Operating in certain economies comes with certain expected and unexpected risks – these include the political climate, legalities, and trading operations, but expands deeply into how many people have internet connections and mobile phones, and importantly, the skills and availability of the local labour force.
The quality of local systems matters, and the Grant Thorton Global Dynamism Index (GDI) uses 22 different indicators across five areas into consideration when ranking countries for their business growth environments. This examination has been conducted across 60 of the largest economies in the world, providing some interesting insights into where we all fit in.
The five areas considered are business operating environment, financing environment, the labour market, technology, and market growth.
GDI ranking (top 20)
1. Singapore 69.9 – up six points from the previous version of the Index, ranking top for finance, no more than 12 for business operating environment, and no lower than 25 for economics and growth.
2. Israel 67.5 – also up six points this year, being the top for technology and in the top 10 for financing environment.
3. Australia and Finland 67.3 – equal third place with Finland, Australia has dropped two places, but is still in the top five for business operating environment and labour market. Finland rose slightly in rank, faring well for business operating environment and technology.
4. Sweden 67.1 – risen slightly, scored well for business operating environment and technology.
5. Slovenia 66.7 – showed the biggest improvement on the previous Index, rising 27 places from 2013 due to significant market growth and technology.
6. Switzerland 66.0
7. Norway 65.8
8. Canada 65.3
9. Taiwan 65.3
10. Germany 64.9
11. United States 64.7
12. New Zealand 64.6
13. China (mainland) 63.9
14. Denmark 62.9 – crept up significantly in rank, signifying growth prospects across the area.
15. Belgium 62.8
16. Malaysia 62.8
17. South Korea 62.2
18. Netherlands 61.8 – rose hugely in the ranks this year, along with the Czech Republic (ranked 25), Hungary (ranked 31) and Portugal (ranked 38).
19. Ireland 61.6
The bottom 10 economies for business operating environment are Morocco (ranked 54.1), Russia (50.4), India (49.7), Ukraine (45.4), Pakistan (44.1), Argentina (41.5), Venezuela (40.1), Kenya (36.9), Algeria (36.8), and Nigeria (28.8). Regionally, the Middle East and Africa do the worst, while North America does the best.