EuCham Charts is an initiative of the EuCham Research Department. A new chart is released monthly, consisting of rankings European countries based on various socio-economic criteria. EuCham Charts statistically analyze and summarize business and society-related data from a combination of reliable primary sources about the whole European continent (covering 48 countries). Based on these solid primary sources, EuCham Charts should be your first click on the first of each month.
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EuCham Research Department
EuCham - European Chamber lists the European countries which appear to have the best economic environment out of the 46 nations considered in the analysis. The final scores result from the average between the DTF (Distance to Frontier) index of World Bank and the CPI (Corruption Perception Index) of Transparency International, since business integrity and transparency play an important role. In particular, the higher the average between these two values, the more favourable the country's environment is.
Based on this study, Nordic countries rank at the top of the list and can be identified as the nations in which it is best to do business in. Given the variables taken into consideration, it is clear that EuCham score addresses the overall integrity and ethical issue of doing business together with its natural financial objective, also reflecting its long-term sustainability goals.
EuCham - European Chamber lists the Trade Openness Index of 43 countries identifying the economic performance of each country related to international trade. By taking the sum of import and export divided by the total GDP, the Index shows the percentage of trade compare with GDP and the differences between countries varying from 43 to 180.
Small economies are usually more dependent on trade than large economies. In general, export exceeds import in many of the countries, which means they are not only able to provide the domestic demand, but foreign markets as well. Trade has an impact on total GDP of the country as it encourages the development and the exchange of goods and services between a country and its international partners. Total GDP is affected by consumer, government and investment spending, importing and exporting.
EuCham - European Chamber lists European countries according to their youth unemployment rates in 2014. In general, youth unemployment has risen over the past decades and is much higher than unemployment among older people in the society (OECD, 2009). The difference between youth unemployment and total unemployment rates is analysed as well as the causes and results of high youth unemployment.
Youth unemployment rates have risen over the past decades and often exceeds the unemployment rates of the older people in the society. Nordic countries have the lowest unemployment rates within Europe which is a result of their strong transition system from education to employment. Europe can be divided in three parts in terms of youth unemployment rates; low rates in Northern countries, high rates in Southern / Mediterranean countries and the rest ranking in the middle.
EuCham - European Chamber lists the female employment rates and analyzes the causal relationship between female employment and economic growth using a panel data of 32 countries in the period 2006-2014. The result of the econometric analysis shows that bidirectional or unidirectional causalities exist between female employment and economic growth. This means that female employment levels affect economic growth, and vice versa.
Statistics show that the three highest female employment rates in 2014 were in Iceland, Sweden and Switzerland with 80.5%, 77.6% and 77.4% respectively. Turkey lagged far behind Greece and was at the bottom of the list with 31.6%.
EuCham aims to find the relation between the increasing difference in unemployment level in basic and in advance education. For the sake of better understanding the data, in this study low-skill and high skill intensive sectors will refer to the sectors which mostly employ people with basic education and with advanced education, respectively.
Many economic models suggested that the unemployment gap between low and high skill intensive sectors would decrease over the 21st century. However, acquired data proves expectations wrong.
Government debt or ‘public debt’ is defined as the total amount of money owed by the government to creditors. After the financial crisis, which began in the late 2007, European countries highly increased their percentage of government debt.
Currently, Greece has the highest government debt to GDP ratio of 174%, which led the country to debt crisis and a possibility of default. In a five year period, the country has been lent an astonishing amount of money in not just one but two bailouts, resulting in $275 billion, worth more than the country’s entire economic output. Following Greece are Italy (2nd), Cyprus (3rd) and Belgium (4th) whose high public debt may reduce their long-run growth and may partly negate the positive effects of the fiscal stimulus.
EuCham lists the European countries according to their Business and Labor Freedom, in order to identify the countries with the least restrictive environments to conduct a business.
Denmark tops the general ranking, achieving a score of 94.8 out of 100, and remains one of the European most efficient and transparent regulatory environments. Georgia (2nd) catches up the United Kingdom (3rd) and they are now rubbing shoulders. Flexible and modern employment regulations sustain their labor markets, as their competitive and efficient regulatory framework definitely facilitates entrepreneurial activities.
The European Chamber ranked the European countries according to their Digital Development, in order to highlight the countries with the most favorable environment to start a business in IT related fields.
Finland is leading the transition toward digitization by virtue of the wide availability of digital technologies and contents, which boost the developing of new products, services and organizational models. With Sweden (2nd), Norway (6th) and Denmark (in the 7th place), the Scandinavian region can be considered the main hub for digital businesses. Switzerland, backed by a high-skilled workforce, and Netherlands, entirely provided with internet access, hold the third and fourth positions.
EuCham - European Chamber lists the countries based on the Global Competitiveness Index (GCI) improvement from the global financial crisis in 2008 to nowadays. GCI is defined by the World Economic Forum as the set of institutions, policies, and factors that determine the level of productivity (hence competitiveness and growth potential) of a country. While Switzerland, Germany and Scandinavian countries are dominant in Europe concerning competitiveness, the main aim of the chart is to highlight the countries which experienced the biggest variations, including Macedonia, Georgia, and Bulgaria, in the overall score since 2008, in order to quantify the result of their effort to overcome the aftermath of crisis.
European countries are listed by the European Chamber according to Foreign Direct Investment (FDI) inflows per capita, based on the 2013 data published by the World Bank. The rate considers the capital used to acquire an ownership of at least 10%, in an enterprise of a country other than the one where the investors reside in.
According to “Doing Business”, there is a strong correlation between FDI inflow and the degree of ease of doing business in a specific country. EuCham analyzes FDI per capita to highlight its relevance to business success.