The recently published Grant Thornton Global Dynamism Index (GDI) ranks Finland as the world’s second most dynamic country after Singapore. In the index, dynamism is defined as the changes to the economy which have enabled recovery from the 2008-09 economic recession and are likely to lead to a fast rate of future growth.
The GDI model was developed by the Economist Intelligence Unit (EIU), who analysed 50 economies on 22 indicators of dynamism across five categories: business operating environment, economics and growth, science and technology, labour and human capital, and financing environment. To validate and weight the indicators, the EIU then conducted a survey of 406 senior executives from across the globe, in which respondents were asked to assign an importance to each indicator for their organisation.
Most dynamic business environment
Finland is ranked as the best country for the dynamism of its business environment, and is placed second for dynamism in science and technology. Finland also scores well in terms of the proportion of GDP accounted for by R&D, as well as on the quality of its IT infrastructure.
Finland ranks equal first with France and Singapore in terms of levels of private sector credit, and is fourth in the rankings for the quality of its financial regulatory systems and access to medium-term capital. According to the index, Finland is among the most open economies with strong, transparent competition and regulatory systems.
“Despite the slowdown in the eurozone, business growth fundamentals in Finland remain robust. Investment in R&D remains high whilst open trade policies and strong institutions provide a low risk environment for investment,” says Joakim Rehn from Grant Thornton Finland.