The world economy is finally shifting and investment is steadily draining out of emerging markets and moving back to the United States according to a recent CNNMoney report:
“The fall in emerging market currencies is especially worrying for countries that rely heavily on imported goods. In countries that import food and oil — often priced in U.S. dollars — basic necessities will become more expensive for the average person.
There are also fears that borrowers in these countries may not be able to pay back their dollar-denominated loans. Should they default en masse, their domestic banks could suffer. Some of the weaker ones could even fail.
These bleak scenarios are increasingly on the minds of economists and investors, who worry that emerging market economies will be plagued by inflation, high borrowing costs and much slower growth while the U.S. stages an economic recovery.”
Unfortunately, as many of the new policies are enacted with the purpose of slowing down the respective flailing economies, many of these countries’ wealthy citizens are being forced to look outside their country of citizenship to invest their money. According to leading economists, the emergency measures to slow down growth to stabilize an economy will also slow down the growth of interest (often to zero) on investment resulting in investors looking outside their country of citizenship to grow their wealth.
And it’s already happening, according to Joe Sloboda, President and co-founder of Florida Restaurants Franchise Group. “We have seen the writing on the wall for years,” said Sloboda. As EB-5 experts it is our mission to stay ahead of the curve on important issues. These conditions didn’t happen overnight even though they have reached critically dangerous points only recently,” he said.
The deteriorating monetary situation has triggered a wave of interest among wealthy investors from emerging markets seeking investment opportunities and permanent U.S. residency via the EB-5 visa program. “While interest is EB-5 in certainly up from emerging market investors, Exclusive Visas has been assisting clients from these markets for years. Just last week we consulted with clients from Brazil, Argentina, India, Thailand, and China,” Sloboda said.
Interest in U.S. immigration rises as world (emerging) economies become less stable, according to the USCIS whose statistics confirm that emerging market visa usage in the EB-5 program has grown significantly over the past decade. As a result of the tightening monetary policies, EB-5 professionals are preparing for even more interest in the program as those policies are put in force. “Emerging market economies are now on the downturn. It will likely take years for them to recover. It’s no surprise that there is increased EB-5 interest from wealthy investors from emerging markets,” said Sloboda.
The EB-5 visa is attractive for emerging market investors because it does not require having a close relative or a U.S. company willing to sponsor the immigrant, as required by conventional immigrant visas. Under the EB-5 program the investor is issued a conditional Green Card providing Permanent Residency for themselves, their spouse and children (under the age of 21) on an investment of at least $500,000.