The largest weak economies
- by Anna K.
The world is filled with different countries and different economic pictures and circumstance. And that is why not all of the economies are strong and developing. Some of them are weak and have nothing to offer to international investors. As a result, they become even weaker and the circle goes on and on.
And sometimes we need to ask ourselves – what are these weak countries and these weak economies? Lucky for you I’ve done the leg work. Here is what my research is showing.
2. South Africa.
High level of unemployment and inflation make sure that Brazil cannot prosper. Although the picture is getting better and better, radical views of new president of Brazil might get in the way of that growth and new investments.
We talked several times about it– 2008 financial crisis has really done a lot of damage to the economy of the country. Right now Spain has the highest level of unemployment in all of European Union. Its political instability gets in the way of economic development. Spain continues to take the whole of the EU lower and lower.
With the new President and seeming Russian comeback to the international political arena I would say that Ukraine is going to do much worse from here on. Although international focus is more on Syria and Venezuela these days, Ukraine is also war-torn by Russia. And this does a lot of damage to its economy and its attractiveness for the investors.
Just like Spain, Greece is yet to recover from 2008 hit. It is very deep in the governmental debt and very high level of unemployment – about 20 percent of the people are looking for a job. This number is reaching almost 50 percent among the people 15-24 years old. There is no chance that Greek economy is going to recover without the outer help.
Although the economy of the country is growing, the pace is not enough to cover for all the holes and weaknesses that plague the country. In recent years international conflicts with Russia and USA have undermined the unstable economy which is reflected in the present state of the country.
Blown up by Arab Spring several years ago, tourist-oriented Egypt has to find the stability once again. The main foe of Egyptian economy is a very high level of inflation which has been rocking back and forth all these years.
During presidential elections in 2015 then-candidate Mauricio Macri pledged to restore the economy of the country. But how? He raised taxes and imposed trade protectionism. That has really helped as inflation fell from 40 to 25 percent, but the country is still suffering from high debts and union power.
2. South Africa.
Not surprising as no one wants to invest into African economy – the numbers of political regimes and political instability there is too high to be sure that your investment is going to pay off. And South Africa is not safe from that as well. High unemployment rate that stand at almost 30 percent and overall bad economic climate are making sure that none of the investors are going to come to the country any time soon.
Could there be any other number one? There is no way to describe how bad the situation in Venezuela really is. Its inflation rates are reaching for the stars [it is estimated to be around 13.000 percent], there is next to no job in the country, military riots and thrown off president. Would you like to have business with a country like this? Of course not! And you know what? No one does!
It seems that Venezuela is lost for the world as it is pretty doubtful that we are going to see its recovery any time soon. It is going to take decades before the country can stand on its own two feet once again.