Category Archives: Economy

20 Countries with the Lowest National Debt 2015

Every governments has an obligation to raise the living standard of their populace.  Usually they fund this via taxes, but often taxes aren’t sufficient to meet essential expenditures in the short term, so government may resort to borrowing but keeping such debt at low levels  could prevent  economic instability. Countries with low to medium level debt have seen investors gain confidence, leading to lower  bond yields and putting least pressure on the government to cut spending. Countries  with lowest debt have not to respond by printing money that leads to inflation in the country.

Low  government debt has a positive effect on long-term economic growth, saddling future generations with low debts of today and frees economic resources for investment in the private sector.  Additional government spending today harms economic growth of country in the long term, while budget cuts today would enable the economy to grow much faster tomorrow. So for saving future  generations from larger tax burden, today’s debts should be kept lowest that leads to expansion of private investment in future.

How much the national debt of any country is detetmined by comparing it with GDP . National debts of the entire state, including the debt associated with central government, the provinces, municipalities, local authorities and social insurance.  Every year, the debt data is extracted by EuroStat, IMF and CIA which is collected from various surveys and activities conducted by these organizations. As per 2015 statistics, Liberia is the country with the lowest national debt of about 3.3 percent of the GDP.  The statistic shows the 20 countries with the lowest national debt in 2015 in relation to the gross domestic product (GDP).

Rank Country National debt in relation to GDP
1 Hong Kong SAR 0.06%
2 Brunei Darussalam 3.17%
3 Saudi Arabia 6.72%
4 Oman 9.29%
5 Kuwait 9.92%
6 Algeria 10.19%
7 Estonia 10.76%
8 Uzbekistan 11.59%
9 Nigeria 11.88%
10 Botswana 12.40%
11 Kiribati 12.72%
12 Equatorial Guinea 16.12%
13 Iran 16.36%
14 Swaziland 17.64%
15 Chile 18.14%
16 Kazakhstan 18.31%
17 Turkmenistan 18.72%
18 United Arab Emirates 18.86%
19 Russia 20.40%
20 Congo 20.45%

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Ten Biggest Lending Countries of the World

Countries with largest positive “Net International Investment Position” are considered as biggest lenders which significantly outflows its resources to foreign nations to gain returns on its unused funds.Surplus in budgets largely insists authorities to make foreign direct investment to take advantage of spared resources. Large current account surplus lead to largest positive international investment positions while deficit current account results in reduction of NIIP. Moderate to relatively large surpluses is necessary are all these countries for gradual induction to the list of biggest lending countries.
The Net International Investment Position (NIIP) is the difference of foreign assets owned by domestic residents and domestic assets owned by foreigners. As we discussed above, Countries with a positive NIIP are considered to be creditor nations. The table below help visualize the ten biggest creditor’s countries with highest positive NIIPs. All figures have been adjusted to nominal US dollars.

Rank Country External Assets (in Millions) External Liabilities (in Millions) NIIP (in USD) Per Capita (in USD) As of
1 Japan JPY 950,403,000 JPY 602,860,000 2,839,186,016,627 22,365 Jun. 2015
2 Germany EUR 7,894,500 EUR 6,491,700 1,561,568,904,000 19,209 Jun. 2015
3 China USD 6,433,693.033849 USD 4,969,705.434331 1,463,987,599,518 1,070 Jun. 2015
4 Hong Kong HKD 35,130,704 HKD 27,340,262 1,005,012,132,995 137,699 Jun. 2015
5 Taiwan USD 1,619,484 USD 662,792 956,692,000,000 40,825 Dec. 2014
6 Norway NOK 12,406,252 NOK 6,612,862 736,343,670,006 141,893 Jun. 2015
7 Switzerland CHF 4,086,728 CHF 3,414,062 718,436,595,499 86,771 Jun. 2015
8 Singapore SGD 3,959,038.6 SGD 3,182,787.6 576,182,982,861 147,637 Jun. 2015
9 Netherlands EUR 7,402,047 EUR 6,962,383.4 489,425,171,520 28,919 Jun. 2015
10 Russia USD 1,225,497 USD 944,365 281,132,000,000 1,922 Jun. 2015

The world’s largest debtor is now the world’s largest creditor. Japan’s debt-to-GDP ratio is nearly 230%, the worst of any major country in the world. Yet Japan remains the world’s largest creditor country, with net foreign assets of $2.8 trillion. China and Germany are effectively listed amongst the biggest lending countries with the largest NIIP which means the value of its domestically owned assets is less than its liabilities to foreign investors.
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The Biggest Borrower Countries in the World

The most wealthy and financially countries in the world are the most in-debited nations that are not dependent on external funds or investments. They use and generate their own resources to meet the financial needs and are independent of International aids or funds. But that’s not the case with most of the nations in the world today as the international funds (mostly from International Monetary Fund) are necessary for them to keep their economical health. Debtor nations refer to the countries with cumulative deficit in balance of payments. They don’t have enough internal resources to generate enough revenue. Those countries are then become debited and slave to international resources which results in more payback then what they actually borrowed corresponding to international interest rates. The situation leads to inflation within the country making the lives of disabled, difficult to surf. It is being reported that most part of the Asian continent is the most debited in the world. That may be due to less internal resources and less motivation in their citizens for hard work or suffering hardships. The below given table describes the largest debtor nations in the world according to report generated in 2011 by International Monetary Fund (IMF).

Rank Country External Debt (% of GDP) Gross External Debt (In US$) GDP (2011 Estimated in Billion US$) External Debt Per Capita (In US$)
1 Ireland 1239 2.26 Trillion 182.1 478,087
2 United Kingdom 451.4 10.175 Billion 2.25 161,110
3 Switzerland 391.3 133.2 Billion 340.5 174,022
4 Netherlands 367 2.590 Trillion 705.7 154,820
5 Belgium 353.7 1.457 Trillion 412 139,613
6 Denmark 283.2 591.4 Billion 208.8 106,680
7 Hong Kong 265.7 939.83 Billion 353.7 131,380
8 Sweden 262.3 995.2 Trillion 379.4 109,318
9 France 254.4 5.632 Trillion 2.21 (Trillion) 85,824
10 Norway 246.9 653.29 Billion 264.5 138,783

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Ten Countries That are Being Ruined by Least Efficient Government

No doubt sluggish and incompetent government can take any country of the world on verge of collapse and gives such deep wounds to whole economy that need decades to get healed. Least efficient government completely refrains from maintaining rule of law and fails to give its citizens a right to take part in decision-making to gather opportunity to raise their living standard. Curtailing information regarding policies and working of institutions are mostly seen to hide worst condition created due to inefficiency of government. Centralized decision making and wholly unaware of ground realities of country are common feature of worst government that cause wastage of public spending and bring poverty and grievance to its masses with little to no relief. Least efficient government always believes in increasing regulation, lessening transparency and implementing inadequate legal frameworks to curtail expansion of business.

The country with world’s largest oil reserves, Venezuela has the least efficient government, some way behind Italy and Argentina in second and third places as per World Economic Forum list. Half of revenue generated by Venezuelan government comes from oil. Furthermore oil contributes 25% and 95% to GDP and exports respectively. The financial system of country is insufficient to meet the demand for dollars and scarcity of U.S. dollars has contributed to a flourishing black market for the currency. Venezuela’s scarcity index of basic goods has hit a record figure of 28 percent in January 2014 and poverty can be seen all around the country. The drop in oil prices is adding fuel to the fire and making situation worsen. About 25 percent of Venezuela’s imports and oil is also being smuggled across the border, mostly to neighboring Colombia, claimed by government.

The World Economic Forum’s annual Global Competitiveness Report compared the “efficiency” of governments in 144 countries to calculate the overall efficiency of each country’s rulers. The report is out now and it put below listed countries at bottom of list.
WEF Top 10 Countries with Least efficient government in the world
1 Venezuela
2 Italy
3 Argentina
4 Lebanon
5 Libya
6 Croatia
7 Angola
8 Chad
9 Mauritania
10 Serbia

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Ten Countries Which have the Most Efficient Governments

It has become our habit to criticize government for every ongoing worse scenario whether it is related to governance or not. First we need to define what constitute an essential feature of efficient governance. An ideal government must give right to every citizen of its country to participate constructively in decision-making and enforced law impartially to maintain rule of law. Information regarding working of institutions must be publically available and concerned authorities must response to public queries in efficient way. Best government doesn’t keep decision making centralized but always try to listen voice of each concerned party to reach a broad consensus and provide equal opportunity to all masses to raise their living standard. Best government always believes in least bureaucracy and regulation, maximum transparency, and adequate legal frameworks to facilitate expansion of business across the world. Furthermore, an efficient government knows ground realities of its country very well and makes long-run policies to get maximum outcome with scare resources.

The World Economic Forum’s annual Global Competitiveness Report compared the “efficiency” of governments in 144 countries by taking various factors into account such as wastefulness of government spending, rule of law, burden of regulation, response to public queries and transparency of policymaking to calculate the overall efficiency of each country’s rulers.

The oil-rich autocracy, Qatar surprisingly topped a World Economic Forum list and came up as the country with the most efficient government in the world, closely followed by Singapore. However, As per Amnesty International’s recent report, migrant workers in Qatar were treated unfairly and discrimination and violence against women were also prevalent. Freedom of expression remained strictly controlled in the country and dissemination of any news over internet that is false or deemed harmful to Qatar’s social values is strongly prohibited under cybercrimes law.

WEF Top 10 most efficient states in the world
1 Qatar
2 Singapore
3 Finland
4 Hong Kong
5 United Arab Emirates
6 New Zealand
7 Rwanda
8 Malaysia
9 Switzerland
10 Luxembourg

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Ten Countries with Least Income Inequality

It a need of today’s world to flatten class divides since lessening economic equality is the best way to boosting up any economy. There are some countries where income inequality is least, which means there is a no significant difference between the top and bottom earners. If everyone earns equal money and allocate them optimally then nothing left unused as a result economy start grooming at faster pace. Some countries are economically equal because everyone is well-off, as in Denmark, and some because most everyone is equally poor. Similarly well settled economies have much lower percentage of income inequality than unstable economies.
GINI index, published by Economic Co-Operation and Development, measures the level of economic inequality across the country. It ascertains how much distribution of income varies from perfect equality. A Gini index of 0 represents perfect equality, while an index of 1 implies perfect inequality. Let’s take a look at some countries that have lowest income inequality.

Countrys GINI Index 2012
Denmark 0.249
Slovakia 0.25
Slovenia 0.25
Norway 0.253
Czech Republic 0.256
Iceland 0.257
Finland 0.26
Belgium 0.268
Sweden 0.274
Austria 0.276

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Countries having the Biggest Stock Exchanges in the World

The idea of engaging general public as partner of giant companies to accumulate huge fund for business operations has opened  new ways for modern business. It is quite inevitable for countries with powerful economies to have world’s largest stock exchange which provides companies throughout the world access to local capital formation and fosters business across the world by floating securities for mutual benefits of all giant companies and investors. Stock markets play a really significant and important in increasing the economical health of any country which is basically a market where traders and stock brokers can buy or sell stocks, bonds or any other kind of securities. Apart from that, it also provide the facility for liberation and issuance of various securities as well as financial workshops and capital events like the payment of dividends and income. Largest the stock exchange, strongest will be the economy of the country revealing the global worth of it. Large numbers of giant stock exchanges are established in vast number of countries which generate a sound and handsome amount of funds for business growth while contributing ultimately towards the national economy.  The revenue generation by this market is just not only dependent on buying or selling but many other factors like the annual evaluation of companies, firms or organizations integrated with stock market are also included. You can say that the these are the main hub of business for government and private firms, companies, organizations etc.

United States is leading the world having gigantic New York Stock Exchange which is the  largest stock exchange in the world by market capitalisation, followed by London Stock Exchange Group and Nasdaq. NYSE surpassed other financial market by big margin having a total net worth of US$ 18,336 billion. Based on its current status and past record it is concluded that NYSE will remain the biggest stock exchange in the world for many years to come and it would be really difficult to compete with this giant. As per World Federation of Exchanges, here are the countries having the largest stock exchanges based on market capitalization.

Exchange Domestic market capitalization (USD Billions) 2015 ‘% change/Sep 14 (in USD) ‘% change/Sep 14(in local cur)
July August September
NYSE 19,351 17,931 18,336 -2.4% -2.4%
London Stock Exchange Group 6,834 6,924 6,940 0.5% 12.0%
Nasdaq – US 7,473 6,981 6,745 0.9% 0.9%
Japan Exchange Group 4,985 4,713 4,405 -1.8% 7.2%
Shanghai Stock Exchange 4,839 4,125 3,951 37.7% 42.6%
Euronext 3,549 3,326 3,184 -9.1% 2.1%
Hong Kong Exchanges and Clearing 3,445 3,059 2,992 -4.9% -5.1%
Shenzhen Stock Exchange 3,303 2,742 2,651 38.6% 43.5%
TMX Group 1,855 1,749 1,653 -25.0% -10.0%
Deutsche Boerse 1,780 1,676 1,584 -7.7% 3.7%

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Top 10 Countries having Highest Salaries in the World

Most of us see money as real source of happiness and want to know which country pays its workers the highest salary. Undoubtedly, offering handsome amount of salaries to make its employees live pleasing and luxurious is wise idea that not only increases their work flow rate but also develops more hardworking, passion and professional instincts in them which eventually lead to great business development. Countries with highest salaries are financially strong since their inhabitants have more money to spend and more cash to invest, eventually demand for more production increases as result tax collection goes high which strengthen government to allocate more resources to welfare and security projects. Here we have list of the top 10 highest average salary per country.

1. United States
Undoubtedly, United States is the most powerful and wealthy country in the world which is offering possibly the highest salaries to its employees whether they are local or foreigners. US have surplus quantity of resources and is the second largest exporter in the world. Owing to that, handsome amount of revenue is generated annually from which employees are facilitated massively. An average American earns about $41355 annually which is in every sense, a very attractive amount.
2. Luxembourg
Probably the biggest financial center of European continent, Luxembourg is at second number offering highest level of salaries to its employees. The reason for its strong financial position is due to its dominancy in export. It used to be the Europe’s largest exporter with major exports including industrial machinery, rubber, chemicals and fine financial services. The average income of citizen residing in Luxembourg is $38591 per year (after taxes).
3. Norway
Being amongst the wealthiest countries in the world, Norway is blessed with vast amount of natural resources like oil, mineral, hydropower and fishing. Great amount of revenue is generated in Norway every year which accompanies its employees with high level of salaries. Though the education and health are expensive in Norway but its citizens utilize their spare time in earning more to meet the needs. Due to that, the average wage of citizen of Norway is about $33492 annually.
4. Switzerland
Swiss nation has been ranked amongst the ten best countries with the highest average salary . The international worth of Switzerland is something appreciable as their manufacturing zone is considered to be the most robust in the European continent. The main manufactures of Swiss includes musical instrument, precision measuring instruments, chemicals and pharmaceutical merchandise. $33,491 is the disposable amount which the employees earn annually in Switzerland while working on an average 35 hours on weekly basis.
5. Australia
probably one of the healthiest economies in the world, Australia holds the 5th spot while being the giant in exporting minerals, oil and food stuffs. It is ranked second after Switzerland in terms of health and education according to the year 2013. The average disposable salary in country is about $31588 (with 27.7% taxes) which clearly shows the prosperity of employees there. The average working hours in Australia are noticed to be 36 hours per week.

6. Germany
Another Country where you expect to earn the highest salaries, Germany being unable to take high spot in the world rankings still owns a handsome amount of disposable income annually. The annual amount which an employee earns there is $31252 after the astonishing tax rate of 49.8%. Due to high taxes, German nation has been ranked first in the deducting the highest amount from citizen’s salary. But besides that, the oldest education and health system in Germany provides free health and education services to citizens which save their salary to a great extent.
7. Austria
It would be a surprise to know that Austria is also among the countries offering highest salaries to employees. Due to its ultimate natural beauty, it is a great spot of attention for the tourists around the world which adds great amount of monetary values to national treasury. Besides that, its strong industrial position makes it provide high levels of disposable income to citizens. $31173 is the annual income of employee in Austria after the huge tax deduction of 49.4% from their salaries.
8. Canada
Enriched with natural resources and one of the biggest oil reserves in the world, Canada holds 8th spot where you can expect to have highest salaries. The major exports of country include grains, wheat and canola. Besides that, the existence of massive quantity of aluminum, zinc, gold, uranium and nickel are another sources of Canada’s strong economy. Canadian citizens earn about $29365 annually after tax deduction of 31% (which is served for universal health and higher education) while working for an average 36 hours weekly.
9. Sweden
with economy based on mixed exports, Sweden is among the richest countries in the world in terms of GDP per capita where average salary is as highest as $29185 after tax deduction of 42.4%. The major exports of Sweden include iron, timber and hydropower. Foreign trading is another factor adding handsome amount of monetary values to their national treasury. The famous Nordic Social Welfare System in Sweden provides free universal health care and higher education to citizens helping massively in their financial budget management.

10. France
With having one of the strongest and devoted labor forces in the world, French nation is unluckily placed at 10th spot in our list of highest paying countries in the World. Having highly motivated and hardworking employees as compared US, France stayed behind due to their less working hours law introduced in 1999. But regardless of that, the average income of employee in France is $28799 after tax deduction rate of 49.4% (utilized for health and education).

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Top 10 Countries with Largest Foreign Exchange Reserves

Presence of large Foreign reserves are any nation’s most important and crucial assets which are very much essential to run a healthy economy. Without these assets, the economy of any country could come to an ending state which may lead to immediate crisis around. Foreign exchange reserves doesn’t only include the monetary well being but other resources like Gold reserves, International Monetary Fund (IMF) and various others are also included. Presence of largest foreign exchange reserves makes a country grow its economical health so as to making an easy access for the imports like crude oil as well as paying their international debt. The total inventory and record is kept under supervision of National Banks along with the assistance of monetary authorities. Another way to boost the economical growth is the investment of foreign currencies deposits in respective stock exchange markets which stables and provides more room for international dealings.

A country without big foreign exchange reserves would be unable to keep up with the growing international economical market as well as meeting up its own state’s financial balance. As according to the international markets, the sovereign wealth funds have come into competition which may beat the foreign reserves in future. In short, for any country to survive and grow up with the international market, the existence of large foreign currency deposits is ultimately necessary. Top countries with largest foreign reserves are listed below in the US Dollar (in millions). These figures are being reported after the survey in 2015.

1. China
Being one of the most powerful and convincing countries in the world, the China is at the top spot with largest foreign exchange reserves of up to 3,634,184 Millions US$ as of Aug 2015 as per state administration of foreign exchange of china. The huge amount not only allows China to meet their internal financial needs but also enables them to keep up with the growing economical competition.

2. Japan
Globally famous for its speed and quality in technology advancement, Japan is at the second spot. With utmost and devoted people, the country owns a world’s second largest reserves of foreign exchange of nearly 1,244,150 Millions US$ as of August 2015 as per IMF. Withing a small land area, this country is in possession of sound international economical background which enables it to advance furthermore in future.

3. Saudi Arabia
No further description is needed as the name describes it all, the Saudi Arabia is one of most powerful Muslim states in the world and possesses a heavy impact on the whole Muslim world. Being the largest oil producing country in the world, they own a third biggest reserve of foreign exchange of about 672,106 Millions US$ as of June 2015 as per Saudi Arabian Monetary Agency. With strong financial backing, Saudi Arabia is a powerful investor in the international market.

4. Switzerland
Globally renowned as the most expensive countries in the world to live in, Switzerland dominates the fourth spot in our list of countries with largest foreign exchange reserves. It is said that the living there is too much expensive for any mediocre family. That may be due to their strong financial reserves which were figured out at 600,180 Millions US$ as of June 2015 according to IMF. With this small land area, Switzerland is a strong nation in terms of financial backing.

5. Taiwan
Regarded as a state of China, Taiwan is at fifth number having highest foreign reserves of about 426,398 Millions US$ as of June 2015 according to central bank of the republic of china. Being famous regarding cellphone manufacturing, the country has a stable and sound financial background which allows it to spend in the international market so as to increasing the economical health of the nation.

6. South Korea
Globally renowned for smartphones and cars, the South Korea is a sovereign country with total foreign exchange reserves estimated to be 374,749 Millions US$ on June 2015 according to report of bank of korea which is spotted as sixth largest foreign currency holder in the world that is reasonable enough to increase its economical health and financial backing.

7. Russia
Probably the largest country in the world in terms of total land area, the Russian Federation is 7th in the list of countries with highest foreign reserves. In older times when it used to be single state, the figures are reduced to much extent today. After the division of Russia, their foreign reserves stood at 369,000 Milions US$ on Sep 25, 2015 as per IMF which is not reasonable amount but stable enough to meet and balance its internal financial needs.

8. Brazil
Here comes the most famous country in the world in terms of goons, Brazil holds the 8th spot in term of highest foreign currency deposits. With large land area and huge financial requirements, its foreign exchange reserves were expected to be as largest as 368,252 Millions US$ on Aug 2015 as per IMF. The economical health of Brazil is intended to increase further in future as few internal investors are stepping ahead.

9. India
Though its surprising but India is at number 9 in list of countries with largest foreign reserves which had total financial backing of about 349,979 Millions US$ on Sep 25, 2015 as per IMF and Reserve Bank of India. The Hindu based state is behind no one in competing the international financial race but besides that, the country has a long way to keep up with the likes of China, Japan and Saudi Arabia.

10. Hong Kong
Worldwide famous for its natural beauty and a naturally gifted harbor, Hong Kong is at number 10 with total foreign currency deposits of 339,899 Millions US$ as of Aug 2015 as per Hong Kong Monetary Authority. Within this small land area, this 10th largest figures maintained is a big achievement which not only comforts its citizens but also enables the state to compete with the growing pace of international financial market.

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20 Countries with the Highest Inflation Rate 2015

Generally, when we think about inflation, a very first thing that comes in our minds is increase in prices but we don’t think of increase in liquid money that is circulating in the country which can be a main reason of pulling demand to high level and as result prices goes up. Limited inflation is perfect for the smooth growth of the country if it is below 10% but too high rate of inflation is most hazardous that decline confidence in currency ceasing foreign investors to invest in the country concerned. Countries with highest inflation may face recession in the near future and painful readjustment is required to avoid any disaster of economy such as higher interest rates and deflationary fiscal policy. If inflation gets too high, a country’s central bank in most cases gets involved by elevating its interest rates and thus stopped the injection of money in economic cycle.

Highest rate of inflation reduces foreign direct investment and also makes the country’s exports more costly in international market which leads to lower growth. A highest inflation rate endangers a country’s economic stability and the well-being of its society that not only decreases purchasing power of private and public savings but also erodes value of real assets. If wages rises less rapidly than prices then the value of money also falls. Extremely high inflation rate adversely affect country’s exchange rates with other nations and also suppress investment since volatile inflation generates uncertainty about future prices and costs that make investors doubtful and end up in lower long term growth.

Growth in GDP plays a positive part in stock market performance but too much GDP growth is also fatal, as it will be a result of high inflation. There are number of factors that produce highest rate of inflation in the country such as increase in local demand, increase in domestic costs, as wages and external sources, as oil price increases. Normally inflation as measured by the core Consumer Price Index (CPI). Listed below are top 20 countries which had highest rate of inflation in 2014, according to CIA factbook.

Country Consumer Price Index 2014 Consumer Price Index 2013
Venezuela 69.8% 40.6%
Sudan 40.6% 37.1%
Argentina 36.4% 20.70%
Syria 34.8% 89.6%
Malawi 22.8% 27.3%
Belarus 18.3% 18.3%
Iran 17.8% 39.30%
Ghana 15.0% 11.7%
Eritrea 13.0% 13.0%
Mongolia 12.8% 8.6%
Guinea 12.5% 11.9%
Uzbekistan 12.1% 12.0%
Ukraine 11.3% -0.3%
Liberia 11.2% 7.6%
Turkmenistan 11.0% 9.0%
Yemen 11.0% 11.0%
Egypt 10.1% 9.5%
Russia 9.1% 6.8%
Central African Republic 9.0% 1.5%
Turkey 8.9% 7.5%

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