KPMG: "Investing in technological infrastructure and efficient institutions is the key to economic prosperity"
During the World Economic Forum in Davos, KPMG launches the fifth edition of the Growth Promise Indicators (GPI). KPMG uses the GPI to evaluate the growth potential of 180 countries (and Hong Kong) by looking at five indicators: macroeconomic stability, openness and willingness to reform, infrastructure quality, human capital and institutional strength.
Our country comes in sixteenth, the same ranking as last year, with a score of 7.42/10. A strong position, but one that still allows for improvement, particularly if we compare it to that of neighboring countries such as the Netherlands and Luxembourg.
Koen Maerevoet, CEO of KPMG in Belgium:
"Our country comes in within the top 20 and holds its position: that is already very positive. We also score particularly well in human development (8.02) - thanks to our education and health care systems - and in the willingness and ability to implement reforms (9.35). Fiscal reforms contained in the summer agreement illustrate this last point nicely. But, with respect to macroeconomic stability, we score quite low (2.92). This is primarily due to our historical national debt, which is still valued at more than 100% of our GDP. The quality of our infrastructure (6.97) also needs to catch up to that of the Netherlands and Luxembourg. This holds challenges for the federal government, as well as for the states."
We, as a country, face domestic and international challenges:
"Foreign direct investment and international trade are lifelines for our country, which remains one of the most globalized economies in the world. The globalization slowdown, together with protectionist tendencies, serve as a wake-up call. At the diplomatic level and in the interests of our prosperity, our country needs to rally behind free trade", says Maerevoet.
As far as the future is concerned, KPMG points to the following potential themes in order to stimulate GPI performance globally and individual national prosperity over the next ten years:
Koen Maerevoet, CEO of KPMG in Belgium, concludes:
"The GPI report investigates how individual countries can grow sustainably and how they can maximize their potential. It shows that a number of countries can speed up their development by investing wisely in technology or infrastructure. But it is also crucially important for countries to invest in the right education and training in order to prepare the generations to come for the future. The business community also plays a central role here: we must invest in our people and support them as we enter the first days of the fourth industrial revolution."