13 February 2017
Qatar is ranked in the top 15% of countries for productivity potential according to a new KPMG report – the ‘Variables for Sustained Growth (VSG) Index’.
The report compares the productivity potential of some 181 countries by looking at factors including macroeconomic stability, openness to adopt best practice, infrastructure quality, human capital and strength of public institutions.
Economic growth is primarily a consequence of three factors: a growing labour force, a rise in capital stock, and improvements to productivity, an aspect which plays a crucial part in countries’ quest for prosperity.
By analysing productivity, public policy makers and investors, can better understand how some of the major productivity drivers evolve over time and how each country’s performance compares with its peers.
KPMG in Qatar’s Country senior partner, Ahmed Abu-Sharkh said, “It is a testament to the efforts of Qatar’s public and private sector that the country has ranked so highly, in 27th place, – coming a close second to the UAE amongst GCC countries.
“The aims outlined in the Qatar 2030 National Vision correlate to many of the factors that enhance productivity identified in the report, which could be a useful analytical tool for public and private sector organisations to give them a deeper understanding of the country’s economic growth potential.”
To help better analyse the data, it is useful to compare countries that have similar personal income levels – for Qatar, peers include Norway, Singapore and Luxembourg.
Among this group, Qatar fares well in the availability of financial services and business rights, demonstrating the strength of the financial services sector and highlighting the progress made to foster a thriving business community and economy.
Qatar ranked lower than peers on infrastructure; however it is clear that high-levels of investment in the sector will have a significant impact on this score in coming years.
Western European countries dominate the 2016 VSG Index, with Singapore and Hong Kong the only non-European countries to earn a place in the top 10.
Switzerland scored highest, followed by the Netherlands and Luxembourg.
Among the major developing Asian economies, Malaysia put in a relatively strong performance; Afghanistan ranked weakest, while China advanced steadily over the past 10 years, mostly thanks to improvements in transport quality and technology readiness.
© Gulf Times 2017