Singapore is at the top of the Economist Intelligence Unit's business environment ranking.
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According to the Economist Intelligence Unit's business environment ranking, Singapore, Denmark and the US are the best places in the world to do business.
“Singapore will remain the best place to do business in the world, as it has for the last 16 years,” Prianthi Roy, EIU country forecast manager and Europe analyst, told CNBC.
Factors determining the Southeast Asian country's place as a top business destination include its political stability and the government's focus on helping domestic private companies modernize technologically, she said.
The EIU ranking assesses the attractiveness of doing business in 82 countries and territories and is measured using indicators such as inflation, cost of living, economic growth and fiscal policy.
The measure also provides insight into which economies are better positioned for growth than others and an “effective way to identify where there may soon be a rise in investment spending,” EIU analysts said.
Top 10 economies
Behind Singapore are Denmark and the USA, which took second and third place respectively.
Denmark, with its “solid macroeconomic fundamentals” and high-quality transport and digital infrastructure, makes itself one of the most attractive business locations in the world, Roy said.
Market opportunities in the US remain favorable, particularly as there are few restrictions on foreign trade and investment in the US, she added.
“Singapore, Denmark and the US are expected to experience the best business conditions over the next five years,” the report said.
Germany and Switzerland took fourth and fifth place, while Canada, Sweden, New Zealand, Hong Kong and Finland made up the remaining ten places in the world with the best business opportunities.
“These are all advanced economies that have a long history of strong performance in our index and therefore tend to be safe havens for investment,” the report said, but cautioned that both the overall and per capita GDP growth rates are likely to remain stable and relatively slow.
Countries with the greatest improvements
Some notable “big improvers” that performed well in the index were countries such as Greece, Qatar and India.
Greece recorded the largest improvement in business climate in the EIU index due to reforms implemented by a pro-business government, the report shows.
Free market reforms promised by Argentine President Javier Milei, aimed at boosting private enterprise and attracting foreign investment, saw the country rise in the rankings to have the second best business environment.
“India is the only domestic market that offers a potential scale comparable to that of China,” the report said, adding that the country's young demographic profile bodes well for its workforce and future demand. India ranked third on the list of most improved business environments.