WorldWatch - August 2012

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Africa
Algeria	Uncertainty continues over President Bouteflika's successor.
Angola	Exports of crude oil will soon regain momentum.
Botswana	The short-term economic outlook weakens as global growth slows.
Cameroon	The economic outlook remains broadly positive.
Congo, D.R.	The political situation remains fragile as violence escalates in the country's east.
Cote d’Ivoire	Sizeable foreign debt relief gives a boost to the risk outlook.
Ethiopia	Economic growth remains brisk but rapid inflation continues to generate risk.
Gabon	State control and corruption remain major concerns.
Ghana	Exchange rate risk has increased, threatening macroeconomic stability.
Kenya	A recent terrorist attack highlights the risks to the security environment.
Libya	Despite a short postponement, a National Assembly election looks set to go ahead.
Malawi	A resumption of IMF funding signals a decline in economic risk.
Mauritius	The monetary authorities take protective measures against increased external risks.
Morocco	Foreign investment remains relatively buoyant, despite global uncertainty.
Mozambique	Government programs are threatened by reduced fiscal resources.
Namibia	The domestic economy remains positive amid heightened global uncertainties.
Nigeria	Economic growth is slowing but progress is made on a new petroleum bill.
Senegal	The president's coalition wins the election, boosting reform prospects.
Sierra Leone	Forecast rapid economic growth is augmented by strong inflows of foreign financial assistance.
South Africa	Growth forecasts have been revised downwards amid weakening economic prospects.
Sudan	Continuing disagreements with South Sudan weigh heavily on the risk outlook.
Tanzania	Growth prospects have been marginally revised down.
Tunisia	The economic situation is weak amid rising political tension.
Uganda	The recommencement of monetary policy easing will help support economic growth.
Zambia	The short-term outlook remains under pressure from negative political and economic factors.
Zimbabwe	Negotiators reach agreement on a new draft constitution.

Asia Pacific
Afghanistan	The government prepares for an uncertain future without NATO-led combat troops.
Australia	The mining sector shows strong growth but is exposed to a slowdown in China.
Bangladesh	Payment risks remain elevated amid struggling exports and protests over wages.
Cambodia	The dominance of the ruling party was reaffirmed by its one-sided victory.
China	Data indicates a slowdown in heavy industry but uncertainty over data quality adds to concerns.
Fiji	Flooding and deteriorating external demand impact economic growth.
Hong Kong	D&B downgrades Hong Kong's country risk rating amid economic concerns.
India	The economy suffers amid persistent inflationary pressures, high interest rates and political paralysis.
Indonesia	Weaker external demand is a source of concern.
Japan	Post-tsunami reconstruction continues to assist the economic trajectory.
Korea (South)	Fragile external and domestic demand undermines the economic outlook.
Malaysia	Tensions rise ahead of the election as the ruling coalition's hold is threatened.
Myanmar	The risk outlook has stabilised amid further broad improvements.
Nepal	Failure to meet the deadline to draft a constitution plunged the country into deeper political crisis.
New Zealand	The outlook remains stable but increasing signs of a slowdown warrant caution.
Pakistan	The political situation has deteriorated once again.
Papua New Guinea	Political uncertainty is high ahead of election results.
Philippines	Electronics exports, a high revenue contributor, are still shrinking.
Singapore	There are mixed signals in terms of domestic demand.
Sri Lanka	A change in policy stance helps ease sizeable external risks.
Taiwan	Latest statistics confirm an economic slowdown.
Thailand	Antipathy towards the government increases again.
Vietnam	Policymakers turn their focus to stimulating economic growth.

Eastern Europe
Albania	Adverse external developments take their toll on the economy.
Azerbaijan	The economic outlook remains mixed as the non-oil sector grows.
Belarus	Improved short-term economic prospects stabilise the risk outlook.
Bosnia & Herzegovina	The risk outlook improves following budget approval.
Bulgaria	Strong interlinks with the crisis-hit euro zone weigh on the outlook.
Croatia	The risk outlook is threatened by worsening economic factors.
Czech Republic	Monetary easing follows deteriorating growth prospects.
Estonia	Official data indicate a significant slowdown in growth in 2012.
Georgia	Growth remains buoyant despite downside risks.
Hungary	The outlook improves as the IMF returns to the negotiating table.
Kazakhstan	Robust economic expansion is anticipated, despite some negative developments.
Kyrgyz Republic	Overall growth remains negative but a recovery is expected.
Latvia	Economic activity expands at a satisfactory pace.
Lithuania	D&B changes the country ratings trend from 'deteriorating' to 'stable' on the back of unexpected expansion.
Macedonia	The country is relatively well placed to withstand a shock from the euro zone.
Poland	Inflation accelerates despite a marked slowdown of economic growth.
Romania	D&B downgrades Romania's country risk rating following heightened political risk.
Russian Federation	Pressing social responsibilities reduce the state's flexibility in a low oil price environment.
Serbia	Political risk declines but economic risk is still high.
Slovak Republic	Fiscal tightening should result in an improved budgetary performance in 2012.
Slovenia	The outlook remains negative despite approval of the government's austerity budget.
Tajikistan	Growth remains significant but will be slower than 2011.
Turkmenistan	The booming gas sector continues to drive strong economic growth.
Ukraine	Economic activity slows overall.
Uzbekistan	A strong fiscal position supports high public expenditure but economic freedom is lacking.

Middle East
Bahrain	The economy slows considerably following socio-economic problems.
Egypt	The risk outlook is undermined by the prospect of a prolonged period of political turmoil.
Iran	International sanctions increase domestic pressure to stop uranium enrichment.
Iraq	The political situation remains fragile and uncertain as the government's authority is challenged.
Israel	Further signs emerge of a domestic economic slowdown.
Jordan	Despite stronger-than-expected growth, other economic factors weigh on the risk outlook.
Kuwait	A static political environment is undermining the risk outlook.
Lebanon	Fallout from the Syrian conflict weighs negatively on the risk outlook.
Oman	The risk outlook is positive but undermined by growing political tension.
Qatar	Qatar is set for strong fiscal expansion.
Saudi Arabia	The long-awaited mortgage law is approved against a backdrop of regional turmoil.
Syria	Tensions increase with former ally Turkey after downing of Turkish jet.
UAE	Subsidies begin to put pressure on public accounts.
Yemen	Yemen struggles with multiple challenges.

The Americas
Argentina	Draconian policies undermine popular support for the administration.
Bolivia	The short-term risk outlook is dominated by escalating socio-political unrest.
Brazil	The expansionary monetary policy is maintained despite inflationary pressures.
Canada	The economy experiences a shaky start in 2012.
Chile	The economy is performing well and the president's popularity is improving.
Colombia	The weakening global economy, increasing security threats and rising political risks weigh on the risk outlook.
Costa Rica	The outlook deteriorates as fiscal consolidation stalls.
Cuba	The nascent private sector continues to expand.
Dominican Republic	The centre-right will rebuild relations with the IMF following its presidential victory.
Ecuador	Growth will be lower this year than previously forecast.
El Salvador	Political risks rise as the ruling party is defeated in congressional elections.
Guatemala	Mining law reforms aim to raise government revenue to fund security spending.
Honduras	Short-term growth prospects remain positive amid healthy demand for exports.
Jamaica	The new government aims for a budget surplus through increased taxation.
Mexico	The outlook for the political risk environment remains under downward pressure.
Nicaragua	Dynamic domestic demand leads to economic growth.
Panama	Elevated political risk impacts adversely on the overall country risk rating.
Paraguay	Monetary policy will remain neutral in light of a weaker global outlook.
Peru	The government unveils another fiscal stimulus package.
Trinidad & Tobago	Inflationary problems continue to worsen.
USA	Recent indicators suggest the economic recovery has lost momentum.
Uruguay	The outlook continues to be broadly positive on the back of expanding exports.
Venezuela	Membership of MERCOSUR finally seems likely.

Western Europe
Austria	Latest data indicate that the economy looks set for a contraction.
Belgium	Indicators suggest sluggish economic activity through the remainder of the year.
Cyprus	Cyprus becomes the fifth euro-zone country to ask for EU financial assistance.
Denmark	The economy is exposed to the euro zone crisis but remains a safe haven.
Finland	Economic activity is a mix of expansion and contraction.
France	Tax increases target wealthy individuals and large businesses.
Germany	Pessimism in the manufacturing and service sectors grows.
Greece	Weak domestic demand weighs on the country's outlook.
Iceland	The economy shows signs of consistent progress.
Ireland	Flagging global demand weighs on the country's recovery.
Italy	Weak business confidence weighs on the country's outlook.
Luxembourg	Following a sharp downturn, the economy has shown further signs of weakness.
Malta	Faltering exports weigh on the country's outlook.
Netherlands	Political risk is elevated in the run up to snap elections.
Norway	Economic growth is robust but a series of strikes disrupt oil output.
Portugal	Economic indicators point to subdued economic activity.
Spain	Spain's economic health depends on measures directed towards EU integration.
Sweden	Economic growth surprises on the upside, despite a drop in industrial production.
Switzerland	Export growth will slow amidst the escalating euro-zone crisis.
Turkey	The growth outlook looks uncertain as downside risks remain high.
United Kingdom	Imbalances in the UK economy delay the recovery process.