BUSINESS COSTS
BUSINESS COSTS Germany is the most expensive country in which to do business, according to a new index prepared by the Economist Intelligence Unit (EIU), a sister company of The Economist. The EIU's index measures the relative costs of doing business in 27 economies by compiling statistics relating to wages, costs for expatriate staff, air travel and subsistence, corporation taxes, perceived corruption levels, office and industrial rents, and road transport. In each category a country can score between 1 (low cost) and 100 (high cost). The scores are then combined to provide an overall score and ranking. In general, developed countries rank as more expensive than developing ones because their wage costs are higher. Other costs are not systematically higher in rich countries. Germany is the most expensive country overall because of its very high basic wages. America's high executive salaries push it into second place. Although the EIU's index ranks Singapore tenth in terms of business costs, most South-East Asian economies are far cheaper. Thailand, Malaysia and Indonesia are among the least expensive places. The EIU compiled this index before these countries' currencies collapsed; business costs are now even lower.
This article appeared in the Economic & financial indicators section of the print edition under the headline “BUSINESS COSTS”