While challenges remain for the U.S., the country’s GDP continues on an upward track despite the recent tax increases and implementation of sequestration.
If you’re looking to take advantage of the U.S.’ economic growth, look no further than the housing recovery. Home improvement retailers such as The Home Depot, Inc. (NYSE:HD) and Lowe’s Companies, Inc. (NYSE:LOW) are at the center of this trend. The Home Depot, Inc. (NYSE:HD) has done well by growing its profit and return on equity, and it grew sales by 14% in its most recent quarterly report — although the stock’s run-up of 63% over the last year gives pause. Lowe’s smaller size has slowed the company down in relation to The Home Depot, Inc. (NYSE:HD), and while the stock has done well in gaining more than 50% over the past year, Lowe’s will need to pick up same-store sales growth to match The Home Depot, Inc. (NYSE:HD). Still, both stocks look poised to capitalize on the American economy’s resurgent growth.
No. 2: Norway, $56,663 per person
At No. 2, Norway is Europe’s wealthiest nation. Like Switzerland, this economy has remained remarkably stable throughout Europe’s debt crisis. Norway’s GDP grew by 0.7% in 2013’s first quarter as the nation’s oil resources powered the country’s wealth. While some Norwegian experts have warned that the country’s dependence on oil and energy could hurt its future, Norway’s doing well right now: Projections peg the country’s mainland economy to grow by 2.75% this year.
The IMF’s certainly bullish, projecting Norway’s GDP per capita to grow to nearly $66,000 in 2018, maintaining its lead over the U.S. While Norwegian companies are hard to find on American stock exchanges, one low-risk way to gain Norwegian exposure is to buy shares in the main Big Oil firms. BP plc (ADR) (NYSE:BP) and many of its competitors engage in exploration and drilling in the North Sea. Out of all the oil majors, however, BP plc (ADR) (NYSE:BP) may be the one stock to avoid in Norway: A government agency pushed a safety review on the company in late April following a leak at one of BP plc (ADR) (NYSE:BP)’s North Sea fields last September. For now, expect this company to remain closely watched in Norway.
No. 1: Singapore, $61,567 per person
The wealthiest nation in the world’s top 50 economies has been one of the hottest growth stories in recent years. Singapore’s emergence as a business hub and tax haven — research firm WealthInsight predicts that the country will surpass Switzerland as the world’s largest offshore wealth hub by 2020 — has been a boon for its population’s standard of living. Foreign investment has poured into the nation, turning Singapore into Southeast Asia’s pre-eminent economy. The country is expected to gain even more in the next few years, with the IMF expecting Singapore’s GDP per capita to rise to an astounding $77,000 by 2018.
The iShares MSCI Singapore Index Fund (ETF) (NYSEARCA:EWS) has performed well alongside the country’s growth, gaining more than 22% over the past year. The ETF is weighted heavily toward finance and real estate, with more than half of its assets in those two sectors. While the Singapore ETF will likely continue to rise with the nation’s economy, don’t expect rapid gains from an index fund like this.
A global economy on the upswing
As the world claws out of the depths of the 2008 recession, standards of living are poised to continue increasing around the globe. That’s good for the world’s population and investors alike as stocks take advantage of this new wave of growth. This is the kind of growth everyone has a stake in.
The article The 5 Richest Countries in the World originally appeared on Fool.com is written by Dan Carroll.
Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Home Depot and Lowe’s.
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