Europe 2024~2060: A Vision of Sustainability and Innovation

Introduction

In 2024, Europe’s business environment is shaped by rapid advancements in technology, the drive toward sustainability, and diverse economic landscapes. Each country across the continent is navigating a complex mix of opportunities and challenges, from addressing demographic shifts to leveraging renewable energy. Economic growth projections through 2035 and expectations toward 2060 highlight key trends such as the rise of green technologies, digital transformation, and the pursuit of carbon neutrality. While some nations focus on maintaining their leadership in high-tech industries, others are prioritizing post-conflict recovery and transitioning to greener economies. This comprehensive analysis offers an in-depth look at the economic, social, and environmental trajectories of 48 European countries, providing insights into their current business environments and future prospects.

To provide a deeper, broader, and more comprehensive analysis of each country's business environment, including valid and estimated metrics for 2024, projections for 2035, and expectations toward 2060, I will cover key areas such as:

Macroeconomic Indicators: GDP growth, inflation, unemployment rates, public debt, and foreign direct investment (FDI).
Sectoral Analysis: Major industries, technological advancements, and projected sectoral growth.
Sustainability and Green Economy: Renewable energy investments, carbon neutrality goals, and environmental policies.
Demographics and Workforce: Aging population, workforce availability, migration trends, and policies to mitigate labor shortages.
Innovation and Digital Economy: AI, Industry 4.0, digitalization, fintech, and technological adoption.
Geopolitical Influence and Trade: Trade relations, regional influence, geopolitical risks, and membership in international organizations (e.g., EU, EAEU).
Estimated Metrics for 2024, 2035, and 2060: Based on current trends and official projections.

1. Albania

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Albania is increasing its investments in renewable energy, especially hydropower and solar. By 2024, renewable sources will constitute around 95% of electricity production.
Innovation and Digital Economy: Albania lags behind in digital transformation but is investing in telecommunications infrastructure and education to bridge the gap. The government's "Digital Agenda 2020–2030" aims to significantly increase internet penetration and the digitization of government services.

Projections for 2035:

Macroeconomic Indicators:
Sectoral Shifts:
Innovation: By 2035, Albania is expected to improve in digitalization, with a significant percentage of the workforce employed in IT and tech services.

Expectations Towards 2060:

Macroeconomic Indicators:
Sustainability: By 2060, Albania is expected to be nearly 100% reliant on renewable energy, having achieved carbon neutrality in electricity generation.
Demographics: Aging population will become a critical issue. Emigration might lead to labor shortages unless policies are implemented to retain young talent.

2. Andorra

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Andorra has made significant efforts to improve energy efficiency, particularly in building and transportation.

Projections for 2035:

Macroeconomic Indicators:GDP Growth: Estimated to remain stable at 1.8%.Public Debt: Expected to decline to 30% of GDP.
Sectoral Development:
Digital Transformation: Andorra is expected to embrace smart city initiatives, with AI and big data used in tourism management.
Green Tourism: Andorra will focus on sustainable tourism to preserve its natural resources, increasing eco-tourism share to 15% of GDP.
Financial Sector: Digital banking and fintech services are likely to expand, driven by tech-savvy consumer bases.

Expectations Towards 2060:

Sustainability: By 2060, Andorra is projected to be carbon neutral, with almost all electricity generated from renewable sources and extensive green infrastructure.
Aging Population: Andorra may face challenges related to a shrinking workforce due to demographic shifts, necessitating greater automation and productivity-enhancing technologies.

3. Armenia

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Armenia is slowly shifting towards renewable energy, especially solar, with plans to increase its share of the energy mix from 10% in 2024 to 30% by 2035.

Projections for 2035:

Macroeconomic Indicators:GDP Growth: Estimated to stabilize at around 4.5%.
Public Debt: Expected to fall to 50% of GDP as fiscal policies improve.
Sectoral Growth:IT and Startups: Armenia is expected to become a leading tech hub in the Caucasus by 2035, contributing 15% to GDP.
Renewable Energy: The government will push for solar energy to constitute 35% of the energy mix by 2035.

Expectations Towards 2060:

Sustainability: By 2060, Armenia could become one of the region's leaders in renewable energy, particularly in solar power, reducing dependence on imported fossil fuels.
Demographics: Armenia will face significant challenges due to an aging population, emigration, and workforce shortages.

4. Austria

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:

Projections for 2035:

Macroeconomic Indicators:GDP Growth: Estimated at 2.5%.Public Debt: Expected to reduce to 60% of GDP due to fiscal tightening.
Sectoral Developments:Green Transition: Austria will likely achieve 50% renewable energy production by 2035.
Digital Economy: By 2035, Austria will be highly automated, particularly in manufacturing, logistics, and healthcare, leading to increased productivity.

Expectations Towards 2060:

Sustainability: By 2060, Austria is expected to achieve nearly full reliance on renewable energy, particularly hydropower, wind, and solar. Its strong focus on environmental sustainability will likely make it one of the greenest economies in Europe, with energy-efficient buildings and transportation systems.
Demographics: Austria will face significant demographic challenges due to an aging population, with the old-age dependency ratio expected to increase. This will necessitate policies that encourage immigration and automation to maintain productivity.

5. Azerbaijan

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Azerbaijan has made progress in renewable energy, particularly solar and wind, but the country remains highly dependent on fossil fuels. The government has set a goal to increase the share of renewables in the energy mix to 30% by 2035.

Projections for 2035:

Macroeconomic Indicators:GDP Growth: Estimated at 4.0%, driven by diversification efforts.
Public Debt: Expected to remain low, at around 20% of GDP, due to prudent fiscal management.
Sectoral Developments:Non-Oil Sector: The government’s strategic vision for 2035 emphasizes the development of agriculture, IT, and tourism, with the non-oil sector expected to contribute 40% to GDP by 2035.
Renewable Energy: Investments in wind and solar energy will increase, with the goal of reducing dependence on fossil fuels by 2035.

Expectations Towards 2060:

Sustainability: By 2060, Azerbaijan is expected to transition towards a more sustainable economy, with renewable energy making up over 50% of its energy mix. The country may also become a regional leader in green hydrogen production, leveraging its natural resources and strategic location.
Demographics: Azerbaijan will face challenges due to an aging population and potential migration issues, which could impact labor markets. The government is likely to implement policies to boost population growth and retain talent.

6. Belarus

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Belarus has been slow to transition to renewable energy, but the government has set ambitious targets to increase the share of renewables to 10% by 2035.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 2.5%, driven by tech, manufacturing, and agricultural modernization.
Public Debt: Expected to remain stable at around 45% of GDP.
Sectoral Developments:
IT Growth: The tech sector is expected to contribute 15% to GDP by 2035, with Belarus becoming a regional leader in software development and outsourcing.
Agricultural Reforms: By 2035, Belarus aims to increase agricultural productivity through modernization and investments in technology.

Expectations Towards 2060:

Sustainability: By 2060, Belarus is projected to increase its reliance on renewable energy sources, with an expected 30% of energy generated from renewables. Energy efficiency in manufacturing and transportation will improve significantly.
Demographics: The country faces significant demographic challenges due to an aging population and emigration, which could impact economic growth unless policies are implemented to attract foreign talent and boost birth rates.

7. Belgium

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Belgium is committed to the EU’s climate targets, with a focus on increasing renewable energy production (wind, solar) and improving energy efficiency in buildings and industry.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 2.0%, supported by growth in the pharmaceutical, logistics, and digital sectors.
Public Debt: Expected to decrease slightly to around 100% of GDP through fiscal consolidation.
Sectoral Developments:
Sustainability: By 2035, Belgium aims to reduce its carbon footprint significantly, with renewable energy accounting for 40% of the energy mix.
Tech and Digital Services: Belgium will continue to grow as a tech hub, particularly in AI, biotech, and fintech.

Expectations Towards 2060:

Sustainability: By 2060, Belgium is projected to achieve near-total reliance on renewable energy, particularly in offshore wind and solar power. The country is expected to be a leader in green technologies and circular economy practices.
Demographics: Like much of Western Europe, Belgium will face challenges from an aging population, with an increased old-age dependency ratio. However, strong immigration policies and automation may help offset labor shortages.

8. Bosnia and Herzegovina

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Bosnia is focusing on increasing its renewable energy production, particularly in hydropower, with the goal of generating 60% of electricity from renewables by 2035.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 3.2%, driven by tourism, energy, and manufacturing.
Public Debt: Expected to remain low, at around 35% of GDP.
Sectoral Developments:
Tourism Growth: By 2035, tourism is expected to contribute over 15% of GDP, with a focus on eco-tourism and adventure tourism.
Energy: Bosnia will likely expand its hydropower capacity and invest in solar and wind energy to reduce reliance on fossil fuels.

Expectations Towards 2060:

Sustainability: By 2060, Bosnia and Herzegovina is expected to be a regional leader in renewable energy production, primarily through hydropower, solar, and wind. The country will likely expand its eco-tourism sector significantly, positioning itself as a top destination in Europe for nature and adventure travel.
Demographics: Bosnia will face continued challenges with emigration and population aging. Workforce shortages could hinder economic growth, but investments in automation and technology-driven industries may help offset these challenges.

9. Bulgaria

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Bulgaria is working toward the EU’s climate targets, aiming to reduce coal dependence and increase renewable energy production to 30% of the energy mix by 2035.

Projections for 2035:

Macroeconomic Indicators:GDP Growth: Expected to stabilize around 4.0%, driven by continued growth in IT, renewable energy, and manufacturing.
Public Debt: Projected to remain low at around 20% of GDP due to prudent fiscal policies.
Sectoral Developments:Green Energy: By 2035, Bulgaria aims to significantly reduce its coal dependence, with renewable energy accounting for 40% of electricity production. Solar and wind energy will play key roles.
IT Sector: Bulgaria is projected to become a leading IT outsourcing hub in Europe, with tech services contributing 10% to GDP by 2035.

Expectations Towards 2060:

Sustainability: By 2060, Bulgaria is expected to achieve a substantial green energy transition, with over 60% of energy derived from renewables, including wind, solar, and hydropower.
Demographics: Bulgaria will continue to face demographic challenges due to low birth rates and emigration, potentially leading to workforce shortages. The government will likely implement policies to encourage immigration and automation to mitigate labor issues.

10. Croatia

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Croatia is focused on increasing renewable energy production, particularly in wind and solar. By 2024, 30% of electricity is expected to come from renewable sources, with further expansion planned.

Projections for 2035:

Macroeconomic Indicators:GDP Growth: Estimated at 3.0%, driven by sustainable tourism, renewable energy, and real estate development.
Public Debt: Expected to decline to 60% of GDP as economic growth stabilizes and fiscal policies improve.
Sectoral Developments:Green Energy: By 2035, Croatia aims to produce 50% of its electricity from renewable sources, particularly wind and solar.
Tourism: The country will likely shift towards more sustainable tourism, reducing the environmental impact of mass tourism while maintaining its appeal as a Mediterranean destination.

Expectations Towards 2060:

Sustainability: By 2060, Croatia is projected to have fully transitioned to a sustainable tourism model and increased its reliance on renewable energy, with up to 70% of electricity generated from renewable sources.
Demographics: Croatia faces similar challenges as other European countries with an aging population and emigration, which may lead to labor shortages. The government will need to focus on automation and workforce retention policies to maintain economic growth.

11. Czechia (Czech Republic)

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Czechia has ambitious goals to increase its reliance on renewable energy, aiming for 30% of electricity production from renewable sources by 2035.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 3.2%, driven by advancements in manufacturing, automation, and digital services.
Public Debt: Expected to remain low, around 35% of GDP.
Sectoral Developments:
Tech & Automation: Czechia will continue to develop as a leader in automation and AI, with these technologies driving productivity in the manufacturing sector Green Energy: By 2035, the country aims to have 40% of its electricity generated from renewables, with investments in wind, solar, and biomass energy.

Expectations Towards 2060:

Sustainability: By 2060, Czechia is projected to become a European leader in sustainable manufacturing and green energy, with over 60% of energy coming from renewable sources.
Demographics: Czechia will face demographic pressures due to an aging population, but strong investments in automation and technology are expected to mitigate the impact on the workforce.

12. Denmark

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Denmark is committed to achieving carbon neutrality by 2050, with 50% of electricity already coming from wind energy in 2024. The country aims to further expand its renewable energy capacity, particularly in offshore wind.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 2.2%, driven by continued investments in renewable energy, pharmaceuticals, and tech innovation.
Public Debt: Expected to remain low at around 30% of GDP.
Sectoral Developments:
Green Energy: By 2035, Denmark aims to generate over 80% of its electricity from renewable sources, primarily wind energy. Offshore wind farms will continue to expand, and Denmark is expected to become a major exporter of green energy.
Pharmaceuticals: The pharmaceutical sector will continue to grow, with increased investments in biotechnology and healthcare innovation.

Expectations Towards 2060:

Sustainability: By 2060, Denmark is expected to achieve full carbon neutrality, with renewable energy sources (primarily offshore wind) supplying nearly all of its electricity needs. The country will also be a global leader in green hydrogen production, positioning itself as a major exporter of clean energy.
Demographics: Denmark, like other Nordic countries, will face challenges related to an aging population. However, investments in automation, robotics, and a highly skilled labor force will help maintain productivity. Immigration policies will also play a key role in addressing workforce shortages.

13. Estonia

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Estonia aims to increase the share of renewables in its energy mix to 30% by 2030. The government is also investing heavily in green technologies and smart grids to improve energy efficiency.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 3.5%, driven by continued investments in IT, digital services, and renewable energy.
Public Debt: Expected to remain low, around 15% of GDP.
Sectoral Developments:
Digital Economy: By 2035, Estonia will likely be a European leader in AI, blockchain, and cybersecurity, with tech contributing over 20% to GDP.
Green Transition: Estonia will continue to reduce its reliance on fossil fuels, with renewable energy projected to account for 40% of electricity production by 2035.

Expectations Towards 2060:

Sustainability: By 2060, Estonia is expected to be one of the most digitally advanced and sustainable economies in Europe, with nearly 60% of its energy coming from renewable sources. The country will continue to lead in green technology innovation and digital services.
Demographics: Estonia will face significant demographic challenges due to population aging and low birth rates. Immigration and automation will be crucial to maintaining labor market balance and economic growth.

14. Finland

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Finland is at the forefront of the EU’s sustainability efforts. The country’s ambitious carbon neutrality goals are supported by significant investments in renewable energy, energy efficiency, and circular economy practices.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 2.5%, driven by high-tech industries, green innovation, and digital services.
Public Debt: Expected to decrease to 60% of GDP due to strong fiscal management.
Sectoral Developments:Green Energy: By 2035, Finland aims to generate over 60% of its electricity from renewables, with significant expansions in wind and bioenergy.
Technology Growth: The tech sector is projected to account for 20% of GDP by 2035, with AI, 5G, and biotech leading the way.

Expectations Towards 2060:

Sustainability: By 2060, Finland is expected to be a global leader in carbon-neutral technologies, renewable energy, and sustainable forestry practices. The country will have fully integrated circular economy principles into its manufacturing and waste management systems.
Demographics: Like other Nordic countries, Finland will face significant demographic challenges, with an aging population and workforce shortages. However, strong investments in automation and digital transformation will help sustain productivity.

15. France

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: France is committed to achieving carbon neutrality by 2050. By 2024, the country aims to increase renewable energy production to 33% of its energy mix.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 1.8%, supported by green technologies, pharmaceuticals, and luxury exports.
Public Debt: Expected to decrease slightly to 100% of GDP as the government implements fiscal reforms.
Sectoral Developments:Green Economy: By 2035, France aims to generate 50% of its electricity from renewable sources, with nuclear energy maintaining a key role in ensuring energy security.
Technology & Innovation: France is expected to become a major player in AI, green hydrogen, and electric vehicles, driven by government support for tech innovation.

Expectations Towards 2060:

Sustainability: By 2060, France is projected to achieve its goal of carbon neutrality, with a highly diversified energy mix, including large-scale solar, wind, and green hydrogen production.
Demographics: France will face ongoing challenges related to its aging population and high social spending. However, policies promoting automation, innovation, and immigration will help maintain economic stability and growth.

16. Georgia

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Georgia is investing in renewable energy, particularly hydropower, to reduce its reliance on imported fossil fuels. The government has set a target for renewable energy to account for 40% of electricity production by 2030.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 4.2%, driven by tourism, energy, and IT services.
Public Debt: Expected to decrease to 45% of GDP as economic growth stabilizes.
Sectoral Developments:Tourism Growth: By 2035, tourism is expected to contribute 25% to GDP, as Georgia continues to attract eco

Tourism Growth: By 2035, tourism is expected to contribute 25% to GDP, as Georgia continues to attract eco-tourists, adventure travelers, and cultural tourism. The country will leverage its natural resources and historical heritage to drive sustainable tourism.
Renewable Energy: Georgia aims to increase its reliance on renewable energy, particularly hydropower, solar, and wind. The government is targeting 50% of electricity generation from renewable sources by 2035, making Georgia a regional leader in green energy production.

Expectations Towards 2060:

Sustainability: By 2060, Georgia is expected to be a regional leader in renewable energy, with a significant portion of its electricity generated from hydropower, solar, and wind. The country will likely play a critical role in energy exports to neighboring countries.
Demographics: Georgia’s aging population and ongoing emigration will pose challenges. However, the country’s focus on improving education, investing in innovation, and encouraging skilled migration may help alleviate labor shortages.

17. Germany

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Germany has set ambitious targets to phase out coal by 2038 and achieve carbon neutrality by 2045. Investments in green hydrogen, renewable energy, and electric vehicle infrastructure are key components of this transition.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 2.0%, driven by continued innovation in manufacturing, green energy, and digital services.
Public Debt: Expected to remain stable at around 55% of GDP, with fiscal policies aimed at controlling debt while supporting green investments.
Sectoral Developments:
Electric Vehicles: By 2035, Germany aims to be a global leader in electric vehicle production, with EVs accounting for 50% of new vehicle sales. Government support for battery production and charging infrastructure will play a key role.
Renewable Energy Expansion: Germany aims to produce 65% of its electricity from renewables by 2035, with significant investments in offshore wind, solar farms, and green hydrogen production.

Expectations Towards 2060:

Sustainability: By 2060, Germany is projected to achieve full carbon neutrality, with nearly 100% of electricity coming from renewable sources. The country will also be a global leader in green hydrogen production, supplying energy both domestically and for export.
Demographics: Germany’s aging population will continue to be a challenge, but strong investments in automation, robotics, and AI will help maintain productivity. Immigration policies and reskilling initiatives will be critical in mitigating workforce shortages.

18. Greece

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Greece has set ambitious targets to increase the share of renewables in its energy mix to 60% by 2030. The country is also focusing on sustainable tourism and eco-friendly agriculture.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 2.5%, driven by sustainable tourism, energy, and IT services.
Public Debt: Expected to decline to 140% of GDP as fiscal consolidation continues and economic growth stabilizes.
Sectoral Developments:
Green Energy Transition: By 2035, Greece is expected to generate 70% of its electricity from renewable sources, particularly solar and wind. Investments in offshore wind farms and energy storage will drive this transition.
Tourism & Sustainability: Greece will continue to focus on sustainable tourism, with eco-friendly hotels, renewable energy-powered resorts, and an emphasis on reducing the environmental impact of mass tourism.

Expectations Towards 2060:

Sustainability: By 2060, Greece is projected to be nearly carbon neutral, with a fully renewable energy grid. The country will be a leading eco-tourism destination, attracting millions of visitors while preserving its natural environment.
Demographics: Greece faces significant demographic challenges due to an aging population and low birth rates. The country will need to adopt policies that promote immigration and increase workforce participation to mitigate labor shortages.

19. Hungary

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Hungary is committed to EU climate targets and aims to increase the share of renewables in its energy mix to 30% by 2030. The government is also investing in energy efficiency and green building initiatives.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 3.0%, driven by advanced manufacturing, green energy, and digital services.
Public Debt: Expected to decline to 60% of GDP due to continued fiscal management and economic growth.
Sectoral Developments:Green Energy: By 2035, Hungary is expected to generate 40% of its electricity from renewable sources, with solar energy playing a key role in the transition. Investments in grid modernization and energy storage will support this shift.
Digital Economy: Hungary will continue to develop its digital economy, with a focus on AI, robotics, and Industry 4.0 technologies driving productivity improvements in the manufacturing sector.

Expectations Towards 2060:

Sustainability: By 2060, Hungary is projected to achieve significant progress in its energy transition, with renewable energy accounting for 70% of electricity production. The country will also be a leader in green manufacturing and energy-efficient technologies.
Demographics: Hungary, like many Central European countries, faces demographic challenges due to an aging population and low birth rates. Policies promoting immigration, reskilling, and automation will be critical in addressing workforce shortages.

20. Iceland

2024 Business Environment (continued):

Sectoral Analysis:
Sustainability and Green Economy: Iceland is at the forefront of renewable energy usage and aims to become fully carbon neutral by 2040. Investments in green hydrogen production are also being explored, with the country potentially becoming a significant exporter of clean energy.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 2.8%, driven by tourism, green energy exports, and innovation in the tech and fisheries sectors.
Public Debt: Expected to remain low, at around 30% of GDP due to prudent fiscal management.
Sectoral Developments:
Green Hydrogen: By 2035, Iceland aims to become a leading producer of green hydrogen, leveraging its abundant renewable energy resources. The government is targeting hydrogen exports to Europe and North America as part of its long-term growth strategy.
Sustainable Tourism: Iceland will continue to develop its tourism sector, with an increasing focus on sustainability. Eco-friendly accommodations, renewable energy-powered infrastructure, and responsible tourism practices will become the standard.

Expectations Towards 2060:

Sustainability: By 2060, Iceland is expected to be a global leader in sustainability, having achieved carbon neutrality and fully transitioned to a green economy. The country will likely be exporting significant quantities of green hydrogen and other renewable energy products.
Demographics: Due to its small population and reliance on specific industries, Iceland may face challenges related to workforce shortages. However, the country’s highly educated workforce and continued investment in automation and green technology will help sustain economic growth.

21. Ireland

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Ireland has set ambitious climate targets, aiming to reduce greenhouse gas emissions by 51% by 2030 and achieve carbon neutrality by 2050. The government is focusing on renewable energy, especially offshore wind, to meet these goals.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 3.5%, driven by continued growth in tech, pharmaceuticals, and renewable energy.
Public Debt: Expected to remain stable at around 50% of GDP due to strong economic growth and effective fiscal management.
Sectoral Developments:Offshore Wind Energy: By 2035, Ireland is expected to be a major producer of offshore wind energy, exporting excess power to the UK and mainland Europe. Investments in offshore wind farms will be critical to Ireland’s green transition.
Tech Innovation: The tech sector will continue to thrive, with Ireland remaining a leading European hub for AI, cybersecurity, and cloud computing.

Expectations Towards 2060:

Sustainability: By 2060, Ireland is projected to be fully carbon-neutral, with renewable energy sources (primarily offshore wind) supplying most of its electricity needs. The country will likely play a major role in green finance and innovation, contributing to global sustainability efforts.
Demographics: Ireland’s relatively young population compared to other European nations will help sustain economic growth. Immigration policies will also play a key role in addressing workforce needs as the population ages.

22. Italy

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Italy has set targets to increase the share of renewables in its energy mix to 55% by 2030 and achieve carbon neutrality by 2050. The country is investing in solar power, offshore wind, and energy efficiency measures to meet these goals.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 1.8%, driven by manufacturing, tourism, and renewable energy investments.
Public Debt: Expected to remain high but stable at around 135% of GDP due to structural economic challenges and the slow pace of reform.
Sectoral Developments:Sustainable Manufacturing: By 2035, Italy will be a leader in sustainable manufacturing, with industries adopting green technologies to reduce emissions and increase energy efficiency.
Renewable Energy: Italy aims to produce 60% of its electricity from renewable sources by 2035, with solar energy playing a major role in southern regions.

Expectations Towards 2060:

Sustainability: By 2060, Italy is expected to achieve carbon neutrality, with nearly 100% of its energy coming from renewables. The country will also be a leader in sustainable tourism, balancing environmental preservation with high levels of tourism activity.
Demographics: Italy’s aging population will present challenges, but automation and a focus on high-value industries like manufacturing and luxury goods will help sustain economic growth. Immigration and policies to boost workforce participation will be essential in addressing labor shortages.

23. Kosovo

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Kosovo is working towards increasing the share of renewables in its energy mix to 30% by 2035, with a focus on solar and hydropower. The government is also implementing policies to improve energy efficiency in buildings and infrastructure.

Projections for 2035:

Macroeconomic Indicators:GDP Growth: Estimated at 4.5%, driven by energy, manufacturing, and tourism.
Public Debt: Expected to remain low, around 20% of GDP, due to prudent fiscal management.
Sectoral Developments:
Energy Expansion: By 2035, Kosovo will be a leader in renewable energy production in the Western Balkans, with solar and hydropower accounting for a significant share of electricity generation.
Manufacturing Growth: Manufacturing is expected to contribute more to GDP, with the government investing in infrastructure and industrial zones to attract foreign investors.

Expectations Towards 2060:

Sustainability: By 2060, Kosovo is expected to be a leader in renewable energy within the Balkans, having significantly reduced its reliance on coal and fossil fuel imports. Hydropower, solar, and wind energy will likely dominate the energy mix, contributing to the country's carbon-neutral goals.
Demographics: Kosovo will continue to face challenges from high unemployment and youth emigration, but policies focused on education, job creation, and foreign investment may help retain talent. The population will age, and automation will play a crucial role in maintaining productivity.

24. Latvia

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Latvia is focusing on expanding its renewable energy capacity, particularly in wind and biomass, aiming for a 40% renewable share in its energy mix by 2030. The country is also investing in smart cities and energy efficiency.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 3.2%, driven by IT services, green energy, and logistics.Public Debt: Expected to decrease to 35% of GDP, thanks to strong economic growth and fiscal responsibility.
Sectoral Developments:
Green Energy Transition: By 2035, Latvia aims to generate 50% of its electricity from renewable sources, particularly through wind and biomass. The government is also focusing on energy storage and smart grids.
Tech Sector Growth: Latvia will continue to position itself as a leading tech hub in Northern Europe, with IT services and digital innovation contributing significantly to GDP.

Expectations Towards 2060:

Sustainability: By 2060, Latvia is expected to fully transition to a green economy, with nearly 70% of its electricity coming from renewable sources. The country will be a regional leader in sustainable logistics and smart city technologies.
Demographics: Latvia’s population will continue to age, and emigration will remain a concern. However, investments in digital transformation, AI, and automation will help mitigate labor shortages and maintain economic stability.

25. Liechtenstein

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Liechtenstein is committed to sustainability, with strong investments in renewable energy and green finance. By 2024, it aims to reduce carbon emissions by 40% compared to 1990 levels, primarily through energy efficiency and green building initiatives.

Projections for 2035:

Macroeconomic Indicators:GDP Growth: Estimated at 2.0%, driven by financial services, advanced manufacturing, and green technology investments.Public Debt: Expected to remain low, around 20% of GDP.
Sectoral Developments:
Green Finance & Innovation: By 2035, Liechtenstein aims to be a global leader in green finance and sustainable investment, with fintech innovations driving economic growth.
High-Tech Manufacturing: The manufacturing sector will continue to thrive, focusing on precision engineering and sustainable manufacturing practices.

Expectations Towards 2060:

Sustainability: By 2060, Liechtenstein is projected to be a global leader in sustainability and green finance, with strong commitments to renewable energy and eco-friendly business practices. The country will likely be fully carbon neutral by this time.
Demographics: Given its small population and strong economy, Liechtenstein will maintain high standards of living, with low unemployment. However, the aging population may require policies to attract skilled labor through immigration or automation.

26. Lithuania

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Lithuania has set ambitious targets for reducing greenhouse gas emissions and increasing renewable energy production. The government is focusing on wind and solar energy, smart grids, and energy storage solutions to meet its climate goals.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 3.5%, driven by IT, manufacturing, and green energy.Public Debt: Expected to decline to 35% of GDP due to strong economic growth and fiscal responsibility.
Sectoral Developments:
Tech Growth: By 2035, Lithuania aims to be a leader in fintech and AI within Europe, with tech services contributing significantly to GDP. The country’s digital economy will continue to expand, driven by innovation and a skilled workforce.
Green Energy Transition: Lithuania is expected to generate 50% of its electricity from renewable sources by 2035, particularly through wind energy. Investments in energy storage and grid modernization will also play a crucial role.

Expectations Towards 2060:

Sustainability: By 2060, Lithuania is projected to be fully powered by renewable energy, with wind and solar dominating the energy mix. The country will also be a leader in green technology innovation, particularly in energy storage and smart cities.
Demographics: Lithuania’s population is expected to continue aging, but investments in automation, AI, and digital transformation will help mitigate labor shortages and sustain economic growth.

27. Luxembourg

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Luxembourg is heavily invested in green finance and sustainability. The country is committed to increasing the share of renewables in its energy mix and reducing greenhouse gas emissions by 55% by 2030.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 2.5%, driven by financial services, fintech, and innovation in space technology.
Public Debt: Expected to remain low, around 20% of GDP, due to strong economic growth and prudent fiscal policies.
Sectoral Developments:
Green Finance & Sustainability: By 2035, Luxembourg aims to be a global leader in green finance, with its financial services sector focusing heavily on sustainable investments. Luxembourg’s green bond market will likely expand significantly.
Tech and Space Innovation: Luxembourg is projected to be a leader in space-related industries, with a growing focus on satellite technology and space mining. The government will continue to support startups in this sector, driving innovation and economic growth.

Expectations Towards 2060:

Sustainability: By 2060, Luxembourg is expected to be a global hub for green finance and innovation, with most of its economy powered by clean energy sources. The country will have fully integrated sustainability practices across all sectors, particularly in finance and logistics.
Demographics: Luxembourg will maintain high standards of living but will face challenges related to population aging. Immigration and automation will play a key role in maintaining workforce levels and economic productivity.

28. Malta

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Malta is committed to increasing the share of renewables in its energy mix to 30% by 2030. The country is investing in solar energy and energy efficiency improvements to meet EU climate goals.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 3.5%, driven by tourism, fintech, and renewable energy investments.
Public Debt: Expected to decrease to 45% of GDP, thanks to sustained economic growth and fiscal responsibility.
Sectoral Developments:Sustainable Tourism: By 2035, Malta aims to shift towards more sustainable tourism practices, reducing environmental impacts while maintaining its attractiveness as a Mediterranean destination.
Digital Economy: Malta is projected to remain a leading hub for fintech, blockchain, and iGaming, with the government continuing to support innovation and tech-driven growth.

Expectations Towards 2060:

Sustainability: By 2060, Malta is expected to be fully powered by renewable energy, with solar playing a dominant role. The country will also be a leader in sustainable tourism and digital finance, maintaining its status as a key hub for fintech and iGaming.
Demographics: Malta will face challenges related to an aging population, but continued immigration and automation will help mitigate labor shortages. High-tech industries will play a key role in maintaining economic stability.

29. Moldova

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Moldova is working to reduce its reliance on imported energy and increase the share of renewables in its energy mix. The government has set targets to increase renewable energy capacity to 20% by 2030.

Projections for 2035:

Macroeconomic Indicators:GDP Growth: Estimated at 4.5%, driven by agriculture modernization, manufacturing, and energy diversification.
Public Debt: Expected to remain stable at around 30% of GDP due to strong fiscal policies and increased foreign investment.
Sectoral Developments:Agriculture Modernization: By 2035, Moldova aims to modernize its agricultural sector, increasing productivity and shifting towards more sustainable practices. The government will focus on attracting investment in agri-tech and improving infrastructure.
Energy Independence: Moldova is expected to increase its renewable energy capacity, with solar and wind energy playing a significant role in reducing reliance on imports.

Expectations Towards 2060:

Sustainability: By 2060, Moldova is expected to achieve significant progress in energy independence, with renewable energy accounting for 50% of its electricity production. The agricultural sector will be fully modernized, with sustainable practices ensuring food security and export growth.
Demographics: Moldova will face ongoing demographic challenges due to emigration and population aging. Policies promoting workforce retention and attracting foreign investment will be crucial to maintaining economic growth.

30. Monaco

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Monaco is committed to sustainability, particularly in energy efficiency and environmental conservation. The government aims to achieve carbon neutrality by 2050, focusing on green building practices and renewable energy.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 1.8%, driven by luxury services, financial services, and real estate.
Public Debt: Expected to remain low, around 10% of GDP.
Sectoral Developments:Sustainability Initiatives: By 2035, Monaco aims to be a global leader in sustainability for small states, focusing on energy efficiency, green transportation, and renewable energy use. The government will continue to promote eco-friendly luxury tourism.
Financial Services Growth: Monaco will maintain its status as a global hub for wealth management and luxury real estate, attracting more foreign investment in these areas.

Expectations Towards 2060:

Sustainability: By 2060, Monaco is expected to be fully carbon-neutral, with extensive use of renewable energy and green technologies. The country will be a global leader in sustainable luxury tourism and finance.
Demographics: Monaco’s population will continue to be highly affluent, with a stable economy supported by high-value industries such as finance and real estate. The aging population will be less of an issue due to the country’s wealth and ability to attract high-net-worth individuals.

31. Montenegro

2024 Business Environment:

Energy: Montenegro is investing in renewable energy, particularly hydropower, solar, and wind. The country has significant potential for hydropower, and the government aims to diversify its energy mix to reduce dependence on imported electricity.
Real Estate: Montenegro’s real estate sector is growing, driven by demand for coastal properties from foreign buyers. The sector benefits from foreign investment, especially from Russian and Middle Eastern buyers.
Sustainability and Green Economy: Montenegro is committed to increasing the share of renewable energy in its energy mix to 40% by 2030. The government is also focusing on eco-tourism and sustainable development to protect its natural resources.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 4.0%, driven by tourism, renewable energy, and real estate.
Public Debt: Expected to decline to 65% of GDP due to sustained economic growth and prudent fiscal policies.
Sectoral Developments:Sustainable Tourism: By 2035, Montenegro will have fully embraced sustainable tourism, with eco-friendly resorts and green infrastructure supporting tourism growth. The focus will be on high-end, low-impact tourism to preserve the environment.
Renewable Energy Expansion: Montenegro will continue to expand its hydropower and solar energy capacity, with renewable energy expected to account for 50% of electricity generation by 2035.

Expectations Towards 2060:

Sustainability: By 2060, Montenegro is projected to be a regional leader in eco-tourism and renewable energy. The country will have achieved its goals of carbon neutrality, with most of its energy generated from hydropower, solar, and wind.
Demographics: Montenegro will face challenges related to an aging population and youth emigration. However, investments in tourism and green industries will provide opportunities for job creation and economic diversification.

32. Netherlands

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: The Dutch government is heavily investing in renewable energy, especially offshore wind farms. The country is also focusing on energy efficiency and green building practices as part of its plan to achieve carbon neutrality by 2050.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 2.5%, driven by green energy, agriculture, and logistics.
Public Debt: Expected to remain stable at around 50% of GDP.
Sectoral Developments:
Green Energy Transition: By 2035, the Netherlands is expected to generate over 65% of its electricity from renewable sources, with offshore wind farms playing a crucial role. Investments in hydrogen and energy storage will also support the transition.
Agricultural Innovation: The Netherlands will continue to lead in agricultural innovation, with precision farming and sustainable practices ensuring high productivity and environmental protection.

Expectations Towards 2060:

Sustainability: By 2060, the Netherlands is expected to be fully carbon-neutral, with nearly all of its energy coming from renewable sources. The country will be a global leader in green hydrogen production and export.
Demographics: The aging population will present challenges, but strong immigration policies and investments in technology and automation will help mitigate labor shortages and maintain productivity.

33. North Macedonia

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: North Macedonia is focused on increasing its renewable energy capacity and improving energy efficiency. The government is also working to promote eco-tourism and sustainable practices in agriculture.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 4.0%, driven by energy, manufacturing, and tourism.
Public Debt: Expected to remain stable at around 50% of GDP, supported by foreign investment and fiscal consolidation.
Sectoral Developments:Energy Transition: By 2035, North Macedonia is expected to generate 50% of its electricity from renewable sources, particularly solar and wind. The country is investing in energy storage and grid modernization to support this transition.
Tourism Growth: Tourism will become a more significant contributor to the economy, with a focus on eco-tourism and cultural tourism.

Expectations Towards 2060:

Sustainability: By 2060, North Macedonia is projected to achieve full carbon neutrality, with most of its energy coming from renewable sources. The country will be a leader in eco-tourism, attracting visitors to its natural and historical sites while maintaining sustainable practices.
Demographics: North Macedonia will continue to face challenges related to youth emigration and an aging population. However, investments in green energy, tourism, and manufacturing will help create job opportunities and reduce unemployment.

34. Norway

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Norway has set ambitious climate targets, aiming for carbon neutrality by 2050. The country is focusing on expanding its renewable energy capacity, particularly in offshore wind and green hydrogen production, while reducing emissions from the oil and gas sector.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 2.8%, driven by renewable energy, maritime services, and high-tech industries.
Public Debt: Expected to remain stable at around 35% of GDP due to prudent fiscal policies and continued growth in renewable energy exports.
Sectoral Developments:
Green Hydrogen Leadership: By 2035, Norway is expected to be a global leader in green hydrogen production, with significant exports to Europe. The country will also expand its offshore wind capacity, contributing to its renewable energy goals.
Maritime Innovation: Norway will continue to lead in maritime innovation, with a focus on autonomous ships, green shipping technologies, and sustainable fisheries.

Expectations Towards 2060:

Sustainability: By 2060, Norway is expected to be fully carbon-neutral, with nearly all of its energy coming from renewable sources. The country will play a major role in green energy exports, particularly through green hydrogen and offshore wind.
Demographics: Norway’s aging population will present challenges, but strong immigration policies and investments in automation and AI will help sustain economic growth and productivity.

35. Poland

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Poland aims to increase the share of renewables in its energy mix to 40% by 2030. The government is investing in offshore wind, solar energy, and energy efficiency measures to meet EU climate goals.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 3.8%, driven by advanced manufacturing, IT services, and renewable energy.
Public Debt: Expected to remain stable at around 50% of GDP due to strong economic growth and fiscal discipline.
Sectoral Developments:Green Energy Transition: By 2035, Poland is expected to generate 50% of its electricity from renewable sources, with significant investments in offshore wind farms and solar energy projects.
Growth: Poland’s IT sector is expected to continue expanding, with the country becoming a leading tech hub in Europe, particularly in AI, robotics, and fintech.

Expectations Towards 2060:

Sustainability: By 2060, Poland is projected to achieve carbon neutrality, with most of its energy coming from renewable sources. Offshore wind, solar, and green hydrogen will dominate the energy mix, helping the country meet EU climate targets.
Demographics: Poland will face challenges due to population aging and emigration, but automation, digitalization, and policies promoting immigration will help maintain economic growth.

36. Portugal

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Portugal aims to increase the share of renewables in its energy mix to 80% by 2030, focusing on expanding wind and solar capacity. The country is also investing in green hydrogen as part of its decarbonization strategy.

Projections for 2035:

Macroeconomic Indicators:GDP Growth: Estimated at 2.3%, driven by tourism, renewable energy, and manufacturing.Public Debt: Expected to decline to 95% of GDP as fiscal reforms and economic growth take effect.
Sectoral Developments:
Green Energy Leadership: By 2035, Portugal aims to produce 90% of its electricity from renewable sources, with solar and offshore wind playing a key role. The country will also be a leader in green hydrogen production and export.
Sustainable Tourism: Portugal will continue to promote eco-tourism, focusing on minimizing environmental impacts and developing sustainable tourism infrastructure.

Expectations Towards 2060:

Sustainability: By 2060, Portugal is expected to achieve carbon neutrality, with nearly all of its electricity generated from renewable sources. The country will be a global leader in green hydrogen production and sustainable tourism.
Demographics: Portugal will face challenges related to an aging population and low birth rates. Immigration and automation will play a key role in sustaining the labor force and maintaining economic growth.

37. Romania

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Romania has set ambitious targets to increase the share of renewables in its energy mix to 30% by 2030. The government is also focusing on energy efficiency and green infrastructure to meet EU climate targets.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 3.8%, driven by manufacturing, IT services, and renewable energy.
Public Debt: Expected to remain stable at around 45% of GDP due to continued fiscal reforms and strong economic growth.
Sectoral Developments:
Green Energy Transition: By 2035, Romania is expected to generate 40% of its electricity from renewable sources, with wind and solar energy playing a key role in the transition. Investments in grid modernization and energy storage will support this shift.
Tech Growth: Romania will continue to grow its IT sector, with a focus on software development, AI, and cybersecurity. The tech sector is expected to account for a significant share of GDP by 2035.

Expectations Towards 2060:

Sustainability: By 2060, Romania is projected to achieve carbon neutrality, with renewable energy accounting for most of its electricity production. The country will continue to be a key player in the Eastern European green energy market.
Demographics: Romania will face significant demographic challenges due to population aging and emigration. Policies promoting workforce retention, digital transformation, and automation will help mitigate labor shortages.

38. Russia

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Russia has set targets to increase the share of renewables in its energy mix to 25% by 2035, but progress has been slow due to its reliance on fossil fuels. Hydropower and nuclear energy remain the primary sources of clean energy.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 2.5%, driven by energy exports, mining, and manufacturing.
Public Debt: Expected to remain low, around 20% of GDP, due to strong energy exports and prudent fiscal management.
Sectoral Developments:Energy & Renewables: By 2035, Russia is expected to diversify its energy exports, with renewable energy accounting for a larger share of production. However, oil and gas will continue to dominate.

Energy & Renewables: By 2035, Russia is expected to diversify its energy exports, with renewable energy accounting for a larger share of production. Hydropower, nuclear energy, and potential investments in green hydrogen will supplement oil and gas exports, though fossil fuels will remain dominant.
Manufacturing: Russia will continue focusing on heavy industries, with efforts to modernize its manufacturing sector. However, the sector may face ongoing challenges related to international sanctions and limited access to foreign technologies.

Expectations Towards 2060:

Sustainability: By 2060, Russia is projected to make progress in renewable energy development, with a growing share of hydropower, nuclear, and potentially solar and wind. However, its economic reliance on fossil fuel exports will remain significant unless more aggressive green energy policies are pursued.
Demographics: Russia will face serious demographic challenges, including an aging population and low birth rates. Workforce shortages could limit growth unless immigration and labor policies are adjusted. Automation will become increasingly important to offset demographic decline.

39. San Marino

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: San Marino is focusing on green finance and sustainable tourism. The government is promoting eco-friendly tourism and energy-efficient infrastructure as part of its long-term sustainability goals.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 1.8%, driven by financial services, sustainable tourism, and high-tech manufacturing.
Public Debt: Expected to remain stable, at around 30% of GDP, supported by fiscal discipline and economic diversification.
Sectoral Developments:
Sustainable Finance: San Marino will further develop its green finance sector, with a focus on attracting investments in renewable energy and eco-friendly industries.
Eco-Tourism: By 2035, San Marino will focus heavily on sustainable tourism, promoting low-impact travel and leveraging its historical heritage and natural beauty.

Expectations Towards 2060:

Sustainability: By 2060, San Marino is expected to be fully committed to sustainability, with most of its economy driven by green finance, eco-tourism, and clean technologies. The country will likely reach carbon neutrality by this time.
Demographics: San Marino will face challenges due to an aging population. Immigration and policies to attract skilled labor will be necessary to sustain economic activity, particularly in high-tech and services sectors.

40. Serbia

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Serbia is focused on increasing the share of renewables in its energy mix to 30% by 2030. The government is also promoting energy efficiency and sustainable industrial practices to align with EU climate goals.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 4.2%, driven by manufacturing, IT services, and green energy.
Public Debt: Expected to remain stable at around 55% of GDP, supported by economic growth and fiscal reforms.
Sectoral Developments:
Green Energy Expansion: By 2035, Serbia aims to produce 50% of its electricity from renewable sources, particularly through investments in solar and wind energy. Energy storage and grid modernization will also play a key role.
Tech Sector Growth: Serbia’s IT sector will continue to expand, with the government investing in digital infrastructure and education to support the country’s position as a regional tech leader.

Expectations Towards 2060:

Sustainability: By 2060, Serbia is expected to be fully integrated into the EU’s green energy network, with most of its electricity coming from renewable sources. The country will play a key role in the Balkan energy market, particularly in clean energy exports.
Demographics: Serbia will face demographic challenges due to low birth rates and emigration. Policies promoting immigration, workforce retention, and automation will be critical to sustaining economic growth.

41. Slovakia

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Slovakia is committed to increasing its share of renewable energy to 40% by 2030. The government is focusing on energy efficiency and green infrastructure to meet EU climate targets.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 3.2%, driven by automotive, electronics, and green energy.
Public Debt: Expected to decline to 55% of GDP as the economy grows and fiscal reforms are implemented.
Sectoral Developments:Automotive Innovation: By 2035, Slovakia will be a leader in electric vehicle (EV) production, with significant investments in battery manufacturing and EV infrastructure. The country will also focus on automation and Industry 4.0 technologies to maintain its competitive edge.
Green Energy Transition: Slovakia will continue to invest in solar and wind energy, with renewable sources expected to account for 50% of electricity production by 2035.

Expectations Towards 2060:

Sustainability: By 2060, Slovakia is expected to achieve carbon neutrality, with most of its energy coming from renewable sources. The country will also be a leader in EV production and green technologies, contributing to the EU’s overall sustainability goals.
Demographics: Slovakia will face significant demographic challenges due to an aging population and emigration. Investments in automation and reskilling programs will be critical to maintaining economic growth and productivity.

42. Slovenia

2024 Business Environment:

2024 Business Environment:

Renewable Energy: Slovenia is investing in hydropower, wind, and solar energy to meet its renewable energy targets and reduce reliance on fossil fuels. The country has ambitious goals for green energy, aiming to significantly increase the share of renewables in its energy mix.
Sustainability and Green Economy: Slovenia aims to increase its share of renewable energy to 33% by 2030, focusing on hydropower and solar energy. The government is also promoting energy efficiency in industry and residential sectors.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 3.0%, driven by manufacturing, green energy, and IT services.
Public Debt: Expected to decrease to 60% of GDP due to steady economic growth and fiscal discipline.
Sectoral Developments:
Green Energy Expansion: By 2035, Slovenia aims to produce 50% of its electricity from renewable sources, primarily hydropower and solar energy. Investments in smart grids and energy storage will support this transition.
IT Growth: Slovenia’s IT sector is expected to continue growing, with a focus on AI, fintech, and digital transformation. The country will position itself as a regional leader in tech innovation.

Expectations Towards 2060:

Sustainability: By 2060, Slovenia is expected to be a carbon-neutral economy, with most of its energy coming from renewable sources. The country will be a leader in green technologies, sustainable manufacturing, and energy efficiency.
Demographics: Like many other European countries, Slovenia will face demographic challenges due to population aging. Policies encouraging automation, reskilling, and immigration will help sustain the labor force and economic growth.

43. Spain

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Spain has committed to reducing carbon emissions by 55% by 2030 and achieving carbon neutrality by 2050. The government is promoting renewable energy, energy efficiency, and sustainable transport as part of its green transition strategy.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 2.2%, driven by tourism, renewable energy, and advanced manufacturing.
Public Debt: Expected to decrease to 100% of GDP as economic growth stabilizes and fiscal reforms take effect.
Sectoral Developments:
Green Energy Leadership: By 2035, Spain aims to generate 75% of its electricity from renewable sources, with significant investments in offshore wind and solar power. Energy storage will be key to ensuring grid stability.
Sustainable Tourism: Spain will continue to develop sustainable tourism, reducing the environmental footprint of its tourism industry while maintaining its global appeal.

Expectations Towards 2060:

Sustainability: By 2060, Spain is projected to be fully carbon neutral, with most of its electricity coming from renewable sources. The country will be a global leader in green technologies and sustainable urban development.
Demographics: Spain will face challenges related to an aging population and low birth rates. Immigration policies and investments in automation and workforce reskilling will be essential to maintaining economic growth and productivity.

44. Sweden

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Sweden is committed to reducing greenhouse gas emissions by 63% by 2030. The country is investing in green hydrogen, energy storage, and sustainable transport to achieve its carbon neutrality goals.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 2.5%, driven by technology, green energy, and advanced manufacturing.
Public Debt: Expected to remain stable at around 35% of GDP due to prudent fiscal policies and strong economic growth.
Sectoral Developments:
Green Energy Transition: By 2035, Sweden aims to generate 80% of its electricity from renewable sources, with a focus on wind, hydropower, and green hydrogen. Energy storage and smart grids will play a crucial role in ensuring a stable energysupply.
Tech Innovation: Sweden will continue to be a global leader in AI, fintech, and green technologies. The country’s focus on innovation will drive productivity and competitiveness.

Expectations Towards 2060:

Sustainability: By 2060, Sweden is expected to achieve full carbon neutrality, with all of its electricity generated from renewable sources. The country will be a global leader in green technology exports, particularly in energy storage, hydrogen, and sustainable transport solutions.
Demographics: Sweden will face demographic challenges due to an aging population. However, its strong social safety nets, focus on automation, and immigration policies will help maintain economic stability and growth.

45. Switzerland

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Switzerland is committed to achieving carbon neutrality by 2050. The government is focusing on increasing energy efficiency, expanding renewable energy production, and promoting sustainable finance.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 1.8%, driven by financial services, pharmaceuticals, and green technologies.
Public Debt: Expected to remain stable at around 40% of GDP due to prudent fiscal policies and strong economic performance.
Sectoral Developments:
Green Finance Leadership: By 2035, Switzerland will be a global leader in green finance, with its financial services sector focusing heavily on sustainable investments. The country will also expand its renewable energy capacity, particularly in solar and hydropower.
Pharmaceuticals & Biotech: Switzerland will continue to lead in pharmaceutical innovation, particularly in biotech and personalized medicine, contributing significantly to its economic growth.

Expectations Towards 2060:

Sustainability: By 2060, Switzerland is expected to be fully carbon-neutral, with most of its energy generated from renewable sources. The country will maintain its leadership in green finance and sustainable technologies, contributing to global sustainability efforts.
Demographics: Switzerland will face demographic challenges due to its aging population. However, immigration policies and a focus on automation and innovation will help mitigate these challenges, maintaining economic stability and growth.

46. Turkey

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Turkey is working to meet its climate targets by increasing the share of renewable energy in its mix to 50% by 2030. The country is focusing on energy efficiency, green building standards, and expanding its renewable energy capacity.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 4.0%, driven by manufacturing, energy, and infrastructure development.
Public Debt: Expected to remain stable at around 40% of GDP as economic reforms take hold.
Sectoral Developments:
Renewable Energy Expansion: By 2035, Turkey is expected to generate 60% of its electricity from renewable sources, with solar and wind playing major roles. The country will also expand its nuclear power capacity to meet rising energy demand.
Manufacturing Growth: Turkey will continue to be a leading manufacturing hub, with a focus on high-value industries such as automotive, aerospace, and electronics. The integration of advanced manufacturing technologies will improve productivity and competitiveness.

Expectations Towards 2060:

Sustainability: By 2060, Turkey is expected to achieve carbon neutrality, with most of its energy coming from renewable and nuclear sources. The country will also be a key player in green technology development, especially in energy storage and grid management.
Demographics: Turkey’s population will continue to grow, although at a slower rate. An aging population will present challenges, but policies encouraging workforce participation and automation will help sustain economic growth.

47. Ukraine

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: Ukraine is committed to increasing its renewable energy capacity, aiming for 25% of its electricity to come from renewables by 2030. Post-war reconstruction will focus heavily on energy efficiency and green infrastructure.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 4.5%, driven by agriculture, energy, and post-war reconstruction.
Public Debt: Expected to stabilize at around 70% of GDP, contingent on economic reforms and international aid.
Sectoral Developments:Post-War Reconstruction: By 2035, Ukraine will be heavily involved in rebuilding its infrastructure, with significant foreign investment in renewable energy, agriculture, and logistics. The country will focus on modernizing its industrial base and expanding its renewable energy capacity.
Agriculture & Tech: Ukraine will remain a global agricultural powerhouse, with increasing use of agri-tech to boost productivity and sustainability. The country will also focus on expanding its high-tech industries.

Expectations Towards 2060:

Sustainability: By 2060, Ukraine is expected to be a regional leader in renewable energy, particularly wind and solar. The country’s commitment to sustainability, combined with international investment, will transform its energy sector into a model of green growth.
Demographics: Ukraine will face significant demographic challenges due to the impact of the war, population aging, and emigration. However, post-war reconstruction and reforms could help attract skilled labor back to the country, bolstering the workforce and driving economic growth.

48. United Kingdom

2024 Business Environment:

Macroeconomic Indicators:
Sectoral Analysis:
Sustainability and Green Economy: The UK is committed to reducing carbon emissions by 68% by 2030 and achieving net-zero emissions by 2050. The country is focusing on expanding its offshore wind capacity, developing green hydrogen, and investing in sustainable transport solutions.

Projections for 2035:

Macroeconomic Indicators:
GDP Growth: Estimated at 1.8%, driven by financial services, tech, and green energy.
Public Debt: Expected to decline to 90% of GDP as fiscal consolidation efforts continue.
Sectoral Developments:Green Energy Transition: By 2035, the UK aims to generate 75% of its electricity from renewable sources, particularly offshore wind and green hydrogen. The country will continue to invest in energy storage and smart grid technologies.
Tech & Innovation Growth: The UK will remain a global leader in tech-driven sectors, with AI, fintech, and biotech contributing significantly to economic growth. London will continue to be one of the world’s top tech hubs.

Expectations Towards 2060:

Sustainability: By 2060, the UK is expected to be fully carbon-neutral, with most of its energy coming from renewable sources. The country will also be a global leader in green technologies and sustainable urban development.
Demographics: The UK will face challenges related to an aging population and labor shortages. Immigration and policies encouraging workforce participation will be essential for maintaining economic growth and innovation.

Summary

Europe's economic landscape in 2024 is defined by a shared focus on sustainability, innovation, and resilience amid varying national challenges. Projections for 2035 and expectations toward 2060 reveal a continent increasingly embracing renewable energy, digital transformation, and green technologies. While aging populations and labor shortages present hurdles, many countries are leveraging automation, immigration, and policy reforms to sustain growth. By 2060, Europe is poised to lead in sustainability, with several nations achieving carbon neutrality and fostering advanced industries like AI, biotech, and green finance. The region's ability to balance economic growth with environmental stewardship will define its global competitiveness in the decades ahead.

Kjeld Friis Munkholm Associate Parter at Vejle - China Business Center

www.munkholmconsulting.com

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