Fastest Improving Business Environment Globally Is in Greece, Report Says

Greece has climbed 28 spots to the top of a list of 10 countries making the fastest progress in improving business environment, according to an Economist Intelligence Unit (EIU) report released on Wednesday.

Plowing ahead of Argentina and India, which hold second and third place respectively, “Greece has witnessed the most significant improvement, showing the country’s pro-business government, which has implemented reforms, cut taxes and initiatives to enhance business confidence,” the report said.

EIU’s business environment index measures the attractiveness of the business environment in 82 countries and territories, examining 91 indicators spread across 11 different categories.

The findings, based on a vector autoregression (VAR) model which measured two decades’ worth of data in 82 countries and territories, predict which are “on the verge of notable economic growth,” and, therefore, “favorable destinations to direct future investment spending.”

The VAR model used by the EIU “suggests that these improvements may result in an uptick in real GDP per capita growth, investment spending and foreign direct investment,” it was said.

The latest rankings by the EIU also reveal that Singapore, Denmark, and the US are projected to have the best business environments over the next five years, with Singapore expected to maintain its position at the top for the sixteenth consecutive year.

Several West European economies, alongside Canada, Hong Kong, and New Zealand, make up the remaining top ten best places in the world to conduct business.

In December 2023, The Economist magazine ranked Greece’s economic performance for 2023 in the top spot in the list of 35 countries around the globe.

According to the analysis based on five economic and financial indicators (inflation, “inflation breadth”, GDP, jobs and stock market performance), Greece has the best economic marks among 35 mainly rich countries this year.

Greece is above South Korea and the United States in the relevant table.

Greece’s business environment is boosted by investment-grade status

Greece approved its 2024 budget in December, forecasting a rise in economic growth to 2.9 percent from 2.4 percent this year as a result of robust tourist revenues and EU funds helping investment.

Greece regained its investment-grade status in 2023 after thirteen years. Fitch Ratings upgraded Greece’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to BBB- from BB+.

Characterized by Greek finance experts as the strictest and most robust rating agency, Fitch rewards the Greek economy’s efforts by giving the country a vote of confidence.

Fitch was the second of the big three US rating agencies after S&P to give Greece a higher investment grade. This will allow more institutional investors to buy Greek bonds, thus increasing capital inflows and further helping to contain borrowing costs for the Greek government and businesses.