Insider Monkey

25 Best Countries for Americans to Visit

Ramish Cheema
10 min read

In this piece, we will take a look at the 25 best countries for Americans to visit. For more countries, head on over to 5 Best Countries for Americans to Visit.

2022 has marked a significant shift in global macroeconomics. The Russian invasion of Ukraine coupled with rising inflation in the expansionary aftermath of the coronavirus pandemic has had a significant impact on the U.S. dollar. This is because the Federal Reserve's rapid interest rate hikes that have aimed to combat inflation have also strengthened the U.S. dollar. At the same time, demand for dollars peaked in 2022 as global recessionary fears grew due to the economic shock from the Ukraine war. The dollar's strength lead to the greenback making significant gains last year against major currencies such as the British Pound, the Japanese Yen, the Australian Dollar, and the Euro.

For instance, the Pound closed in 2021 at 1.35 dollars to a pound and within the year slipped to 1.21 for a ten percent drop. The Australian dollar closed in 2021 at 0.73 USD and dropped to 0.68 USD at the end of the year, marking a 7% drop. Finally, the Euro also dropped by 7% during the year, but all three currencies dipped to their record lows in the middle of the fourth quarter of 2022 as the Fed delivered consecutive (and massive) 75 basis point (0.75%) interest rate hikes.

A stronger U.S. dollar comes with a mixed bag of results for Americans. For exporters, it's bad news as they are able to earn fewer dollars for the same units of the foreign country's currency, and for importers, it's a blessing since they can buy more goods with the same amount of dollars. For the everyday consumer, it makes buying imports cheaper, and at the same time, it's also good news for tourists as they are able to spend freely in foreign countries. As an illustration of the benefits offered to tourists, the dollar's strength last year led to a flood of American tourists to Europe. According to the president of an online travel agency, Americans flocked to France, London, Ireland, and Italy in droves to make use of the stronger dollar. At the same time, many also started booking their travel plans in advance as well, to lock in the lower rates.

At the same time, the stronger dollar not only led to a growth in tourism to Europe but also saw Americans snap up prime London real estate. The British Pound crashed in October last year after former British premier Elizabeth Truss's well intentioned but ill timed pivot to growth spooked bond investors who sold British debt and caused the pound to plummet to its record low and a hair's breadth away from the ignominious parity with the dollar. However, even before the crash, America's wealthiest were making full use of Britain's woes. According to data compiled by a real estate broker, American purchases of London real estate shot up to represent 14.5% of the total purchases during the first half of 2022. This was more than double the 6% that it had stood at during the final half of 2021. However, the rich patiently waited for the worst, as soon after the pound's crash, the big guns came out and properties as expensive as £50 million changed hands. To add to this, while overall American transactions counted for 14.5% of the market when we narrow down our focus to the top end properties, these transactions represented more than 30% of the total share.

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