The pace of economic recovery is slowing before the fiscal squeeze has kicked in. But the BoE is hesitant to launch QE2 given the higherthan expected inflation (expectations). There are definitely short-term upside risks to inflation, mostly due to the VAT hike in January 2011.
Investors are worried that rising public debt to GDP ratios in the advanced economies will eventually lead to a wave of sovereign defaults. To calm market nerves, therefore, governments have announced austerity measures to lower debt ratios to more ‘sustainable levels’.
Dutch Housing Market Quarterly Dutch version
Times are still tough in the market for owner-occupied properties. But there are some signs of improvement. After having fallen for the six preceding quarters, house prices have now been rising for two successive quarters.
Russia’s oil and gas dependent economy has started to recover slowly from the sharp downturn in 2009, with real GDP growth estimated at 4.2% and 4% in the next two years.
The island of Taiwan has a dynamic, capitalist economy which has sharply rebounded from the effects of the global financial crisis. Economic activity will expand by over 9% yoy in 2010, a large improvement from the 1.9% contraction in 2009.
A structural country risk the Maldives are facing is climate change. If the sea level rises only by a couple of meters, the majority of the Maldives will be submerged. The political situation is very unstable, as the opposition and the ruling party are frequently at loggerheads hindering any progress on reforms.
Angola’s economic performance is almost completely determined by the global demand for oil. In fact, oil related taxes amount to 90% of total taxes. It is therefore not surprising that Angola’s economy took a hit when oil prices dropped dramatically as a result of the global recession