Forbes has published its annual list of ‘The Best Countries for Business,’ and Canada ranked first among G20 countries, performing well in a number of the sub-indexes Forbes uses to gauge the business climate. Forbes graded 144 countries on 11 factors: property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape, investor protection and stock market performance. Here are three reasons Canada landed in the top spot among G20 countries:

Canada offers a top-5 business-friendly environment

Launched in 2002, The World Bank Group’s Doing Business project compares business regulation environments across 189 economies. Among G20 countries, Canada ranked fifth overall, including:

  1. 2ndfor ease of paying taxes, ahead of the U.S.A. (8th) and Germany (10th)
  2. 2ndfor investor protection, ahead of India (4th) and the U.S.A (9th)

Top 10 rankings in health, education and labour markets drive Canada’s competitiveness

The World Economic Forum’s Global Competitiveness Index (GCI) ranks 140 countries based upon 114 indicators that help determine productivity. In 2015, Canada moved up two places, ranking fifth among G20 countries, ahead of Australia, France and South Korea. According to authors of the report, Canada’s competitiveness is built upon:

  1. a highly efficient labour market (ranked 7thout of 140 countries)
  2. good outcomes in health and education (also ranked 7th)
  3. an institutional environment that boasts of some of the world’s best private institutions (ranked 8thin the world)

Canada ranks 2nd among G20 countries in economic freedom

The Heritage Foundation’s Index of Economic Freedom ranks 178 countries across ten categories. Overall, Canada placed second among G20 countries and sixth overall for economic freedom, ahead of the U.S.A. (12th), Germany (16th), and Mexico (59th). Canada’s strong performance is underscored by a fifth place ranking among G20 countries in ‘business freedom’ and first place rankings for both ‘trade freedom’ and ‘property rights.’