Geopolitical tensions are accelerating trade regionalisation and aligning capital with strategic priorities. Governments are steering investment towards AI and critical sectors, while companies increasingly prioritise resilience over pure cost-efficiency. Growth momentum is shifting to emerging markets, and Asia Pacific’s STEM scale is strengthening its position as the global hub for advanced technical talent.

Pakistan’s standing in the Index of Economic Freedom (IEF) fell over the 2019-2024 period, driven by weaker Business Freedom and Judicial Effectiveness as bureaucratic and regulatory barriers intensified. High labour informality, weak digital skills and rising costs continue to limit productivity and business growth. However, new agreements with United States Strategic Metals, bringing USD500 million in planned investment for key minerals, position Pakistan to enter higher-value global supply ch

Over 2019-2024, Saudi Arabia's business and judicial efficiency declined due to rigid regulations and legal system inefficiencies, despite a 11.3% increase in new businesses. In addition, the country's Investment Freedom remained constrained, though Financial Freedom improved, enhancing access to a fair financial market. Furthermore, the transport and storage sector saw growth, driven by digital infrastructure improvements and strategic diversification efforts.

New Zealand's business freedom ranking declined over 2019-2024, with a 19.5% contraction in new businesses and a 387% decrease in business confidence. In addition, the country's labour market remains rigid, with a high youth unemployment rate and a skills mismatch. However, New Zealand maintained strong performances in financial and trade freedom, and is forecast to see a 19.5% improvement in business confidence by 2029.

Norway strengthened its economic freedom, trade openness and digital readiness in 2024, supported by strong governance, financial stability and growing digitalisation. Yet business confidence weakened amid regulatory burdens, high interest rates and energy market volatility. Persistent skill shortages, labour market pressures and reliance on oil exports remain key risks, even as investment, innovation and infrastructure continue to advance.

In 2026, global business will navigate resilient but restrained growth amid shifting trade, persistent cost pressures, and ongoing geopolitical and climate risks. At the same time, widening consumer divides and the rise of Generation Alpha demand urgent action to secure relevance for the year ahead and beyond.

Nigeria’s GDP grew by 3.4% in 2024, demonstrating resilience despite high inflation, currency pressures and tight monetary policy. While its global Economic Freedom ranking slipped to 125th, due to weak property rights and governance, business confidence and financial freedom improved. Growing multinational interest highlights new energy investment opportunities; however, high interest rates and a persistent digital divide still constrain growth.

In 2025, Germany’s government undertook a major fiscal shift by reforming its strict borrowing rules, enabling large-scale investment in infrastructure, defence and climate initiatives, strengthening the business environment. Despite sluggish growth and weak FDI, equity markets gained momentum over 2024. Strong fundamentals in investment and labour freedom, coupled with a focus on digitalisation and green technologies, are set to support growth over the period to 2029.

Qatar’s Index of Economic Freedom IEF ranking remained stable in 2024, at 28th, supported by a low tax burden and an efficient banking system. Ongoing reforms, along with the country’s Third National Development Strategy, are set to enhance the business environment, while targeting stronger FDI inflows. Broad ICT integration across society and IoT-driven smart city projects underscore digital progress. Nevertheless, Qatar faces tighter labour regulations as the “Qatarization Law” enters into for

Between 2019 and 2024, Sri Lanka’s economic environment weakened, marked by low rankings in Monetary, Investment and Labour Freedom in the Index of Economic Freedom (IEF), and a heavy tax burden. However, reform momentum is building. FDI inflows are strengthening, labour laws are undergoing major reform, and the Asian Development Bank is financing rural road modernisation. The 2026 budget also prioritises nationwide digital transformation to enhance efficiency and competitiveness.

Between 2019 and 2024, South Africa’s regulatory environment worsened, due to high taxes and state interference in finance, limiting economic growth. Load shedding caused major disruptions for businesses, though business confidence has since increased significantly as the energy crisis has eased. Trade and digitalisation saw mixed progress during the review period, held back by skills shortages and a persistent digital divide.

Brazil’s economy maintained solid momentum in 2024, supported by strong domestic demand and renewed investor confidence. Its ranking in the Index of Economic Freedom improved to 124th globally over 2019-2024, reflecting gains in the business and financial sectors, despite persistent hurdles in taxation, trade and governance. Infrastructure investment is projected to expand in 2025 through greater private sector contribution, while the National AI Plan aims to accelerate innovation and fortify Br

Argentina struggles to ensure macroeconomic stability and tackle widespread corruption, weighing on the country’s attractiveness for investors. Businesses face challenges to access credit, especially with soaring interest rates, boosting cost of debt. While Argentinian population is highly educated, rigid labour market drives youth unemployment and labour informality. The country boasts high internet penetration and usage rates, however, low R&D investments limit its innovative potential.

France’s growth in 2024 was supported by steady household and public spending, offsetting weak investment and exports. France advanced to 62nd in the Global Economic Freedom Ranking, driven by strong property rights and financial freedom. However, bureaucratic complexity continues to limit efficiency, and the pension reform delay may reduce labour supply. Meanwhile, rising trade freedom is set to boost competitiveness, while France is investing heavily to lead in AI innovation.

The global economy has weathered trade shocks relatively well throughout 2025, supported by easing financial conditions, moderating inflation, trade negotiations and the agility of the private sector in re-organising the supply chain and rerouting trade flows. Looking ahead to 2026, global growth prospects remain subdued as market volatility persists, trade barriers are high and downside risks to global growth still dominate.

In 2024, Taiwan rose to fourth place globally in Economic Freedom, supported by strong monetary and trade freedom, despite weaker business freedom. The Foreign Talent Retention Act continues to attract skilled professionals, while sustained logistics investment reinforces the export-orientated economy. A 10-year AI investment plan aims to expand digital industries, while strengthened FDI screening safeguards national strategic interests; however, at a cost of lower FDI inflows compared to peers.

In 2024, Finland’s Economic Freedom ranking improved to 12th, with strong performances in property rights and financial freedom, fostering a stable business environment. However, business confidence weakened amid short-term challenges, including subdued GDP growth, rising unemployment and a decline in exports. Despite these headwinds, Finland continued to attract foreign direct investment, and maintained a resilient financial sector characterised by low interest rates and moderate debt levels.

In 2024, Bangladesh’s Economic Freedom improved modestly, ranking 116th globally, but corruption and labour market inefficiencies persisted. Business and Financial Freedoms showed gradual gains, with more new businesses and improved banking efficiency. However, high interest rates and a high share of non-performing loans continued to limit investment and credit expansion. Going forward, Bangladesh will need to foster investment and strengthen digital and human capacity.

Austria’s regulatory climate strengthened in 2025, performing best in the Labour Freedom Ranking and Property Rights Ranking pillars. In 2025, a new business support package was approved to counter weak economic conditions. FDI remains concentrated in manufacturing, pharmaceuticals, ICT and electronics, among others. Major railway investments signal ongoing commitment to infrastructure and competitiveness. Stricter migration rules have raised salary thresholds for foreign workers.

In 2024, the Philippines saw a decline in its Economic Freedom Ranking, driven by weak monetary stability and low government integrity, despite gains in business and financial freedom. To address ongoing challenges in the financial sector, labour market and digitalisation, the country has recently launched a series of reforms and long-term roadmaps for the next decade, which are expected to substantially improve the business environment and strengthen the country’s competitiveness.

Romania's business environment has shown improvement from 2019 to 2024, characterised by streamlined processes, reduced tax burdens and increased banking efficiency. However, political uncertainties in 2024 have led to a decline in the overall economic freedom ranking and business confidence. Despite these challenges, the labour market and digital infrastructure have displayed positive trends, with increased employment and internet access

In 2024, Canada’s economic freedom ranking fell to 16th globally, despite strong results in Financial Freedom and Judicial Effectiveness. The Business Confidence Index declined by 11.7% over 2024, with further weakening expected due to global economic uncertainty. While trade and investment freedom showed modest gains, and digitalisation advanced under the federal Digital Ambition strategy, labour skills shortages and lower productivity point to areas requiring improvement.

Poland’s economic freedom score improved significantly over 2019-2024, driven by progress in business and financial freedom, boosting its regional and global rankings. In 2024, the country received EU Innovation Fund support for manufacturing technologies, aiming to enhance digitalisation and competitiveness. However, the Business Confidence Index dropped 61.7% over the year, reflecting concerns over judicial independence and institutional integrity, despite government efforts to address them.

Mexico's business environment showed mixed progress from 2019 to 2024, with improvements in business and labour freedom, but a decline in economic and trade freedom rankings. In addition, the country faced challenges such as high interest rates, labour market informality, and infrastructure gaps, which hindered investor confidence and economic growth. Nonetheless, the potential for nearshoring and digitalisation presents new opportunities.