New Nation Brand Value ranking from Brand Finance reveals mounting pressure on major Western nations while resilient middle powers outperform peers
LONDON, 21 May 2026 – G7 nations have lost a combined USD4.5 trillion in nation brand value in 2026 as geopolitical tensions, tariffs, and economic uncertainty weaken perceptions and economic outlooks, according to new data from Brand Finance, the world's leading brand valuation consultancy.
Among the world’s leading nation brands, the U.S. recorded a 7% decline in nation brand value, while Germany fell 8%, the UK 5%, France 7%, Japan 14%, Canada 12%, and Italy 4%. The weakening cohesion of the Western alliance, combined with persistent inflationary pressures and high energy costs, has contributed to deteriorating sentiment around several established economic powers.
Meanwhile, China’s nation brand value increased by USD1.5 trillion (7%), continuing its rapid rise and narrowing the gap with the U.S. by 24% in just one year. Brand Finance attributes this growth to China’s ability to redirect exports and maintain resilience despite softer domestic consumption and ongoing trade tensions.
Several mid-sized economies delivered strong performances in 2026. Ireland climbed eight places in the ranking with nation brand value increasing 22%, while Denmark rose four places with growth of 10%. The UAE recorded a 5% increase, Saudi Arabia rose 2%, and Qatar increased 12%.
These nations have benefited from resilient non-cyclical industries including pharmaceuticals, technology, logistics, chemicals, and energy. Strong corporate brands such as Novo Nordisk in Denmark, Emirates in the UAE, and Aramco in Saudi Arabia continue to generate positive spillover effects for these nations’ reputations and economic attractiveness. Ireland’s nation brand benefits from hosting regional headquarters of major technology companies, such as Apple, Google, and Meta.
Konrad Jagodzinski, Place Branding Director, Brand Finance commented:
“The 2026 ranking demonstrates that nation brand value is increasingly shaped by resilience, strategic sector focus, and long-term reputation management. While many traditional Western powers are facing economic and geopolitical challenges, nations that have built clear positioning around non-cyclical sectors such as technology, pharmaceuticals, logistics, and energy, are continuing to grow in both perception and value.”
The 2026 ranking also highlights a growing group of emerging economies where Soft Power perceptions are improving despite falling nation brand values. Brazil’s Soft Power score increased while its nation brand value declined by USD186 billion (-19%) to USD788 billion. Similar trends were observed in Poland, Vietnam, Pakistan, Argentina, Bangladesh, Romania, and Kazakhstan.
This divergence reflects the impact of inflation, currency volatility, fiscal tightening, and global trade disruption. However, improving reputation and Soft Power performance may lay the groundwork for stronger long-term growth once economic conditions stabilise.
Alex Haigh, Director of Nation Brand Valuation, Brand Finance, commented,
“Looking ahead, the lesson for nation brand leaders is clear: competitive advantage will increasingly come from combining economic strategy with strong reputation management. Countries that consistently invest in Soft Power, support globally recognised national champions and communicate a distinctive long-term vision will be better positioned to attract investment, talent, tourism, and trade in an increasingly fragmented global economy.”
Top 10 Most Valuable Nation Brands 2026:
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations make strategic decisions.
Headquartered in London, Brand Finance operates in over 25 countries. Every year, Brand Finance conducts more than 6,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on 6,000 brands, surveying more than 175,000 respondents across 41 countries and 31 industry sectors. By combining perceptual data from the Global Brand Equity Monitor with data from its valuation database — the largest brand value database in the world — Brand Finance equips ambitious brand leaders with the data, analytics, and the strategic guidance they need to enhance brand and business value.
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics, compliant with ISO 20671.
Brand Finance is a regulated accountancy firm and a committed leader in the standardisation of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
