For those of you looking at international markets as investments, consider the following criteria:
- Resources: Is the country rich in natural resources? Growing economies need resources and will come to countries with commodities like oil, iron, copper and timber.
- Finance: Is the country’s financial hub stable and growing? Smaller financial sectors may be harder to invest in, while growing hubs attract interest and investment.
- Freedom: Are the country’s economic and political systems free? Countries that have a greater amount of freedom have more flexibility in times of crisis.
- Cash: Does the country have reserves of cash? A country that can stimulate its economy without having to print more currency will be much stronger.
But in today’s economic environment, you also want to keep in mind these categories:
- Consumers: Large consumer base strengthens domestic demand and insulates against global financial crises. Export economies will always be hit harder.
- Industry: Growing industrial rates as a part of GDP indicates a healthy economy, and generates a lot of investment.
- Interest: Foreign direct investment can play a big role in boosting a country’s GDP, but it’s also a gauge of how strong an economy is in the first place. Higher FDI gives investors more confidence.
In my research, I use these Websites to get the latest statistics for these criteria, just to name a few.
U.S. Department of Commerce: Bureau of Economic Analysis; www.bea.gov
United Nations Conference on Trade and Development; www.unctad.org
CIA: The World Factbook; www.cia.gov/library/publications/the-world-factbook
International Monetary Fund; www.imf.org
OECD: Organisation for Economic Co-operation and Development; www.oecd.org
The World Bank; www.worldbank.org
