Goldman Sachs: Low Investment, Deflation Potential Dampers On Growth

Low investment rates and the risk of deflation are dark spots for developed markets in what's been a stable 2014 worldwide environment for growth, an analyst said Wednesday.

Goldman Sachs' Dominic Wilson issued a report card of sorts, what he called the Growth Environment Score for the entire world, and said it's little changed in the past year.

Wilson said depressed investment and potential deflation in developed markets are "ongoing challenges" stemming from recent financial crises and related policy responses.

Wilson's nation-by-nation scorecard seeks to measure the potential for growth in light of local political conditions, economic stability, human capital and technology.

During 2014, Wilson said small gains in emerging markets were offset by slight declines in the developed world.

Despite this trend, gains in emerging markets during 2014 were well below the underlying rate of improvement over the last 10-15 years.

Overall, Singapore remains the highest-ranked country on Wilson's list, despite a slight slip from 2013.

Hong Kong, South Korea, Norway and the Netherlands continued to round out Wilson's top five.

Eritrea is at the bottom of the rankings for the second year in a row.

Where's the United States? Wilson ranked it at No. 26, just behind Taiwan and a little above Japan.