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The iconic Brandenburg Gate in Berlin during the festival of lights on Saturday, 12 October 2019. Germany has the third most-valuable nation brand in the world /Photo: Femi Awoniyi

Here are the ten most valuable nations in the world — new report

Germany retains its position as the third most valuable nation brand, despite recording a 6% drop in brand value to US$4.9 trillion, according to the latest report by Brand Finance, the world’s leading independent brand valuation consultancy.

Germany, one of the world’s largest and most stable economies, has been experiencing increased challenges in the face of a global slowdown, a repercussion of global trade conflicts, and uncertainty over Brexit. These factors, paired with the flat Eurozone economy, and the automobile scandal that has plagued one of the nation’s top performing sectors, has blighted Germany’s brand value this year.

In contrast, Germany’s Brand Strength Index (BSI) score has increased to 88.2 out of 100, with a corresponding AAA rating, a result of the nation’s continued capitalisation of its worldwide reputation of creating the highest quality products.

West versus the rest

Developing economies have seen 30 times faster nation brand value growth over the past year than developed ones.  

The average year-on-year nation brand value growth among the developing economies stands at 13.9%, compared to as little as 0.4% for the developed economies included in the annual study into the world’s 100 most valuable nation brands. This means that – on average – the nation brands of developing economies have been growing at a pace 31.3 times faster than the developed ones.

Nation brand values of most developed economies have contracted or stagnated year on year. Japan is a notable exception with 26% growth, but even so – it is only the 15th fastest-growing nation brand this year, behind many developing African, Middle Eastern, Asian, and Latin American nation brands. Consistently with previous years’ trends, 11 out of the 20 fastest-growing nation brands of 2019 come from the Middle East and Africa, with Ghana (up 67%), Uganda (up 56%), and Egypt (up 50%) in the top 5.

Although catching up, at US$37.8 trillion – the combined nation brand value of the 65 developing economies in the study remains far behind that of the 35 developed economies – which sits at US$60.3 trillion. Topping the ranking again this year, the nation brand value of the United States alone stands at US$27.8 trillion.

China shows no sign of slowing

Claiming second position, China continues to grow at a very healthy rate, recording an impressive 40% increase in brand value to US$19.5 trillion. Building on its solid performance in previous years, China is closing the gap behind long-standing leader the US, which has recorded a brand value growth of just 7% over the past year. The difference in value between the two nation brands has dropped from US$12 trillion last year to just over US$8 trillion in 2019.

Japan overtakes UK

Behind the US, China, and third-placed Germany, Japan’s brand value has increased 26% to US$4.5 trillion. In spite of predictions that its economy would suffer in the face of a global slowdown, Japan has been able to reap the benefits from its solid consumer spend and high levels of business investment. As the tech powerhouse economy of Asia, Japan is progressively forward-thinking and outward-looking, protecting itself amid global uncertainty. Championed by Abe and Trump, the Free and Open Indo-Pacific Strategy supports and promotes connectivity and free trade in its own right. However, the nation is contending with its ‘super-aging’ society putting pressure on social and health services.

Taking fourth rank, Japan has pushed the UK, which saw little uplift from last year (up 3% to US$3.9 trillion), into fifth position. With the final Brexit decision yet to come and therefore not currently accounted for in the nation’s brand value, the next few months will be crucial in determining the UK’s future outlook.

No new entrants in top 10

Although there were no new entrants to the club, India (up 19% to US$2.6 trillion) has made the largest jump within the top 10 – from 9th to 7th position. The economy was quick to recover after the global financial crisis, with growth now reduced by a recent slowdown in both the manufacturing and construction sectors. The Indian government has launched several initiatives to try and boost the nation’s exposure on the world stage, including ‘Make in India’ and the Swachh Bharat mission.

Other movers in the top 10 include: Canada, dropping from 7th to 8th (down 2% to US$2.2 trillion); Italy falling from 8th to 10th (down 5% to US$2.1 trillion); and South Korea, which has inched up one place from 10th to 9th (up 7% to US$2.1 trillion). South Korea is one of Asia’s largest economies and benefits from its strong export base and improved structural policies that have bred inclusion and enhanced productivity.

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About Brand Finance

Brand Finance is the world’s leading independent brand valuation consultancy, with offices in over 20 countries. Brand Finance bridges the gap between marketing and finance by quantifying the financial value of brands.

 

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