The Netherlands ranks second in global productivity potential
According to top consultancy firm KPMG, the Netherlands ranks second when it comes to the world’s highest productivity potential.
The Variables for Sustained Growth Index
The Variables for Sustained Growth (VSG) Index compares the productivity potential of 181 countries around the world by using different tools to assess a variety of factors.
The Index takes into account academic research as well as business survey results to analyse the long-term economic growth of a country, particularly looking at aspects that can be influenced by policymakers.
Whilst many countries have struggled since the 2008 economic crisis, the study suggests that economic growth is a result of three main factors, which include a growing labour force, a rise in capital stock, and improvements in productivity. For this reason, productivity on its own contributes immensely to a country’s economic growth.
The Netherlands still second
The Netherlands has managed to secure second place in the KPMG report for two years in a row. According to the study, the Netherlands has its educated population, public institutions and active participation in global economics to thank for its position.
Countries were also assessed on their sustainability, which was an area the Netherlands scored particularly well in. With its strict regulations and policies, the judicial system and efficient infrastructure, such as its transport system, the Netherlands continues to remain at the top.
Top 10 performers for productivity
In 2016, this index was, once again, dominated by Western Europe, with Singapore and Hong Kong being the only non-European countries to make it to the top 10.
2. The Netherlands
4. Hong Kong