Updated on 01/12/2021 04:29 am
After Brexit, Britain is significantly less attractive as a place to do international business; however, it continues to hold a good position vis-à-vis other major economies, according to a German study.
The UK fell below U.S to second place in the latest ranking published by the German Family Business Foundation, although it remains ahead of the rest of its peers in the Group of Seven. Canada ranked fourth, followed by Germany, in 17th place; France, in 18; Japan, in the 20th; and Italy, in 21st and last place.
“Brexit has been a great burden for the United Kingdom ”, the study authors wrote. “Future British governments have a long way to go if they want to regain their economic dynamism, as Brexit advocates promised.”.
The eighth edition of the ranking, which is prepared by the ZEW research institute and which was published for the first time in 2006, evaluated the business environment in six categories: taxes; labor costs, productivity and human capital; regulation; financing; infrastructure and institutions; and energy.
Britain suffered the largest overall decline of any country included, and the “uncertainties related to Brexit“Had the greatest impact in the area of”financing” e “infrastructure and institutions”.
The US tops the list primarily because of its “outstanding performance”In regulation, financing and energy, and it also scores well in labor costs, productivity and human capital.
A clear weakness is taxation: “While Trump’s tax reform was beneficial, the US still lags behind most countries in this area”Said the authors.
“Our analysis sheds important light on how far countries will be in a position to avoid the long-term effects of the coronavirus pandemic.”They added.