One of the top priorities when investing in a new country is stability. The more stable a nation is (politically and economically), the more likely an investor’s investments are to succeed. Political instability can lead to things like social unrest, corruption, poverty and violence, all of which can unravel investments quickly, while economic instability isn’t conducive to business investment and growth.
With that in mind, here are three of the most stable countries for investors to invest in during 2023.
- St Kitts and Nevis
The Caribbean nation of St Kitts and Nevis is an incredibly stable nation that’s ripe for investment. Firstly, the country has high political stability, scoring well for political and civil rights and enjoying a long history of competitive and credible elections. Secondly, St Kitts and Nevis’s economy is thriving with industries like tourism, manufacturing and offshore banking offering a steady stream of income. The country’s economic prospects are also bolstered by the use of the East Caribbean Dollar. Pegged to the US dollar, it is shielded from the volatility experienced by other currencies.
But it’s not just the country’s stability that makes St Kitts and Nevis such an attractive investment prospect. Other reasons to set up shop there include the fact its official language is English, making it even easier to do business, the country’s business-friendly environment, and its encouragement of foreign direct investment. This is epitomised by St Kitts and Nevis’s citizenship by investment programme, which enables any non-national to easily invest in the country and gain citizenship in return for doing so.
Singapore is renowned as one of the world’s most investment-friendly countries, and rightly so. A big part of this is its stability — for example, Singapore was ranked at 97.64 % for political stability and absence of violence/terrorism in 2021. The country has a modified version of the UK’s Westminster parliamentary system, with each parliament sitting for a maximum of five years.
Meanwhile, Singapore’s economy is considered among the most stable in the world, with no foreign debt, high government revenue, and a consistently positive surplus. This is driven by its thriving electronics manufacturing, financial services and tourism industries in particular, as well as the world’s busiest cargo seaport.
Like St Kitts and Nevis, there are many other reasons to invest in Singapore. Its strategic location is particularly enticing — it’s within a six-hour radius of all other Southeast Asian countries, including China. It also boasts great investment opportunities, low tax rates, and the use of English as one of its official languages (alongside Malay, Mandarin and Tamil).
The Western European country of Luxembourg rounds off our list, and what it lacks in size, it certainly makes up for in stability. Luxembourg is among the most politically stable countries in the world. Its economy is thriving, with the country boasting the highest GDP per capita according to the IMF, while also being one of just nine countries with an AAA rating for its creditworthiness. Key to this is Luxembourg’s flourishing financial industry, which is ranked the tenth most-competitive in Europe.
In addition to its stability, Luxembourg also offers advantages like being in the EU, close proximity to other economic giants like Germany and France, low taxes, and a business-friendly environment. This is illustrated by the fact that the country has the fourth-highest number of startups per capita in Europe. And while French, German and Luxembourgish are the country’s official languages, over 80% of its population can speak English.