Australia claims number two spot on financial development index
Australia has climbed to the second spot on the World Economic Forum’s Financial Development Index, behind the UK but ahead of the USA.
The report looks at 55 financial systems and capital markets around the world, focusing on the drivers of financial system development and economic growth. The rankings are based on variables spanning institutional and business environments, financial stability, and size and depth of capital markets, among other factors, the World Economic Forum said.
In the second of such annual reports released by the forum, the world’s largest economies took correspondingly large hits on their rankings.
The UK claimed the top spot from the USA, which was hurt by its “poorer financial stability scores and a weakened banking sector”.
The UK was buoyed by “the relative strength of its banking and non-banking financial activities”, the creators of the report said.
Australia showed strength, along with other Asia Pacific countries. Germany and France, however, lost their positions in the top 10 despite demonstrating “financial stability scores that were significantly higher than the United Kingdom and USA”.
“The breadth of factors covered in the report means that countries with high financial instability scores like the United Kingdom and USA could still achieve a high relative ranking in the index due to other strengths,” the forum said.
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