The FINANCIAL — The latest edition of KPMG’s Global Change Readiness Index (CRI) ranks the UK as the nation 10th most ready for change, up from 13th place in 2015.
This puts the UK behind countries well recognised for innovation like Singapore (4th) and Germany (9th) but also ahead of global leaders like the US (12th), Hong Kong (13th) and France (20th). Looking at the results in more detail, the UK ranks 7th for enterprise potential, 13th for government capability and 8th for societal robustness.
Commenting on the UK’s results, Karen Briggs Head of Brexit at KPMG said:
“As the UK gets to grips with Brexit, some business leaders have become deeply pessimistic, seeing only the potential jeopardy and upheaval that lies ahead. Of course, the risks of Brexit are manifold and very, very real. Indeed many require attention with the greatest sense of urgency. But this study offers a more rounded perspective. It reminds us not to lose sight of the UK’s potent global strengths.
“Our country’s spirit of entrepreneurialism, mastery of technology and renowned business environment all point to a long term, collective, ability to rebuild our economy after Brexit. The UK possesses the characteristics to not only withstand, but also capitalise on major change. I hope every business leader is looking not just at the risks of Brexit but also the opportunities.”
The UK’s vulnerabilities are explained by its lowest ranked indicators. These are; environmentally friendly enterprise (81st), security (48th), food and energy security (47th), government fiscal and budgeting (42nd), economic diversification (26th) and our demographic profile (24th). Many of the UK’s strengths are explained by its highest ranking indicators. These are; entrepreneurship (2nd), use of technology (2nd), economic openness (5th), business environment (6th), financial sector (6th) and the regulatory environment (6th).
The most improved UK indicators include: A big improvement in the UK’s fiscal and budgeting ranking which reflects progress since the recession in achieving improved fiscal balances. The study also finds improvements in; government strategic planning, the health of the UK’s financial sector, and the UK’s macro-economic framework.
The Global Change Readiness Index looks at 30 indicators across 136 countries to rank each country’s ability to withstand and capitalise on change. These span economic, political, societal and environmental conditions. You will be able to access the UK stats here.
Commenting on the survey’s overall conclusions, Timothy Stiles, Global Chair of the International Development Assistance Services (IDAS) practice at KPMG said:
“More than ever, a country’s welfare depends on the ability to cope with and take advantage of change. This study is an eye-opening view of which countries are best positioned to weather inevitable change, and the factors behind their preparedness.”
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