Nation Brands 2021, the annual report on the most valuable and strongest national brands, places Italy in 9th place in the world ranking of national brands sorted by economic and financial value originating from image & reputation.
The economic and financial value of the Italian brand is estimated at 1,985 billion dollars, with a growth of 12% compared to last year. This figure indicates a much faster growth than the average of the G20 countries (6%) and it suggests a further improvement for the next year.
The country’s image and reputation also play a major role in the field of foreign investments. In fact, not only consumers are influenced by the rational and emotional characteristics of a commercial brand, but also foreign investors are more likely to invest or start a business in a country that has a high international reputation.
The strong growth in the value of the Italian brand is currently due to several factors, mainly including the leadership of Prime Minister Mario Draghi; the 2021 good management of the covid emergency; the numerous international successes in sports (Tokyo Olympics and Paralympics, European football and volleyball championships, cycling world championships, Wimbledon); and finally, also the global success of the rock band Måneskin.
All these positive results have progressively increased the climate of confidence in Italy, including both consumers and companies, which has reached the highest recorded level since 2005, when ISTAT began recording these statistics. For instance, according to a recent estimate by Brand Finance, the victory of the National Team in the UEFA European Football Championship alone will add € 4 billion to the Italian GDP. The confidence the Italians have in their excellence, who normally have a low opinion of their potential, generates a virtuous effect that leads to an improvement in the international perception of the performance of the Italian system which adds to the Draghi effect and other international successes.
The assessment of the Brand Finance Nation Brands 2021 could not take into account most of the Italian successes of 2021, therefore these will be recorded in the next survey. If the economic growth indicators are confirmed and the government manages to intervene on the most critical factors, such as bureaucracy, justice, and the problems in doing business, the 2022 report will probably put the Italian brand at the top ranks.
Featured image: G20 Rome Summit by Massimiliano De Giorgi via Presidenza del Consiglio dei ministri (CC-BY-NC-SA 3.0 IT).