The World Economic Forum (WEF) report said Australia‘s score was "tarnished" by the extent of red tape in the country, while the efficiency of its labour market was a concern. "Australia ranks 136th for the rigidity of its hiring and firing practices and 132nd for the rigidity of its wage setting," the WEF report said. "Indeed, as part of our executive opinion survey, Australian businesses, year after year, have named the restrictive labour regulations the most problematic factor for doing business in their country by a wide margin.
It warned that as the economies of these countries improve a normalisation of monetary policy, with tightening financial conditions, could dent both advanced and emerging economies. "Moreover, the strained geopolitical scenarios with rising tensions in a number of regions can also have negative consequences for the global economic outlook. "Finally, many countries are suffering from accelerating income inequalities; often these inequalities are lasting effects of the crisis that are creating domestic social tensions with potential global consequences.
It said many countries were struggling to implement structural reforms necessary to help economies grow. "The global economy seems to be finally leaving behind the worst and longest-lasting financial and economic crisis of the last 80 years," the report said. "However, this resurgence is moving at a less decisive pace than it has after previous downturns, and heightened risks looming on the horizon could derail the global recovery.
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