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Top 10 Countries most vulnerable to the crisis
July 6, 2012Posted by on
The current economical crisis that has been desolating Europe since 2010 is one of the worst in history, affecting various economical sectors from developed countries. The recession is prone to stop the growth of these nations and even worst, speed up the underdevelopment of poorer countries. Below, the 10 countres that are most vulnerable to this fenomena.
Sudan – It is expected that Sudan’s GDP will fall by 7.263% in 2012. This is due to the separation of Sudan and South Sudan, the latter being responsible for 75% of the region’s crude oil extraction. To fight the crisis, the government wishes to expand their mining and gold markets, as well as starting to be more austerical to the public.
Grece – Their GDP is expected to fall by 4.749% this year. In 2011, the Greek debt in relation to its gross domestic product was of 165.3%. Even before joining the Euro, the country was already owing a significant amount of money. The Greek government has already received two rescue packets the a total value of 240 billion euros! In exchange for the packets, an austerity plan was set up – and the population hated it. Nevertheless, most people voted in favour of it for they knew it would keep Greece in the Euro Zone.
Portugal – Being one of the countries with the lowest growth perspectives and the highest levels of public debt, Portugal became one of the most vulnerable countries to the economical crisis. To ease out the expected decline in GDP of 3.252% this year, Portugal took drastic measures, including abolishing national hollidays! The country received a loan of 18 billion euros and is facing very austere measures.
Swaziland – Having reduced its exportations to South Africa, its GDP is reducing by 2.663%. Between 2006 and 2007, close to one quarter of the population was in need of emergency food supply.
Italy – The Italian GDP is expected to fall by 1.907% in 2012. The country still won’t resort to rescue packets to attempt to escape the crisis, even though this is an open option. The public debt for Italy has been growing since 2007, getting up to 120.1% of Italy’s GDP (last year). The italians had to face austere measures so that the government’s bills would be payed untill 2013. Nevertheless, the Euro Zone Crisis reduced Italian exportations and the domestic demand in the country, causing the country’s growth to slow down.
Spain – The GDP fall for Spain will be of about 1.826% in 2012. After over 15 years of above-average growth, Spain’s economy began to descelerate in 2007, entering a great recession in 2008, leading the country to ask for 100 billion euros for its banks. The proposition is currently being studied by European leaders.
Gambia – Having a very small amount of natural resources and an limited agricultural base, the country survives mainy from the population that works abroad, and from tourism. The latter represents one fifth of Gambia’s gross domestic product, that has been falling by 1.65% in 2012.
Paraguay – The expected GDP fall for Paraguay is of 1.5% this year. After a political crisis that ended presidentializing Frederico Franco, Paraguay asked for the aproval of a 480 million dollar donation, that would be used to pay for its debts in 2012 and stimulate the economy. In addition, the president made deals with european banks to open their international reserves.
Cyprus -The GDP fall for this island country in the Eastern Mediteranian Sea is of 1.163% in relation to last year. The country was dragged into the crisis by Grece, who maintains strong economic bonds with the island. In the last four years, the number of unemployed residents has tripled and passed the 10th percentile.
Slovenia – Having a chance of suffering a fall of 1% in its GDP, the Slovac country also has more than 50% chance of having its Fitch Ratings grade pushed down.