Greece has become the top country in the world in improving its business environment over the last few years, a report by the Economist Intelligence Unit (EIU) found on Monday.
Compared with the fourth quarter of 2019, Greece’s business environment ranking (BER) moved up by sixteen places, the report states.
“This significant improvement reflects its poor starting point, given a long-delayed recovery from the government debt crisis that began in 2009, but also the impact of a pro-business majority government that has undertaken reforms, cut taxes and restored confidence in the country,” the EIU adds.
Greek Prime Minister Kyriakos Mitsotakis hailed the findings of the report, saying that it is very encouraging to see our efforts to reform the economy recognized.
In a tweet to which the EIU table below was attached, he wrote: “We believe in turning Greece into a business-friendly country attracting further foreign investment. Though there is more to be done, Greece is on the right path.”
Very encouraging to see our efforts to reform the economy being recognized. We believe in turning Greece into a business-friendly country attracting further foreign investment. Though there is more to be done, Greece is on the right path. https://t.co/OeMfoi32a8 pic.twitter.com/DhtpYP7ZRX
— Prime Minister GR (@PrimeministerGR) October 31, 2022
Business environment in Greece was aided by “reforms, tax cuts”
Alexis Patelis, the chief economic adviser to the Prime Minister of Greece, said that the significant improvement reflects its poor starting point but also the impact of a pro-business majority government that has undertaken reforms, cut taxes, and restored confidence in the country.
The EIU report says the most significant improvements over the past three years since before the ructions caused by the pandemic and the war in Ukraine, are in the business environments of Greece, Qatar, the US, and the UAE. The biggest deteriorations are in Latin America, the lowest-ranking region, as well as in Russia and Ukraine.
Singapore best place for business
The report further adds that Singapore remains the most ideal place in the world to do business in the next five years for the fourth quarter of 2022. Canada and the US are ranked second and third with western Europe still well-represented in the top twenty.
The report also notes two major trends. Namely, China’s zero-COVID policy is harming its business environment and encouraging firms to choose alternative markets. In the latest ranking China has been overtaken by India and Indonesia.
Secondly, Europe’s energy transition away from reliance on Russia is driving growth and investment in other natural gas exporters, notably in the Middle East.
The business environment rankings measure the attractiveness of the business environment in eighty-two countries on a quarterly basis, using a standard analytical framework with ninety-one indicators.
EIU rankings for the fourth quarter of 2022 show that western Europe and North America remain the best places in the world to do business. Asia ranks third, narrowly ahead of eastern Europe, while the Middle East and Africa region marginally outperforms Latin America.