Belarus: Increased Appeal for Investors
In the end of May, BDO, an international network of public accounting, tax and advisory firms, revealed its BDO International Business Compass 2015, now in its fourth year. Since 2012, BDO in cooperation with the Hamburg Institute of International Economics (HWWI) has conducted the survey that studies the appeal for investing in this or that country of the world.
The BDO Compass is a study that provides evaluation of social and economic development of countries and regions resulting in country ranking in terms of their investment potential.
The countries of the world are compared based on a number of measurable factors regarding labor market performance. Three categories are developed to target capacities, density of qualifications, and labor market institutions.
To measure attractiveness of a location, economic, political and legal, and social and cultural conditions of countries are rated and combined into a headline figure. The first group includes per capita income, size of national debt, and inflation. The second group considers political stability, extent of corruption, and quality of state regulation. The third group of factors addresses to population growth, life expectancy, and quality of education system.
The 2015 BDO IBC study covers 174 countries from 6 continents.
The 2015 ranking is headed by Switzerland, while Singapore and Hong Kong can be found in the second and third places. Being #86 this year, Belarus was able to improve by 29 ranks compared to the previous year, making it to the Main Increases of the Year 2015.
When asked by Deutsche Welle about the reason of such a prominent rise for Belarus, Andre Wolf, HWWI researcher and BDO IBC co–author, said: “A wide range of factors boosted the uprise of Belarus. For example, the inflation has declined apparently and the level of free enterprise has increased while being much higher than in Russia and Ukraine. According to polls, corruption in Belarus is controlled better as well. The advantageous geographical position between two large markets of Russia and the EU counts in favor of Belarus."
The closest neighbors of Belarus are rated in the International Business Compass 2015 as follows: Latvia and Lithuania are # 30 and 31, respectively; Poland is # 34, while Ukraine and Russia occupy places # 89 and 100, respectively.