Best Business Environment
Financial information website MarketWatch said that S. Korea and Poland are the best countries for long-term investment since both countries’ economic prospects look good, and their financial outlook is also positive.
On October 24 (local time), MarketWatch pointed out that if Wall Street considers making overseas investment, the best choices are neither China nor the Eurozone, even though they show signs of economic recovery. Instead, Korea and Poland are the best choices.
According to the website, Korea’s strength lies in the fact that it continues to have a budget surplus and a current account surplus, which is rare for an emerging economy. Furthermore, its prospects for economic growth are bright compared to others.
It said that according to the IMF and OECD’s estimation for 2014, the world’s 13th-largest economy will grow at 3.7% or 4%, as predicted by the IMF and the OECD. In contrast, US economic growth is projected to remain at 2.6% (IMF) or 2.8% (OECD). It said that Korea is helped by China’s economic recovery, for Korea’s exports to China comprise 25% of the total.
On top of that, it was stressed that the proportion of foreign investors in the Korean stock and bond markets is over 25%, bigger than any BRIC countries. It was reported that there are more than 100 Korean companies that are worth investing in, which means that Korea has four times as many worthy firms as Spain and Italy.
However, Korea is not the only ideal country for investment. The financial website also highlighted Poland’s investment attraction. It is attractive in that its economy continues to grow rapidly like Korea, and it is the only EU member state that was not in an economic recession following the collapse of Lehman Brothers. It was added that its advantage is in a sound German economy, since Germany imports 25% of Poland’s total exports. Finally, the website added that Poland’s labor costs are one-sixth those of neighboring Germany.