Countries Immune To Global Hyperinflation

Hyperinflation has been spiraling out of control for decades in many countries around the globe.

Hyperinflation by definition is extremely rapid or out of control inflation with 50 percent or more each month encountered by price increases to goods and services.

All of which is a sign of a country’s total economic collapse rendering the nation’s currency worthless in the FOREX as a medium of exchange.

We see various economic signs of its evolution in financial derivatives which represent $700 trillion on the global financial grid. Jamie Dimon of JP Morgan Chase executed a $2 billion trading loss in derivatives within days of its public disclosure claiming “Hey, everybody makes mistakes….”

Financial derivatives are financial instruments used as a hedge risk for speculative investing. They originate from stocks, bonds, bank loans, or fiat currencies. They can also be directly tied to certain events, even weather changes or fluctuations in interest rates.

With instability and poor financial practices of financial derivatives also comes 401k, state and federal government pension plan losses.

Another economic sign has been the lack of common economic policies among eurozone nations. Leading to the decline of liquidity of banks and having to exercise emergency liquidity assistance as evidenced by Greece, Spain and Ireland. Global hyperinflation has set its reign in a handful of countries around the globe, which the leads to the question getting asked, “Is there any country around the globe that is economically prosperous?”

The one variable in society that is not often regarded as a factor with hyperinflated countries, but distinctly makes itself present in them, “Is the country homogenous?” The term homogenous is often mentioned in political and demographic conversations but not often in financial or economic discussions. However in looking over various countries and their Gross Domestic Product (GDP), it is not hard to recognize it has a direct relationship to economic development in a nation.

GDP is the monetary value of good and services within a particular country measured by the total consumer, investment, and government spending combined with the value of exports less the actual value of imports. In simple terms you want to look for emerging countries with stable and growing GDP which is a a good sign the country is stable, has growth and is financially secure.

The three top economies in the world are Switzerland, Singapore, and Finland. Each are not only a homogenous nation but have excellent GDP per capita growth. Other factors aid in their financial and economic success and can be attributed to science, engineering programs within higher education. As well as trust in politicians, quality of legal and administrative services. Infrastructure also plays a vital role in determining not only quality of life but also stability and growth in a nation. As is the case with Switzerland which scores high in infrastructure, labor-employment relations and the availability of financial services.

Singapore the last several years has suffered a GDP growth decline 14.8 to 4.9 percent, while Switzerland and Finland have experienced much lower fluctuations, 0.6 and 0.8 respectively.

Other than the top three nations identified there are also other countries emerging in economic and financial growth which should also be considered. Ghana, Panama are experiencing over 10 percent GDP growth annually. With GDP growth it is also important to note the income levels of each nation as the standard of living it represents. With Ghana there is a significant lower middle income of the 24.97 million in population and a poverty level still between 28 to 32 percent. Panama’s income level represents an upper middle income of the 3.751 million in population and 32.7 percent poverty level of the population. Good GDP growth is not always the complete factor in accessing the economic worth of a country but should be combined with the cost of living and the living standard.

Hong Kong and United Arab Emirates (UAE) are other considerations with both being major financial centers combined with trade and culture. Hong Kong particularly has a high standard of living (high income level) among a population of over 7 million with fluctuations in GDP growth annually under 2 percent. Cost of living is higher and monthly living accommodations of under $3000 per month is common. UAE equally boasts a high income level for under 8 million in population while GDP growth annually has more than tripled to 4.9 percent.

If cost of living and having affordable living is a determining factor in your search of a stable country to live, you will also have to consider the fact that there will be some sacrifices encountered. Your favorite food, lifestyle, and culture will be an immediate inconvenience but will be offset by the preferred affordable lifestyle. Gains in affordable living standards and surroundings can be experienced economically. How much of a sacrifice you willing to also accept could determine your living standard.

The colonial city of Cuentes, Ecuador is a good example. Where living on a minimal budget of $2,000 per month you will find it is second to none. Healthcare then becomes affordable, luxury of cell phones, eating out twice a day, hiring a maid is affordable, leaving you still enough income to enjoy the local culture. Ecuador the last several years has experienced a stable GDP growth annually (over 4 percent) among its population of about 15 million. Although, the poverty level remains high (over 32 percent), for the expat, that is often overlooked.

Belize, Central America is also a nation with similar economic figures and cost of living as Cuentas, Ecuador. With 2 to 1 on the US Dollar it is hard to overlook as a potential option for an expat. The biggest variance being total population of much less (over 356,000).

If picturesque is of importance on top of cost of living and population (under 5 million), Costa Rica should get a nod. A country with beautiful undeveloped and deserted beaches surrounded by dense jungles and exotic wildlife. Towering volcanoes, with lush green valleys below, and hundreds of crystal-clear lakes and rivers.  Costa Rica has it all. With stable GDP growth of over 4 percent the last several years reflects a stable economy.  Adding low cost of living, neighborly atmosphere, combined with excellent healthcare and a stable democracy. All put Costa Rica in the middle of mix.

In considering your options there is one basic point which will always be discovered and that is, it is difficult to place a figure on “quality” when it comes to quality of life. From one person to the next there will always be variances in the ideal living standard, and the variables associated in the decision process from one to the next. However, there is no disagreement when it comes to low cost of living, stable economy, land rich in agriculture, excellent healthcare.  All are key elements in making the decision when considering a location as an secure financial option.

10 thoughts on “Countries Immune To Global Hyperinflation

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