In the latest Economist Intelligence Unit business environment ranking, Singapore once again claimed the top spot as the best place in the world to conduct business. This Southeast Asian nation has maintained its position for the past 16 years, thanks to factors such as political stability and the government’s focus on technological advancement for domestic private-sector companies. The EIU’s assessment involves various indicators like inflation, cost of living, economic growth, and fiscal policies to offer insights into the business landscape of 82 countries and territories.
Denmark: Solid Macroeconomic Fundamentals
Following closely behind Singapore in the rankings is Denmark, recognized for its solid macroeconomic fundamentals and top-notch transport and digital infrastructure. These qualities make Denmark one of the most attractive business locations globally, setting it apart as a strategic choice for investors. The EIU predicts that Denmark, along with Singapore and the U.S., will maintain the best business environments over the next five years.
Securing the third spot on the list is the United States, offering favorable market opportunities and few restrictions on foreign trade and investment. With a business-friendly environment that supports growth and innovation, the U.S. continues to be a prime destination for businesses looking to thrive on a global scale. The country’s steady economic performance and diverse industry sectors make it a stable choice for investors.
Germany and Switzerland claimed the fourth and fifth spots in the rankings, showcasing their long-standing economic strength and resilience. Canada, Sweden, New Zealand, Hong Kong, and Finland rounded up the top 10 best places in the world to do business, known for their advanced economies and stable investment climate. However, the report highlighted that while these countries are safe bets for investments, their GDP growth rates are expected to remain steady.
Notable improvers in the index included countries like Greece, Qatar, and India. Greece’s significant improvement in the business climate was attributed to pro-business reforms by the government, leading to a more conducive environment for investment. Argentina’s commitment to free market reforms to boost private enterprise and attract foreign investment propelled its sharp rise in the rankings. India also stood out as a top performer in improving its business environment, signaling growth opportunities for investors in the country.
The Economist Intelligence Unit’s business environment ranking offers valuable insights for investors seeking to identify promising markets for business growth. Countries like Singapore, Denmark, and the U.S. lead the pack with their stable economies and favorable business conditions, while other top performers and improvers present unique opportunities for strategic investments in 2021.