As the global business landscape continually evolves, several countries have made significant strides in improving their business environments.
These improvements span various aspects such as financing, foreign direct investment (FDI) policies, tax regimes, infrastructure, political environments, and macroeconomic stability.
The Economist Intelligence Unit (EIU) forecasts economic growth through meticulous analysis, using business environment rankings that synthesize 91 indicators to evaluate business attractiveness across 82 countries and territories.
This comprehensive assessment provides invaluable insights into economies poised for growth, essential for strategic decision-making.
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“Qatar’s $220 bn infrastructure investment, including Hamad International Airport and road networks, has significantly improved its business environment. Lithuania’s upcoming tax reform will extend corporate tax relief, enhancing its attractiveness for trade and investment. Greece, led by the pro-business New Democracy party, has seen the most significant improvement due to reforms, tax cuts, and increased business confidence” the report highlighted.
Recently BusinessDay reported that Singapore, Denmark, and the U.S. stand out as the premier destinations for conducting business in 2024.
Here are the top 10 most improving places to do business and the reasons behind their advancements.
Greece: Financing
Greece has emerged as a more favourable destination for business, primarily due to its improved financing landscape. After years of economic turmoil, the country has implemented substantial financial reforms. The banking sector has been recapitalised, and non-performing loans have been significantly reduced. The government has also introduced incentives for startups and small and medium-sized enterprises (SMEs), enhancing access to capital.
Argentina: FDI Policy, Foreign Trade, and Exchange Controls
Argentina has taken bold steps to revamp its business climate by liberalising its FDI policies, easing foreign trade restrictions, and reforming exchange controls. The government has opened up previously restricted sectors to foreign investment and streamlined regulatory processes. By reducing bureaucratic hurdles and promoting transparency, Argentina has made it easier for foreign investors to enter and operate in the market.
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India: FDI Policy, Foreign Trade, and Exchange Controls, Tax Regime
India continues to be a dynamic and rapidly improving business destination. The country has liberalized its FDI policies across various sectors, including retail, aviation, and defense. The introduction of the Goods and Services Tax (GST) has simplified the complex tax structure, making it more business-friendly. Additionally, reforms in foreign trade policies have streamlined import and export processes.
Angola: Market Opportunities, Private Enterprise Policy
Angola is increasingly recognized for its improving market opportunities and private enterprise policies. The government has undertaken substantial reforms to diversify its economy away from oil dependence. Efforts to promote private sector development include the privatization of state-owned enterprises and the implementation of business-friendly policies. These measures have opened up new avenues for investment in sectors such as agriculture, manufacturing, and services, creating a more conducive environment for business growth.
Qatar: Financing
Qatar has made notable advancements in its financing environment, positioning itself as a top destination for business. The country has developed a robust financial sector with world-class banking and financial services. Reforms aimed at enhancing access to financing for SMEs and startups have been introduced. Qatar’s strategic investments in infrastructure and its commitment to diversifying its economy beyond hydrocarbons have also contributed to a more vibrant and supportive business ecosystem.
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Kenya: Infrastructure
Kenya stands out for its remarkable improvements in infrastructure, which have significantly boosted its business environment. The government has invested heavily in upgrading transportation networks, including roads, railways, and ports. The development of the Standard Gauge Railway and the expansion of major ports have enhanced connectivity and reduced logistical costs. These infrastructure improvements have facilitated trade, attracted investments, and positioned Kenya as a key business hub in East Africa.
Dominican Republic: Political Environment
The Dominican Republic has made strides in enhancing its political environment, creating a more stable and predictable setting for businesses. Efforts to strengthen democratic institutions, improve governance, and combat corruption have bolstered investor confidence. The government’s commitment to maintaining a favourable business climate and implementing pro-business policies has made the Dominican Republic an increasingly attractive destination for foreign investment.
Venezuela: Political Environment
Despite facing significant challenges, Venezuela has shown signs of improvement in its political environment, which has positively impacted its business climate. Recent political changes and efforts to stabilize the economy have created a more conducive atmosphere for business activities. While challenges remain, the government’s initiatives to attract foreign investment and promote economic recovery are steps in the right direction, making Venezuela a country to watch for future business opportunities.
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Lithuania: Tax Regime
Lithuania has emerged as a favourable destination for business due to its improved tax regime. The government has implemented tax reforms aimed at reducing the tax burden on businesses and promoting investment. Measures such as lowering corporate tax rates and offering incentives for research and development activities have made Lithuania more competitive. These changes have attracted foreign investors and stimulated economic growth, positioning the country as a business-friendly destination in Europe.
Serbia: Macroeconomic Environment
Serbia has made significant progress in enhancing its macroeconomic environment, creating a more stable and predictable setting for businesses. The government has implemented structural reforms to strengthen fiscal discipline, reduce public debt, and improve the overall business climate. Efforts to modernize the legal and regulatory framework have also contributed to a more transparent and efficient business environment.
