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World’s Best Surviving Countries in Economic Recession

Friday, June 5, 2009

Economic recession has hit countries the entire world hard. It included even the most booming ones like India and China, where the estimated growth was not reached. In case of India, it happened to achieve lesser growth than the expected even though the economy did expand. So, a question remains which countries survived the economic recession best?

Answer – Australia

Servcorp carried out the survey. The countries that were worst hit were all the Western ones. The unemployment is growing high in the developed West, whereas it went up even in the Third World Arab countries, which are traditionally having a high unemployment. In the survey too, the list does not have any name in the top 10 except for Canada.

Image Credit : Digital Inspiration

Image Credit : Digital Inspiration

It seems having a not – so – open economy helps. The external diseases do not hit hard enough, but conversely when the world economy booms, the external growth does not come in fast too. Followed by Australia were China and India/Singapore. New Zealand stands at ninth stop. Many names are from the Eastern world. Clearly, this is the century where rise of the Asian countries phenomenon can be seen. In his book, ‘The Post – American World’, Fareed Zakaria talks in detail about the phenomenon which he calls ‘The Rise of The Rest’. It means the rise of other powers apart from America.

The 19th century belonged to the British, the 20th century belonged to the Americans, and it seems the 21st century belongs to Asians!

As for the major western powers, there were all booming when the world markets were booming. The effect of recession they felt was also high when the global recession took place.

It is not so easy to say whether an open economy helps or not. In most cases, an open economy only helps. If the whole world opted for open economies, well, the world would be much more free, peaceful and prosperous then. Countries indulging into free trade do not have any skirmishes or any problems with each other. That is the beauty of free trade.

A British politician, Richard Cobden once (1857) said:

“Free Trade is God’s diplomacy and there is no other certain way of uniting people in the bonds of peace.”

[Source]

At this time of recession, Obama’s policies are turning out more protectionists. Pranab Mukherji, earlier Foreign Minister of India had also accused him for the same. This same mistake was done by the Western countries back in ‘70s and the outcome was nothing good. What different can we predict in case of America?

Coming to the survey, when people in Australia were asked which countries do they find surviving the recession best, Australia was the answer from their side as well!

Still, I do have a doubt. The survey was carried out by Servcorp. It seems an Australian based firm, and if you observe, the countries that you find there in the survey list are very close to the ones where the firm has its locations!

Now, that is quite fuzzy, but still I would rather rely this as Australian Dollar is hitting high from last eight months even in the times of recession.

The survey is can be found by clicking here.

The top countries best surviving the global recession:

1st – Australia
2nd – China
3rd – India and Singapore (equal)
5th – Hong Kong
6th – Canada
7th – Japan and Qatar (equal)
9th – New Zealand
10th – Malaysia, Sweden and Vietnam (equal)

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21 Comments leave one →
  1. Rowan permalink
    Saturday, June 6, 2009 4:29 am

    Hmmm, interesting. I knew we were doing well as a country, certainly in comparison to some, but the value of the Aussie Dollar has been a cause for concern over here, at least, in terms of its relative value. Still, we’ll be in recession for a while, I suppose, so we’ll see what happens in the end…

  2. Sunday, June 7, 2009 10:16 am

    Ameya, it was indeed a very very informative post and I liked your views too.
    Appreciating and consenting with your sentence on not-so-open economies:- The external diseases do not hit hard enough, but conversely when the world economy booms, the external growth does not come in fast too. Also liked:- The 19th century belonged to the British, the 20th century belonged to the Americans, and it seems the 21st century belongs to Asians!. Is it an actual fact or your perspective?
    Good work. Keep blogging.

  3. Sunday, June 7, 2009 12:16 pm

    Rowan, Australia hasn’t been in recession at all! Only that the growth was low, a 0.4% for the last two financial quarters. Whatever, Australia is completely rest assured to be safe and insulated from all this recession stuff, as you have managed the toughest times well. :D

    Kedar, regarding the not – so open economies, they are never in a boom to ever get affected by any recession or so. Excellent examples are Syria, Lebanon, Egypt, Libya and Jordan. (All Arab countries co – incidentally)
    And oh, regarding the 21st century line, it is my perspective (didn’t read that anywhere before!) but I think 21st century will be more multi – polar, i. e. , there would be many big powers in the world and not merely one like US. India, China, Brazil, Russia, are all becoming individual big powers now. If you are interested in this topic, I suggest you read ‘The post – American World’ by Fareed Zakaria and also ‘The World is Flat’ by Thomas Friedman. I have ebooks of them both, and you can get aplenty of them easily on http://www.esnips.com !
    Thanks for the comment and it is a pleasure to share views with you. :D

  4. Monday, June 8, 2009 10:19 am

    good post.

    I do believe balance between open n close economy is important.

    In India ‘saving’ is a important thing and People are still scared of credit cards…! hope it will remain so in future.

    Archana

  5. Thursday, June 11, 2009 11:33 am

    Archana,
    yeah, in India ‘saving’, and paying back loans on time is considered an important thing as well as a matter of prestige. :) China Govt. had recently requested people to spend so as to bring up the economy. Anyways, West believes in too much of materialist hedonism. Hope, that doesn’t happen with East and specially India. :D

    Thanks for the comment.

  6. Thursday, June 11, 2009 2:59 pm

    Ameya, this is so informative, I have definitely learnt about the economy and I’m so happy Nigeria cleared off its huge debt before this meltdown I wonder what would have happened.

  7. Thursday, June 11, 2009 7:40 pm

    Joseph Ekwu, glad to see your comment as well as to know that Nigeria has cleared off all it’s huge debts. In case of India, it only worsens and worsens day by days! Read a good report on this here: http://www.economywatch.com/indianeconomy/debt-situation.html

    India is most probably never going to clear them! Is there a lesson for Nigeria there? :)
    Anyways, thanks for the comment and keep visiting.

  8. Thursday, July 9, 2009 7:57 am

    Maybe it’s a tactic by the Aussie govt to attempt some credibility after all those negative stories about Indians being attacked there! :D :D

  9. Chameo permalink
    Sunday, July 12, 2009 11:47 pm

    Man I’m in America and the job market sucks. You Aussies are so lucky.

  10. Sunday, July 19, 2009 2:17 pm

    Nice Blog there..I visited from Nikhils Blog!

  11. Wednesday, July 22, 2009 1:51 pm

    Nikhil, who knows? :D

    Chameo, this is an Indian blog! BTW, job market sucks everywhere for now…

    Deep, welcome! :) Thanks for the compliment, keep visiting …

  12. Manmohan permalink
    Wednesday, August 12, 2009 12:01 pm

    I think India has done and is doing extremely well during the recession. Though any growing economy being dependent on global resources can’t decouple itself from global recession, still India has managed to minimise its impact. There is not much of unemployment as National Rural Gurantee Scheme has done well. But we should not forget that India is a democratic country and the decisions of the government are somewhat bound to be populist rather than visionary. We should also not forget that India and America has also gone through elections during the recession period only where the newly elected goverments were more and more focused on fighting with recession.
    The only think i am afraid of is, that regulatory steps taken by Indian government and the lessons from this recessions are not so impressive. There is no regulatory in the real estate sector in India, tax collections are very low as compared to GDP, employment generation is still low as compared to China, agriculture growth is very very low as compared to other sectors. Technology upgradation measurments can’t be ignored, if growth has to be comprehensive and sustaiable.
    I think recession will let us know many things about our past, present and future but the only fact remain undisclosed, WILL WE SEE SUCH A DOWNWAIVE AGIAN ?

    Thanks
    Manmohan

  13. Friday, November 27, 2009 2:57 am

    Interesting read. Thanks Amey.

  14. Sunday, December 6, 2009 10:01 am

    Thanks Neil. MOre interesting reads are coming soon. keep visiting! :D

  15. Nzer permalink
    Wednesday, September 21, 2011 1:13 am

    Clearly you have never been to New Zealand

  16. Flash permalink
    Tuesday, November 29, 2011 5:25 pm

    Whoever said Australia is number 1 is full of it I live and work here and it is not good people are losing jobs,houses and business are going broke . Our taxes, food,and utilities keep on going up in price like no tomorrow while wages have not change and our Gov fills us with lies about the economy. Things are getting worse and we have a stupid Gov thinking they can just tax us more to pay for their blind spending we are heading for a worse recession than the U.S. Here is just one way they fiddle the figures if you work more than 8 hrs you are considered employed or if you receive unemployment benefits and are looking for work you are considered employed our real unemployment figure was at last check 12% and rising expected to be at 15% next year so don’t believe what everybody says about Australia its mostly crap

  17. Friday, November 23, 2012 6:25 pm

    The end is near,all currencies and world
    Banks will collapse and money will be thrown
    Into the streets as the Bible foretells in the book of Revelation

    All the signs of the Great tribulation & Armageddon are here now
    Jesus will return with his angels to destroy most of the non believers and evil doers

    After Armageddon Jevovah God promises
    Everybody will live in a Paradise on earth
    Forever with no illness or pain anymore

    Repent and study the Bible with the Jehovah
    Witnesses

  18. ysber permalink
    Thursday, January 17, 2013 10:59 pm

    can someone tell me why china and india didnt enter to reccesion on 2009 comparing with other countries?

  19. Thursday, August 8, 2013 10:02 pm

    Really wanted to say I’m just ecstatic that i stumbled onto your internet page!

  20. Sunday, January 12, 2014 6:00 am

    I THINK ILLUMINATI CAUSED WORLD ECONOMIC CRISIS THERE IS THINGS THAT ARE POSSIBLE I THINK THEY COULD HAVE ALSO FOUND THEIR OWN WAY TO STOP THE ECONOMIC CRISIS PERHAPS THE FINANCAL CRISIS WAS PLANNED FOR A LONG TIME MAYBE THEYRE TRYING TO SCARE PEOPLE TO BE HOMELESS AND STARV AND HAVE US PLEAD TO THEM (ILLUMINATI) TO LET US HAVE FOOD HAVE HOMES AND IT WOULD BE HORRIBLE IF ILLUMINATI TRIED TO FORCE WITH EITHER ACCEPT THEM AS THE NEW WORLD ORDER AND NEW RULER OF THIS WORLD OR STARV AND BE HOMELESS AND I THINK THERE IS ANOTHER WAY THERE TRYING PERHAPS THROUGH MUSIC BUT IM NOT COMPLETELEY SURE BUT I HOPE ILLUMINATI DOSENT MANAGE TO BREAK US AND THAT ILLUMINATI IS GONE BYE AND GOD BLESS ALL OF YOU.

  21. Sunday, January 12, 2014 6:02 am

    SORRY ABOUT THE WORDS IM NOT SO GOOD WITH ENGLISH WORDS.

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