The World Economic Forum ranked Australia's economy 18th out of 134 countries for international competitiveness in 2008. Competitiveness is defined as the set of institutions, policies, and factors that determine the level of productivity in a country.

Australia’s competitive advantages were identified as being financial market sophistication, higher education and training, quality public and private institutions, and efficient goods, labour and financial markets. Australia ranked first in the world for secondary education enrolment rates, second for the efficacy of its corporate boards, third for the regulation of its securities exchanges, for strength in auditing and reporting standards, and for legal rights, fourth for the soundness of its banks and for flexible labour markets, eighth for the quality of its scientific research institutions, and ninth for the quality of the educational system.