The latest GOI report has emphasized Denmark’s third-place ranking, attributing it to the country’s strong economic fundamentals, skilled workforce, and commitment to building a resilient and sustainable economy and society.
Europe has still remained a top pick for investors, with four out of five leading destinations being European countries, according to the latest findings from the Milken Institute’s Global Opportunity Index (GOI) report. Denmark clinched the top spot this year, particularly impressing in business perception, which evaluates how easy it is to do business in a country along with regulatory factors.
Evaluating 100 indicators in five main areas, the latest GOI report has highlighted Denmark’s strong economic basics, placing it third. These factors include its overall economic performance, skilled workforce, and efforts to create a resilient and sustainable economy and society, according to the report.
Besides Denmark, the top tier countries include Sweden, Finland, the United States, and the United Kingdom. The U.S. moved up one spot to the fourth position this year, ranking highest in the institutional framework category, which tracks the protection a country’s institutions offer to investors’ rights and their assets.
In emerging and developing Asia, Malaysia, which is now the sixth largest chip exporter in the world and packages 23% of all U.S. chips, stands out, ranking 27th globally.
“While advanced economies provide stability, investors seeking high-growth returns continue to show interest in emerging and developing economies,” Maggie Switek, Senior Director of the research department at The Milken Institute, said in a statement.
The report explains that Malaysia’s favorable investment conditions and strong institutional frameworks attract investors, while its increasing importance in the global chip market enhances its appeal.
However, tensions between the United States and China have led to a sharp decline in investment flows to Asian E&D economies, dropping by 75.4% in 2022, the report reads. Despite this, China maintains a strong position in the index, indicating continued investor interest despite geopolitical challenges.
While China attracted more than half of total capital inflows to E&D Asia between 2018 and 2022, its appeal to investors appears to have decreased recently, likely due to rising geopolitical tensions with the US.
Singapore leads among Asian countries, ranking 14th globally, followed closely by Hong Kong and Japan. This portrays Asia’s attractiveness for investment despite geopolitical uncertainties and fluctuations in investment flows.
Even in 2022, Europe had maintained its supremacy, with seven of the top 10 cities and 63 countries within the top 100. Then, the only non-European cities to make it into the top 10 were Dubai at No. 2, Tokyo at No. 4, and New York at No. 8.
