The Baseline Profitability Index, which has been compiled by Altman since 2013, brings together eight factors to predict the total return investors might expect over the next five years. Economic growth, financial stability, physical security, corruption, expropriation by government, exploitation by local partners, capital controls, and exchange rates are all taken into consideration to measure a country's index.
On the basis of the index an investment map is drawn, with a higher index value representing a higher return on investments. Lithuania, whose BPI value is 1.1, ranks 16th among 112 countries, Invest Lithuania says in a statement.
Botswana, Hong Kong, Taiwan, Singapore and Qatar top the ranking. According to the index, investors can expect the lowest yield in Russia, Argentina, Congo, Angola and Venezuela.
Poland, with a BPI value of 1.12, is recognised as the most profitable place to invest in Europe. It is followed by Lithuania and then Estonia (1.09; 18th place) and Latvia (1.07; 22nd place). According to the index, Italy and Greece are the least favourable countries for investment in Europe.
According to Arvydas Arnasius, Managing Director of Invest Lithuania, Lithuania's rating in the Baseline Profitability Index reaffirms the importance of improving the investment environment to compete with neighbouring states for foreign investment.
"According to the BPI, Poland, Lithuania and the other Baltic States are in the lead across Europe in terms of return on investment. As international rankings are very important in evaluating potential investment location, in order to further distinguish ourselves in the region, we must continue to actively reduce the burdens on businesses and to create favourable conditions for foreign investors," says Arnasius.
