Throughout the UK and much of Europe, slowing household spending growth has caused many economists to take something of a cautious look at the future.
According to PWC, the UK’s gross domestic product is projected to grow by an at best modest 1.4% in 2019. In 2020, GDP growth is predicted to slow even further to a somewhat concerning 1.3% for the year.
This situation isn’t unique to the UK. Throughout Europe, North America, Oceania and a range of other industrialised countries, growth is projected to slow. Even China, which for a large part played the role of the world’s growth centre for the last decade, is starting to slow down.
As a result, a growing number of UK-based individuals and businesses are looking abroad for new investment opportunities, including in high-growth emerging markets. Below, we’ve looked at the world’s best places to invest in Asia for optimal growth in 2020, 2021, and 2022.
Although Singapore’s economy isn’t growing particularly quickly — based on data from Trading Economics, it’s projected to grow just 1% during 2019 — its access to rapidly-growing emerging markets in ASEAN and its solid legal system makes it a popular choice for investors.
As one of the world’s wealthiest city-states, Singapore has long been a favourite for investors in the UK and Europe. The country’s reliable banking system and free market economy allows for an easy, home-like experience, with a common law legal system adding to its benefits.
Singapore also offers an investment visa program, referred to as the Global Investor Program, that has made it a favourite of high-net-worth individuals seeking to gain a second country of residence.
Once one of the world’s most impoverished countries, Vietnam opened its doors to investment from abroad in the mid-1980s and has since developed into one of Asia’s fastest-growing and most dynamic economies.
In 2018, Vietnam’s economic growth rate topped seven percent. Much of the country’s growth has been driven by increases in manufacturing, as well as the opening up of the country’s real estate market.
From July of 2015, Vietnam opened its property market to foreign investors, resulting in a boom in real estate aimed at foreign investors. This has led to a subsequent increase in values, with the average apartment price in Ho Chi Minh City, or Saigon, surging 22.7% in Q1 of 2019.
Despite this, as a developing country, Vietnam still has several issues that may cause concern for foreign investors. Chief amongst these is the difficulty of repatring any gains from property investment, which can be challenging due to Vietnam’s restrictive money transfer laws.
Another developing economy, India has posted impressive growth rates over the past decade that show no sign of slowing down. According to a recent UN report, India was one of the top countries attracting foreign investment inflows and a global target for investment.
Part of India’s appeal is the gigantic scale of its domestic market. Unlike many other emerging markets, which are often heavily dependent on exports, India’s large population may eventually allow it to build a strong, self-sustaining consumer market for its own goods.
In the meantime, India’s manufacturing and exporting boom is very much underway, with auto manufacturers and manufacturers of consumer goods looking to tap into India’s large pool of workers to avoid fallout from the growing US-China trade war.