Australia and New Zealand have taken diverging paths in the annual FM Global Resilience Index, while countries in Europe continue to hold the top places.

The index, which assesses 130 countries, ranks Australia at 14th place compared with 17th last year while New Zealand has slipped to 18th from 15th.

Denmark, Norway, Luxembourg, Germany and Switzerland occupy the first five rankings, with Iran, Venezuela and Haiti filling the bottom places.

Notable risers this year include Ukraine, which jumps 21 places to 63 and Singapore which gains 10 places to hold the top ranking in Asia at 12th.

China is divided into three regions, with a zone including its south-east slipping nine places to 77. Mexico falls eight places to 75th. The US region encompassing states on the east coast and adjoining the Gulf of Mexico slips seven places to 17th.

FM Global Australia Operations Manager Lynette Schultheis says Australia’s overall ranking is supported by low political risk and an assessment of the nation’s strong economic productivity.

“It is an overall view of the economy and how it rebounds,” she told insuranceNEWS.com.au. “The pandemic has just reinforced that Australia when it needs to can really perform very well.”

The resilience index provides a composite picture of 12 objective measures reflecting each country or territory’s economic, risk quality and supply chain conditions.

Australia’s relatively low ranking of 49 on natural hazard exposure, representing the degree a country’s economic activity is exposed to at least one peril such as wind, flood or earthquake, is offset by a ranking of 16 for natural hazard risk quality, reflecting building codes and the level of risk improvement achieved.

New Zealand’s slide compared to last year reflects recent changes in the FM Global Worldwide Earthquake map, which raised the risk hazard assessment for parts of the country.

Ms Schultheis says the index provides important information for companies on the potential for disruptions affecting international suppliers and customers.