Economy

The government of Thailand is struggling to maintain a balance between its efforts to lower the budget deficit and its policy of mitigating the impact of rising prices, with fiscal prudence coming into conflict with social responsibility and political expediency.

The Kuwaiti government has approved a four-year economic development plan that, if successfully implemented, could boost public and private spending and lessen the economy’s dependence on oil.

The need to relax rigid labour restrictions that enforce high severance pay and make it hard to fire staff is becoming a priority for Indonesia. With outdated employment laws affecting investor confidence and benefitting neither employers nor staff, the country is accelerating moves to update employment regulations.

With the government and international agencies alike predicting GDP to expand by almost 20% this year, and a budget surplus in the double-digit billions, Qatar’s economy is set to outstrip nearly all others around the world in 2011. Just about the only cloud on the horizon is the return of demand-driven inflation, though even this concern seems likely to dissipate in the face of sustained growth.

Trade and diplomacy took centre stage in 2010. In economic terms, it was a year in which Turkey was courted aggressively by both its Western partners and neighbours in the region. The country finished out 2010 with a number of trade agreements either inked or in the works, while the government made much headway in advocating Turkish business interests in its dealings with foreign partners. Meanwhile, Turkey’s main business centre, Istanbul, received a significant publicity boost thanks to its status as the European Capital of Culture for 2010.

Public spending is scheduled for a major boost in Saudi Arabia, with education, housing and social measures being specifically targeted by a new economic stimulus and support programme.