Economy, Finance and Trade

Spain is suffering from a bout of political instability and economic freedom has worsened. Although economic development is slowing down, it continues to attract foreign investors. However, high, albeit falling, inflation has taken its toll on…

India has a relatively stable political environment, but discrimination of minority groups is on the rise and the country has weak state finances. Economic development has outpaced peers and prospects for international trade are positive, although…

Relatively high taxes and a lack of fiscal discipline are negatively affecting economic freedom, whilst France is prone to significant social unrest. Economic momentum is slowing, as higher borrowing costs adversely impact investment and confidence,…

Weak state finances have caused frequent bouts of instability in governance. Additionally, the US’s peacefulness has worsened, but its business landscape remains resilient. Economic growth is slowing in the short term, but robust energy exports have…

New Zealand’s business climate is dynamic and ‘mostly free’ for economic freedom, whilst corruption is not a problem, but political instability is rising owing to the scheduled general election in October 2023. As inflation continues to trouble…

Organised crime continues to negatively impact Mexico, owing to a weak rule of law, which is also beset by pervasive corruption, but government spending is a bright spot in economic freedom. The economy will continue to underperform peers, but…

Recent policies are eroding democracy and corruption is rife, although economic freedom has improved in the short term. The economy has proven to be resilient, helped by higher exports, whilst inflation is moderating and the prospects for foreign…

Although ‘mostly free’ for economic freedom and state finances have been improving, more corruption has been observed and its terrorism ranking has been deteriorating. Inflation is retreating, but economic growth is moderating, whilst energy import…

Australia is one of the freest economies in the world, with limited corruption and improving government finances. The economy is facing slowing growth and inflation continues to be high, but the export environment is becoming more favourable as…

Italy’s high public debt is a threat to stability and negatively affects economic freedom, but anti-corruption legislation has been reinforced. Economic growth is forecast to be subdued, as rising borrowing costs bite, and foreign investment is…

Authoritarian rule has created political stability in Tajikistan, but economic freedom has suffered as a result. The economy is expected to outperform peers in the short term, but a narrow export base creates risks for the external sector. Tajikistan…

Somalia is characterised by corruption and extremely distressed government stability indicators. The economy has much potential, albeit from a low base, with the state prioritising foreign investment in the future. Nevertheless, reliance on…

Dependence on the Netherlands for fiscal support is a source of uncertainty for Sint Maarten. Crime rates are high and the country’s sovereign credit has been downgraded. Excessive reliance on tourism caused a severe recession, given the impact of…

Significant divisions exist between New Caledonia’s indigenous population and its European counterparts, creating political instability. Substantial reliance on nickel is a risk for the economy, which was in recession in 2020. The prospect of…

Political upheaval has been caused by transitioning to a new constitution, whilst economic freedom is suppressed, given ineffective observance of the rule of law. The economy could outperform peers, owing to strength in agriculture and greater…

Nauru’s political landscape is stable, but is sometimes autocratic in nature. The country’s biggest challenge is to diversify the economy away from phosphate production. Nevertheless, planned infrastructure projects could enhance Nauru’s appeal. Its…

Guinea-Bissau suffers from substantial political instability and corruption, which limits democracy. Economic recovery is likely to be stronger than peers, driven by higher demand for agricultural products, but large dependence on the sector is a…

The US’s large military presence on Guam makes the territory a target for attacks by nations looking to lower US power in Asia Pacific. Guam is highly reliant on US federal funding, exposing the territory to changes in US military spending. Tourism…

The Netherlands maintains considerable clout over the affairs of Curacao, which is leading to growing calls for a full split from the European nation. Given that the economy is highly dependent on tourism and oil refining, it has suffered at the…

Political instability has been partly to blame for a deterioration in peacefulness in Guyana, although efforts to tackle corruption are improving. The economy was the best performer globally in 2020, but major oil discoveries also raise the country’s…