New Zealand
CPD%: 6.1%
GDP (Nominal): $109 billion
Total Sovereign Debt: $24 billion
Sovereign Debt As % Of GDP: 22.2%
New Zealand relies heavily on agricultural exports (dairy, meat, wool) to fuel their stable, if
not robust, economy. In the 1990’s, the administration restructured and sold a great deal of government-owned businesses, which reduced its debt and allowed New Zealand to continue to trade more liberally with its neighbors, the biggest of these being Australia. The current New Zealand government plans to raise productivity growth and develop infrastructure, while attempting rein in government spending.
Qatar
CPD%: 6.4%
GDP (Nominal): $92 billion
Total Sovereign Debt: $14.5 billion
Sovereign Debt As % Of GDP: 15.7%
Qatar has the second-highest income per capita in the world, primarily because of fossil fuel exports, it largest producer of liquefied natural gas in the world. Like many of the countries on this list, Qatar experienced an economic slowdown during 2009. Instead of contracting, however, the economy grew more than 9%. Foreign investment accounts for more than half of Qatari GDP.
United Kingdom
CPD%: 6.6%
GDP (Nominal): $2.1 trillion
Total Sovereign Debt: $1.4 trillion
Sovereign Debt As % Of GDP: 68.1%
A heavily service-driven economy, the UK is one of the leading European nations in the banking and insurance industries. The nation enjoyed a period of growth that outpaced most of Europe, but was hit particularly hard by the global economic crisis. Heavy consumer debt and plummeting home prices hit the British Isles particularly hard, the Brown administration implemented a heavy stimulus package and nationalized a large section of the banking sector with moderate success.
Czech Republic
CPD%: 7%
GDP (Nominal): $189 billion
Total Sovereign Debt: $64.6 billion
Sovereign Debt As % Of GDP: 34.1%
The Czech Republic is the most economically healthy post-Soviet-satellite in Eastern Europe. The country is in an ideal trade location in Europe and is export heavy across a wide variety of products. While the Czech economy performed relatively well during the recession, GDP contracted 4.1% as a result of reduced demand from its trading partners.
Chile
CPD%: 7.3%
GDP (Nominal): $150 billion
Total Sovereign Debt: $9.1 billion
Sovereign Debt As % Of GDP: 6.1%
Chile is regarded by many as one of the most fiscally sound South American nations. It managed to maintain stability during the global crisis by utilizing saved revenues. The country’s peso has historically performed well against the U.S. dollar, which has kept inflation at a healthy low. The recession, however, caused a reversal in this trend, and inflation has risen 8%. Chile supports largely unrestricted free trade and has a great deal of foreign investors, particularly for its massive copper industry. International investors in Chile have increased more than 400% in the last five years.
Slovenia
CPD%: 7.6%
GDP (Nominal): $49.5 billion
Total Sovereign Debt: $15.7 billion
Sovereign Debt As % Of GDP: 31.8%
Slovenia joined the European Union in 2007, which has greatly stabilized the country. It became the first country to make the transition from borrower to donor at the World Bank. The government has taken an active role in bolstering regional businesses from the recession fallout, which has increased its debt significantly.
Abu Dhabi
CPD%: 7.7%
Sovereign Debt As % Of GDP: 24/7 Wall St. contacted the UAE embassy in New York. Employees indicated they could not provide the information. (The only country that failed to make the information available.)
GDP (Nominal): $159 trillion
Total Sovereign Debt: (see above)
Abu Dhabi, one of the states in the United Arab emirates, is another heavy oil-exporting country, with 9% of the world’s proven reserves within its borders. The Abu Dhabi government has made an effort to diversify the economy with reasonable success. The country also has a lucrative financial services sector.
Austria
CPD%: 7.8%
GDP (Nominal): $374 billion
Total Sovereign Debt: $259 billion
Sovereign Debt As % Of GDP: 69.3%
Austria is quietly one of the most economically stable countries in mainland Europe, at least partially because of its close economic ties to Germany. The country’s economy made a major transition in the late 1980’s after the government sold off a large portion of State owned business to the private sector. Austrian GDP dropped 3.5% in 2009, but is expected to recover to 2% growth in 2010.
France
CPD%: 7.8%
GDP (Nominal): $2.6 trillion
Total Sovereign Debt: $2 trillion
Sovereign Debt As % Of GDP: 77.5%
France is the world’s fifth-largest economy. Despite significant reform and privatization over the past 15 years, the government continues to control a large share of economic activity. The development of nuclear power, which now accounts for about 80% of the country’s electricity production, promises a certain degree of long-term stability as a result of significantly reduced reliance on oil. French productivity, on the other hand, is continually at odds with its powerful labor unions, which have created some of the shortest work weeks in Europe. The Government recently passed a highly-contested bill to allow more businesses to operate on Sundays.
-Michael B. Sauter
