This insightful article highlights the best countries in the world and how their progressive economic policies benefit their citizens. For a quick overview, proceed directly to the 8 Most Liked Countries In The World In 2023.
A nation’s perception influences its trade opportunities, investment climate, and desirability. It’s believed that ‘country branding’ affects the appeal of its products, the credibility of its industries, and the allure of its investment opportunities. Consequently, the most liked countries in the world in 2023 are poised to enjoy economic and social advantages due to their reputation.
Several factors determine a nation’s likability; for example, participation in multilateral forums and adherence to global norms and treaties can enhance a country’s image. Additionally, soft power that includes cultural exports, educational opportunities, and international outreach, distinguishes the best countries in the world.
The Correlation Between Economic Freedom and Business Growth
The Fraser Institute’s Economic Freedom of the World report consistently highlights the link between economic freedom and business growth. The study evaluates countries based on metrics such as legal structure, security of property rights, access to sound money, international trade freedom, and business regulation. Countries with high scores on these parameters, such as Switzerland, New Zealand, and the US, exhibit an environment favorable for business expansion. These nations present minimal bureaucratic hurdles, allowing businesses to seamlessly engage with global markets and access capital.
Consequently, these economically free nations, as identified by the Fraser Institute, regularly rank among the most admired countries for business. The relationship between economic freedom and growth is positive for a country’s likability: as companies prosper in these nations, their success stories bolster the nations’ global business appeal. Such positive reputations enhance their standing as some of the most liked countries in the world for business endeavors.
After the Second World War, Japan’s economy was devastated, having lost much of its industrial infrastructure. In response, Japan implemented economic reforms, many of which facilitated the growth of companies like Toyota Motor Corporation (NYSE:TM). Toyota notably benefited from Japan’s export-oriented growth strategy, expanding into overseas markets. By the 1960s and 1970s, Toyota vehicles were gaining substantial traction in global markets, especially in the US. Presently, Toyota employs over 300,000 people and is the most valuable Japanese company with a market cap of $318 billion, ranking among the biggest car companies by sales volume. Notably, post-WWII, Toyota Motor Corp (NYSE:TM) collaborated with the US to adopt advanced vehicle manufacturing techniques, underscoring its free trade policies.
Toyota’s Q4, 2023 earnings call revealed an anticipated production volume of 10.1 million units for the upcoming fiscal year. Owing to enhancements in semiconductor supply, sales volumes are forecasted to rise across all regions. The company reported sales of 8.82 million consolidated units in 2022 and projects sales of 9.6 million units for the fiscal year ending March 2024. Additionally, combined sales for Toyota and Lexus stood at 9.61 million units in the previous fiscal year, with projections reaching 10.4 million units by the end of their current fiscal year.
Similarly, Amazon Inc (NASDAQ:AMZN) has reaped the benefits of the US’s robust business infrastructure. In its early days, Amazon enjoyed a tax advantage: its mail-order merchants weren’t required to collect sales tax for transactions in states where they had no physical presence. This policy provided Amazon Inc (NASDAQ:AMZN) a competitive advantage over conventional brick-and-mortar stores, allowing for innovation, expansion, and flexibility in business strategies. Owing to the US’s business-friendly environment that favors minimal government intervention, Amazon Inc (NASDAQ:AMZN) ‘s annual revenue surged to $514 billion in 2022. RiverPark Advisors, in their Q2 2023 RiverPark Large Growth Fund investor letter, commented:
“Amazon.com, Inc. (NASDAQ:AMZN) generated $127 billion of revenue (2% ahead of expectations) and nearly $5 billion of operating income (57% better than expectations) in Q1 2023, driven by rebounding online sales and strong incremental gross margins. During the company’s earnings conference call, Amazon management pointed to easing inflationary pressures, higher productivity gains, and lower expected capital spending for the remainder of the year. The only negative in the quarter was slowing AWS revenue growth, which we believe will rebound later in the year.”
Countries seeking economic freedom and business prosperity often adopt judicious economic policies beneficial to investors, as exemplified by Toyota and Amazon. Thus, the most liked countries in the world in 2023 aren’t merely tourism hubs but nations empowering their citizenry for financial stability and societal welfare.
With that, let’s move to the most respected countries in the world!
Our Methodology
We utilized three primary sources to determine the most liked countries in 2023: the OECD’s Migration Policy Database’s “Attractiveness Score for Potential Migrants” category, US News’ rankings of preferred living destinations, and the World Happiness Report 2023. After selecting the top countries performing well across all three sources, we averaged their rankings and ranked them based on the average rankings in descending order.
Based on our findings, here are the countries with the best reputation in 2023:
25. Spain
Composite Ranking: 25
Spain boasts a diverse economy with lucrative tourism, automotive, and renewable energy investment opportunities. The country’s life satisfaction and work-life balance indicate its desirability. The nation is immigrant-friendly, having implemented policies like entrepreneur visas and a golden visa program for property investors. Notably, Spain’s property markets are one of the best in Europe, owing to its well-developed infrastructure, so it’s sound from an investment point of view.
24. Czech Republic
Composite Ranking: 24
A member of the EU, the Czech Republic presents economic stability, as its central European location and skilled workforce make it an ideal business hub. The country has an impressive employment rate of 79.8% for foreign-born individuals. The country also simplifies immigration processes for EU citizens and offers Blue Card programs for non-EU skilled workers. Czechia has also consistently ranked as one of the most attractive destinations for foreign direct investment (FDI) in the region, evidenced by FDI, which made up 3.6% of its GDP in 2022.
23. Slovakia
Composite Ranking: 23
The Slovak Republic has a strong industrial foundation, emphasizing automotive, electronics, and IT services. Slovakia also provides support systems for immigrants, including integration courses and special work permits. Slovak Republic is also among the largest per capita car producers as it has Volkswagen, Kia, and Peugeot manufacturing plants, eventually generating a significant portion of its GDP from exports.
22. Hungary
Composite Ranking: 22
Hungary offers an attractive investment climate in the automotive, ICT, and pharmaceutical sectors. The nation’s strategic geographical position (it shares borders with Ukraine, Slovakia, Austria, Romania, Serbia, Slovenia, and Croatia) facilitates unparalleled logistical advantages, practically acting as a gateway between Western and Eastern Europe. The country also offers a Residency Bond Program, giving residency permits to significant investors. Although Hungary experienced a sharp decline in foreign direct investment in 2022, it reported heavy investments in 2020 and 2021.
21. Estonia
Composite Ranking: 21
Estonia is a digital powerhouse renowned for its e-governance and tech-driven initiatives. It’s a leading hub for startups, especially in the ICT sector, which is why FDI (foreign direct investments) made 9.2% of the country’s nominal GDP in the first quarter of 2023. Being a member of the EU, Estonia has 46 preferential trade agreements, enabling a free investment inflow and outflow. Moreover, Estonia’s e-residency program allows global entrepreneurs to establish and run a European company digitally, which enhances its appeal to foreign professionals.
20. Japan
Composite Ranking: 20
As the world’s 3rd largest economy, Japan offers advanced infrastructure and a skilled labor force that make it one of the most liked countries in the world in 2023. Leading sectors include automotive, electronics, and robotics, which employ millions. As of current, Japan makes 45% of all industrial robots worldwide, most of which are imported by China.
Japan has been focusing on attracting foreign talent, especially in technology and healthcare, through its Highly Skilled Professional visa system. Notably, Japan has one of the best healthcare in the world, as the average out-of-pocket expenses for Japanese citizens are only around 9% of total healthcare costs. Health and employment security, along with an innovative landscape, make Japan one of the most attractive countries in 2023.
19. Slovenia
Composite Ranking: 19
Slovenia, an eco-friendly and innovative economy, is heavily focused on pharmaceuticals, machinery, and automotive sectors. Currently, 17.7% of Slovenia’s population is foreign-born, and 67.6% of these individuals are employed, per the OECD. The country’s well-developed trade infrastructure, especially the Port of Koper, provides it pivotal access to markets within Europe and the broader Mediterranean region.
As a member of the European Union since 2004 and the Eurozone since 2007, Slovenia upholds a stable monetary environment. The nation’s commitment to innovation is also evident from its consistent R&D investments, which approached 2.139% of its GDP in 2021.
18. Portugal
Composite Ranking: 18
Specializing in renewable energy, tourism, and agriculture, Portugal provides a range of investment opportunities. A notable 79.6% employment rate for immigrants demonstrates Portugal’s inclusive stance. Its Golden Visa program, offering residency for significant property or entrepreneurial investments, is popular among global investors. In recent years, Portugal’s capital, Lisbon, has gained traction as a budding tech and startup hub, further propelled by initiatives like the Web Summit, one of the world’s largest tech conferences.
17. France
Composite Ranking: 17
France is among the countries with the highest GDP per capita, currently standing at $42,650, which aligns with good education, healthcare, and public services, factors that indirectly support business operations and the workforce’s well-being. The nation also outranks many other high-income countries with a healthcare expenditure of 12.2% of GDP and boasts reliable health facilities.
France’s talent passport schemes, designed for international professionals and startup founders, promote a diverse work culture. The French president, Emmanuel Macron, launched a $5 billion fund to support investments in the tech sector in 2019, $2 billion of which was intended to help startups scale up.
16. Belgium
Composite Ranking: 16
As Belgium has no trade restrictions and works as a gateway to 500 million European consumers within a 500-mile radius, investors prefer it for its logistics performance. The nation’s infrastructural assets, like the Port of Antwerp, the second largest in Europe, further boost its business logistics by handing over 200 million of freight each year. Notably, Brussels’ role as the de facto capital of the European Union amplifies Belgium’s significance on the political and economic stage. The country’s healthcare, considered one of the best in the world, is supported by esteemed medical research institutions such as Hasselt University and the University of Antwerp.
15. Germany
Composite Ranking: 15
Europe’s largest economy, Germany, is a powerhouse in engineering, automotive, and finance. Comprehensive integration initiatives, like language and vocational courses, underline Germany’s dedication to a multicultural ethos. The foreign-born population stands at approximately 18.8% of its total residents, and 68.3% of them are employed. The nation’s infrastructure includes world-class logistics, transportation networks, and connectivity, making it an ideal nexus for pan-European trade. Notably, Germany’s R&D expenditures surpassed 3.1% of its GDP in 2021, focused on collaboration between academia, industry, and research institutions.
14. Austria
Composite Ranking: 14
Austria is among the countries with the best reputation, as its capital, Vienna, is often ranked among the world’s best cities for quality of life. Since companies are eligible for a 14% research bonus from the government in Austria, it fosters a more in-depth R&D culture in the country. The Red-White-Red Card system in Austria is tailored for skilled workers, graduates, and self-employed individuals, particularly from developing nations, for a transparent residency-acquiring procedure. Austria is also a gateway between Western and Eastern Europe as it’s a landlocked country sharing the border with 8 European nations, providing businesses unparalleled access to emerging markets.
13. United Kingdom
Composite Ranking: 13
The UK is one of the most desirable countries in the world. The country has a multifaceted stance on economic freedom. The UK has a high-spending consumer base and educated workforce that collectively attract generous investments.
London’s City and Canary Wharf districts are the epicenters of European finance and serve as global magnets for banking, insurance, and fintech. While immigrants are largely welcomed, concerns have arisen, as seen in the Brexit vote. Notably, the country has eliminated the quota for highly skilled workers and supports easier labor market integration for them.
12. United States Of America
Composite Ranking: 12
The USA tops the countries with the most immigrants and continues to be one of the world’s favorite countries. With a GDP per capita of $76,398 and an overall GDP of $25.5 trillion, it stands as the world’s largest economy. The 70% employment rate for the foreign-born population, as reported by the OECD, combined with a comprehensive social welfare system, underscores the USA’s appeal as one of the best countries to live in. The US is one of the best countries for business, given that it accounts for 41% of the global equity. If we minus the geopolitical factor, the US sits at the top, among the most liked countries in the world.
11. Ireland
Composite Ranking: 11
Dubbed Europe’s tech capital, Ireland is home to numerous global IT behemoths. The Celtic Tiger’s GDP growth rate consistently outpaces many of its European counterparts and is home to an export-driven economy. The nation’s Critical Skills Employment Permit addresses talent gaps in sectors like technology and healthcare. Backed by a young, skilled, and English-speaking workforce, the nation extends a compelling invitation for businesses eyeing European market access
10. Luxembourg
Composite Ranking: 10
As a premier financial center, Luxembourg excels in banking and investment. Boasting a GDP per capita of $128,820, the nation provides one of Europe’s highest living standards, a big reason it’s among the most liked countries in the world in 2023. Its Blue Card program for non-EU skilled workers underscores a high employment rate for international residents. The country’s favorable tax regime, coupled with over 80 double tax treaties, minimizes the risk of international double taxation.
9. Finland
Composite Ranking: 9
Consistently ranked the world’s happiest country for six consecutive years, Finland offers residents freedom in life choices, robust social support, and an array of welfare benefits. The Finnish Startup Permit attracts innovative international entrepreneurs.
Additionally, its welfare system guarantees high-quality healthcare, education, and social services. Helsinki, Finland’s capital, has rapidly evolved into a tech and startup epicenter, with entities like Slush, one of the world’s leading startup events where startup founders and tech talent can meet with top-tier international investors.
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Disclosure: None. 25 Most Liked Countries In The World In 2023 was originally published at Insider Monkey.
