7 Economic Wonders of the World
It is important to call attention to the few nations that defy the general pessimism at times of doom like this one, when analysts only see problems in the majority of nations.
Vietnam, Indonesia, India, Greece, Portugal, Saudi Arabia, and Japan are the seven nations that stand out in a world that is on the verge of recession and rising inflation.
They are similar to other countries in that they have relatively robust growth, moderate inflation, and strong stock market returns. By an amazing coincidence, the majority of them also reject pervasive prejudices regarding the ostensibly dim futures of specific nations, cultures, and political structures.
Vietnam, effective communism
As geopolitical tensions with China rise, Western corporations are hedging their bets by implementing a “China plus one” approach, with Vietnam frequently serving as the “one” additional sourcing location. Vietnam has set itself up to benefit while China slows by making significant investments in the infrastructure needed for a manufacturing export power, including highways, ports, and bridges, as well as by opening its doors to trade. It is expanding at the fastest rate in the globe, at almost 7%.
Indonesia, a prosperous country Islam
The most populous Muslim nation, Indonesia, has often been overlooked in criticism of the economic woes of Muslim nations because it has achieved significant progress.
It has abundant natural resources, is benefiting from the rise in global commodity prices, and is well-positioned to benefit from the demand for the building supplies needed to construct green infrastructure. Its 275 million-person domestic market, however, means that it is not unduly reliant on exports. In comparison to other developing countries, it has relatively little debt, and in a year when most currencies are declining precipitously against the dollar, it also has remarkably stable currency. As a result, Indonesia is a brilliant example of an economically savvy Islam, with a moderate mix of 5% growth and less than 5% inflation.
India’s insulted domestic market
India’s economy will continue to grow at one of the quickest rates in the world, despite the fact that its growth is always inflated by its low base. Just enough reform has been implemented by policymakers to entice investors who are now flocking to the second-largest emerging economy after being alarmed by China’s regulatory crackdowns. New investments in manufacturing and digital services are paying off, and India is protected from the global slump by its enormous and undertapped domestic market.
Some of the PIGS, the nations who were the centre of the eurozone’s debt problem ten years ago, are currently in resurgence mode. Over the past ten years, Greece and Portugal have reduced their government deficits as a percentage of GDP by more than half. Additionally, they are less susceptible than most of Europe to the current Russian gas supply shocks.
Greece, a strong European nation
A rise in international investment is helping the nation, as is a rebound in tourism, which the Covid epidemic had reduced from 20% to 15% of its GDP. Compared to 50% during the Eurozone crisis, less than 10% of bank loans are non-performing today. Inflation is declining, which is unusual in the current international context, and the economy is expanding at a rate higher than 4%. In summary, Greece is seeing one of the strongest recoveries in the region.
Portugal, PIGS are outdated
While a “golden visa” attracts a wave of wealthy new emigrants, the nation is sensibly investing billions of euros in support funding from the EU and revamping one of the continent’s most outrageously generous pension systems. Lisbon’s stock market is by far the most resilient in the developed world this year, which may not be a coincidence. Portugal and Greece are demonstrating that the PIGS term is no longer relevant.
Beyond oil: Saudi Arabia
The nation is leading the Gulf states in an effort to diversify beyond oil. The predicted growth has been increased to about 6% over the next two years because to reforms, which have also loosened restrictions on women, employees, tourists, and nightlife. Oil prices play a significant role in this boom, but other industries are also thriving.
The dictatorship is spending hundreds of billions to develop five new “smart cities” and transform five of its major metropolitan areas into “smart cities,” promising a future, car-free version of urban living. Even though the monarchy has received heavy criticism for its political repression and still has to make progress on human rights, it is also enhancing economic liberties and elevating this oil-dependent nation to the forefront of green growth.
Japan is lauding inflation
Japan is the nation on my list whose development is most unexpected given the general decline in the world economy. Japan is one of the few nations that benefits from the return of inflation, which is currently running at little over 2% per year. This is not too cold, but it’s also not too hot either, after being plagued by deflation for years. Profit margins have increased despite its allegedly poor corporate culture. Japan now has lower labour expenses than China. As a late reopening from Covid restrictions brings back tourists, the low value of the yen is encouraging exporters and could rekindle animal spirits in the market.
Of course, any of these economies could collapse if the leadership, policies, or complacency changed. Even so, the stock markets of these countries are already among the best-performing ones this year. A new group of winners is beginning to emerge amid well-founded concern about the future of the world.