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Which Countries Have the Lowest Inflation?

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Which Countries Have the Lowest Inflation?

Investors are bracing for longer inflation.

The Federal Reserve indicated that more restrictive monetary policy is in the cards amid strong employment gains. In Europe, while inflation has fallen, it is still far above the 2% target. Across the Euro area inflation is estimated to have reached 8.5% in January.

At the same time, some countries have managed to tamp down inflation. Slower growth, cheaper import costs, and foreign exchange policy are some of the factors keeping inflation subdued.

As price pressures rattle global markets, the above infographic maps inflation rates globally using data from Trading Economics, focusing in on the countries with the lowest inflation levels.

World’s Lowest Inflation Rates

Many of the lowest inflation rates around the world are located in Asia, including Macau, China, Hong Kong, and Taiwan. In this region, widespread lockdowns strained growth and consumer spending, lessening inflationary pressures. Last year, Chinese consumers saved $2.2 trillion in bank deposits during these restrictions which were lifted earlier this year.

Inflation in the region was impacted by several other factors. Earlier on in the pandemic, Asian countries including China were less impacted by rising food costs, services inflation, and supply-chain disruptions, unlike what was seen in North America and Europe.

But now as China has reopened, some signs of inflation are beginning to appear. Food prices are up 4.8% annually in December, and hotel rates are rising.

RankCountry / RegionInflation Rate, Year-Over-YearDate
1๐Ÿ‡ธ๐Ÿ‡ธ South Sudan-11.6%Dec 2022
2๐Ÿ‡ฒ๐Ÿ‡ด Macau 0.8%Nov 2022
3๐Ÿ‡จ๐Ÿ‡ณ China1.8%Dec 2022
4๐Ÿ‡ญ๐Ÿ‡ฐ Hong Kong SAR1.8%Nov 2022
5๐Ÿ‡ด๐Ÿ‡ฒ Oman2.1%Nov 2022
6๐Ÿ‡ต๐Ÿ‡ฆ Panama2.1%Dec 2022
7๐Ÿ‡ธ๐Ÿ‡จ Seychelles2.5%Dec 2022
8๐Ÿ‡ป๐Ÿ‡บ Vanuatu2.7%Mar 2022
9๐Ÿ‡น๐Ÿ‡ผ Taiwan2.7%Dec 2022
10๐Ÿ‡จ๐Ÿ‡ญ Switzerland2.8%Dec 2022
11๐Ÿ‡ฑ๐Ÿ‡ฎ Liechtenstein2.8%Dec 2022
12๐Ÿ‡ง๐Ÿ‡ฏ Benin2.8%Dec 2022
13๐Ÿ‡ฒ๐Ÿ‡ป Maldives2.8%Nov 2022
14๐Ÿ‡ณ๐Ÿ‡ช Niger3.1%Dec 2022
15๐Ÿ‡ง๐Ÿ‡ณ Brunei3.1%Nov 2022
16๐Ÿ‡ง๐Ÿ‡ด Bolivia3.2%Nov 2022
17๐Ÿ‡ฐ๐Ÿ‡ผ Kuwait3.2%Nov 2022
18๐Ÿ‡ธ๐Ÿ‡ฆ Saudi Arabia3.3%Dec 2022
19๐Ÿ‡ฐ๐Ÿ‡ญ Cambodia3.6%Oct 2022
20๐Ÿ‡ซ๐Ÿ‡ฏ Fiji3.6%Dec 2022
21๐Ÿ‡ช๐Ÿ‡จ Ecuador3.7%Dec 2022
22๐Ÿ‡ฏ๐Ÿ‡ต Japan3.8%Nov 2022
23๐Ÿ‡ฑ๐Ÿ‡พ Libya3.8%Nov 2022
24๐Ÿ‡ง๐Ÿ‡ฒ Bermuda3.8%Oct 2022
25๐Ÿ‡ง๐Ÿ‡ญ Bahrain3.9%Nov 2022
26๐Ÿ‡ฒ๐Ÿ‡พ Malaysia4.0%Nov 2022
27๐Ÿ‡ต๐Ÿ‡ธ Palestine4.1%Dec 2022
28๐Ÿ‡ฎ๐Ÿ‡ถ Iraq4.2%Nov 2022
29๐Ÿ‡ฏ๐Ÿ‡ด Jordan4.4%Dec 2022
30๐Ÿ‡น๐Ÿ‡ฏ Tajikistan4.5%Nov 2022
31๐Ÿ‡ป๐Ÿ‡ณ Vietnam4.6%Dec 2022
32๐Ÿ‡ง๐Ÿ‡น Bhutan4.6%Nov 2022
33๐Ÿ‡น๐Ÿ‡ฟ Tanzania4.8%Dec 2022
34๐Ÿ‡ณ๐Ÿ‡จ New Caledonia4.9%Dec 2022
35๐Ÿ‡ฐ๐Ÿ‡ท South Korea5.0%Dec 2022
36๐Ÿ‡ฎ๐Ÿ‡ฑ Israel5.3%Dec 2022
37๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg5.4%Dec 2022
38๐Ÿ‡ธ๐Ÿ‡ฟ Swaziland5.5%Oct 2022
39๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia5.5%Dec 2022
40๐Ÿ‡ฌ๐Ÿ‡ฆ Gabon5.7%Oct 2022
41๐Ÿ‡จ๐Ÿ‡ฎ Ivory Coast5.7%Nov 2022
42๐Ÿ‡ช๐Ÿ‡ธ Spain5.7%Dec 2022
43๐Ÿ‡ฎ๐Ÿ‡ณ India5.7%Dec 2022
44๐Ÿ‡ง๐Ÿ‡ท Brazil5.8%Dec 2022
45๐Ÿ‡น๐Ÿ‡ญ Thailand5.9%Dec 2022
46๐Ÿ‡ซ๐Ÿ‡ท France5.9%Dec 2022
47๐Ÿ‡ณ๐Ÿ‡ด Norway5.9%Dec 2022
48๐Ÿ‡ถ๐Ÿ‡ฆ Qatar5.9%Dec 2022
49๐Ÿ‡ฉ๐Ÿ‡ฏ Djibouti6.1%Sep 2022
50๐Ÿ‡ธ๐Ÿ‡ด Somalia6.1%Dec 2022
51๐Ÿ‡น๐Ÿ‡น Trinidad and Tobago6.2%Sep 2022
52๐Ÿ‡ต๐Ÿ‡ฌ Papua New Guinea6.3%Sep 2022
53๐Ÿ‡ต๐Ÿ‡ท Puerto Rico6.3%Nov 2022
54๐Ÿ‡จ๐Ÿ‡ฆ Canada6.3%Dec 2022
55๐Ÿ‡ง๐Ÿ‡ธ Bahamas6.5%Sep/22
56๐Ÿ‡ง๐Ÿ‡ฟ Belize6.5%Nov 2022
57๐Ÿ‡บ๐Ÿ‡ธ U.S.6.5%Dec 2022
58๐Ÿ‡ฆ๐Ÿ‡ผ Aruba6.6%Nov 2022
59๐Ÿ‡ธ๐Ÿ‡ฌ Singapore6.7%Nov 2022
60๐Ÿ‡น๐Ÿ‡ฑ East Timor6.7%Nov 2022
61๐Ÿ‡ฆ๐Ÿ‡ช UAE6.8%Jun 2022
62๐Ÿ‡ณ๐Ÿ‡ฆ Namibia6.9%Dec 2022
63๐Ÿ‡ฌ๐Ÿ‡พ Guyana6.9%Nov 2022
64๐Ÿ‡ณ๐Ÿ‡ฟ New Zealand7.2%Sep 2022
65๐Ÿ‡ฟ๐Ÿ‡ฆ South Africa7.2%Dec 2022
66๐Ÿ‡ฌ๐Ÿ‡ท Greece7.2%Dec 2022
67๐Ÿ‡ฑ๐Ÿ‡ท Liberia7.2%Sep 2022
68๐Ÿ‡ฆ๐Ÿ‡บ Australia7.3%Sep 2022
69๐Ÿ‡ฒ๐Ÿ‡น Malta7.3%Dec 2022
70๐Ÿ‡ธ๐Ÿ‡ป El Salvador7.3%Dec 2022
71๐Ÿ‡ฆ๐Ÿ‡ฑ Albania7.4%Dec 2022
72๐Ÿ‡จ๐Ÿ‡ป Cape Verde7.6%Dec 2022
73๐Ÿ‡จ๐Ÿ‡ฒ Cameroon7.7%Sep 2022
74๐Ÿ‡จ๐Ÿ‡ซ Central African Republic7.7%Nov 2022
75๐Ÿ‡น๐Ÿ‡ฌ Togo7.7%Dec 2022
76๐Ÿ‡ฒ๐Ÿ‡ฝ Mexico7.8%Dec 2022
77๐Ÿ‡ฉ๐Ÿ‡ด Dominican Republic7.8%Dec 2022
78๐Ÿ‡จ๐Ÿ‡ท Costa Rica7.9%Dec 2022
79๐Ÿ‡จ๐Ÿ‡พ Cyprus7.9%Dec 2022
80๐Ÿ‡ฒ๐Ÿ‡ฑ Mali8.0%Nov 2022
81๐Ÿ‡ณ๐Ÿ‡ต Nepal8.1%Nov 2022
82๐Ÿ‡ต๐Ÿ‡ญ Philippines8.1%Dec 2022
83๐Ÿ‡ต๐Ÿ‡พ Paraguay8.1%Dec 2022
84๐Ÿ‡ง๐Ÿ‡ง Barbados8.2%Oct 2022
85๐Ÿ‡ฎ๐Ÿ‡ช Ireland8.2%Dec 2022
86๐Ÿ‡บ๐Ÿ‡พ Uruguay8.3%Dec 2022
87๐Ÿ‡ฒ๐Ÿ‡ฆ Morocco8.3%Nov 2022
88๐Ÿ‡ฆ๐Ÿ‡ฒ Armenia8.3%Dec 2022
89๐Ÿ‡ต๐Ÿ‡ช Peru8.5%Dec 2022
90๐Ÿ‡ฑ๐Ÿ‡ธ Lesotho8.5%Oct 2022
91๐Ÿ‡ฉ๐Ÿ‡ฟ Algeria8.6%Nov 2022
92๐Ÿ‡ฉ๐Ÿ‡ช Germany8.6%Dec 2022
93๐Ÿ‡ฉ๐Ÿ‡ฐ Denmark8.7%Dec 2022
94๐Ÿ‡ง๐Ÿ‡ฉ Bangladesh8.7%Dec 2022
95๐Ÿ‡ซ๐Ÿ‡ด Faroe Islands8.8%Sep 2022
96๐Ÿ‡ซ๐Ÿ‡ฎ Finland9.1%Dec 2022
97๐Ÿ‡ฐ๐Ÿ‡ช Kenya9.1%Dec 2022
98๐Ÿ‡ฐ๐Ÿ‡พ Cayman Islands9.2%Sep 2022
99๐Ÿ‡ฌ๐Ÿ‡น Guatemala9.2%Dec 2022
100๐Ÿ‡ฌ๐Ÿ‡ผ Guinea Bissau9.4%Nov 2022

*Inflation rates based on latest available data.

Globally, one outlier is South Sudan. Political instability and violence have depressed growth and inflation, which stood at -11.6% in December. As it faces a severe humanitarian crisis, the country has the lowest inflation rate worldwide.

Oil-producing nation Oman has also seen low inflation, at 2.1%. One reason for this is that the Omani rial is pegged to the U.S. dollar, keeping the currency anchored. Inflation has remained moderate over the last decade in the country.

The Country With the Lowest Inflation, by Region

In Europe, Switzerland has the lowest inflation rate, at 2.8%, or roughly one-third of the Euro area’s. It is also the lowest rate in the OECD. The countryโ€™s strong currency has shielded it from inflationary pressures and high import prices.

Meanwhile, Swiss production prices have risen marginally above inflation, to 4.1% annually in mid-2022. Last year, the Swiss central bank raised interest rates for the first time since 2007 from -0.75% to -0.25% following 20 years of deflation.

Countries With the Lowest Inflation by Region

Panama has the lowest rate in Latin America. The dollarization of the Panamanian balboa has helped quash price pressures. In July, the government regulated the price of 72 items to keep the cost of living from rising after three weeks of protests as inflation climbed as high as 5.2% during the course of 2022.

With the lowest inflation in Asia, Macau witnessed the tourism industry fall off a cliff given lockdown measures, and the economy saw both its GDP and inflation collapse in 2022. Its real GDP is projected to have fallen close to 30% for the year.

Future Gazing

The IMF estimates that 84% of countries around the world will have lower inflation than last year. By 2024, both headline and core inflation are projected to remain above pre-pandemic levels at 4.1%.

Opposing forces of China’s reopening and weaker global growth could offset inflationary pressures, yet this interplayโ€”among a host of other factorsโ€”remains to be seen.

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Real Assets

Visualizing Miningโ€™s Footprint in British Columbia

Mining represents 7% of British Columbia’s GDP despite only accounting for 0.04% of the land use.

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Mining Footprint in British Columbia

Visualizing Miningโ€™s Footprint in British Columbia

British Columbia is considered a global leader in the development of socially and environmentally responsible resources.

An estimated 54% of the province’s total land is protected, making it one of the world’s greenest mining hubs.

This graphic by the B.C. Regional Mining Alliance (BCRMA) details miningโ€™s footprint in the province.

A Tier 1 Jurisdiction for Mining

British Columbia covers almost 95 million hectares (234 million acres), more than any European country except Russia, and more than any U.S. state except Alaska.

As the largest mining province in Canada, BC registered $18 billion in revenue from the industry in 2022.

British Columbia stands as Canada’s sole producer of molybdenum, which finds applications in metallurgy and chemistry. Additionally, B.C. is the country’s leader producer of copper and steelmaking coal, besides gold and silver.

B.C. mined material breakdown

At the heart of British Columbiaโ€™s mining industry lies the Golden Triangle, one of the hottest mineral exploration districts in the world.

More than 150 mines have operated in the area since prospectors first arrived at the end of the 19th century. The region alone is endowed with minerals worth more than $800 billion.

How Green is B.C. Mining

Mining represents 7% of the provinceโ€™s Gross Domestic Product (GDP), despite only accounting for 0.04% of the land use. In comparison, farmland demands 3% of the land, bringing $2.1 billion (0.8%) per year.

Land Use in B.C.Revenue (2022, CAD $)
Mining 0.04%$18.0 billion
Oil & Gas 0.4%$9.5 billion
Infrastructure1%$25.0 billion
Farmland3%$2.1 billion
Forest62%$13.3 billion

Mining operations are also supported by a stable, transparent, and effective policy environment. The province ranked as the world’s least risky for mining in 2017 and 2018.

In addition, mineral exploration has received ample support from local Indigenous communities. Today, mining accounts for over two-thirds of all indigenous people employed in the extractives sector.

According to the International Energy Agency, up to six times more minerals and metals will be needed by 2040 to accelerate the energy transition.

In this scenario, British Columbia is well positioned to support the transition to a low-carbon future and make a significant contribution to climate action.

The BCRMA is a strategic partnership between indigenous groups, industry, and government representatives that aims to promote B.C.โ€™s mining opportunities internationally.

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Mapped: The 10 Largest Undeveloped Silver Deposits in the World

Global silver demand is poised to soar in the next decade, driven by emerging technologies like EVs and solar power.

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Ranked: The Largest Undeveloped Silver Deposits in the World

Global silver demand is poised to soar in the next decade, driven by emerging technologies like electric vehicles and solar power.

Silver demand from solar alone has grown from less than 50 million ounces (Moz) a decade ago to an expected 160 Moz in 2023.

So, where will the necessary supply come from to meet this surge? This graphic from Discovery Silver shows the largest undeveloped silver deposits in the world.

Silver in Green Technology

Silver is a vital part of solar cells. The metal is converted into paste and coated onto silicon wafers to make solar arrays.

When sunlight hits the silicon, silver helps to transport the generated electricity for immediate use or store it in batteries. A typical solar panel can contain as much as 20 grams of silver.

Silver’s conductivity and corrosion resistance are vital in electronics, especially electric vehicles where nearly all electrical connections rely on the metal. Over 50 million ounces of silver are used every year to enhance conductivity in powered seats, windows, and other vehicle electronics.

In 2022, 27% of all silver consumption in the U.S. was attributed to electrical and electronics, while 10% was linked to solar technology.

Global Silver Demand Rising

With the increasing demand for new technologies combined with physical investment (bars) demand, the silver market saw a 237.7 Moz deficit in 2022, an all-time record.

2023 silver industrial demand is forecasted to rise by 4% to a new record high.

However, according to the Silver Institute, mined output is expected to decline over the next five years.

In this scenario, new mines are expected to play an important role in meeting the demand.

Currently, the world’s top 10 undeveloped silver deposits contain 984 Moz. Discovery Silverโ€™s Cordero project in Mexico leads the ranking:

RankProjectOwnerCountryContained Silver Reserves (Moz)
1CorderoDiscovery SilverMexico266
2Corani Bear Creek Mining CorporationPeru229
3Prognoz Polymetal International plcRussia125
4Bowdens Silver Mines LimitedAustralia66
5Santa Ana Formerly Bear CreekPeru63
6FuwanMinco Silver CorporationChina55
7Nueva EsperanzaKingsgate Consolidated LimitedChile48
8Vares Adriatic Metals PLCBosnia & Herzegovina47
9Terronera Endeavour Silver Corp.Mexico47
10MenkechkaGeoProMining Ltd.Russia38

Cordero is located in Chihuahua State in Mexico, one of the world’s most prolific silver producing regions.

Once in production, it is expected to become one of the top three silver mines in the world.

As silver demand is expected to soar, Discovery Silver offers direct investment exposure to this paradigm shift through its Cordero Project. Click here to learn more about Discovery Silver.

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