The current crisis will stall globalization – report
By Daniel at 10 June, 2009, 3:45 am
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Key findings of the report include:
- The economic downturn is the main reason for the deterioration in the global business environment. Annual average global growth in 2009-13, measured at purchasing power parity (PPP) exchange rates, is forecast to be only half the rate achieved in the previous five years -2.3% compared with 4.6% respectively.
- The macroeconomic environment will be affected by increased budget deficits and public debt levels, currency volatility and ongoing appreciable risks to asset prices. Poor ratings for the soundness of banking systems, financial sector distortions and impeded access to finance, in particular, will have a significant effect on the outlook for financing.
- The US and UK suffer a big deterioration. The US’s global ranking declines to 12th in the forecast period (2009-13) from 7th in the historical period (2004-08), owing to a severe deterioration in the categories of market opportunities, the macroeconomic environment and financing.
Business environment rankings (only first 30 countries shown, for the full list see link below)
[2009-13 score] [2009-13 Rank] [2004-08 score] [Change in score from 2008] [Change in rank from 2008]
Finland 8.31 1 8.53 3 -0.22 2
Singapore 8.27 2 8.87 1 -0.61 -1
Canada 8.24 3 8.52 4 -0.28 1
Hong Kong 8.24 4 8.59 2 -0.36 -2
Switzerland 8.20 5 8.52 5 -0.31 0
Denmark 8.19 6 8.51 6 -0.32 0
Australia 8.08 7 8.20 11 -0.12 4
Sweden 8.00 8 8.21 10 -0.21 2
Norway 7.96 9 8.06 14 -0.10 5
Netherlands 7.91 10 8.33 8 -0.42 -2
New Zealand 7.88 11 8.19 12 -0.30 1
US 7.83 12 8.36 7 -0.53 -5
Germany 7.80 13 8.04 15 -0.24 2
Ireland 7.70 14 8.28 9 -0.58 -5
Chile 7.69 15 7.83 18 -0.14 3
Taiwan 7.66 16 7.65 20 0.01 4
France 7.56 17 7.81 19 -0.25 2
Belgium 7.52 18 7.99 16 -0.47 -2
Qatar 7.50 19 7.17 27 0.33 8
Austria 7.47 20 7.95 17 -0.48 -3
Israel 7.29 21 7.36 23 -0.07 2
http://www.eiuresources.com/mediadir/default.asp?PR=2009052001
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