Economy

Oman’s economy looks set for a period of solid expansion, with the state’s pump-priming efforts of the past year having a positive impact on growth. Much of the same is expected in 2012 as the government increasing its spending to create jobs and improve key infrastructure.

Looking to build on its recent good showing in the World Bank’s Ease of Doing Business (EODB) survey, where it made solid gains in a number of categories and improved its overall ranking, Brunei Darussalam is now looking to further enhance its business climate and attract increasing levels of foreign direct investment. Yet, it still has some way to go before it achieves its goal of being included in the upper percentile of the World Bank ratings.

Thailand has expressed interest in joining the US-backed Trans-Pacific Partnership (TPP), the US’s ambitious plan to develop a free-trade zone across the Asia-Pacific region, though Bangkok has made clear it will want to assess any downside to its own economy before bringing down its trade barriers.

South Africa has unveiled a blueprint for economic recovery, with increased funding to support industry, job creation and a much-needed boost for infrastructure, although marginal rises in inflation and exogenous instability may hamper the ability of the government to provide any immediate palliatives.

It is no secret that China has been increasing its economic links with Africa at an exponential rate in recent years, with hydrocarbons-rich countries such as Nigeria among the chief beneficiaries. The previous decade has seen Abuja concluding multibillion-dollar deals with Beijing-based conglomerates across a variety of sectors. While the relationship does have its critics, China’s role in both trade and investment in Nigeria has become increasingly central – and not only in the oil sector.

Indonesia is confident it can ride out any waves whipped up by the storm affecting much of the global economy, thanks in part to its low dependence on exports and booming domestic demand. There are some concerns, however, that reduced interest rates and high consumer spending could reignite inflation.