Economic Update Dutch version
The economic slowdown means nothing more than a soft landing for the Dutch economy. In the fourth quarter of 2010 and the first quarter of 2011 real economic growth averaged 2.6% on the year before, well above the long-term trend growth of around 2%.
The large macroeconomic imbalances with which Ghana entered the global financial crisis have narrowed recently. However, there are still sizeable vulnerabilities.
Since the eruption of the Greek budget problems in 2009, the euro is lurching from crisis to crisis. European policy makers are struggling to find a solution for what in the press is nicknamed “the European debt crisis”.
Cyprus looks well on its way of becoming the fourth euro zone country that needs a rescue package. The destruction of a large power plant in July has resulted in an energy crisis with a severe impact on economic growth and the government budget.
Mongolia’s economy is recovering on the back of strong international demand for its commodity exports. Growth recovered to 6.1% in 2010 and will remain strong in the coming years. Structurally, Mongolia’s economy is weak.
The country’s and the sovereign’s solvency is comfortably assured by at least a decade of (often substantial) current account and fiscal budget surpluses, although the value of external assets are not provided. We consider official and hidden reserves to be sufficient to cover for unlikely current account deficits. They are also large enough to defend the fixed exchange rate to the USD.
Increased demand in emerging markets, combined with a series of failed harvests have sent food prices through the roof.