Best Countries to Invest In During Recession

Countries to Invest In During Recession

Recession season is that period when the entire economic activities of a country experiences convulsion. This time, inflation rate skyrockets, unemployment rate surges, and the value of the country’s currency depreciates, thus birthing a drastic reduction in the standard of living of the entire population. No doubt, COVID-19 has hit the world real hard. Officials of the United Nations Conference on Trade and Development (UNCTD) in its previous annual World Investment report predict that the foreign direct investment flowing globally would be pressurized, hence recession may ravage the entire world, especially the developing countries.

Be that as it may, some investors who are shrewd in their approach make an astounding financial fortune during this period. In this article, you would be shown the best countries to invest in during this season of recession, what product you should keep an eye on and their possible ROI.

According to the Unites States News & World Report (n.d), there are basically five best countries in the world to invest in, especially during recession period. These five countries are scattered across the Europe, Asia, and Latin America. Hence, the succeeding lines will address them concisely, including revealing research-based facts and figures to justify why you need to invest in them.

Five Best Countries to Invest in During Recession

5. Malaysia

The US News & World Report ranks Malaysia as the No. 5 best country suitable for investment yielding because according to past performance and result, this country is said to attract foreign investors due to its recent reduction in the foreign ownership of real estate’s minimum price threshold.

Additionally, survey participants also reveals that the country thrive in the following areas (1) skilled workforce (2) low corruption (3) favorable tax (4) technological expertise, and (5) economic stability.

GDP: $ 365 billion

Population: 31.9 million

GDP PC PPP: $ 11, 433

4. United Arab Emirate

With its concentration on foreign direct investment in such economic sectors as trade, finance, real estate, manufacturing, insurance, mining and construction, research reveals that the United Arab Emirate witnessed an increase of 32% in her foreign direct investment inflow between 2018 and 2019. However, albeit the country’s economy witnessed a major set back from Corona Virus in 2020, nonetheless, it has in recent times regained its momentum.

The United Arab Emirate is ranked as an entrepreneurial, innovative, skilled and tax favourable country by survey participants.

GDP: $417 billion

Population: 9.77 million

GDP PC PPP: 42, 701

3. Lithuania

Lithuania is no doubt a country to invest in. Although, UNCTAD in its 2020 World Investment Report reveals the country to have witnessed a slight decrease in its foreign direct investment inflow from $1 billion to $975 million between the 2018 and 2019, nonetheless, the country is sure a best bet for investment as it had since restore its economic buoyancy.  The country’s foreign direct focuses on such sectors as manufacturing, financial, wholesale, IT services, retail, and insurance.

Lithuania is low in corruption, dynamic, and has skilled and experts in its labor force, survey participants had reveal.

GDP: $54.7 billion

Population: 2.79 million

GDP PC PPP: $19, 576

2. Indonesia

Ranked as the second-best country to invest in in the 2021 Best Countries rankings by survey participants based on the following premises (1) highly favorable tax environment (2) skilled labor force (3) creativity, and (4) resilience.

In spite its reduction in production rates and auto sales, including a major set back caused by the pandemic, Indonesia is considered a country with vast prospect for investment as its automobile industry is set to be transformed by several Japanese firms.

GDP: $ 1.12 trillion

Population: 217 million

GDP PC PPP: $4, 135

1. Mexico

Recognized as the #1 largest economy in Latin America, Mexico tops the list of the best countries you can invest in especially during this recession period. The country’s major foreign direct investment comes from the United States.

Like many countries of the world, Mexico was not left behind in the economic backlash, however, the International Monetary Fund Forecast predicts an increase of 3.5% and 2.3% in the country’s economy for 2021 and 2022 respectively, hence the country’s economic resilience.

GDP: $1.27 trillion

Population: 128 million

GDP PC PPP: $ 9,950

What Product to Invest in During Recession and there Respective ROI?

Disclaimer: Kindly note, the investment snapshot highlighted in the succeeding lines does not in anyway tends to replace or oust a professional investment advice but to serve as a clue, hence should you need a comprehensive financial advice, kindly consult a Financial and Investment professional. 

1. Dividend Stocks (Shares, Equities)

ROI: 2% to 5% (annually)

• Real Estate ( Lands, Homes)

ROI: 10% to 15% (annually)

• Precious Metals (Gold, Diamond, Silver)

ROI: 10% to 20% (fluctuates annually)

• Core Sector Stocks (Healthcare stocks, Energy  stocks, Utilities)

ROI:   7% to 15% (annually)

• High Yield Savings Account (Fixed Deposit,  Personal Savings)

ROI: 3.00% to 7% (annually)

• Stock Funds (ETF or Mutual Funds)

ROI: 105% to 107% (every 5 year)

Conclusion

Based on the foregoing comprehensive analysis and illustrations, I hope you are able to garner all the information to make the best investment decisions on what country to invest in, especially during this recession period, including deciding the best product to venture into based on their expected ROI.