Category Archives: Economy

Countries with the Highest Interest Rates in the World

Interest rates are the most potential drivers of any economy that define the pace for investment in the country and affects economy in number of ways that significantly change the basic indicator of growth and development. Countries with highest interest rate may see sharp decline in consumer spending since cost to buy on credit goes high. It is the most important tool to control inflation since reduced consumer spending decrease demands of goods and services however it is taken as the best technique to attract foreign direct investment.
Overall trends show that most of European countries are trying to maintain flat or negative interest rates that left little to no choice for investors to get higher yield but if you are searching for higher interest rate, then you can find emerging and frontier markets outside Europe.

Bases on report of TradingEconomics, Here we have The Six Countries with the World’s Highest Interest Rates Worldwide. These countries have bank policy rates of above 20%!

Ukraine (30%)
Belarus (25%)
Malawi (25%)
Gambia (22%)
Ghana (21%)
Argentina (20. 52%)

Top two countries with highest interest rate are from Eastern Europe but most Europe is maintaining flat or negative rate. Gambia stands at third place but their high yield is all eaten away by high prices.

Central Asia, South America, and Sub-Saharan Africa are the top three regions for highest interest rates.

South America countries with highest interest rate are Argentina and Venezuela, who have rates of 20.52% and 19.17% respectively. Malawi, Gambia, and Ghana are African countries which offer highest return to investors.

High yield is of no importance if it is eaten away by higher inflation so we need to consider it too while determining the real return of interest. Here are ten countries with highest interest rates after inflation.

Country Region Interest Rate (%) Inflation (%) Difference (%)
Gambia Sub-Saharan Africa 22.00 7.02 14.98
Uganda Sub-Saharan Africa 12.00 1.90 10.10
Suriname South America 11.98 2.30 9.68
Afghanistan Central Asia 15.00 6.10 8.90
Belarus Europe 25.00 16.71 8.29
Lebanon Middle East / North Africa 10.00 2.00 8.00
Djibouti Sub-Saharan Africa 10.61 2.90 7.71
Cape Verde Sub-Saharan Africa 7.50 (0.20) 7.70
Tanzania Sub-Saharan Africa 12.00 4.30 7.70
Moldova Europe 13.50 6.50 7.00

Five countries in Sub-Saharan Africa have highest interest rate with inflation decreasing rapidly these days. Interestingly, not a single country from Asia-Pacific got place in top ten.
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World’s Top 10 Poorest Countries with Lowest GDP per Capita

(GDP) represents the size of a country’s economy while per-capita GDP gives view of average welfare of residents which the sum value of the all of the finished goods produced annually divided by each country’s middle-of-the-year population. Since GDP is expressed in local currency so it is not effective in comparing economies across national boundaries to determine poorest countries of the world since it do not reflect differences in the cost of living. Therefore we need to adjust for differences in purchasing power. Converting GDP into common unit for comparison purpose distorts real income as well because exchange rates depends on demand and supply of currencies used in international transactions furthermore goods and services may cost more in one country than in another, so just finding countries with lowest GDP per capita is not enough to precisely list world’s poorest nations.

GDP at purchasing power parity is the most preferred method to make more accurate comparisons of standards of living across poorest countries since its take into account the relative cost of living and the inflation rates and generalized differences in living standards on the whole between nations.

Listed below are the top ten poorest countries with lowest per capita income.

Rank Country Lowest GDP PER CAPITA (PPP) Estimated Data Projection 2014 (Current international dollar)
1. Central African Republic 607.17
2. Democratic Republic of the Congo 703.734
3. Malawi 779.686
4. Liberia 881.565
5. Burundi 910.544
6. Niger 1,047.95
7. Mozambique 1,173.96
8. Eritrea 1,195.35
9. Guinea 1,313.10
10. Guinea-Bissau 1,435.58
Source : World Economic Outlook Database, April 2015, International Monetary Fund.

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Ten Poorest Countries in the World

Everyone wants his basic daily needs to be fulfilled but there are many poorest countries in the world where large number of people is struggling with scare resources. Most countries of the world identify poverty as a lack of money but poor people themselves think of poverty in much broader angle. Several poorest nations are considered poor so far as wealth is considered but wealth not the only factor to determine how much poor a country is. There are many other factors that need to be accounted while ranking poorest countries of the world. Just focusing on income will not give you actual intensity of poverty since poor person can go through many problems such as worst health or extreme malnutrition, a lack of clean water or electricity or little to no schooling, therefore all such indicators should be focused while preparing list of poorest countries of the world. Basically it is either less natural resources or less human capital  that cause inability to utilize their resources effectively as result most nations fail to feed their population. Due to scare resources, large population is unemployment that leads to hungry for food and vicious circle of poverty start engulfing whole society as result poorest countries start experiencing deprivation of basic needs and low technological development.

High income per capita is nothing if large proportion of people is deprived in basic facilities of health and education so in today’s world we need to look beyond GDP per capita to define poorest Countries of the world such as knowledge, longevity and access to basic resources that clearly define the quality of life and the development of human resources of the country.
The Global Multidimensional Poverty Index (MPI) is a tool designed to offer comprehensive picture of poverty level in different areas of a country which take into account multiple deprivations that each poorest person faces such as education, health, nutrition, sanitation, asset ownership and other factors essential for better living standards. It gives complete view of population living in poverty with easy comparison of countries that is considered such better than traditional income-based poverty measures.

According to this report, most of poorest people in the world by MPI live in South Asia, followed by Sub-Saharan Africa. The intensity of poverty is extreme in the countries with the highest proportion of poor.

Below we listed top 10 poorest countries in the world with high poverty rates based on Multidimensional Poverty Index (MPI).

Rank Country Multidimensional Poverty Index, winter 2014/2015 (Range 0 to 1) Headcount ratio: % of Population in multidimensional poverty Intensity of deprivation among the poor (Average % of weighted deprivations) % of Population In severe poverty (with intensity higher than 50%) % of Destitutes Proportion of MPI poor who are destitutes
10. Burundi 0.454 80.8 56.2 50.5 39.2 48.6
9. Mali 0.457 77.7 58.9 54.5 49.4 63.7
8. Guinea 0.459 75.1 61.1 54.3 43.8 58.3
7. Guinea-Bissau 0.462 77.5 59.6 55.5 47.0 60.7
6. Sierra Leone 0.464 81.0 57.3 54.7 47.8 59.1
5. Somalia 0.514 81.2 63.3 65.6
4. Burkina Faso 0.535 84.0 63.7 65.7 57.5 68.5
3. Chad 0.554 87.2 63.5 68.3 65.8 75.4
2. Ethiopia 0.564 87.3 64.6 71.1 58.1 66.5
1. Niger 0.605 89.3 67.7 74.3 68.8 77.1

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10 Most Affordable Housing Markets In America

Owning your own home is often seen as a life goal and buying of an ideal home at most affordable price is the demand of everyone which is quite hard to find since affordable home lacks many features u dreamed for. Housing market has become the most important economic indicators of a country’s prosperity because the housing market constitutes a significant fraction of any country’s economy. The cheapest housing depends on geographical and policy limitations which decide prices of home since both affects demand and supply of home. Less constraints on growth and on building results in unconstrained supply that leads to cheaper prices Similarly A sparsely populated area will likely have lower demand for residential homes compared to more densely populated areas. On the other hand, areas lacking high average income have most affordable home.

Finding a real estate agent with complete expertise is really hard especially when you are planning to buy most affordable house in any distant area of country like America. Coldwell Banker Home Listing Report, the most in depth housing market comparison in the United States analysed 2, 000 real estate markets in the country, on the basis of more than 51, 000 similar-sized four-bedroom, two-bathroom homes and provide complete help for world tourists and immigrants who want to buy home at cheapest price. Note that report provide the median price which is likely to be considerably lower or higher at some places.

With an lowest average home price listed at $64,993.03, Cleveland topped the list as the most affordable place in the country to pick up a new house. About 35% of homes are owned while 47% is on rent and 18% is vacant. It is the country’s most affordable market, where you can easily find four-bed, two-bath homes with just $64, 993.

If you are looking for most affordable housing market in the world, Americans will no doubt worth your money and provide better quality of life. Here are the cheapest housing markets in all 50 states of America, based on report.

Rank Market State Avrage Price in US dollar
1. Cleveland Ohio 64,993.03
2. Riverdale Georgia 68,206.85
3. Park Forest Illinois 75,647.06
4. Lake Wales Florida 82,330.00
5. Lithonia Georgia 94,076.47
6. Buffalo New York 97,288.00
7. Waukegan Illinois 98,226.39
8. Augusta Georgia 98,232.81
9. Cheektowaga New York 101,475.00
10. Parma Ohio 110,103.13

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Top 10 Countries With The Lowest Levels Of Public Debt

Public debt, also called “government debt” or “national debt, ” refers to the amount of repayables of government to other parties while external debt reflects foreign outstanding borrowing by public and private sector. It is normally presented as a percent of gross domestic product (GDP). Many countries have critical burden of public debts that put enormous pressure on country’s growth but best governments always maintain favorable balance of payment by keeping export surplus high and never go for deficit budgeting while making budget and take optimum advantage of their natural resources to keep their public debts at lowest level.

Countries, generating less from exports, experience shortage of foreign currency to pay for import that widen trade deficit, cause difficulty to service external debt burdens as a result foreign repayables may rise beyond sustainable levels. According to expert, small and poorest countries should keep public debt lowest upto 40% of GDP however bigger economies can afford to have debt higher than their GDP. Below are top ten countries with the lowest levels of public debt.

Rank Country % OF GDP (2013 est)
1. Liberia 3.30
2. Oman 4.40
3. Libya 4.80
4. Estonia 6.00
5. Kuwait 6.40
6. Tajikistan 6.50
7. Azerbaijan 7.50
8. Uzbekistan 7.60
9. Russia 7.90
10. Equatorial Guinea 11.00
Source: CIA factbook

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Ten Countries with the Most External Debt

External debt is inevitably to keep pace of development in the country but it is also considered  harmful for the economy if GDP is unable to  repay  current and future debt due to the inability to produce and sell goods and make a profitable return as result country may resort to more external debt and burden get accumulated. Since external debt are always payable in foreign currency to nonresidents and largely affected by exchange rate of currencies and if local currency depreciate or deliberately devalued to decrease import, burden of foreign debt also goes increased. Here are top ten Countries with the most external debt.

RANK COUNTRY GROSS EXTERNAL DEBT POSITION: 2013 First Quarter ( jan-mar) (US$ Billions)
1 United States 15,941
2 United Kingdom 9,307
3 Germany 5,539
4 France 5,304
5 Japan 2,827
6 Luxembourg 2,699
7 Italy 2,422
8 Netherlands 2,407
9 Spain 2,230
10 Ireland 2,146
Source: World Bank

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The 30 Least Prosperous Countries In The World

Prosperity is the key to bring peace in the world but due to deterioration in safety, security and freedom, most nations are come under threat of least development and consequently become least prosperous. Health and economic growth have strong link and countries, which spend the least on healthcare are in sub-Saharan Africa, are facing highest incidences of tuberculosis and of respiratory diseases and vulnerable to an outbreak like Ebola that eventually retard economic growth and prosperity. Increase in state violence, refugee numbers, weak health infrastructure, grievances, security risk and limited freedom is the common characteristics of least prosperous countries.

The Legatum Institute, a London think tank, attempted to rank the least happiest countries in the world based on The Prosperity Index that provide unique insight into how prosperity is forming and changing across the world and take eight basic variables into account while defining real happiness. Economy, entrepreneurship plus opportunity, governance, education, health, safety plus security, personal freedom and social capital are main focus of this index that have strong relation with prosperity.

According to the Prosperity Index, sub-Saharan Africa is the home to most of the least prosperous nations of the world. Of the 30 nations ranking at bottom of the index, 23 of those were African nations. The remaining are those struggling with freedom and economy or facing revolution and war.  Norway is the most prosperous nation in the world for the sixth year in a row, according to the report. Here are the 30 least prosperous nations.

The least prosperous countries are predominantly found in sub-Saharan Africa, with the Central African Republic bottom of the rankings, followed by Chad and Congo (DR).

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The 30 Most Prosperous Countries In The World

Prosperity has become vital to save the world, but security and freedom is under threat in most nations. The world has changed a lot in a few years and you can’t think that national prosperity is all about just wealth it has gone beyond it in today’s world. Even The US and the UK may not have an unblemished record when it comes to true prosperity. Neither is the freest country in the world. Economic growth is generally seen as vital for economic welfare, and indeed is one of the factors that is used as a measure of prosperity while other factors such as ease of private sector flourishing, primary education, political rights also have strong relationship with true satisfaction in life.

The Prosperity Index provide unique insight into how prosperity is forming and changing across the world and ranks countries on the basis of 8 core pillars of prosperity that gives satisfaction to its citizens including industry, education, health, freedom, opportunity, and social capital, the most comprehensive index that accounting for 96 per cent of the world’s population and 99 per cent of global GDP. According to research, countries that have strong familial bonds, charitable intent and high levels of trust are also the wealthiest and the most prosperous while those struggling with freedom and economy are far behind in the ranking. Nearly two thirds of European nations got place in top 30 prosperous countries.In the past six years, all areas of prosperity have increased due to increasing entrepreneurship and opportunity and in health. Here are the top 30 most prosperous nations:

According to Legatum Institute’s annual Prosperity Index, Norway is still the most prosperous nation in the world. About 85 % of population is satisfied with the quality of education in Norway. The country attained high ranking in the Economy (3rd), Health (5th), Education (5th), Governance (7th), and Personal Freedom (2nd) sub-indices.

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Top Ten Countries With the Highest Income Tax Rates

Taxes are very vital for society that helps to provide life’s basic facilities, such as education, infrastructures, health care systems and transportation.  Countries with highest tax rates provide better public care and income security to its citizens than rest of the world. Financing of Medicare and social security services can only be possible by imposing high taxes on top earners that’s called the sharing of burden according to wealth. In developed countries, tax rate is the highest and its contribution to GDP is almost doubled than developing world. It is the main source of revenue for the government that plays a key role in building up institutions, markets and democracy, serves as automatic stabilizers  that bridge the gap between those with more in life and those who have less in life. Highest tax rate is mostly imposed in wealthier countries to increase autonomy and reduce their long-term dependence on external aid.  Expenditures of the government, capital outlays, national defense,  education, health and other social investments  can only be finance by imposing as tax as highest as possible but on the wealthiest citizen of the country. According to survey done by KPMG (an audit firm) in 2011, top ten countries with highest tax rate are listed below:

Rank Country Highest Marginal Tax Rate
1. Aruba 58.95%
2. Sweden 56.6%
3. Denmark 55.4%
4. Netherlands 52%
5. Austria 50%
6. Belgium 50%
7. Japan 50%
8. United Kingdom 50%
9. Finland 49.2%
10. Ireland 48%
Source: CNBC, KPMG ( Audit Firm )

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Which Country is Best to do Business in?

Every Investors/entrepreneurs don’t want to lose sight of certain aspects which are important for their business to spread globally. The EIU (Economist Intelligence Unit) has released a new report entitled Business Environment Rankings that defines attractiveness of the business environment in the reported country. It is calculated on the basis of historical conditions as well as future that is expected to be prevailed over the next five years. This report lets investors know which country is best to do business in   and give a complete view of environment before formulating strategies to expanding their empire globally. The rankings considered ten different categories, covering the political environment, market opportunities, and policy towards foreign investment, taxes and infrastructure. Country retain relatively strong business environment and can easily attract considerable foreign direct investment if it maintain high degree of political stability, keep low-cost qualified labour force and large natural resources. From many perspectives these top ten countries are genuinely ahead of the rest of the world, considered best for doing business.

Global ranking 2014-18 Country Score 2014-18
1. Singapore 8.65
2. Switzerland 8.52
3. Canada 8.30
4. Australia 8.29
5. Sweden 8.26
6. USA 8.25
7. New Zealand 8.18
8. Finland 8.18
9. Denmark 8.16
10. Norway 8.01

Singapore, thee south-east Asian country, is the best place in the world to do business in. It is also the world’s most investor-friendly location until 2018, according to EIU.

Source: The Economist Intelligence Unit.

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