MONTRÉAL, September 21, 2015 – According to the Global Dynamism Index (GDI), a global study by the Economist Intelligence Unit for Grant Thornton, Canada ranks 9th among the 60 largest economies in the world based on 22 indicators across five growth areas: business operating environment, technology, labour market, market growth and financing environment.
Canada ranks first for its business operating environment, which considers key indicators such as foreign trade and exchange regimes and controls and policy towards private enterprise and competition. According to Jean-Daniel Brisson, Lead Senior Manager in Raymond Chabot Grant Thornton Management Consulting Group, “Our wealth creators benefit from clearly defined and sound domestic and international trade policies, which allows them to operate in a stable, predictable environment, compared to places with more volatile environments, such as Venezuela, Kenya and Algeria, at the bottom of the ranking.”
However, Canada needs to work on promoting itself as a choice business destination that supports the growth of foreign companies. Brisson added, “We’ve still got work to do to attract foreign investors. While our business environment may be very good, we have to be able to sell it internationally to attract capital and businesses.”
We also need to improve in technology, where Canada ranks 20th. “In today’s business environment, you have to do more than just cut costs to stay competitive. Our businesses need to increase their R&D investments. We lag behind our neighbours to the south in this regard,” Brisson continued.
Singapore tops the index
Globally, Singapore, Israel, Australia have beaten global competition to top this Grant Thornton GDI. These countries offer dynamic businesses the right mix of regulatory stability, a strong labour market, technological infrastructure, growth opportunities and access to finance.
The GDI can be used as a tool to help identify countries of interest by drawing on indicators weighted according to the importance attached to them by real business leaders, adding that vital human perspective.
Perception versus reality
However, further analysis of the results suggests business leaders may not be fully aware of the drivers and challenges of operating in different markets. Comparing the reality of the GDI with the perceptions of business leaders from the Grant Thornton International Business Report (IBR) indicates some interesting knowledge gaps.
Paul Raleigh, global leader – growth and advisory services at Grant Thornton International, said: “A lack of familiarity with a particular territory or region can skew perception and lead to unexpected challenges when expanding into a new market. For dynamic businesses, the trick is balancing instinct with reason, perception with reality.
“This study reveals how looking behind the headlines can uncover unexploited opportunities for dynamic businesses in new markets. The business world is always changing, with the realities on the ground often surprising business leaders who take a closer look. In order to maximise growth potential, business leaders need to refresh their perceptions of foreign markets in line with the market insights at their disposal.”
To view the report from the Raymond Chabot Grant Thornton website, click on: www.rcgt/en/GDIindex2015.
To view various documents related to international expansion, click on: www.grantthornton.global/en/insights/international-expansion/international-expansion-hub.
Notes to editors
About the Global Dynamism Index
The Grant Thornton Global Dynamism Index (GDI) is an annual research project designed by the Economist Intelligence Unit and commissioned by Grant Thornton, which ranks the development of the business growth environments of 60 of the world’s largest economies over the past 12 months. The index draws together 22 indicators, including GDP growth, R&D spend, regulatory risk, access to finance and labour productivity, across five areas of dynamism to produce the rankings.
About the International Business Report
The Grant Thornton International Business Report (IBR) provides insight into the views and expectations of more than 10,000 businesses per year across 36 economies. This unique survey draws upon 22 years of trend data for most European participants and 11 years for many non-European economies. More information: www.grantthornton.global.
Questionnaires are translated into local languages with each participating country having the option to ask a small number of country specific questions in addition to the core questionnaire. Fieldwork is undertaken on a quarterly basis, primarily by telephone. IBR is a survey of both listed and privately held businesses. The data for this release are drawn from interviews with more than 5,000 chief executive officers, managing directors, chairmen or other senior executives from all industry sectors conducted between February and May 2015
About Grant Thornton
Grant Thornton is one of the world’s leading organizations of independent assurance, tax and advisory firms. These firms help dynamic organizations unlock their potential for growth by providing meaningful, forward looking advice. Proactive teams, led by approachable partners in these firms, use insights, experience and instinct to understand complex issues for privately owned, publicly listed and public sector clients and help them to find solutions. More than 40,000 Grant Thornton people, across over 130 countries, are focused on making a difference to clients, colleagues and the communities in which we live and work.
About Raymond Chabot Grant Thornton
Founded in 1948, Raymond Chabot Grant Thornton has become a leader in the fields of assurance, tax, consulting services, and business recovery & reorganization. Its strength is based on a team of over 2,500 people, including some 230 partners. Together, Raymond Chabot Grant Thornton and Grant Thornton LLP, another Canadian member firm of Grant Thornton International Ltd, help dynamic Canadian organizations unlock their potential for growth with over 4,300 people and some 140 offices across Canada. Grant Thornton International Ltd provides clients with the expertise of member and correspondent firms in more than 130 countries, with over 40,000 people.
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