KPMG recently released the second edition of its Variables for Sustained Growth (VSG) index, which suggests that the UK’s position on the index could benefit from educational and infrastructure investment, but does not yet account for the effects of Brexit.
The index compares and evaluates countries based on 21 areas that can affect their future growth and wealth. The UK moved up one spot on the list, going from last year’s ranking of 14th to 13th this year. That position puts the country above the likes of France, the U.S. and China, but below countries like Switzerland, Singapore and Hong Kong, which all made the top 10. In the Balkans, Slovenia received the highest rank, coming in at 30.
KPMG officials isolated education and infrastructure as key investments the UK should focus on to improve its position on the index. Yet they also cautioned that Brexit and the country’s removal from the European Economic Area (EEA) could have significant ramifications, potentially halting the country’s score for trade.
“The result of the EU referendum means the UK is one of the countries likely to see the most change as part of this shift (away from globalization as we know it),” KPMG Head of Macroeconomics Yael Selfin, who wrote the report, said. “The strength of our public institutions such as our judiciary independence and business rights will help the UK retain and attract business. But as we leave the EU, the country needs to work harder than ever to demonstrate our doors remain open to the world.”
