Best Countries To Invest In 2016
More than $1 trillion is pumped around the world in foreign direct investment each year, a country’s share of which is sometimes thought to signify its value and potential to the world.
Investors are drawn to what they don’t have. The things that make a country unique – its people, environment, relationships, framework and teachings – create four distinct factors identified in a report by the World Bank Group that motivate an individual or corporation to invest in that country: natural resources, markets, efficiency and strategic assets like technologies or brands.
The six key drivers they have used to determine countries’ attractiveness are the following:
- Economic activity,
- Depth of capital markets,
- Investor protection and corporate governance,
- Human and social environment,
- Entrepreneurial culture and business opportunities, which encompass aspects such as innovation capacity, the ease of doing business and the development of high-tech industries.
As of 2014, China has the world’s second-largest economy in terms of nominal GDP, totalling approximately US$10.380 trillion according to the International Monetary Fund. If purchasing power parity (PPP) is taken into account, China’s economy is the largest in the world, with a 2014 PPP GDP of US$17.617 trillion. In 2013, its PPP GDP per capita was US$12,880, while its nominal GDP per capita was US$7,589. Both cases put China behind around eighty countries (out of 183 countries on the IMF list) in global GDP per capita rankings.
Despite a slowdown in industrial and economic growth in 2015, China’s industrial production growth rate of 7.3% for 2015 is incredible considering the size and population of the country. There are many possibilities for venture capitalists and equity investors in China; the difficulty lies in choosing from the vast supply of opportunities. The political environment in China is very stable relative to other countries with high industrial growth rates. The Chinese government’s 2016-2020 Five-Year Plan seeks to create a society without a middle class by 2020, with income stratification limited to low- and high-income households. China’s state-owned enterprises (SOEs) are currently valued at assets of $15.7 trillion, and the government plan is likely to make way for more private enterprises that will offer additional investment opportunities.
2. Czech Republic
The Czech Republic experienced growth of 4.4% in 2015, making it the fastest-growing economy in Europe. The second quarter of 2015 marked the highest rate of growth in 10 years at 2.5%.Growth has been led by exports to the European Union, especially Germany, and foreign investment, while domestic demand is reviving.
Most of the economy has been privatised, including the banks and telecommunications. A 2009 survey in cooperation with the Czech Economic Association found that the majority of Czech economists favour continued liberalization in most sectors of the economy.
The country uses the Czech koruna rather than the euro. Policymakers supported economic growth in 2015 by maintaining a weak currency while promoting a less restrictive budget. The spur in growth comes as a form of economic correction; the country exited a recession in 2013. Expansion in the Czech manufacturing sector with strong retail consumption implies the country’s market is worth serious consideration for investors.
3. United States
In consideration of the Federal Reserve’s recent interest rate hike, policymakers have offered a positive outlook on the U.S. for 2016. The increase is a reflection of perceived recovery. A recovery in the U.S. signals that investors should pour funds into promising American industries.
The United States has a capitalist mixed economywhich is fueled by abundant natural resources and high productivity.While falling gas prices may negatively affect the bottom lines of oil companies, the positive effects will reach the food service and transportation industries. Unemployment rates have fallen in 2015, and projections suggest that over 2 million jobs will be added to the U.S. job market in 2016. The continuing strength of the U.S. dollar is likely to aid the growth of domestic companies in 2016 and beyond.
India is in the stage of economic development that China was in a decade ago. There is a lot of room for growth in urbanization, gross domestic product (GDP) and business expansion. Foreign investment companies have already given billions to India’s real estate and health care industries with the expectation of increases in profitability. India’s government has set plans to reduce the corporate tax rate from 30 to 25% over the next four years in an effort to attract business activity. The World Bank forecasts an increase in India’s GDP by 7.9% in 2016. The International Monetary Fund (IMF) projected a 2016 growth rate for India of 7.5%. The IMF stated that India is in a highly favorable position for economic growth
Located in Southeast Asia, India sits on a peninsula that extends between the Bay of Bengal and the Arabian Sea. The country, the birthplace of Hinduism and Buddhism, is the world’s second most-populous nation after China, and has roughly one-sixth of the world’s population
India has a fast-growing, diverse economy with a large, skilled workforce. But because of its population, it’s also one of the poorest countries in the world based on income and gross national product per capita. Although agriculture employs the most workers, services are the major source of economic growth. Due to its educated, English-speaking workforce, India has become an important center of information technology services, business outsourcing services and software workers.
The film industry based in Mumbai, nicknamed Bollywood, makes more feature-length films than any other nation in the world. The country has had three Booker Prize-winning authors since 1980, including Salman Rushdie, and produced world-famous virtuosos Ravi Shankar and Ali Akbar Khan.
India is a member of several international organizations, including the United Nations, the World Bank and the Asian Development Bank.
Is a bustling metropolis in Southeast Asia and home to one of the world’s busiest ports. The vast majority of its 5.7 million citizens live on the eponymous capital island, and dozens of surrounding islands complete the city state.
One of Asia’s four economic tigers, Singapore has seen impressive growth in recent years as efficient manufacturing and production practices have made way for free-market innovation in the booming electronics and pharmaceutical industries. Gross domestic product per capita is high and unemployment is low, making Singapore one of the wealthiest nations in the world.
Space constraints coupled with rapid population growth contribute to concerns about the rising cost of living and income inequality. Conservation, land reclamation efforts and improved environment-friendly practices amid the urbanization and industrial pollution are also a focus.
Four official languages – Mandarin, English, Malay and Tamil – cater to the diverse population of a nation that has been an important gateway for international trade. Singapore headquarters the Asia-Pacific Economic Cooperation and is a member of a number of additional international organizations, including the ASEAN Regional Forum, the United Nations and the World Trade Organization.
Shares long stretches of its borders with Cambodia, Laos and the South China Sea. “Doimoi” economic policy reforms beginning in 1986 have helped The Socialist Republic of Vietnam transition to a more modern, competitive nation. State-owned enterprises and agriculture, which once monopolized the economy, are losing prominence as the nation works to achieve sustainable development through more open trade and industry, including food processing, garment manufacturing, machine-building and mining. The United States is now the nation’s most prominent trade partner.
Similar advancements have not been made in human rights. Political and religious expression are tightly controlled, and dissenting views are met with harsh punishments. Ethnic minorities are especially vulnerable. Though poverty levels overall have declined, stark economic disparity exists between urban and rural areas.
Vietnam’s continued efforts to lessen international isolation are evidenced by its membership in the World Trade Organization in 2007 and participation in free trade negotiations with the Trans-Pacific Partnership in 2010. It is also a member of the United Nations, the ASEAN Regional Forum and the Asia-Pacific Economic Cooperation Forum, among other international organizations.
7. The Republic of Ireland
Is an island nation in the Atlantic Ocean, separated from Britain on the east by the Irish Sea. Irish culture has been largely influenced by the Celtic tribes who reached Ireland around the 6th century B.C. In the following centuries the country endured invasions by the Vikings, Normans and British. After a bloody fight for independence and civil war in the early 20th century, Ireland became a republic in 1949.
Ireland has a small, trade-dependent economy. While Ireland’s rapid economic growth came to a sudden halt in 2008, today the Celtic Tiger is once again roaring, with low taxation policies in place to encourage international business development. The country’s export sector, dominated by foreign multinationals, has become an increasingly important component of Ireland’s economy. Not everyone is prospering equally, however, and some experts have raised concerns about the country’s inequality.
Ireland is a member of several international organizations, including the United Nations, the European Union and the Organization for Security and Cooperation in Europe.
Which translates to “land of the free,” is the only Southeast Asian nation that did not encounter European colonization. Located just above the equator, the nation is wedged into the Indochina peninsula with neighbors Myanmar, Laos and Cambodia and has an arm that extends out to Malaysia.
A substantial agriculture sector and competitive manufacturing industry have kept Thailand strong and growing with low poverty and unemployment rates. It is the world’s largest exporter of rice and a leader in textiles, tin and electronics. Western education and technology have been absorbed into a devout Buddhist society.
Thailand is one of the world’s most visited countries, though tourism accounts for just 7 percent of gross domestic product. Buddha figures are ever-present in the “land of smiles,” where bustling, modern cities are juxtaposed with ancient ruins, glistening beaches and gilded temples. The nation is home to the acclaimed Thai massage and cuisine that is known to balance sweet, sour, salty, bitter and spicy flavors.
Thailand was a founding member of the ASEAN Regional Forum and a signer of the Manila Pact, which formed the Southeast Asia Treaty Organization. It is also a Partner for Cooperation with the Organization for Security and Cooperation in Europe and a member of the United Nations, APEC and the World Bank, among others.