Which are the Most Economically Stable Countries to Move to in 2023?
Posted by Sophie Grosvenor on May 15th, 2023.
In the introduction to the organisation’s interim report for March 2023, authors mention the risks of high political uncertainty, trade tensions and financial vulnerabilities. The effects are expected to be widespread: but in the report itself, analysts show that some countries are likely to be worse affected than others.
This article considers the countries most and least affected by recent events, suggesting which may be the most economically stable locations for new expats to move to in 2023.
The Pandemic Fallout
The most significant events to upset economic stability in the past several years have included the Covid-19 pandemic and the war in Ukraine. More recent events have in most cases been directly or indirectly triggered by one – or all – of these three factors.
The pandemic hugely disrupted business productivity via supply chain disruption and worker shortages. Labour shortages increased across all industry sectors in 40 global economies, according to the OECD: approximately 54% of companies reported talent shortages in 2019 compared with 69% in 2021.
Meanwhile, the ongoing effects of Russia’s invasion of Ukraine, which began on 22 February 2022, include skewed commodity prices and inflationary pressures around the globe. Economic projections have been revised down globally since the outbreak of war, as established migration and trade routes remain disrupted.
Countries Most Affected
As mentioned, growth has slowed on a global scale due to the combined effects of the Covid-19 pandemic and the war in Ukraine. However, some countries bear the brunt of the fallout while others have already made an impressive recovery.
One of the most affected countries is the United States of America: annual GDP growth in the US is projected to slow to 1.5% in 2023 and 0.9% in 2024 as core inflation remains elevated. Growth is also expected to remain limited in the Asia-Pacific region: across Japan and Korea.
In the latter two countries, output has been limited thus far by stagnation in Japan and a decline in the Korean tech sector. Economic growth in China was also held back by repeat outbreaks of Covid-19.
The OECD mentions that developing economies outside the G20 group have been struggling against an economic downturn as interest rates climb in more advanced economic regions. Brazil and South Africa are expected to see sluggish growth rates over the next few years.
Headline and core inflation are likewise forecast to remain persistent across the Eurozone. The effect of higher energy prices has yet to be fully felt, economists suggest, while trade-related tensions linger; obtaining sufficient supplies of natural gas for winter 2023/2024 is a concern.
Stable Economies in 2023
Due to the delay to reopening, China is expected to experience the same rebound in growth in 2023 as many other G20 countries experienced in 2024.
As a result, countries such as Australia, New Zealand and South Korea, with close trading links with China stand to perform well this year.
ING also forecasts a stronger year ahead for the Indian economy, citing good growth momentum, strong credit growth and a supportive budget environment. In 2022, India had one of the fastest-growing economies in Asia as consumer spending and capital expenditure supported growth.
Elsewhere, the Japanese economy is projected to grow between 1-1.5% per annum in 2023 and 2024. A report by the United Nations suggests that Japan’s economy is expected to be among the better-performing developed economies this year – despite rising import costs. While the Yen (JPY) is weakening, monetary and fiscal policy are still accommodative.
Moving to an Asian Country
For expats who decide to capitalise on growth forecasts in parts of Asia, there are a wealth of amazing locations across the continent to set up home.
Singapore, Hong Kong and Japan are tried-and-tested expat hotspots: Singapore ranked in the top ten expat destinations along with Indonesia, Taiwan and Thailand in the latest InterNations report.
In terms of cities, InterNations rates Bangkok for its health and wellbeing aspects, local friendliness and affordability. The city-state of Singapore, meanwhile, boasts impressive leisure options and job security.
Protecting your assets
Wherever you choose to relocate, you will want to take steps to protect your money from any unfavourable shifts in the currency market.
At Torfx, we offer a range of currency exchange services that can help save you time and money with relocating abroad. Torfx offers excellent transfer rates and 5-star service, with personalised support and 24/7 access to transfers.
Spot Contracts provide an instant and immediate service that is ideal for quickly moving funds abroad.
If you’re planning your transfer in advance, a Forward Contract can allow you to lock in a target exchange rate for up to two years. This protects your money from any negative market movements.
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