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Mapped: International Tax Competitiveness by Country

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International Tax Competitiveness

International Tax Competitiveness

This infographic is available as a poster.

Mapped: International Tax Competitiveness by Country

Many multinational companies, such as Google and Facebook, have their European headquarters in Ireland. Why? Ireland has low corporate taxes.

In fact, a countryโ€™s tax structure can have a significant impact on its economic performance. Countries with low marginal tax rates encourage business investment, while countries with high taxes may drive investment elsewhere.

This Markets in a Minute from New York life Investments looks at international tax competitiveness among countries within the Organization for Economic Co-operation and Development (OECD).

How is Tax Competitiveness Measured?

The Tax Foundation measured international tax competitiveness using two aspects of tax policy: competitiveness and neutrality.

Competitiveness measures how low a countryโ€™s marginal tax rates are. On the other hand, a neutral tax code raises the most revenue with the fewest economic distortions. This means that it doesnโ€™t favor consumption over savings, which is what happens with investment or wealth taxes. It also means there are few or no tax breaks for specific business or individual activities.

With these two aspects in mind, the Tax Foundation looked at five types of taxes:

  • Corporate taxes
  • Individual income taxes
  • Consumption taxes
  • Property taxes
  • Cross-border taxes

According to research from the OECD, corporate taxes are most harmful for economic growth while taxes on immovable property (real estate) have the smallest impact.

International Tax Competitiveness, Ranked

Here is how the OECD countries rank on their international tax competitiveness. A low score means the countryโ€™s taxes are relatively less competitive, while a score of 100 indicates the most competitive tax code among OECD countries.

CountryOverall RankOverall Score
๐Ÿ‡ช๐Ÿ‡ช Estonia1100.0
๐Ÿ‡ฑ๐Ÿ‡ป Latvia285.1
๐Ÿ‡ณ๐Ÿ‡ฟ New Zealand381.3
๐Ÿ‡จ๐Ÿ‡ญ Switzerland478.4
๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg576.5
๐Ÿ‡ฑ๐Ÿ‡น Lithuania676.5
๐Ÿ‡จ๐Ÿ‡ฟ Czech Republic775.5
๐Ÿ‡ธ๐Ÿ‡ช Sweden872.9
๐Ÿ‡ฆ๐Ÿ‡บ Australia971.3
๐Ÿ‡ณ๐Ÿ‡ด Norway1070.6
๐Ÿ‡ธ๐Ÿ‡ฐ Slovak Republic1169.3
๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands1269.2
๐Ÿ‡ญ๐Ÿ‡บ Hungary1369.0
๐Ÿ‡ฎ๐Ÿ‡ฑ Israel1467.6
๐Ÿ‡ซ๐Ÿ‡ฎ Finland1567.4
๐Ÿ‡ฉ๐Ÿ‡ช Germany1667.2
๐Ÿ‡น๐Ÿ‡ท Turkey1766.7
๐Ÿ‡ฆ๐Ÿ‡น Austria1865.7
๐Ÿ‡ฎ๐Ÿ‡ช Ireland1964.7
๐Ÿ‡จ๐Ÿ‡ฆ Canada2064.6
๐Ÿ‡บ๐Ÿ‡ธ United States2162.4
๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom2261.8
๐Ÿ‡ง๐Ÿ‡ช Belgium2361.6
๐Ÿ‡ฏ๐Ÿ‡ต Japan2461.5
๐Ÿ‡ธ๐Ÿ‡ฎ Slovenia2561.3
๐Ÿ‡ฐ๐Ÿ‡ท Korea2660.6
๐Ÿ‡จ๐Ÿ‡ฑ Chile2758.2
๐Ÿ‡ฉ๐Ÿ‡ฐ Denmark2857.9
๐Ÿ‡ฌ๐Ÿ‡ท Greece2957.5
๐Ÿ‡ช๐Ÿ‡ธ Spain3057.1
๐Ÿ‡จ๐Ÿ‡ด Colombia3155.0
๐Ÿ‡ฎ๐Ÿ‡ธ Iceland3253.7
๐Ÿ‡ฒ๐Ÿ‡ฝ Mexico3352.5
๐Ÿ‡ต๐Ÿ‡น Portugal3449.0
๐Ÿ‡ซ๐Ÿ‡ท France3548.7
๐Ÿ‡ต๐Ÿ‡ฑ Poland3645.7
๐Ÿ‡ฎ๐Ÿ‡น Italy3744.6

Costa Rica joined the OECD in 2021 and was not included in the ranking due to data availability.

For the eighth year in a row, Estonia has the most competitive taxes. The country has a 20% corporate tax that only applies to profits when they are distributed to shareholders, and property tax that only applies to the land value. Switzerland, one of the worldโ€™s biggest tax havens, ranks fourth. It boasts a low, broad-based consumption tax of 7.7% and an individual income tax that partially excludes capital gains from taxation.

Meanwhile, the U.S. falls in the middle of the pack for international tax competitiveness. It allows for full expensing for business investments in machinery. However, a weakness is that the statesโ€™ sales taxes apply to only a third of the potential tax base on average. This is largely due to the fact that most personal services are exempt from sales tax.

Italy has the least competitive taxes. The country has a wealth tax on financial assets and real estate assets held abroad, and a financial transaction tax on assets when they are sold. Not only that, it takes businesses an estimated 169 hours to comply with the individual income tax.

Balancing Budget and Competition

While many factors contribute to economic performance, tax structure does play a role. Governments face the task of collecting sufficient revenue to meet their budgetary requirements, while also maximizing their international tax competitiveness. These tax structures are constantly evolving.

Starting in 2023, 137 countriesโ€”including Irelandโ€”have agreed to a global minimum tax rate of 15% on large multinational firms. The agreement aims to stop a โ€œrace to the bottomโ€ on corporate taxation in order to attract foreign investment. Notably, the OECD estimates this could raise $150 billion in additional global tax revenues every year.

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Markets in a Minute

Charted: The Rise of Stock Buybacks Over 20 Years

Unlike the last two downturns, stock buybacks could hit a record $1.3T in 2022. We chart their growth over the last two decades.

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Stock Buybacks

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Chart: The Rise of Stock Buybacks Over 20 Years

Despite market turbulence, stock buybacks are on track to hit record levels by year-end.

Spurring this wave of buybacks are strong corporate cash flowsโ โ€”sitting near $2 trillionโ€”and a 1% excise tax on buybacks approaching in 2023. This signals a vote of confidence from corporations on their financial health even as a recession looms large.

In this Markets in a Minute from New York Life Investments, we chart the growth of buybacks over the last two decades and the implications for investors looking ahead.

How Stock Buybacks Work

In stock buybacks, corporations buy their own shares from existing shareholders. This reduces the number of shares in the market and boosts earnings per share. Often, this can increase share prices given the rise in earnings growth.

It was not until 1982 that share repurchases became legal, driving wider usage among corporations as a capital allocation tool.

By comparison, dividends are another common form of distributing capital back to shareholders.

Dividends are bound by strict policies and do not offer the same tax advantages and flexibility as buybacks. While dividends are taxed as income, buybacks are taxed as capital gainsโ€”making them a preferential choice for investors. Given these advantages, stock buybacks have outpaced dividends over the last two decades.

In fact, in the third quarter of 2022, an estimated one in five companies in the S&P 500 Index conducted buybacks that in turn increased their earnings per share by at least 4% year-over-year.

Stock Buyback Trends

As the below table shows, stock buybacks in the S&P 500 Index outnumber dividends by about double in 2022:

YearS&P 500 Stock BuybacksS&P 500 Dividends
2022*$1.00T$0.54T
2021$0.88T$0.51T
2020$0.52T$0.48T
2019$0.73T$0.49T
2018$0.81T$0.46T

Source: S&P Dow Jones Indices (Sep 2022). *For the 12-months ending June 2022.

However, stock buybacks fluctuate more often than dividends since corporations can turn them on or off. For example, in 2020, buybacks sharply declined given growing financial uncertainty. Meanwhile, companies issued dividends at a steady pace.

In this way, when share prices decline, buybacks typically decrease.

Yet unlike the last two recessions in 2008 and 2020, buybacks have shown notable strength in 2022 in spite of falling share prices.

What Are the Top Sectors for Stock Buybacks?

We can see in the table below that the biggest share repurchasers are in the tech sector, with $2.1 trillion in buybacks since 2009.

SectorCumulative Buybacks Since 2009Q2 Buybacks
Information Technology$2,060.4B$72.0B
Financials$1,265.0B$21.2B
Consumer Discretionary $941.7B$27.6B
Health Care$929.1B$17.2B
Industrials$717.6B$17.4B
Consumer Staples$548.1B$10.7B
Communication Services$369.6B$29.4B
Energy$337.9B$13.4B
Materials$187.0B$8.7B
Utilities $26.8B$0.5B
Real Estate$16.9B$1.1B
Total$7,382.6B$219.6B

Source: Yardeni Research (Nov 2022). Represents stock buybacks for S&P 500 Index sectors.

On the other hand, utilities and other capital-intensive sectors tend to spend less on buybacks in contrast to asset-light sectors such as tech and financials.

What is also characteristic to share buybacks is their concentration. As we have seen in the second quarter this year, the top 20% of buybacks make up 47% of all repurchases across the S&P 500 Index.

New Tax On Stock Buybacks

Stock buybacks have drawn criticism for using cash to benefit shareholders instead of boosting production or improving the quality of the business.

In response, beginning in 2023, the Inflation Reduction Act puts a 1% excise tax on buybacks.

What this means is that public companies based in the U.S. must now pay a 1% tax on share repurchases, which could result in millions of additional expenses. Given this new tax rule, corporations may be accelerating buybacks ahead of year-end.

Implications for Investors

As stock buybacks have grown in prominence, itโ€™s worth noting that not all are equal.

When a buyback aligns with a companyโ€™s long-term plan, and the company can cover their operational expenses, it can support the stability and growth of the company. When stock prices are volatile, companies can repurchase shares when they are undervalued.

By contrast, if a company takes on excess leverage in order to buyback shares, it can contribute to lower financial resilience. When a company uses a buyback to opportunistically repurchase shares, the boost in share prices may be short-lived.

In addition, it could also prevent capital from being directed to growth initiatives. In this way, itโ€™s important to consider stock buybacks on a case-by-case basis.

With this in mind, investors can look to companies with healthy balance sheets that can weather economic storms. Here, companies that illustrate price discipline and buy back shares at a discount may help build long-term value, providing benefits to investors who stay the course.

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Mapped: Global Energy Prices, by Country in 2022

Energy prices have been extremely volatile in 2022. Which countries are seeing the highest prices in the world?

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Energy Prices

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Mapped: Global Energy Prices, by Country in 2022

For some countries, energy prices hit historic levels in 2022.

Gasoline, electricity, and natural gas prices skyrocketed as Russiaโ€™s invasion of Ukraine ruptured global energy supply chains. Households and businesses are facing higher energy bills amid extreme price volatility. Uncertainty surrounding the war looms large, and winter heating costs are projected to soar.

Given the global consequences of the energy crisis, this Markets in a Minute from New York Life Investments shows the price of energy for households by country.

1. Global Energy Prices: Gasoline

Which countries and regions pay the most for a gallon of gas?

RankCountry/ RegionGasoline Prices
(USD per Gallon)
1๐Ÿ‡ญ๐Ÿ‡ฐ Hong Kong$11.1
2๐Ÿ‡จ๐Ÿ‡ซ Central African Republic$8.6
3๐Ÿ‡ฎ๐Ÿ‡ธ Iceland$8.5
4๐Ÿ‡ณ๐Ÿ‡ด Norway$8.1
5๐Ÿ‡ง๐Ÿ‡ง Barbados$7.8
6๐Ÿ‡ฉ๐Ÿ‡ฐ Denmark$7.7
7๐Ÿ‡ฌ๐Ÿ‡ท Greece$7.6
8๐Ÿ‡ซ๐Ÿ‡ฎ Finland$7.6
9๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands$7.6
10๐Ÿ‡ง๐Ÿ‡ช Belgium$7.4
11๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom$7.2
12๐Ÿ‡ช๐Ÿ‡ช Estonia$7.2
13๐Ÿ‡จ๐Ÿ‡ญ Switzerland$7.2
14๐Ÿ‡ธ๐Ÿ‡ฌ Singapore$7.2
15๐Ÿ‡ธ๐Ÿ‡ช Sweden$7.1
16๐Ÿ‡ธ๐Ÿ‡จ Seychelles$7.1
17๐Ÿ‡ฎ๐Ÿ‡ฑ Israel$7.0
18๐Ÿ‡ฉ๐Ÿ‡ช Germany$7.0
19๐Ÿ‡บ๐Ÿ‡พ Uruguay$7.0
20๐Ÿ‡ผ๐Ÿ‡ซ Wallis and Futuna$7.0
21๐Ÿ‡ฑ๐Ÿ‡ฎ Liechtenstein$6.9
22๐Ÿ‡ฎ๐Ÿ‡ช Ireland$6.8
23๐Ÿ‡ต๐Ÿ‡น Portugal$6.8
24๐Ÿ‡ฑ๐Ÿ‡ป Latvia$6.7
25๐Ÿ‡ง๐Ÿ‡ฟ Belize$6.7
26๐Ÿ‡ฆ๐Ÿ‡ฑ Albania$6.6
27๐Ÿ‡ฆ๐Ÿ‡น Austria$6.6
28๐Ÿ‡ฒ๐Ÿ‡จ Monaco$6.6
29๐Ÿ‡ช๐Ÿ‡ธ Spain$6.6
30๐Ÿ‡จ๐Ÿ‡ฟ Czech Republic$6.5
31๐Ÿ‡ฒ๐Ÿ‡ผ Malawi$6.5
32๐Ÿ‡ฐ๐Ÿ‡พ Cayman Islands$6.4
33๐Ÿ‡ธ๐Ÿ‡ฐ Slovakia$6.4
34๐Ÿ‡ฒ๐Ÿ‡บ Mauritius$6.3
35๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg$6.3
36๐Ÿ‡ฑ๐Ÿ‡น Lithuania$6.3
37๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra$6.3
38๐Ÿ‡ฎ๐Ÿ‡น Italy$6.3
39๐Ÿ‡บ๐Ÿ‡ฌ Uganda$6.2
40๐Ÿ‡ญ๐Ÿ‡บ Hungary$6.2
41๐Ÿ‡ฏ๐Ÿ‡ด Jordan$6.2
42๐Ÿ‡ธ๐Ÿ‡พ Syria$6.1
43๐Ÿ‡ซ๐Ÿ‡ท France$6.0
44๐Ÿ‡ง๐Ÿ‡ฎ Burundi$6.0
45๐Ÿ‡ง๐Ÿ‡ธ Bahamas$6.0
46๐Ÿ‡ณ๐Ÿ‡ฟ New Zealand$5.8
47๐Ÿ‡ธ๐Ÿ‡ฒ San Marino$5.8
48๐Ÿ‡ญ๐Ÿ‡ท Croatia$5.8
49๐Ÿ‡ท๐Ÿ‡ด Romania$5.7
50๐Ÿ‡พ๐Ÿ‡น Mayotte$5.7
51๐Ÿ‡ท๐Ÿ‡ผ Rwanda$5.7
52๐Ÿ‡ฟ๐Ÿ‡ฒ Zambia$5.7
53๐Ÿ‡ท๐Ÿ‡ธ Serbia$5.7
54๐Ÿ‡ฑ๐Ÿ‡ฆ Laos$5.6
55๐Ÿ‡ฒ๐Ÿ‡ณ Mongolia$5.6
56๐Ÿ‡ฐ๐Ÿ‡ช Kenya$5.6
57๐Ÿ‡จ๐Ÿ‡พ Cyprus$5.6
58๐Ÿ‡ฏ๐Ÿ‡ฒ Jamaica$5.5
59๐Ÿ‡ฒ๐Ÿ‡ฐ Northern Macedonia$5.5
60๐Ÿ‡จ๐Ÿ‡ฑ Chile$5.5
61๐Ÿ‡ง๐Ÿ‡ฆ Bosnia$5.5
62๐Ÿ‡ฑ๐Ÿ‡จ Saint Lucia$5.5
63๐Ÿ‡ต๐Ÿ‡ฑ Poland$5.4
64๐Ÿ‡ฉ๐Ÿ‡ด Dominican Republic$5.4
65๐Ÿ‡จ๐Ÿ‡ฆ Canada$5.4
66๐Ÿ‡ฒ๐Ÿ‡ฆ Morocco$5.4
67๐Ÿ‡ฆ๐Ÿ‡ผ Aruba$5.4
68๐Ÿ‡ธ๐Ÿ‡ฎ Slovenia$5.4
69๐Ÿ‡ง๐Ÿ‡ฌ Bulgaria$5.3
70๐Ÿ‡ต๐Ÿ‡ช Peru$5.3
71๐Ÿ‡ฑ๐Ÿ‡ฐ Sri Lanka$5.3
72๐Ÿ‡จ๐Ÿ‡ท Costa Rica$5.2
73๐Ÿ‡ฒ๐Ÿ‡ฌ Madagascar$5.2
74๐Ÿ‡ฌ๐Ÿ‡ณ Guinea$5.2
75๐Ÿ‡ณ๐Ÿ‡ต Nepal$5.2
76๐Ÿ‡ฒ๐Ÿ‡ฟ Mozambique$5.2
77๐Ÿ‡ณ๐Ÿ‡ฎ Nicaragua$5.2
78๐Ÿ‡ฒ๐Ÿ‡ฑ Mali$5.1
79๐Ÿ‡ธ๐Ÿ‡ณ Senegal$5.1
80๐Ÿ‡บ๐Ÿ‡ฆ Ukraine$5.2
81๐Ÿ‡ฉ๐Ÿ‡ฒ Dominica$5.0
82๐Ÿ‡ฒ๐Ÿ‡ช Montenegro$5.0
83๐Ÿ‡ฒ๐Ÿ‡น Malta$5.0
84๐Ÿ‡ฒ๐Ÿ‡ฉ Moldova$5.0
85๐Ÿ‡จ๐Ÿ‡ฉ DR Congo$5.0
86๐Ÿ‡จ๐Ÿ‡ผ Curacao$5.0
87๐Ÿ‡จ๐Ÿ‡ป Cape Verde$4.9
88๐Ÿ‡ง๐Ÿ‡ฉ Bangladesh$4.9
89๐Ÿ‡ฑ๐Ÿ‡ท Liberia$4.9
90๐Ÿ‡ฐ๐Ÿ‡ญ Cambodia$4.8
91๐Ÿ‡ฎ๐Ÿ‡ณ India$4.8
92๐Ÿ‡จ๐Ÿ‡บ Cuba$4.8
93๐Ÿ‡ญ๐Ÿ‡ณ Honduras$4.7
94๐Ÿ‡ฌ๐Ÿ‡ช Georgia$4.7
95๐Ÿ‡ฟ๐Ÿ‡ฆ South Africa$4.7
96๐Ÿ‡น๐Ÿ‡ฟ Tanzania$4.7
97๐Ÿ‡ซ๐Ÿ‡ฏ Fiji$4.7
98๐Ÿ‡จ๐Ÿ‡ณ China$4.7
99๐Ÿ‡ฒ๐Ÿ‡ฝ Mexico$4.6
100๐Ÿ‡ฌ๐Ÿ‡น Guatemala$4.6

Source: GlobalPetrolPrices.com. As of October 31, 2022. Represents average household prices.

At an average $11.1 USD per gallon, households in Hong Kong pay the highest for gasoline in the worldโ€”more than double the global average. Both high gas taxes and steep land costs are primary factors behind high gas prices.

Like Hong Kong, the Central African Republic has high gas costs, at $8.6 USD per gallon. As a net importer of gasoline, the country has faced increased price pressures since the war in Ukraine.

Households in Iceland, Norway, and Denmark face the highest gasoline costs in Europe. Overall, Europe has seen inflation hit 10% in September, driven by the energy crisis.

2. Global Energy Prices: Electricity

Extreme volatility is also being seen in electricity prices.

The majority of the highest household electricity prices are in Europe, where Denmark, Germany, and Belgiumโ€™s prices are about double that of France and Greece. For perspective, electricity prices in many countries in Europe are more than twice or three times the global average of $0.14 USD per kilowatt-hour.

Over the first quarter of 2022, household electricity prices in the European Union jumped 32% compared to the year before.

RankCountry/ RegionElectricity Prices
(kWh, USD)
1๐Ÿ‡ฉ๐Ÿ‡ฐ Denmark$0.46
2๐Ÿ‡ฉ๐Ÿ‡ช Germany$0.44
3๐Ÿ‡ง๐Ÿ‡ช Belgium$0.41
4๐Ÿ‡ง๐Ÿ‡ฒ Bermuda$0.40
5๐Ÿ‡ฐ๐Ÿ‡พ Cayman Islands$0.35
6๐Ÿ‡ฏ๐Ÿ‡ฒ Jamaica$0.34
7๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom$0.32
8๐Ÿ‡ช๐Ÿ‡ธ Spain$0.32
9๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands$0.32
10๐Ÿ‡ง๐Ÿ‡ง Barbados$0.32
11๐Ÿ‡ช๐Ÿ‡ช Estonia$0.32
12๐Ÿ‡ฑ๐Ÿ‡น Lithuania$0.31
13๐Ÿ‡ฆ๐Ÿ‡น Austria$0.31
14๐Ÿ‡ฎ๐Ÿ‡น Italy$0.30
15๐Ÿ‡จ๐Ÿ‡ฟ Czech Republic$0.29
16๐Ÿ‡จ๐Ÿ‡ป Cape Verde$0.28
17๐Ÿ‡ฎ๐Ÿ‡ช Ireland$0.28
18๐Ÿ‡ธ๐Ÿ‡ช Sweden$0.27
19๐Ÿ‡ง๐Ÿ‡ธ Bahamas$0.26
20๐Ÿ‡ฌ๐Ÿ‡น Guatemala$0.26
21๐Ÿ‡ฑ๐Ÿ‡ฎ Liechtenstein$0.26
22๐Ÿ‡จ๐Ÿ‡พ Cyprus$0.25
23๐Ÿ‡ท๐Ÿ‡ผ Rwanda$0.25
24๐Ÿ‡ญ๐Ÿ‡ณ Honduras$0.24
25๐Ÿ‡บ๐Ÿ‡พ Uruguay$0.24
26๐Ÿ‡ต๐Ÿ‡น Portugal$0.24
27๐Ÿ‡ธ๐Ÿ‡ป El Salvador$0.23
28๐Ÿ‡ฑ๐Ÿ‡ป Latvia$0.22
29๐Ÿ‡ซ๐Ÿ‡ฎ Finland$0.22
30๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg$0.22
31๐Ÿ‡ง๐Ÿ‡ฟ Belize$0.22
32๐Ÿ‡ฏ๐Ÿ‡ต Japan$0.22
33๐Ÿ‡จ๐Ÿ‡ญ Switzerland$0.22
34๐Ÿ‡ต๐Ÿ‡ช Peru$0.21
35๐Ÿ‡ฐ๐Ÿ‡ช Kenya$0.21
36๐Ÿ‡ฆ๐Ÿ‡บ Australia$0.21
37๐Ÿ‡ง๐Ÿ‡ท Brazil$0.20
38๐Ÿ‡ฒ๐Ÿ‡ฑ Mali$0.20
39๐Ÿ‡ธ๐Ÿ‡ฌ Singapore$0.19
40๐Ÿ‡ท๐Ÿ‡ด Romania$0.19
41๐Ÿ‡ง๐Ÿ‡ซ Burkina Faso$0.19
42๐Ÿ‡ธ๐Ÿ‡ฎ Slovenia$0.19
43๐Ÿ‡ฌ๐Ÿ‡ฆ Gabon$0.19
44๐Ÿ‡ธ๐Ÿ‡ฐ Slovakia$0.19
45๐Ÿ‡ฆ๐Ÿ‡ผ Aruba$0.19
46๐Ÿ‡ฌ๐Ÿ‡ท Greece$0.19
47๐Ÿ‡ซ๐Ÿ‡ท France$0.18
48๐Ÿ‡ณ๐Ÿ‡ฟ New Zealand$0.18
49๐Ÿ‡น๐Ÿ‡ฌ Togo$0.18
50๐Ÿ‡ณ๐Ÿ‡ฎ Nicaragua$0.17
51๐Ÿ‡ป๐Ÿ‡ช Venezuela$0.17
52๐Ÿ‡ต๐Ÿ‡ฆ Panama$0.17
53๐Ÿ‡ต๐Ÿ‡ญ Philippines$0.17
54๐Ÿ‡ต๐Ÿ‡ฑ Poland$0.17
55๐Ÿ‡ฎ๐Ÿ‡ฑ Israel$0.16
56๐Ÿ‡บ๐Ÿ‡ฒ U.S.$0.16
57๐Ÿ‡บ๐Ÿ‡ฌ Uganda$0.16
58๐Ÿ‡ญ๐Ÿ‡ฐ Hong Kong$0.16
59๐Ÿ‡ธ๐Ÿ‡ณ Senegal$0.16
60๐Ÿ‡ฒ๐Ÿ‡ด Macao$0.15
61๐Ÿ‡จ๐Ÿ‡ฑ Chile$0.15
62๐Ÿ‡ฐ๐Ÿ‡ญ Cambodia$0.15
63๐Ÿ‡ฟ๐Ÿ‡ฆ South Africa$0.14
64๐Ÿ‡ฒ๐Ÿ‡บ Mauritius$0.14
65๐Ÿ‡ฒ๐Ÿ‡ฌ Madagascar$0.14
66๐Ÿ‡ญ๐Ÿ‡ท Croatia$0.14
67๐Ÿ‡ฎ๐Ÿ‡ธ Iceland$0.14
68๐Ÿ‡ณ๐Ÿ‡ด Norway$0.13
69๐Ÿ‡ฒ๐Ÿ‡น Malta$0.13
70๐Ÿ‡ฒ๐Ÿ‡ฟ Mozambique$0.13
71๐Ÿ‡จ๐Ÿ‡ด Colombia$0.13
72๐Ÿ‡ง๐Ÿ‡ฌ Bulgaria$0.12
73๐Ÿ‡ฒ๐Ÿ‡ป Maldives$0.12
74๐Ÿ‡จ๐Ÿ‡ท Costa Rica$0.12
75๐Ÿ‡จ๐Ÿ‡ฆ Canada$0.11
76๐Ÿ‡ฒ๐Ÿ‡ผ Malawi$0.11
77๐Ÿ‡จ๐Ÿ‡ฎ Ivory Coast$0.11
78๐Ÿ‡ณ๐Ÿ‡ฆ Namibia$0.11
79๐Ÿ‡ฒ๐Ÿ‡ฆ Morocco$0.11
80๐Ÿ‡น๐Ÿ‡ญ Thailand$0.10
81๐Ÿ‡ฆ๐Ÿ‡ฒ Armenia$0.10
82๐Ÿ‡ฏ๐Ÿ‡ด Jordan$0.10
83๐Ÿ‡น๐Ÿ‡ฟ Tanzania$0.10
84๐Ÿ‡ธ๐Ÿ‡ฟ Swaziland$0.10
85๐Ÿ‡ช๐Ÿ‡จ Ecuador$0.10
86๐Ÿ‡ง๐Ÿ‡ผ Botswana$0.10
87๐Ÿ‡ฉ๐Ÿ‡ด Dominican Republic$0.10
88๐Ÿ‡ฒ๐Ÿ‡ฐ Northern Macedonia$0.10
89๐Ÿ‡ฆ๐Ÿ‡ฑ Albania$0.10
90๐Ÿ‡ฑ๐Ÿ‡ธ Lesotho$0.09
91๐Ÿ‡ธ๐Ÿ‡ฑ Sierra Leone$0.09
92๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia$0.09
93๐Ÿ‡ง๐Ÿ‡พ Belarus$0.09
94๐Ÿ‡ญ๐Ÿ‡บ Hungary$0.09
95๐Ÿ‡ง๐Ÿ‡ฆ Bosnia & Herzegovina$0.09
96๐Ÿ‡น๐Ÿ‡ผ Taiwan$0.09
97๐Ÿ‡ฐ๐Ÿ‡ท South Korea$0.09
98๐Ÿ‡ฒ๐Ÿ‡ฝ Mexico$0.09
99๐Ÿ‡ท๐Ÿ‡ธ Serbia$0.09
100๐Ÿ‡จ๐Ÿ‡ฉ DR Congo$0.08

Source: GlobalPetrolPrices.com. As of March 31, 2022. Represents average household prices.

In the U.S., consumer electricity prices have increased nearly 16% annually compared to September last year, the highest increase in over four decades, fueling higher inflation.

However, households are more sheltered from the impact of Russian supply disruptions due to the U.S. being a net exporter of energy.

3. Global Energy Prices: Natural Gas

Eight of the 10 highest natural gas prices globally fall in Europe, with the Netherlands at the top. Overall, European natural gas prices have spiked sixfold in a year since the invasion of Ukraine.

RankCountry/ RegionNatural Gas Prices
(kWh, USD)
1๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands$0.41
2๐Ÿ‡ธ๐Ÿ‡ช Sweden$0.24
3๐Ÿ‡ฉ๐Ÿ‡ช Germany$0.21
4๐Ÿ‡ง๐Ÿ‡ท Brazil$0.20
5๐Ÿ‡ฉ๐Ÿ‡ฐ Denmark$0.19
6๐Ÿ‡ช๐Ÿ‡ธ Spain$0.17
7๐Ÿ‡ฎ๐Ÿ‡น Italy$0.16
8๐Ÿ‡ฆ๐Ÿ‡น Austria$0.16
9๐Ÿ‡ธ๐Ÿ‡ฌ Singapore$0.15
10๐Ÿ‡ง๐Ÿ‡ช Belgium$0.15
11๐Ÿ‡ญ๐Ÿ‡ฐ Hong Kong$0.14
12๐Ÿ‡จ๐Ÿ‡ฟ Czech Republic$0.14
13๐Ÿ‡ฌ๐Ÿ‡ท Greece$0.12
14๐Ÿ‡ซ๐Ÿ‡ท France$0.12
15๐Ÿ‡ฏ๐Ÿ‡ต Japan$0.11
16๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom$0.10
17๐Ÿ‡จ๐Ÿ‡ญ Switzerland$0.10
18๐Ÿ‡จ๐Ÿ‡ฑ Chile$0.10
19๐Ÿ‡ต๐Ÿ‡น Portugal$0.09
20๐Ÿ‡ง๐Ÿ‡ง Barbados$0.09
21๐Ÿ‡ต๐Ÿ‡ฑ Poland$0.09
22๐Ÿ‡ง๐Ÿ‡ฌ Bulgaria$0.09
23๐Ÿ‡ฎ๐Ÿ‡ช Ireland$0.08
24๐Ÿ‡ฆ๐Ÿ‡บ Australia$0.07
25๐Ÿ‡ฒ๐Ÿ‡ฝ Mexico$0.07
26๐Ÿ‡ณ๐Ÿ‡ฟ New Zealand$0.06
27๐Ÿ‡ธ๐Ÿ‡ฐ Slovakia$0.06
28๐Ÿ‡บ๐Ÿ‡ฒ U.S.$0.05
29๐Ÿ‡ฐ๐Ÿ‡ท South Korea$0.04
30๐Ÿ‡จ๐Ÿ‡ด Colombia$0.04
31๐Ÿ‡จ๐Ÿ‡ฆ Canada$0.03
32๐Ÿ‡ท๐Ÿ‡ธ Serbia$0.03
33๐Ÿ‡น๐Ÿ‡ผ Taiwan$0.03
34๐Ÿ‡บ๐Ÿ‡ฆ Ukraine$0.03
35๐Ÿ‡ฒ๐Ÿ‡พ Malaysia$0.03
36๐Ÿ‡ญ๐Ÿ‡บ Hungary$0.03
37๐Ÿ‡น๐Ÿ‡ณ Tunisia$0.02
38๐Ÿ‡ฆ๐Ÿ‡ฟ Azerbaijan$0.01
39๐Ÿ‡ง๐Ÿ‡ญ Bahrain$0.01
40๐Ÿ‡ง๐Ÿ‡ฉ Bangladesh$0.01
41๐Ÿ‡น๐Ÿ‡ท Turkey$0.01
42๐Ÿ‡ท๐Ÿ‡บ Russia$0.01
43๐Ÿ‡ฆ๐Ÿ‡ท Argentina$0.01
44๐Ÿ‡ง๐Ÿ‡พ Belarus$0.01
45๐Ÿ‡ฉ๐Ÿ‡ฟ Algeria$0.003
46๐Ÿ‡ฎ๐Ÿ‡ท Iran$0.001

Source: GlobalPetrolPrices.com. As of March 31, 2022. Represents average household prices.

The good news is that the fall season has been relatively warm, which has helped European natural gas demand drop 22% in October compared to last year. This helps reduce the risk of gas shortages transpiring later in the winter.

Outside of Europe, Brazil has the fourth highest natural gas prices globally, despite producing about half domestically. High costs of cooking gas have been especially challenging for low-income families, which became a key political issue in the run-up to the presidential election in October.

Meanwhile, Singapore has the highest natural gas prices in Asia as the majority is imported via tankers or pipelines, leaving the country vulnerable to price shocks.

Increasing Competition

By December, all seaborne crude oil shipments from Russia to Europe will come to a halt, likely pushing up gasoline prices into the winter and 2023.

Concerningly, analysis from the EIA shows that European natural gas storage capacities could sink to 20% by February if Russia completely shuts off its supply and demand is not reduced.

As Europe seeks out alternatives to Russian energy, higher demand could increase global competition for fuel sources, driving up prices for energy in the coming months ahead.

Still, there is some room for optimism: the World Bank projects energy prices will decline 11% in 2023 after the 60% rise seen after the war in Ukraine in 2022.

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