Italy has slipped from third to fifth place in the Country Brand Index drawn up for the third year in a row by the FutureBrand consultancy firm.
Australia once again topped this year's list followed respectively by the United States, Britain and France.
After Italy came Canada, Spain, New Zealand, Greece and Japan, respectively.
FutureBrand said it selected countries which ''stand out as strong and successful brands across a variety of categories. The rankings speak to both decision-making considerations, as well as country assets that all contribute towards shaping country reputations, perceptions and experiences''.
''A strong country brand provides an opportunity for a country to showcase its values across every government sector,'' observed FutureBrand executive director Rina Plapler.
In order to draw up its ranking, FutureBrand developed a three-level evaluation system ''which incorporates quantitative research, expert opinions and references relevant statistics that link brand equity to assets, growth and expansion,'' she added.
The catogories examined were: authenticity, history art and culture, resort/lodging options, families, outdoor activities and sports, beaches, natural beauty, environment, rest and relaxation, safety, value for money, fine dining, shopping, night life, friendly locals, most like to live in, ideal for business, easiest to do business, extend a business trip and conferences.
Italy made the top ten in only eight of these categories coming in first for history, up from second place last year, and again this year for fine dining.
Italy's biggest gain was from fourth place to second in the category of place to extend a business trip, while it placed third for shopping for the second year in a row.
The country ranked fourth for being ideal for business, seventh for its nightlife, eighth for being family-friendly, up one spot from 2006, and 10th for the place people would most like to live in.
