Germany has been named the best country in the world, in a new report launched at the World Economic Forum's Annual Meeting in Davos last week.

Canada and the United Kingdom took second and third place respectively in the list of Best Overall Countries, which is based on how people around the world perceive 60 nations.

The rankings and analysis project is a joint initiative by US News & World Report, ad agency WPP's BAV Consulting and the Wharton School of the University of Pennsylvania. It aims to show how nations are perceived on a global scale and forms the centrepiece of a new web portal, Best Countries.

Germany is highly regarded around the world for its robust economy, influence on global flashpoints such as the conflict in Ukraine and its leadership role on Europe’s refugee influx and the Eurozone debt crisis.

The country also gets high marks for its worker training schemes and corporate innovation, and people view it as the best place for fostering entrepreneurship.

The United States is ranked fourth, followed by Sweden in fifth place. Nordic nations were rated highly for their progressive policies and come top most categories. Sweden is recognized as the most modern country, the best country to raise kids and the No1 nation for green living. Denmark is named the best country for women.

"Best Countries is a product of the most extensive data set ever collected on how nations are perceived globally," said John Gerzema, CEO of BAV Consulting.

"These perceptions contribute to a greater narrative about future drivers and deterrents of economic prosperity in nations, and shape powerful brands that impact a country's bottom line."

The report evaluates 60 nations across 24 rankings on a wide range of criteria, from sustainability to economic influence. The data is drawn from a survey of the perceptions of more than 16,000 global citizens.

Collectively, the 60 countries in the report account for about 90% of global gross domestic product and represent about three-quarters of the world’s population. They span the globe, covering Africa, Asia, Central America, Eurasia, Europe, the Middle East, North America, Oceania and South America.