The top three countries in the world for doing business were found to be Singapore, Denmark, and the United States. Venezuela, the poorest country in Latin America, was dishonorably ranked as a country where doing business is virtually impossible.
On the 6th, the Economist Intelligence Unit (EIU) of the UK released the results of the "Global Business Environment Ranking." The EIU stated that it measured the business environment over five years from 2024 to 2028 on a 10-point scale based on various indicators such as inflation, economic growth, and fiscal policy in 82 countries worldwide.
The top 10 countries for doing business were ranked as follows: Singapore (8.56 points), Denmark (8.41 points), the United States (8.40 points), Germany (8.35 points), Switzerland (8.33 points), Canada (8.31 points), Sweden (8.29 points), New Zealand (8.26 points), Hong Kong (8.24 points), and Finland (8.22 points).
Regarding why Singapore was ranked first, Priyanti Roy, EIU’s country forecast manager, explained to CNBC, "It is due to the various government supports that can drive the growth of private enterprises."
For example, among Singapore’s pro-business policies, the corporate tax reduction benefit is cited as an attractive factor. Singapore’s corporate tax rate is fixed at 17% regardless of company size, which is one of the lowest levels in the world. Additionally, startups can be exempted from 75% of taxable income annually for three years.
The EIU stated in the report, "All of the top 10 countries for doing business are advanced countries that provide a safe investment environment." However, the slowdown in nominal and per capita GDP growth rates was pointed out as a regrettable aspect for conducting business.
The EIU emphasized, "It is necessary to pay attention to countries where the business environment has improved significantly." This is because these countries can "catch two rabbits at once" by having rapidly growing economies while also receiving stable government support. Greece, Qatar, and India are representative examples.
Greece drew attention as the pro-business New Democracy party began its second term last year. The party’s Prime Minister Kyriakos Mitsotakis is evaluated to have put the Greek economy, which experienced a national default crisis in 2012, back on track by implementing tax reduction policies during his previous term to boost high economic growth rates. Qatar has been analyzed to have greatly improved its business environment by implementing a $220 billion investment program over the past decade focusing on infrastructure such as airports, roads, and tourism. India was recognized as a single market that can replace China.
Meanwhile, Venezuela ranked last in this business environment ranking. Venezuela’s economy, heavily dependent on oil exports, faced an economic crisis due to the oil price crash since 2014 and responded by "printing money," resulting in the economic disaster of hyperinflation.
The EIU predicted, "(In the case of Venezuela) although there has been some improvement after the painful economic collapse, it is expected to remain in a (pessimistic) state."
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