{"id":13464,"date":"2021-10-19T10:31:26","date_gmt":"2021-10-19T09:31:26","guid":{"rendered":"https:\/\/brandfinance.com\/?post_type=press-release&#038;p=13464"},"modified":"2021-10-19T10:31:26","modified_gmt":"2021-10-19T09:31:26","slug":"worlds-top-nation-brands-on-road-to-recovery-with-global-brand-value-up-7","status":"publish","type":"press-release","link":"https:\/\/brandfinance.com\/press-releases\/worlds-top-nation-brands-on-road-to-recovery-with-global-brand-value-up-7","title":{"rendered":"World\u2019s Top Nation Brands on Road to Recovery with Global Brand Value up 7%"},"content":{"rendered":"\n<ul class=\"wp-block-list\"><li><strong>Total brand value of top 100 in <\/strong><a href=\"https:\/\/brandirectory.com\/nation-brands\" target=\"_blank\" rel=\"noopener\"><strong>Brand Finance Nation Brands<\/strong><\/a><strong> ranking has grown by 7% year on year, but remains lower compared to pre-COVID-19 levels<\/strong><\/li><li><strong>No movements in top 10, US and China remain in league of own in top spot and second, respectively<\/strong><\/li><li><strong>Estonia capitalises on digital infrastructure to become fastest-growing nation brand, up 38%<\/strong><\/li><li><strong>In contrast, Myanmar (-26%) and Ethiopia (-22%) are among fastest-falling nation brands as they continue to be ravaged by civil unrest and conflict<\/strong><\/li><li><strong>Switzerland takes title of world\u2019s strongest nation brand from Germany, as world\u2019s largest economies suffer due to poorly perceived COVID-19 responses<\/strong><\/li><li><strong>Australia and New Zealand move into top 10 in strongest nation brands ranking<\/strong><\/li><li><strong>Singapore and UAE break monopoly for brand strength as only two non-Western nations at top of ranking<\/strong><\/li><\/ul>\n\n\n\n<p><a href=\"https:\/\/brandirectory.com\/nation-brands\" target=\"_blank\" rel=\"noopener\">View the full Brand Finance Nation Brands 2021 report here<\/a><\/p>\n\n\n\n<p>The top 100 most valuable nation brands in the world have recorded a 7% increase in brand value since 2020, signalling that recovery is underway from the COVID-19 pandemic, according to the latest <a href=\"https:\/\/brandirectory.com\/nation-brands\" target=\"_blank\" rel=\"noopener\">Brand Finance Nation Brands 2021 report<\/a>.<\/p>\n\n\n\n<p>Although this is a positive sign, uncertainty lingers and nation brand values have not reached pre-pandemic levels yet. At US$90.8 trillion, this year\u2019s total brand value of the top 100 ranking is still 7% lower compared to 2019.<\/p>\n\n\n\n<p>David Haigh, Chairman and CEO, Brand Finance, commented:<\/p>\n\n\n\n<p><em>\u201cUnlike previous economic crashes, recovery is uneven and is pinned on the combination of initial COVID-19 response strategies and a successful vaccination rollout. We are starting to turn a corner, as the world\u2019s most valuable nation brands begin to return to pre-pandemic brand values. But results are varied, and it may take years for some to recoup lost brand value, creating even greater disparity between the most and least valuable nation brands.\u201d<\/em><\/p>\n\n\n\n<p><strong>US &amp; China lead the pack<\/strong><\/p>\n\n\n\n<p>There has been no movement in the top 10 this year, with each nation retaining its rank from last year. All the top 10 have recorded a modest uplift in brand value, however, in line with the global trend across the ranking.<\/p>\n\n\n\n<p>The United States and China remain in a league of their own, claiming the first and second spot in the ranking, respectively. The US has recorded a 5% brand value increase to US$24.8 trillion in a year that has been marked by great political and economic change with President Joe Biden taking the helm. Similarly, China saw a 6% uptick in nation brand value to US$19.9 trillion. Both nations have celebrated economic recovery since the outbreak of the pandemic, contributing to their uplift in brand value. China\u2019s economy was the first to recover \u2013 doing so at a meteoric pace - as the only nation to register positive GDP growth at the end of 2020 and growing at record pace in the first quarter of this year.<\/p>\n\n\n\n<p>Many thought that relations would improve between the two superpowers under Biden\u2019s leadership, following the turbulent Trump years, but this has not been the case thus far.<\/p>\n\n\n\n<p>David Haigh, Chairman and CEO, Brand Finance, commented:<\/p>\n\n\n\n<p><em>\u201cThe superpowers from the West and the East unsurprisingly dominate the Brand Finance Nation Brands ranking, with China remaining hot on the heels of long-standing leader, the US. With China\u2019s recovery and economic rise showing no signs of slowing down, as growth hit a record high at the beginning of the year, no doubt the gap will continue to close in the coming years.\u201d<\/em><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1379\" height=\"776\" src=\"https:\/\/brandfinance.com\/wp-content\/uploads\/2021\/10\/SMC-Most-Valuable-5.jpg\" alt=\"\" class=\"wp-image-13466\" srcset=\"https:\/\/brandfinance.com\/wp-content\/uploads\/2021\/10\/SMC-Most-Valuable-5.jpg 1379w, https:\/\/brandfinance.com\/wp-content\/uploads\/2021\/10\/SMC-Most-Valuable-5-450x253.jpg 450w, https:\/\/brandfinance.com\/wp-content\/uploads\/2021\/10\/SMC-Most-Valuable-5-768x432.jpg 768w\" sizes=\"auto, (max-width: 1379px) 100vw, 1379px\" \/><\/figure>\n\n\n\n<p><strong>Digital Estonia is world\u2019s fastest-growing nation brand<\/strong><\/p>\n\n\n\n<p>Recording a 38% brand value growth from last year and outpacing modest increases across the ranking, Estonia is the world\u2019s fastest-growing nation brand of 2021. The Baltic state had invested in digital infrastructure long before the COVID-19 pandemic hit the world. Anyone around the world can apply for e-residency in Estonia, which allows them to run an EU-based company online, and a staggering 99% of the country\u2019s governmental services are offered online.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>The advanced digitisation of the country put it on the front foot during the pandemic. On the same day the government announced a state of emergency, the Estonian Ministry of Economic Affairs and Communications launched an online hackathon to identify solutions to pandemic-induced problems, resulting in a chatbot to answer the public\u2019s queries and the re-purposing of online platforms to match volunteers with those in need.<\/p>\n\n\n\n<p>David Haigh, Chairman and CEO, Brand Finance, commented:<\/p>\n\n\n\n<p><em>\u201cEstonia is this year\u2019s fastest-growing nation brand largely thanks to its world-class digital infrastructure. With some of the leading economies having their digital shortcomings highlighted during the pandemic, Estonia\u2019s digital-first model should be one for others to follow.\u201d<\/em><\/p>\n\n\n\n<p><strong>Myanmar and Ethiopia are fastest fallers<\/strong><\/p>\n\n\n\n<p>In stark contrast, Myanmar and Ethiopia are among the fastest-falling nation brands in the ranking. The unrest across the two countries has caused significant damage to their nation brand values, which have dropped 26% and 22%, respectively.<\/p>\n\n\n\n<p>Brazil has also suffered a steep decline in brand value as the COVID-19 pandemic wreaks havoc on its society and economy. The South American continent\u2019s largest economy, Brazil has lost 12% of its brand value this year and dropped out of the top 20 in the <a href=\"https:\/\/brandirectory.com\/nation-brands\" target=\"_blank\" rel=\"noopener\">Brand Finance Nation Brands 2021<\/a>. Famous for its vibrant culture, lifestyle, and sports, Brazil is the highest-ranked South American nation in the ranking, but the combination of high COVID-19 cases and damage to the agriculture sector from severe droughts have caused substantial damage to the economy.<\/p>\n\n\n\n<p><strong>Switzerland is world\u2019s strongest nation brand<\/strong><\/p>\n\n\n\n<p>In addition to measuring nation brand value, Brand Finance also determines the relative strength of nation brands through a balanced scorecard of metrics evaluating brand investment, brand equity, and brand performance. The nation brand strength methodology includes the results of the Global Soft Power Index \u2013 the world\u2019s most comprehensive research study on nation brand perceptions, surveying opinions of over 75,000 people based in more than 100 countries. According to these criteria, Switzerland is the world\u2019s strongest nation brand with a Brand Strength Index (BSI) score of 83.3 out of 100.<\/p>\n\n\n\n<p>Switzerland\u2019s BSI score has remained stable, while the nations around it saw theirs take a hit, resulting in Switzerland moving to the top spot for brand strength. According to Brand Finance\u2019s research, the Alpine nation saw external perceptions slightly rise following its strong response to COVID-19. It used a mix of compulsory and non-compulsory measures during the pandemic to control the spread of the virus. For example, non-essential businesses had to close, but the government\u2019s order to stay at home was only ever advisory \u2013 entrusting the people to make the decision for themselves.<\/p>\n\n\n\n<p>This is reflective of Switzerland\u2019s model of government, with the public allowed to voice their opinions on laws through frequent referenda \u2013 last year the population rejected a motion to end its freedom of movement agreement with the EU and voted to make discrimination on the basis of sexual orientation illegal.<\/p>\n\n\n\n<p>David Haigh, Chairman and CEO, Brand Finance, commented:<\/p>\n\n\n\n<p><em>\u201cSmall size is no barrier to occupying a solid position for nation brand strength and Switzerland securing the top spot this year is the perfect example. Switzerland has held firm whilst other nations have faltered over the course of the pandemic. The nation has recently been thrust under the spotlight, however, with the leak of the Pandora Papers, which could taint its reputation as Swiss financial advisers are scrutinised on the global stage.\u201d<\/em><\/p>\n\n\n\n<p><strong>Germany slips to 5<sup>th<\/sup><\/strong><\/p>\n\n\n\n<p>Last year\u2019s strongest nation, Germany, has dropped down to 5<sup>th<\/sup> position in the brand strength ranking, following a 2.3 point drop in BSI to 82.6 out of 100. Despite garnering praise on the global stage for her strong and stable leadership spanning 16 years, Angela Merkel sees mixed results on home soil. Domestic perceptions are consistently less favourable across the metrics to their overseas counterparts, particularly in regard to the Global Soft Power Index Business &amp; Trade and Influence pillars.<\/p>\n\n\n\n<p><strong>Australia and New Zealand move into top 10<\/strong><\/p>\n\n\n\n<p>Australia, up five places in the ranking to 6<sup>th<\/sup>, and New Zealand, up seven places to 10<sup>th<\/sup>, have both entered the top 10 for brand strength, with BSI scores of 81.3 and 80.2 respectively. The Australasian countries were deemed to have handled the early days of the pandemic extremely well. Both were lauded for their severe lockdowns and quick reaction to subsequent outbreaks, which resulted in minimal cases and allowed them to open back up internally considerably earlier than others.<\/p>\n\n\n\n<p>At the time of our research, both scored well across our data points with internal and external perceptions of their handling of the pandemic. However, the vaccine rollout in both countries has lagged behind their global counterparts, which could hamper their BSI scores moving forward.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1379\" height=\"776\" src=\"https:\/\/brandfinance.com\/wp-content\/uploads\/2021\/10\/SMC-Strongest-3.jpg\" alt=\"\" class=\"wp-image-13465\" srcset=\"https:\/\/brandfinance.com\/wp-content\/uploads\/2021\/10\/SMC-Strongest-3.jpg 1379w, https:\/\/brandfinance.com\/wp-content\/uploads\/2021\/10\/SMC-Strongest-3-450x253.jpg 450w, https:\/\/brandfinance.com\/wp-content\/uploads\/2021\/10\/SMC-Strongest-3-768x432.jpg 768w\" sizes=\"auto, (max-width: 1379px) 100vw, 1379px\" \/><\/figure>\n\n\n\n<p><strong>Breaking the Western monopoly<\/strong><\/p>\n\n\n\n<p>Singapore and the United Arab Emirates have broken the Western monopoly in the brand strength ranking, claiming 4<sup>th<\/sup> and 11<sup>th<\/sup> position respectively. Scoring particularly high for Global Soft Power Index pillars of Business &amp; Trade and Governance, Singapore continues to prosper both in the Southeast Asian region as well as globally. The city-state \u2013 renowned for its high-quality and economically efficient healthcare \u2013 has already fully vaccinated 82% of the total population. Singapore is on the right path to achieve the government\u2019s aim of a \u201cwhole new normal\u201d.<\/p>\n\n\n\n<p>The UAE has climbed three spots in the brand strength ranking following a 2.5-point increase in its BSI score to 79.1 out of 100. Overseas perceptions of the nation\u2019s prowess in the Education &amp; Science pillar are high, and the successful Emirates Mars Mission is clearly a factor. The UAE also stands out for its COVID-19 response, and scores high for the Influence and Business &amp; Trade pillars, both of which should see a further boost from Expo 2020 inaugurated in Dubai this month. The UAE\u2019s continued increases in brand strength and value are testament to the nation\u2019s strategy of diversifying its economy for long-term growth.<\/p>\n\n\n\n<p><strong>COVID-19 hurts perceptions of world\u2019s largest economies<\/strong><\/p>\n\n\n\n<p>At the same time, the UK, US, Japan, and France have all fallen out of the top 10 strongest nation brands ranking due to the perception of how they handled COVID-19.<\/p>\n\n\n\n<p>The UK, falling from 2<sup>nd<\/sup> to 14<sup>th<\/sup> with a BSI score of 77.4, and France, falling from 9<sup>th<\/sup> to 16<sup>th<\/sup> with a score of 75.4, recorded average Global Soft Power Index scores for overseas perceptions of their handling of the pandemic, but perceptions domestically were particularly low.<\/p>\n\n\n\n<p>Japan, falling from 7<sup>th<\/sup> to 15<sup>th<\/sup> with a score of 76.7, saw a similar story with the perception at home that the pandemic was mishandled. However, this is polarised when compared to their perception abroad, where it achieved some of the highest scores in the Global Soft Power Index research.<\/p>\n\n\n\n<p>The US, dropping from 4<sup>th<\/sup> to 17<sup>th<\/sup> with a score of 75.1, saw poor scores at home and abroad, and was also one of the lowest ranked nations by the specialists.<\/p>\n\n\n\n<p>Despite their brand strength taking a hit, these nations all still feature in an unchanged top 10 when ranked by nation brand value.<\/p>\n\n\n\n<p>David Haigh, Chairman and CEO, Brand Finance, commented:<\/p>\n\n\n\n<p><em>\u201cIt will be important for the world\u2019s largest economies to focus on making up the ground they have lost in brand strength, in order to protect their brand value. The UK, US, Japan, and France have all scored poorly domestically for their handling of COVID and they need to rebuild this trust with their respective populations.\u201d<\/em><\/p>\n\n\n\n<p><a href=\"https:\/\/brandirectory.com\/nation-brands\" target=\"_blank\" rel=\"noopener\">View the full Brand Finance Nation Brands 2021 report here<\/a><\/p>\n\n\n\n<p><strong>ENDS<\/strong><\/p>\n\n\n\n<p><strong>Note to Editors<\/strong><\/p>\n\n\n\n<p>Every year, <a href=\"http:\/\/www.brandfinance.com\/\">Brand Finance<\/a> values 5,000 of the world\u2019s biggest brands. The 100 most valuable and strongest nation brands are included in the <a href=\"https:\/\/brandirectory.com\/rankings\/nation-brands\" target=\"_blank\" rel=\"noopener\">Brand Finance Nation Brands 2021 ranking.<\/a><\/p>\n\n\n\n<p>In a global marketplace, nation brand is one of the most important assets of any state, encouraging inward investment, adding value to exports, and attracting tourists and skilled migrants. In its 18<sup>th<\/sup> year, the Brand Finance Nation Brands study provides an all-round view of perceptions and value of nation brands \u2013 their presence, reputation, and impact on the world stage.<\/p>\n\n\n\n<p>Understanding the strength and value of nation brands is key for governments and corporates alike to achieve success internationally, allowing to identify strengths and weaknesses and to improve growth strategies going forward.<\/p>\n\n\n\n<p>Additional insights, charts, and more information about the methodology are available in the <a href=\"https:\/\/brandirectory.com\/rankings\/nation-brands\" target=\"_blank\" rel=\"noopener\">Brand Finance Nation Brands 2021 report<\/a>.<\/p>\n\n\n\n<p><strong>Methodology<\/strong><\/p>\n\n\n\n<p>Brand Finance measures the strength and value of the nation brands of 100 leading countries using a method based on the royalty relief mechanism employed to value the world\u2019s largest corporate brands.<strong><\/strong><\/p>\n\n\n\n<p><em>Step 1 \u2013 Nation Brand Strength<\/em><br><br>Nation Brand Strength is the part of our analysis most directly and easily influenced by those responsible for their country\u2019s nation brand campaigns. Nation Brand Strength is determined through a balanced scorecard of metrics evaluating brand investment, brand equity, and brand performance. The nation brand strength methodology includes the results of the <a href=\"https:\/\/brandirectory.com\/globalsoftpower\" target=\"_blank\" rel=\"noopener\">Global Soft Power Index<\/a> \u2013 the world\u2019s most comprehensive research study on nation brand perceptions, surveying opinions of over 75,000 people based in more than 100 countries. Each metric is scored out of 100 and together they contribute to an overall Brand Strength Index (BSI) score for the nation brand, also out of 100. Based on the score, each Nation Brand is assigned a brand strength rating in a format similar to a credit rating.<\/p>\n\n\n\n<p><em>Step 2 \u2013 Royalty Rate<\/em><br><br>The hypothetical royalty rate charged is determined by reference to average rates seen across sectors which are applied to the country based on the proportion of the country\u2019s GDP generated from the primary, secondary, and tertiary sectors. The Brand Strength Index is relied upon to determine the appropriate royalty rate for the country.<\/p>\n\n\n\n<p><em>Step 3 \u2013 Revenues<br><\/em><br>The nation brand valuation is based on forecasts of GDP in each country taken from the World Economic Outlook of the IMF. The applicable royalty rate calculated in Step 2 is applied to the country\u2019s GDP to determine brand-related GDP streams.<\/p>\n\n\n\n<p><em>Step 4 \u2013 Weighted Average Cost of Capital (WACC) or Discount Rate<\/em><br><br>In order to account for the risk across each national economy a discount rate is calculated. This represents the average cost of a brand\u2019s sources of finance and the minimum return required on the brand asset. The discount rate is used to calculate the present value of future brand earnings (accounting for the time value of money and the associated risk).<\/p>\n\n\n\n<p><em>Step 5 - Brand Valuation<\/em><br><br>The post-tax brand-related GDP streams identified in Step 3 are then discounted to a net present value using the discount rate, to determine the nation brand value.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Total brand value of top 100 in Brand Finance Nation Brands ranking has grown by 7% year on year, but remains lower compared to pre-COVID-19 levels No movements in top 10, US and China remain in league of own in top spot and second, respectively Estonia capitalises on digital infrastructure to become fastest-growing nation brand, [&hellip;]<\/p>\n","protected":false},"featured_media":4452,"comment_status":"closed","ping_status":"closed","template":"","tags":[189,188,35,190,187,110,33,185,127,30,29],"class_list":["post-13464","press-release","type-press-release","status-publish","has-post-thumbnail","hentry","tag-africa-2","tag-australia-2","tag-canada","tag-india-2","tag-ireland-2","tag-nation-brands","tag-singapore","tag-sri-lanka","tag-uae","tag-uk","tag-usa"],"acf":[],"_links":{"self":[{"href":"https:\/\/brandfinance.com\/wp-json\/wp\/v2\/press-release\/13464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/brandfinance.com\/wp-json\/wp\/v2\/press-release"}],"about":[{"href":"https:\/\/brandfinance.com\/wp-json\/wp\/v2\/types\/press-release"}],"replies":[{"embeddable":true,"href":"https:\/\/brandfinance.com\/wp-json\/wp\/v2\/comments?post=13464"}],"version-history":[{"count":2,"href":"https:\/\/brandfinance.com\/wp-json\/wp\/v2\/press-release\/13464\/revisions"}],"predecessor-version":[{"id":13468,"href":"https:\/\/brandfinance.com\/wp-json\/wp\/v2\/press-release\/13464\/revisions\/13468"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/brandfinance.com\/wp-json\/wp\/v2\/media\/4452"}],"wp:attachment":[{"href":"https:\/\/brandfinance.com\/wp-json\/wp\/v2\/media?parent=13464"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brandfinance.com\/wp-json\/wp\/v2\/tags?post=13464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}