During the start of the pandemic, businesses were pushed to a temporary close. However, despite the temporary closures, many business-owners remained hopeful for the future. But once businesses reopened in September last year, many remained closed. About 60% of businesses that temporarily closed never reopened and this hit the US economy hard. Industries such as the US Airline industry lost billions of dollars to the pandemic. The Dow Jones Industrial Average, one of the most valued stocks in the stock market, dropped by a staggering 30%, a percentage drop that no one expected. This was a wake-up call for many US investors to fund their money elsewhere. However, the question still lies, are other countries faring any better?
The Global Economic Outlook During the Pandemic
Many countries are hit hard by the pandemic. It’s not only the United States that received a devastating blow; many regions such as South Asia, Central Asia, North Africa, and Europe are all expecting for their economy to contract by at least two to seven percent. In addition to this, millions of livelihoods are at stake, making the worldwide economy even more volatile.
In the worst-case scenario, it’s expected that the economic growth from all countries in the world would shrink by 8%. A shrink that has never happened before. However, despite this, some individual countries are finding success amidst the pandemic.
Saudi Arabia
One of the growing countries during the pandemic is Saudi Arabia. The country has seen meager growth during the last few years. In 2019, the country only saw a 0.3% increase in GDP and economic development of 2.4%. In 2020, the country’s economy shrank by a staggering -7% because of the government’s travel restrictions and quarantines. However, the International Monetary Fund (IMF) expects that the country will receive one of the most significant growths this year.
Many experts believe that Saudi Arabia would receive a 2 to 4% increase in 2021, marking a significant shift of economic growth that could be one of the biggest in the Middle East during the pandemic. This means being a part of the Islamic foreign exchange market is becoming even more attractive. Because aside from this massive increase, the Saudi Riyal is expected to increase against the US dollar.
This optimistic growth is due to the country’s economic nature. Many businessmen are always willing to invest their money in Saudi Arabia. It’s only recently that the country decided to diversify its economy, making it one of the world’s best countries for any aspiring businessman to set down their roots for their company.
China
China’s economy has seen constant growth for the last twenty years. Although the pandemic hit the country first during the start of 2020, its economy shows no signs of waning. Being one of the few countries that received economic growth (2.3%) in 2020, many investors are eyeing China to be one of their favored spots for Foreign Direct Investments (FDI).
China’s economic structure is centered on manufacturing. It became one of the biggest exporters of protective equipment last year, accounting for at least 43% of all PPEs shipped to other countries. Moreover, the country’s exports have seen tremendous growth since November 2020. It seems that nothing is stopping China’s economic growth as it seems everything is according to plan for them. However, it isn’t recommended to be a part of China’s foreign exchange market since the Chinese Yuan never grows because of the tight grip that the government has on it.
Vietnam
Vietnam is one of the countries in the world that have skipped on the pandemic. Vietnam has practically one of the lowest infection rates globally, with only 1,537 confirmed cases and 35 deaths last year. The success of the country’s fight against the pandemic is attributed to its proactive containment strategy, robust healthcare system, and a strong central government. These factors are signs of remarkable economic growth within the country, which is shown through its statistics.
In both 2018 and 2019, Vietnam’s GDP has received a substantial 7% growth. The country has also shown great resilience despite its economy being hit by the pandemic. The country’s GDP growth rate is expected to be between the 2 to 3% mark, higher than most countries in the world.
It’s undoubtedly the best time to invest in Vietnam’s developing country. As more infrastructure rises and more businessmen see the potential in Vietnam’s economic system, the country’s GDP will continually substantially grow and reach record-breaking heights. Being a part of that growth is essential for any aspiring investor.
Although many countries have taken a big hit, some have survived and even flourished despite the pandemic. Investing in these countries is essential if you want your money to grow. Additionally, it’s never wrong to invest back into your country even if its economy has shrunk by two percent because there is still a chance that it will bounce back after the pandemic has ceased.