The Top 10
The OECD's Better Life Index ranks the world's developed economies on quality-of-life criteria.
1. Australia
2. Sweden
3. Canada
4. Norway
5. Switzerland
6. United States
7. Denmark
8. The Netherlands
9. Iceland
10. United Kingdom
SYDNEY—A fading mining boom may be taking the gloss off Australia's resource-rich economy but the country has retained the title of happiest industrialized nation in the world.
That's according to the Organization for Economic Cooperation and Development's Better Life Index, which ranked the world's developed economies on criteria such as jobs, income, environment and health.
Australia kept the top spot for the third year running,
ahead of Sweden—also known for its high living standards and robust
economy—and Canada, a rival resource-exporting nation that, like
Australia, has reaped the benefits of increasing Asian demand for raw
materials.
The upbeat outlook comes as policy makers in Australia try to
rebalance the economy, the world's 12th largest, away from a heavy
reliance on mining and energy exports toward growth in manufacturing,
construction, and consumer spending.
The OECD survey of 34 industrialized nations didn't award an overall
top ranking. But if each of the 11 categories in the survey is given
equal weight, Australia's cumulative rank rises to No. 1, according to
the OECD website.
"It's the quality of life that one can enjoy here," said Gaurav
Chawla, 27, a careers adviser who moved to Sydney from New Delhi seven
years ago. "It's more secure here, cleaner, less cars on the road and
less pollution."
Australia's high rank in the OECD index—based on data from the United
Nations, individual governments and other sources—is largely due to its
economy. The nation mostly sidestepped the economic woes afflicting
much of the developed world after the financial crisis and has expanded
for 21 years straight without a recession. Unemployment stood at 5.5% in
April from 5.6% in March, compared with 12.1% in the euro zone.
"There is no one under the age of 40 now who has experienced a
recession as an adult member of the workforce," said Saul Eslake, an
economist at Bank of America-Merrill Lynch in Sydney.
It isn't just current residents who see Australia's appeal. The
government has so far attracted 170 applicants, believed to be mostly
from China, to a new program to develop foreign investment by offering
overseas millionaires the right of residency in return for a portion of
their wealth. A record 5.7 million foreigners visited the country last
year, led by tourists from the U.S. and China, even as the Australian
dollar traded at close to 30 year highs.
There are weaknesses, though. Consumer confidence remains in the
doldrums even after the central bank this month lowered interest rates
to a record low 2.75%, adding to a string of rate-cuts since late 2011
designed to spur activity in weaker parts of the economy such as retail
sales and housing. Households blame the poor mood on a rising cost of
living, an unpopular government, and growing signs a long mining boom is
nearing an end.
While the OECD survey found that Australians rank their
life-satisfaction at 7.2 out of 10, higher than the average of 6.6, the
reading is below levels recorded in Mexico, Norway and neighboring New
Zealand.
Australia also ranks poorly in terms of work-life balance with more
than 14% of employees working very long hours, well above the OECD
average of 9%. And, somewhat surprisingly for a country famed for its
beaches and barbecues, Aussies spend slightly less time on leisure
activities and personal care—eating and sleeping—than their overseas
peers.
The average household net wealth is estimated at US$32,178, well
below the OECD average of US$40,516. The study finds a significant
disparity in living standards, with the top 20% of Australia's
population living off an estimated US$58,409 per year compared with
US$10,323 for the bottom 20%.
"The overall Australian way seems to be happy go lucky, but that's
not always the case," said Ivana Mrsic, 18, a music student from Botany
Bay, a suburb in Sydney's south.
Still, any pessimism in the Pacific nation of 23 million people could
be overdone in the context of the economic hardship being endured
elsewhere, said Bank of America-Merrill Lynch's Mr. Eslake.
"It's easy for us to lose sight here in Australia of how difficult
economic conditions have been in other OECD countries," he said.
While locals complain of living costs, Australian households on
average spend 19% of their disposable income on keeping a roof over
their heads, below the OECD's average of 21%. And 85% of Australian
respondents said they were in good health, well above the survey average
of 69%.
The negatives in Australia are more than offset by the beach
lifestyle and climate, said Geraldine Alvarez, 33, who moved to Sydney
from the Philippines two decades ago.
"It's very relaxing and laid back," she said.
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