Are you considering investing money abroad in the new year? Whether you’re an experienced investor or a total novice, it’s imperative that you familiarise yourself with the current investment climate before you do, as you don’t want to be throwing your money down the drain.
In this piece, we’ll outline some of the best nations to invest in for 2019.
St Kitts and Nevis
The first nation you should be looking to invest in is the gorgeous Caribbean nation of Saint Kitts and Nevis. The two islands are set for significant growth in upcoming quarters, with Saint Kitts and Nevis’ thriving tourism and construction sectors underpinning a strong economic performance. In fact, the country is predicted to enjoy a 3.2% GDP growth in 2019, and is projected to outperform the Caribbean region economically in the medium term.
The nation’s tourism sector—which accounted for around 26.8% of its GDP in 2017—is expected to grow significantly in the near future, with the US economy’s strong performance driving demand to travel there. Various American aviation firms—including Delta and American Airlines—have expanded their non-stop flight offerings to Saint Kitts and Nevis in recent times. Tourists are becoming increasingly enamoured by both of the islands’ beautiful beaches, wondrous landscapes and array of activities, from snorkelling to rainforest hikes. The success of this sector therefore makes the country ripe for investment.
Strong infrastructure investment by the Saint Kitts and Nevis government is another reason why the islands are a great bet for investors, as this will create construction sector growth, which in turn boosts employment and private consumption. Recent project announcements include a new cruise pier, airport renovations, and a new bus terminal. As part of this, the government is focusing on making the country more sustainable through its Sustainable Growth Fund, and has invested heavily in measures like wind farms and harnessing geothermal energy.
This expenditure has been funded by the country’s highly regarded citizenship by investment programme, where applicants receive Saint Kitts and Nevis citizenship in return for an economic contribution to the country. Their CBI programme was recently rebranded as the ‘Platinum Standard’ of second citizenship because of its efficiency and integrity, and is a great investment route in its own right. Here, investors can contribute to the Sustainable Growth Fund and the Sugar Industry Diversification Foundation, as well as invest in the nation’s flourishing real estate market.
There are also plenty of incentives for foreign investors, like tax breaks and exemption from import duties, making the country an even more viable investment option.
Another country you should be looking at is the Philippines—in fact, the nation was the named 2018’s best country to invest in by US News and World Report. This is no surprise, as the Philippines is on a rapid upward trajectory. It enjoyed a huge 6.7% GDP growth in 2017, and experts are predicting it to be the second fastest growing economy in Asia (behind India) in the next few years, and the world’s 15th largest economy by 2050.
A huge driver of the country’s success is its newly industrialised economy, which has evolved away from its agricultural focus towards a much more service-based model in recent years. The agriculture sector now only accounts for 9.6% of the Philippines’ GDP, with the service sector accounting for a mammoth 60%. A massively important segment of this sector is the travel and tourism industry, which the US News and World Report research cited as a major reason for the nation’s prosperity. The sector contributed 3.35 trillion Philippine pesos to the economy in 2017—around 21% of the nation’s GDP. With the industry expected to grow by roughly 5.8% annually to be worth 6.24 trillion pesos by 2028, it is no wonder the country is favoured by investors.
Other factors behind the Philippines being deemed the world’s best country to invest in include an expanding middle class, a politically stable environment, strong fiscal discipline, membership of the ASEAN (Association of Southeast Asian Nations), and an achievable infrastructure program. Like St Kitts and Nevis, there are also various incentives for foreign investors, such as tax breaks, which again make this thriving Southeast Asian nation an ideal place to invest in in 2019.
Poland is the place to invest in Europe. The country enjoyed $14.8 billion of foreign investment in 2017, making it the third highest ranking FDI destination in the continent behind the UK and Russia. The nation has the largest economy in Central Europe, which is mainly focused on exporting machinery and transport equipment to Germany. It enjoyed 4.6% GDP growth in 2017, and was one of the largest growing economies both before and after the financial crisis, with Poland’s GDP doubling in the last 25 years or so. Its 38 million strong consumer market is one of the largest in Europe, with the nation’s ideal Central European location making it easy to reach the continent’s 500 million plus consumers.
Specifically, the country’s automotive, renewable energy and electronics industries are just three of the sectors touted by the Polish government as those with great investment opportunities. In addition, the government also offers a wide range of investment incentives, with grants provided for those investing in various industries. All of this serves to make Poland one of the best countries you can invest in for 2019.
If you’re looking to invest abroad in 2019, then Saint Kitts and Nevis, the Philippines and Poland are all great bets. Each have strong economies and exciting investment opportunities that should yield substantial returns in no time.