Spain brand value grows by 4% compared to 2020

by Lorraine Williamson
The Spain brand

MADRID – The Spain brand is doing well. Its value has increased by 4% and now ranks 12th in Brand Finance’s 2021 Nation Brands ranking. This analyses the world’s most valuable and strongest country brands. 

With this increase, the Spain brand has recovered from the 28% drop recorded in 2020 due to Covid-19. Once again the most valuable country brand in the world is the United States with a value of €20.9 billion. It is increasingly closely followed by China at €16.7 billion. 

Companies play a key role

Teresa de Lemus, Managing Director of Brand Finance Spain says: “Companies such as Telefónica, Iberia, AVE or Real Madrid have played a key role in building the Spain brand and vice versa. Business and country go hand in hand as key elements in generating economy and employment, so knowing the brand drivers of both is key to working to grow them.” 

According to the latest Brand Finance Nation Brands 2021 report, the world’s 100 most valuable national brands decreased by nearly €37 million in their annual brand value. And in 2020, the top 100 national brands lost €11 billion in brand value. This indicates there has been a recovery since the COVID-19 pandemic. 

Spain drops further from the top 10 in country branding 

While the top 10 most valuable country brands in the world held their ground compared to 2020, Spain dropped from 11th to 12th place in the overall ranking. Despite being badly hit economically and socially by the Covid-19 pandemic, the Spanish brand has managed to increase its value by 4% from 2020 and is one of only 12 countries to increase its value this year. The Spain brand exceeds €1 billion in value. 

Spaniards see their land as less valuable than other countries do. While Spaniards think the worst of Covid-19 is over and their confidence in vaccines is growing, the scores they give to the country’s handling of the fight against the pandemic are lower (0.4 out of 10) than other countries give to Spain with 4.6 out of 10). 

US and China lead 

There has been no movement in the top ten this year. Each country keeps its ranking from last year. However, all of the top 10 countries recorded a slight increase in brand equity, in line with the global trend in the ranking. 

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The United States and China claim first and second place in the ranking. The US appreciated 5% to $24.8 trillion in a year marked by major political and economic changes with Joe Biden as the new president after Donald Trump. 

China saw the value of the national brand increase by 6% to $19.9 trillion. For both countries, economic recovery contributed to their increase in brand equity. The Chinese economy was the first to recover at a rapid pace. It was the only country to register positive GDP growth at the end of 2020 and also to grow at a record pace in the first quarter of this year. 

Fastest growing national brand in the world 

Digital Estonia is the fastest growing national brand in the world 

With a brand value growth of 38% from last year, Estonia is the world’s fastest-growing national brand by 2021. The Baltic had already invested in digital infrastructure long before the Covid-19 pandemic broke out. No less than 99% of the country’s government services are offered online. 

Difference between brand value and brand strength

Although the UK´s brand value remains unchanged in 5th place, the strength of the brand has gone from 2nd position to 14th position. It is thought that COVID-19 has hurt perceptions of the world’s largest economies.

Myanmar and Ethiopia largest declines 

Myanmar and Ethiopia are among the fastest-declining national brands in the ranking. The turmoil in the two countries has caused significant damage to their national brand values, which have fallen by 26% and 22% respectively. Brazil’s brand value also declined. The country lost 12% of its brand equity and dropped out of the top 20 of the 2021 Brand Finance Nation Brands. 

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