bill Michael, Chairman and Senior Partner of KPMG in the UK, commented:

“Our GPI report explores how individual countries can grow sustainably and fulfil their potential. It shows a number are accelerating development through smarter investments in technology or infrastructure. However, 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.”

Western European countries top the GPI league table, with the Netherlands ranking 1st, Switzerland 2nd, Luxembourg 3rd and Norway 5th. Hong Kong (S.A.R) (4th), a jurisdiction added to the report as a comparator, and Singapore (7th) were the only non-European countries and jurisdictions to make the top 10. Despite Brexit, the UK ranking remains unchanged at 13th, just behind Canada, which is up two places to 12th as a result of institutional and infrastructure improvements. However, through policies such as the Industrial Strategy there is everything to play for to move the UK higher up the rankings.

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