These Countries Have Maintained the Lowest Inflation Rates in the World

Inflation doesn’t look like it is going to be going away anytime soon, and investors are starting to prepare for the markets to bleed red for a good long while. In spite of the fact that this is the case, some countries have managed to keep their rate of inflation relatively low with all things having been considered and taken into account. Let’s take a look at which countries are doing well in this regard.

It turns out that the lowest rate of inflation happened to occur in the country of South Sudan. South Sudan actually experienced deflation, or an inflation rate of -11.6%. That means that the prices of goods in that nation have become lower than might have been the case otherwise, although this is not necessarily going to be a good thing in the long term.

With all of that having been said and now out of the way, it is important to note that Macau, China and Hong Kong have already done extremely well as far as inflation is concerned. In Macau, annual inflation sits at around 0.8%, with China and Hong Kong both experiencing 1.8% inflation overall.

However, it should be noted that China is starting to experience somewhat higher inflation as of late. Food prices are starting to go up by 4% year over year, and it will be interesting to see if the East Asian powerhouse is able to mitigate this over the course of 2023.

Also, in the case of Macau, reduced inflation isn’t doing much good. The tourism industry that this region has depended on has been ravaged in recent years. The GDP of Macau is expected to plummet by an estimated 30%, and that could make it struggle to stay afloat in the near future.

Another country that has been managing inflation pretty effectively is Oman. This Gulf nation has kept inflation at around the 2.1% mark. Oman has kept its currency tied to the dollar, and this has helped it stave off some of the worst effects that Inflation could end up bringing.

2.1% also happens to be the inflation rate in Panama, with the Seychelles close behind with 2.5%. Vanuatu and Taiwan both maintained 2.7% inflation rates, and then we have Switzerland rounding off the top ten list with 2.8%.

Notably Switzerland is the only Western developed nation that has managed to make it to this list, which just goes to show that things are not going nearly as well in the Western world. If we were to take a look at North America, the US and Canada have not been having all that easy of a time from an inflationary standpoint.

Inflation in the US stands at around 6.5%, whereas Canada performs marginally better with 6.3%. Mexico performs a tad worse than its northern neighbors, with most reports showing that inflation in the Central American country currently hovers at around the 7.8% mark.

All in all, inflation is continuing to be a serious problem. Most countries would want to bring inflation rates down by around 2 percentage points. Failing to do so could result in some truly devastating long term consequences that can be hard to predict.

H/T: Visual Capitalist

Read next: Global EV Sales Increased by 65% YoY in 2022
Previous Post Next Post