Countries Most Worried About the Future

11. Mauritius
> Pct. pessimistic: 25%
> Moody’s sovereign credit rating: Baa1
> Life expectancy: 73.4 years
> Unemployment (2011): 7.79%

The Mauritian economy has slowed down in recent years, and GDP growth has fallen from 5.5% in 2008 to an estimated 4.1% in 2011. Slowing growth has been accompanied by increasing inflation, which rose to an estimated 6.54% in 2011 from just 2.9% in 2010. Not all news on the Mauritian economy is poor. In June, Moody’s Investors Service raised Mauritius’ credit rating from Baa2 to Baa1, citing increased economic diversification — achieved through a growing service sector — and reduced exposure to shocks originating from Europe.

Also Read: Countries Where People Work Least

10. Malta
> Pct. pessimistic: 25%
> Moody’s sovereign credit rating: A3
> Life expectancy: 79.6 years
> Unemployment (2011): 6.4%

A quarter of Maltese surveyed by Gallup were pessimistic about the future. Despite economic growth, decreasing unemployment and other indicators of a healthy economy, the country’s imports have outweighed exports for the past five years. Public debt is increasing as a result of deficit spending.By the end of 2012, Malta’s debt will be 67.9% of GDP.

9. Cyprus
> Pct. pessimistic: 25%
> Moody’s sovereign credit rating: Ba3
> Life expectancy: 79.6 years
> Unemployment (2011): 7.78%

The pessimism expressed by Cypriots may be largely tied to economic woes. The small island nation is highly exposed to the Greek economic crisis, and its two largest banks are among Europe’s largest holders of Greek debt. Cyprus’ economy has struggled in recent years: GDP fell by 1.86% in 2009. Growth remained slow through 2011, when GDP rose just 0.5% according to IMF estimates, one of the slowest growth rates in the world that year. The unemployment rate increased from 3.65% in 2008 to an estimated 7.78% in 2011, making Cyprus one of three nations on this list whose unemployment rate doubled in the previous two years. On June 27, 2012, the IMF’s managing director, Christine Lagarde, announced that Cyprus had requested financial support from both the IMF and the European Financial Stability Facility, the eurozone’s financial safeguard, citing exposure to the Greek economy.

8. Singapore
> Pct. pessimistic: 26%
> Moody’s sovereign credit rating: Aaa
> Life expectancy: 81.1 years
> Unemployment (2011): 2.00%

Singapore has the second highest import/export trade as a percentage of GDP — over 280% — making the country one of the most business-oriented in the world, according to the World Trade Organization (WTO). With unemployment never more than 3% during the recession and consistently rising GDP per capita, it is hard to see why many Singaporeans were feeling pessimistic about their future in 2011. The Singapore dollar weakened by 5.5% in 2011, which may have led to the increase in inflation, possibly causing some lack of economic confidence among those surveyed. Lee Kuan Yew, who had led the country since independence and helped it become an economic powerhouse, stepped down from his cabinet post in May 2011.

7. Hungary
> Pct. pessimistic: 28%
> Moody’s sovereign credit rating: Ba1
> Life expectancy: 74.4 years
> Unemployment (2011): 10.95%

In 2008, unable to pay its sovereign debt, Hungary received $25 billion in assistance from the IMF, World Bank and European Union. In 2009, Hungary’s GDP contracted by 6.8% — one of the largest economic contractions in the world that year. In recent years, GDP has improved only slightly, rising by 1.70% in 2011, while inflation has slowed only marginally from 4.21% in 2009 to 3.9% in 2011. On July 26, the IMF announced that it had entered into discussions with Hungary to create another economic assistance platform, noting the country’s indebtedness and slowing growth.