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Austrian Competitiveness Shrinks Further

Published: September 7, 2011; 20:49 · (Vindobona)

According to a market survey of the consulting group Ernst & Young, Austria´s international competitiveness has still worsened and fell from rank 18 to 19.

Austrian Competitiveness Shrinks Further / Picture: © Flickr

Ernst & Young presented the Global Competitiveness Report 2011-2012 (GCR): Austria´s position in the ranking of the World Economic Forum fell from rank 18 to rank 19. 142 countries have been observed. Switzerland, Singapore and Sweden occupy the three top positions. The USA went down on rank 5. Finland is number four, Germany on rank 6.

In 2008, Austria had rank 14. Austria´s extreme weak points is the wage flexibility. In this context, the country has only rank 140 and thus the third worst position. With rank 93, the hiring & firing policy is another disadvantage for Austria´s position. However, the cooperative model between workers and industrialists is seen very positive. Other strengths are health policy and the high living standard.

According to a survey, the rigidity of Austria´s labor market is also a big problem for domestic managers. The inefficient public administration, the complex tax system and the access to funds has also been criticized. For Austrian managers, crimes and corruption are no problem.