– By Dilip Barot, Founder, Creative Choice Group
Ever wondered how you find out the next hot place to invest? How does one know if you should look for opportunities in Asia, Europe, Africa or the United States? First, you can always ask professional investment firms with experience like Creative Choice Group. But absent of having access to investment experts, there are financial metrics that help guide investors around the globe. FDI or Foreign Direct Investment is one key metric that tracks the level of investment growth by country. The World Bank defines Foreign Direct Investment (FDI) in the following way:
“FDI net inflows are the value of inward direct investment made by non-resident investors in the reporting economy. FDI net outflows are the value of outward direct investment made by the residents of the reporting economy to external economies.”
A new report by the United Nations Conference on Trade and Development (UNCTAD) has shown that Foreign direct investment (FDI) inflows are expected to grow year-on-year $1.75tn in 2015 and $1.85 tn in 2016. In general this means, investing around the world is on the rise. This is a good indication for the world economy and for those investors seeking an opportunity for growth potential.
According to the report, the greatest amount of investment flow in 2012 and 2013 was found in developing countries. However, in 2014 it seems developed countries outpaced growth for investment funds. The general sense is that investment in developing countries may have slipped mainly due to challenges with basic infrastructure (roads, rail and ports; power stations; water and sanitation), food security (agriculture and rural development), climate change mitigation and adaptation, health, and education. The cost to overcome these challenges could be significant, therefore creating a greater hurdle for those seeking quick returns on their money.
So what countries are showing positive world investment growth? The top 10 countries for FDI include:
- United States stays as the top country with growth of 17%.
- Russia (up 57% year over year)
- Hong Kong
The US has the highest amount of investment dollars inward, but also leads the globe in investing elsewhere. Our companies, Etech Global Solutions and Creative Choice Group in Florida are perfect examples of both inward and outward investment. I personally matriculated to the US from India and founded both firms. Since that time, we have expanded our footprint and have opened offices in the US and abroad. Capitalizing on the resources, tax benefits and growth potential of a market at the right time makes for a powerful punch in the investment world.
Using factors like FDI and global forecasts are excellent tools when considering your next investment location. Predictive indicators can help avoid making the wrong investment decision which can be costly and create unnecessary law suits. But finding the right location with just a little bit of research could be just a click away!