Investors are very optimistic about Singapore’s economic outlook, which may have propelled the country regaining its place in the top 10 after a one-year hiatus. Its world-class business environment also remains a top driver of its attractiveness to investors.
Australia has maintained its position among the top 10 FDI destinations for a decade. With more than a quarter century of uninterrupted economic growth, the country remains a large, stable investment destination.
Italy captures its highest ranking since 2002. This may be because of a less volatile political environment compared with a year ago as well as the enduring appeal of the country’s strong brands and robust manufacturing sector.
China remains the only emerging market among the top 10, indicating investors continue to view the country as a top FDI destination. But domestic and external headwinds may be contributing to mixed investor views on its economic outlook.
Japan maintains its sixth-place ranking for the fourth year in a row. This may be partly due to economic performance expectations, as investors are the most optimistic about the country’s three-year outlook among the countries on the Index.
France claims its highest-ever ranking on the Index this year. Likely contributing to this jump are an improving business environment and a recent decrease of corporate tax rates.
4. United Kingdom
The United Kingdom holds steady in the fourth position for the third year in a row. Despite Brexit uncertainty, it remains a highly competitive, industrialized market and is the fifth largest economy in the world.
Despite falling one place in the Index, Canada’s score has been steadily improving in recent years. Efforts to boost investment appear to be paying off as FDI inflows increased nearly 60 percent from last year, reversing a years-long downward trend
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Germany’s improvement in position is likely due to strong competitiveness indicators and recently announced initiatives in technology and digital infrastructure. And while economic growth is expected to slow, it will remain in positive territory.
1. United States
The United States maintains the Index’s top ranking for the seventh consecutive year. The country’s continued attractiveness is in large part the result of its sustained and robust economic expansion in recent years.