Economic Development Indexes

Growth in Real GDP/capita (annual %) Country 19611965 3.78 4.27 19661970 4.75 4.31 5.16 2.86 19711976 3.59 3.27 4.3 2.66 19751980 3.34 3.08 0.93 2.52 19811985 1.45 0.93 2.85 0.85 1.7 19861990 2.47 2.86 -2.15 4.27 1.49 19911995 1.45 1.26 -1.39 1.23 0.64 19962001 2,84 2.63 -0.99 3.65 3.17 20012005 1.04 1.13 6.49 1.73 1.55 20062010 1.15 0.45 3.34 -0.3 0.14

Austria Belgium Romania Spain 7.48 Canada 3.79 Country

Human Life Mean Expected Gross Development expectancy years of years of National Index (HDI) at birth schooling schooling Income (GNI) per capita Value Years Years years Constant 2005 PPP $ 35,719 33,357 11,046 26,508 35,166 Fiscal F

Nonincome HDI

value

Austria Belgium Romania Spain Canada Country

0.885 0.886 0.781 0.878 0.908

80.9 80.0 74.0 81.4 81.0 F from Busine corrupti ss F on 79 71 37 61 89 70.3 92.3 70.5 81.3 96.6

10.8 10.9 10.4 10.4 12.1 Labo rF

15.3 16.1 14.9 16.6 16.0 Moneta ry F Gov ern men tF 15.4 12.1 55.1 37.1 41.7

0.908 0.914 0.841 0.920 0.944 Inve stm ent F 80 80 80 80 75 Financ ial F

Propert y rights

Trade F

Austria Belgium Romania Spain Canada

90 80 40 70 90

78.1 71.3 62.6 51.8 81.8

82.2 81.2 74.3 81.5 77.3

50.5 44.8 87.4 61.3 79.2

87.2 87.1 87.1 87.1 87.9

70 70 50 80 80

Austria
Austria, with its well-developed market economy, skilled labor force, and high standard of living, is closely tied to other EU economies, especially Germany's. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector. Following several years of solid foreign demand for Austrian exports and record employment growth, the international financial crisis of 2008 and subsequent global economic downturn led to a sharp but brief recession. Austrian GDP contracted 3.9% in 2009 but saw positive growth of about 2% in 2010 and 3% in 2011. Unemployment did not rise as steeply in Austria as elsewhere in Europe, partly because the government subsidized reduced working hour schemes to allow companies to retain employees. Stabilization measures, stimulus spending, and an income tax reform pushed the budget deficit to 4.7% in 2010 and 3.6% in 2011, from only about 1.3% in 2008. The international financial crisis of 2008 caused difficulties for Austria's largest banks whose extensive operations in central, eastern, and southeastern Europe faced large losses. The government provided bank support - including in some instances, nationalization - to support aggregate demand and stabilize the banking system. Austria's fiscal position compares favorably with other euro-zone countries, but it faces considerable external risks, such as Austrian banks' continued high exposure to central and eastern Europe as well as political and economic uncertainties caused by the European sovereign debt crisis. The government's efforts in 2011 to pass a constitutional amendment limiting public debt to 60% of GDP by 2020 are facing resistance from opposition parties in parliament.

Economic indexes:
GDP (purchasing power parity): $351.4 billion (2011 est.) country comparison to the world: 36 $340.2 billion (2010 est.) $333.1 billion (2009 est.) note: data are in 2011 US dollars GDP (official exchange rate): $425.1 billion (2011 est.) GDP - real growth rate: 3.3% (2011 est.) country comparison to the world: 119 2.1% (2010 est.) -3.9% (2009 est.) GDP - per capita (PPP): $41,700 (2011 est.)

country comparison to the world: 18 $40,600 (2010 est.) $39,800 (2009 est.) note: data are in 2011 US dollars GDP - composition by sector: agriculture: 1.5% industry: 29.5% services: 69% (2011 est.) Labor force: 3.663 million (2011 est.) country comparison to the world: 94 Labor force - by occupation: agriculture: 5.5% industry: 27.5% services: 67% (2009 est.) Unemployment rate: 5.4% (2011 est.) country comparison to the world: 51 6.9% (2010 est.) Population below poverty line: 6% (2008) Household income or consumption by percentage share: lowest 10%: 4% highest 10%: 22% (2007) Distribution of family income - Gini index: 26 (2007) country comparison to the world: 135 31 (1995) Inflation rate (consumer prices): 3.3% (2011 est.) country comparison to the world: 71 1.7% (2010 est.) Industrial production growth rate: 8.3% (2011 est.) country comparison to the world: 21 Current account balance: $12 billion (2011 est.) country comparison to the world: 25 $10.56 billion (2010 est.) Exports: $180.7 billion (2011 est.) country comparison to the world: 30 $147.5 billion (2010 est.)

Exports - commodities: machinery and equipment, motor vehicles and parts, paper and paperboard, metal goods, chemicals, iron and steel, textiles, foodstuffs Exports - partners: Germany 32.1%, Italy 7.9%, Switzerland 4.8%, France 4.2%, Czech Republic 4.1% (2010) Imports: $183.1 billion (2011 est.) country comparison to the world: 27 $151.8 billion (2010 est.) Imports - commodities: machinery and equipment, motor vehicles, chemicals, metal goods, oil and oil products; foodstuffs Imports - partners: Germany 44%, Italy 6.8%, Switzerland 5.9%, Netherlands 4.1% (2010) Debt - external: $883.5 billion (30 June 2011) country comparison to the world: 18 $755 billion (30 June 2010) Stock of direct foreign investment - at home: $261.8 billion (31 December 2011 est.) country comparison to the world: 19 $259.4 billion (31 December 2010 est.) Stock of direct foreign investment - abroad: $259.8 billion (31 December 2011 est.) country comparison to the world: 17 $269.5 billion (31 December 2010 est.) GNI/capita (2010) $47,060 Corruption Perception Index 7.8 (rank 16)

Economic Freedom
Austrias economic freedom score is 70.3, making its economy the 28th freest in the 2012 Index. Its score is 1.6 points worse than last year due to worsened scores for government spending and business freedom. Austria is ranked 14th out of 43 countries in the Europe region, and its overall score is well above the regional and world averages. Despite considerable strains during the recent economic crisis, Austria has been able to maintain much of its economic stability and dynamism. Continued strong protection of the rule of law and fundamental foundations of economic freedom is reflected in Austrias high scores in property rights and freedom from corruption. Institutional strength, however, is not matched by a commitment to limited

government. Public spending has been expansionary, generating great budgetary pressure. Counterbalancing excessive government spending and weak fiscal freedom, the transparent and competitive business environment has been effective in promoting a thriving entrepreneurial private sector. The banking system has regained much of its characteristic efficiency and competitiveness after being roiled by the global economic crisis. The rule of law is well respected, and the judiciary is independent. Contractual agreements are enforced effectively, and the protection of intellectual property is strong. Corruption has not been a serious cause of concern. Maintaining a high degree of transparency is a key part of Austrias institutional strength, and revamped criminal regulations against corruption have not weakened effective enforcement of rules against bribery. The top income tax rate is 50 percent, and the top corporate tax rate is 25 percent. Other taxes include a value-added tax (VAT) and a tax on real estate transfers, with the overall tax burden amounting to 42.8 percent of total domestic income. Government spending has risen to 53.1 percent of total domestic output, leading to a higher budget deficit at 4.6 percent of GDP and public debt equivalent to 72.2 percent of GDP. Austrias overall regulatory framework has been marked by transparency and efficiency, encouraging business innovation and productivity growth. Nonetheless, the absence of major regulatory reforms has eroded regulatory competitiveness. There is no nationally mandated minimum wage, but the cost of fringe benefits is among the highest in the world. Average inflation has been a low 1.5 percent in the most recent three years. Austrias trade policy is the same as that of other members of the European Union, with the common EU weighted average tariff rate standing at 1.4 percent. However, myriad non-tariff barriers increase the cost of trade. With an efficient investment regime in place, there are no controls on currency transfers, access to foreign exchange, or repatriation of profits. The modern and competitive banking sector provides a wide range of financial services.

Belgium
This modern, open, and private-enterprise-based economy has capitalized on its central geographic location, highly developed transport network, and diversified industrial and commercial base. Industry is concentrated mainly in the more heavilypopulated region of Flanders in the north. With few natural resources, Belgium imports substantial quantities of raw materials and exports a large volume of manufactures,

making its economy vulnerable to volatility in world markets. Roughly three-quarters of Belgium's trade is with other EU countries, and Belgium has benefited most from its proximity to Germany. In 2011 Belgian GDP grew by 2.04%, the unemployment rate decreased slightly to 7.7% from 8.3% the previous year, and the government reduced the budget deficit from a peak of 6% of GDP in 2009 to 4.2% in 2011. Despite the relative improvement in Belgium's budget deficit, public debt hovers near 100% of GDP, a factor that has contributed to investor perceptions that the country is increasingly vulnerable to spillover from the euro-zone crisis. Belgian banks were severely affected by the international financial crisis in 2008 with three major banks receiving capital injections from the government, and the nationalization of the Belgian arm of a FrancoBelgian bank. An ageing population and rising social expenditures are mid- to longterm challenges to public finances.

Economic Indexes:
GDP (purchasing power parity): $412 billion (2011 est.) country comparison to the world: 32 $403.9 billion (2010 est.) $395.7 billion (2009 est.) note: data are in 2011 US dollars GDP (official exchange rate): $529 billion (2011 est.) GDP - real growth rate: 2% (2011 est.) country comparison to the world: 152 2.1% (2010 est.) -2.7% (2009 est.) GDP - per capita (PPP): $37,600 (2011 est.) country comparison to the world: 30 $37,000 (2010 est.) $36,500 (2009 est.) note: data are in 2011 US dollars GDP - composition by sector: agriculture: 0.7% industry: 21.6% services: 77.7% (2011 est.)

Labor force: 5.071 million (2011 est.) country comparison to the world: 73 Labor force - by occupation: agriculture: 2% industry: 25% services: 73% (2007 est.) Unemployment rate: 7.7% (2011 est.) country comparison to the world: 91 8.3% (2010 est.) Population below poverty line: 15.2% (2007 est.) Household income or consumption by percentage share: lowest 10%: 3.4% highest 10%: 28.4% (2006) Distribution of family income - Gini index: 28 (2005) country comparison to the world: 125 28.7 (1996) Inflation rate (consumer prices): 3.1% (2011 est.) country comparison to the world: 61 2.3% (2010 est.) Industrial production growth rate: 6.1% (2011 est.) country comparison to the world: 52 Current account balance: $4.7 billion (2011 est.) country comparison to the world: 36 $4.481 billion (2010 est.) Exports:

$332 billion (2011 est.) country comparison to the world: 17 $282.3 billion (2010 est.) Exports - commodities: machinery and equipment, chemicals, finished diamonds, metals and metal products, foodstuffs Exports - partners: Germany 19.1%, France 17%, Netherlands 12.2%, UK 7.2%, US 5.3%, Italy 4.7% (2010) Imports: $332.4 billion (2011 est.) country comparison to the world: 16 $284.6 billion (2010 est.) Imports - commodities: raw materials, machinery and equipment, chemicals, raw diamonds, pharmaceuticals, foodstuffs, transportation equipment, oil products Imports - partners: Netherlands 19.1%, Germany 16.4%, France 11.3%, UK 5.4%, US 5.3%, Ireland 5.3%, China 4.1% (2010) country comparison to the world: 54 Debt - external: $1.399 trillion (30 June 2011) country comparison to the world: 12 $1.241 trillion (30 June 2010) Stock of direct foreign investment - at home: $983.9 billion (31 December 2011 est.) country comparison to the world: 6 $910.8 billion (31 December 2010 est.) Stock of direct foreign investment - abroad: $813.9 billion (31 December 2011 est.) country comparison to the world: 9 $765.4 billion (31 December 2010 est.) GNI/ capita $45,910 Corruption Perception Index 7.5 (19)

Belgiums economic freedom score is 69, making its economy the 38th freest in the 2012 Index. Its overall score has declined 1.2 points from last year, primarily reflecting a significant deterioration in government finance. Belgium is ranked 18th freest among the 43 countries in the Europe region, and its overall score is above the regional and global averages. The global financial crisis has caused a sharp economic slowdown in Belgium. In response to turmoil in the banking sector and the subsequent contraction in overall economic activity, the government has stepped in to support the financial system and implement a moderate-size fiscal stimulus package. The economic recovery that began in mid-2009 has been modest and uneven, and the soundness of public finance has deteriorated. More positively, with strong foundations of economic freedom in place, Belgiums economy has long benefited from open-market policies that support global trade and investment. However, lingering structural weaknesses hinder international competitiveness. The tax system is burdensome, and the extensive welfare state requires heavy state spending. Despite modest improvements, labor market rigidities remain a considerable barrier to productivity and job growth. Belgium is a federal state consisting of three culturally different regions: Flanders, Wallonia, and the capital city of Brussels, which houses the headquarters of NATO and the European Union. Christian Democrat Herman Van Rompuy became prime minister on January 5, 2009. When he was selected to become the first president of the European Council on December 1, 2009, former premier Yves Leterme again became prime minister. In April 2010, an electoral dispute between the francophone and Flemish parties led to the collapse of the coalition government, and negotiations to form a new government were ongoing as of October 2011. Leterme continued to act as caretaker prime minister and committed Belgian forces to the NATO mission in Libya. Services account for 75 percent of economic activity. Leading exports are electrical equipment, vehicles, diamonds, and chemicals. Rule of Law Laws are well codified, and the judicial system is generally respected, but the courts can be slow in practice. Similarly, intellectual property rights and contract enforcement are generally secure, though enforcement actions can be protracted. Corruption is minimal, and the government prohibits and punishes all forms of bribery.

The top income tax rate is 50 percent, and the top corporate tax rate is effectively 34 percent. Other taxes include a value-added tax (VAT) and an estate tax, with the overall tax burden amounting to 43.2 percent of total domestic income. Government spending has increased to 54.1 percent of total domestic output, leading to higher budget deficits averaging 4 percent and growing public debt that has reached 96.7 percent of GDP. Regulatory Efficiency The overall regulatory environment is efficient and transparent. With the cost of establishing a company reduced, starting a business takes only three days and four procedures. Although employment regulations have gradually become less burdensome, the non-salary cost of hiring a worker remains high. Inflation has been modest. Price-control policies affect a range of products and services. Open Markets Belgium has low tariffs similar to other members of the European Union, but non-tariff barriers increase the cost of trade. The investment regime is largely open, and the financial sector remains vibrant and generally free from government involvement. Some institutions received bailouts during the recent economic slowdown, and the Financial Crisis Law passed in June 2010 grants the government stronger powers to step in during crises.

Romania
Romania, which joined the European Union on 1 January 2007, began the transition from Communism in 1989 with a largely obsolete industrial base and a pattern of output unsuited to the country's needs. The country emerged in 2000 from a punishing three-year recession thanks to strong demand in EU export markets. Domestic consumption and investment fueled strong GDP growth, but led to large current account imbalances. Romania's macroeconomic gains have only recently started to spur creation of a middle class and to address Romania's widespread poverty. Corruption and red tape continue to permeate its business environment. Inflation rose in 2007-08, driven by strong consumer demand and high wage growth, rising energy costs, a nation-wide drought, and a relaxation of fiscal discipline. As a result of the global financial crisis, Romania's GDP fell more than 7% in 2009, prompting Bucharest to seek a $26 billion emergency assistance package from the IMF, the EU, and other international lenders. Drastic austerity measures, as part of Romania's IMF-led agreement, led to a 1.3% GDP contraction in 2010. The economy returned to positive growth in 2011 due to a strong export performance, but in a deflationary environment caused by bountiful crops and weak domestic demand. In March 2011, the Romania and the IMF/EC/World Bank signed a 24-month precautionary stand-by agreement,

worth $4.9 billion, to promote compliance with fiscal targets, progress on structural reforms, and financial sector stability. The Romanian authorities have announced that they do not intend to draw funds from the facility.

Economic indexes:
GDP (purchasing power parity): $263.9 billion (2011 est.) country comparison to the world: 49 $260 billion (2010 est.) $263.4 billion (2009 est.) note: data are in 2011 US dollars GDP (official exchange rate): $185.3 billion (2011 est.) GDP - real growth rate: 1.5% (2011 est.) country comparison to the world: 169 -1.3% (2010 est.) -7.1% (2009 est.) GDP - per capita (PPP): $12,300 (2011 est.) country comparison to the world: 96 $12,100 (2010 est.) $12,300 (2009 est.) note: data are in 2011 US dollars GDP - composition by sector: agriculture: 7.9% industry: 32.9% services: 59.2% (2011 est.) Labor force: 9.252 million (2011 est.) country comparison to the world: 52 Labor force - by occupation: agriculture: 30% industry: 20.2% services: 49.8% (2010) Unemployment rate:

7% (2011 est.) country comparison to the world: 79 6.9% (2010 est.) Population below poverty line: 21.1% (2010) Household income or consumption by percentage share: lowest 10%: 3.3% highest 10%: 24.5% (2008) Distribution of family income - Gini index: 33.3 (2010) country comparison to the world: 100 28.8 (2003) Investment (gross fixed): 23.9% of GDP (2011 est.) country comparison to the world: 73 Inflation rate (consumer prices): 3.1% (2011 est.) country comparison to the world: 59 8% (2010 est.) Industrial production growth rate: 6.8% (2011 est.) country comparison to the world: 43 Current account balance: -$6.35 billion (2011 est.) country comparison to the world: 178 -$6.53 billion (2010 est.) Exports: $62.5 billion (2011 est.) country comparison to the world: 53 $48.8 billion (2010 est.) Exports - commodities: machinery and equipment, metals and metal products, textiles and footwear, chemicals, agricultural products, minerals and fuels

Exports - partners: Germany 18.6%, Italy 13.1%, France 7.5%, Turkey 6.4%, Hungary 5.5% (2011 est.) Imports: $70.82 billion (2011 est.) country comparison to the world: 45 $61.2 billion (2010 est.) Imports - commodities: machinery and equipment, chemicals, fuels and minerals, metals, textile and products, agricultural products Imports - partners: Germany 16.8%, Italy 11.4%, Hungary 8.5%, France 5.8%, China 4.8%, Kazakhstan 4.4%, Russia 4.3% (2011 est.) Stock of direct foreign investment - at home: $71.68 billion (31 December 2011 est.) country comparison to the world: 47 $69.41 billion (31 December 2010 est.) Stock of direct foreign investment - abroad: $1.687 billion (31 December 2011 est.) country comparison to the world: 69 $1.487 billion (31 December 2010 est.) GNI/capita $7,840 Corruption Perception Index 3.6 (75)

Romanias economic freedom score is 64.4, making its economy the 62nd freest in the 2012 Index. Its score is 0.3 point worse than last year, reflecting deterioration in freedom from corruption, business freedom, and the management of government spending. Romania is ranked 28th out of 43 countries in the Europe region, and its overall score is higher than the world average. The Romanian economy has benefitted substantially from its openness and flexibility over the past decade. However, economic dynamism has slowed in recent

years, and the economy has been forced to endure sharp adjustments. Poor management of public finance has resulted in large budget deficits, putting greater pressure on the government to cut spending. Previous structural reforms have included privatization in the banking sector, implementation of competitive flat tax rates, and modernization of the regulatory environment. However, deeper institutional reforms in such areas as public finance management and the labor market have become more critical than ever. The judiciary remains inefficient and vulnerable to political interference. Corruption continues to undermine the prospects for long-term economic development. Background The Romanian government fell in October 2009 and was replaced by an unstable coalition composed of the Democratic Liberal Party and the Hungarian Union of Democrats in Romania. Traian Basescu won the presidency in December 2009 for the second time. An austerity package announced by Basescu in May 2010 was strongly opposed by trade unions and opposition parties, which threatened strikes. Romania has been a fast-growing member of the European Union and NATO, and the government has been implementing economic reforms that are consistent with the Maastricht criteria. Macroeconomic improvements have spurred the growth of the middle class and helped to reduce poverty. GDP contracted in 2009 and 2010, and Romanias IMF borrowing agreement imposed some austerity measures, but positive growth resumed in 2011. The rule of law is uneven, and contracts are not always strongly upheld. The judicial system suffers from political interference, inefficiency, and excessive workloads. Romania is a signatory to international conventions concerning intellectual property rights, but enforcement of legislation protecting patents, trademarks, and copyrights is very weak. Mistrust of government continues due to widespread public-sector corruption. Both the income and corporate tax rates are a flat 16 percent. Other taxes include a value-added tax (VAT) and an environmental tax, with the overall tax burden amounting to 27.4 percent of total domestic income. Government spending has risen to a level equivalent to 38.7 percent of total domestic output. The deficit has been chronically high in recent years, and public debt has reached over 30 percent of GDP. The process for business registration and operation has been streamlined. Launching a business takes six procedures and 14 days in comparison to the world averages of seven procedures and 30 days. However, efficient bankruptcy procedures and rules have not been fully implemented. Labor regulations remain rigid, although

several amendments to improve the flexibility of the labor code have been made. Inflationary pressure is increasing. The trade weighted average tariff rate is low as in other members of the European Union, but layers of non-tariff barriers increase the cost of trade. Foreign investment is encouraged officially but discouraged in practice by regulatory inconsistency, unpredictability, and non-transparency. Despite the relatively stable and open banking environment, the level of financial intermediation remains one of the lowest in the region.

Spain
Spain's mixed capitalist economy is the 13th largest in the world, and its per capita income roughly matches that of Germany and France. However, after almost 15 years of above average GDP growth, the Spanish economy began to slow in late 2007 and entered into a recession in the second quarter of 2008. GDP contracted by 3.7% in 2009, ending a 16-year growth trend, and by another 0.1% in 2010, before turning positive in 2011, making Spain the last major economy to emerge from the global recession. The reversal in Spain's economic growth reflected a significant decline in construction amid an oversupply of housing and falling consumer spending, while exports actually have begun to grow. Government efforts to boost the economy through stimulus spending, extended unemployment benefits, and loan guarantees did not prevent a sharp rise in the unemployment rate, which rose from a low of about 8% in 2007 to 20% in 2010. The government budget deficit worsened from 3.8% of GDP in 2008 to 9.2% of GDP in 2010, more than three times the euro-zone limit. By restricting severely spending, Madrid cut the deficit to 6.5% of GDP in 2011. Spain's large budget deficit and poor economic growth prospects have made it vulnerable to financial contagion from other highly-indebted euro zone members despite the government's efforts to cut spending, privatize industries, and boost competitiveness through labor market reforms. Spanish banks' high exposure to the collapsed domestic construction and real estate market also poses a continued risk for the sector. The government oversaw a restructuring of the savings bank sector in 2010, and provided some $15 billion in capital to various institutions. Investors remain concerned that Madrid may need to bail out more troubled banks. The Bank of Spain, however, is seeking to boost confidence in the financial sector by pressuring banks to come clean about their losses and consolidate into stronger groups.

Economic Indexes:
GDP (purchasing power parity):

$1.411 trillion (2011 est.) country comparison to the world: 14 $1.4 trillion (2010 est.) $1.402 trillion (2009 est.) note: data are in 2011 US dollars GDP (official exchange rate): $1.537 trillion (2011 est.) GDP - real growth rate: 0.8% (2011 est.) country comparison to the world: 189 -0.1% (2010 est.) -3.7% (2009 est.) GDP - per capita (PPP): $30,600 (2011 est.) country comparison to the world: 43 $30,400 (2010 est.) $30,600 (2009 est.) note: data are in 2011 US dollars GDP - composition by sector: agriculture: 3.3% industry: 25.8% services: 70.9% (2011 est.) Labor force: 23.13 million (2011 est.) country comparison to the world: 28 Labor force - by occupation: agriculture: 4.2% industry: 24% services: 71.7% (2009 est.) Unemployment rate: 20.8% (2011 est.) country comparison to the world: 163 20.1% (2010 est.) Population below poverty line: 19.8% (2005)

Household income or consumption by percentage share: lowest 10%: 2.6% highest 10%: 26.6% (2000) Distribution of family income - Gini index: 32 (2005) country comparison to the world: 108 32.5 (1990) Investment (gross fixed): 21.7% of GDP (2011 est.) country comparison to the world: 100 Inflation rate (consumer prices): 3.1% (2011 est.) country comparison to the world: 63 2% (2010 est.) Industrial production growth rate: 2% (2011 est.) country comparison to the world: 128 Current account balance: -$60.9 billion (2011 est.) country comparison to the world: 191 -$64.34 billion (2010 est.) Exports: $330.6 billion (2011 est.) country comparison to the world: 18 $253 billion (2010 est.) Exports - commodities: machinery, motor vehicles; foodstuffs, pharmaceuticals, medicines, other consumer goods Exports - partners: France 18.7%, Germany 10.7%, Portugal 9.1%, Italy 9%, UK 6.3% (2010) Imports: $384.6 billion (2011 est.) country comparison to the world: 14

$315.3 billion (2010 est.) Imports - commodities: machinery and equipment, fuels, chemicals, semifinished goods, foodstuffs, consumer goods, measuring and medical control instruments Imports - partners: Germany 12.6%, France 11.5%, Italy 7.3%, China 6.8%, Netherlands 5.6%, UK 4.9% (2010) Stock of direct foreign investment - at home: $634.2 billion (31 December 2011 est.) country comparison to the world: 8 $614.5 billion (31 December 2010 est.) Stock of direct foreign investment - abroad: $678.7 billion (31 December 2011 est.) country comparison to the world: 10 $660.2 billion (31 December 2010 est.) GNI/ capita $ 31,750 Corruption Perception Index 6.2 (31) Spains economic freedom score is 69.1, making its economy the 36th freest in the 2012 Index. Its score is 1.1 points lower than last year, with a significant deterioration in the management of government spending overwhelming a modest gain in business freedom. Spain is ranked 17th out of 43 countries in the Europe region, and its overall score is well above the world average. Spain dropped from mostly free to moderately free in the 2012 Index, due primarily to expansive public spending. Challenges are particularly significant in the areas of fiscal freedom, government spending, and financial freedom. Government spending is over 40 percent of GDP. Large fiscal deficits and rising public debt signal the need for financial management reforms and a return to a sustainable level of public spending. Since the financial crisis, Spain has imposed greater transparency on its banking system in comparison to other countries in the region. Savings banks (cajas) have been insulated from market pressures and have been considered too politically powerful to be allowed to fail. They remain burdened with bad loans from the years of the housing

boom. As of October 2011, three savings banks had been nationalized. Consolidation of the savings banks has brought the number down from 45 to below 20, and their future is in question. Spain has enjoyed democratic rule since 1977 and joined the European Community in 1986. Public security has been marred by the nearly 50-year terrorist campaign of the Basque separatist ETA. Following years of economic reform and growth under former Peoples Party Prime Minister Jos Mara Aznar, Jos Luis Rodrguez Zapatero of the Spanish Socialist Workers Party won office in the wake of a series of al-Qaeda bomb attacks in Madrid in 2004. Zapatero was re-elected in 2008. The global economic crisis hit Spain hard in 2009. To curb the recession, Zapatero introduced spending on public works and unemployment benefits, and the budget deficit has grown rapidly. In May 2010, the government introduced austerity reforms to reduce the deficit. Spains conservative Popular Party, led by Mariano Rajoy, won the November 2011 election. Rule of Law The judiciary is independent in practice, but bureaucratic obstacles are significant. Contracts are secure, although enforcement is very slow. Patent, copyright, and trademark laws approximate or exceed EU levels of intellectual property protection. Enforcement actions using Spains new legal framework concerning intellectual property rights have greatly increased criminal and civil actions against infringements. Limited government The top income tax rate is 45 percent, and the top corporate tax rate is 30 percent. Other taxes include a value-added tax (VAT) and a capital gains tax, with the overall tax burden amounting to 30.7 percent of total domestic income. Government spending has increased to a level equivalent to 45.8 percent of GDP. The budget balance has fallen into deficit, and public debt has grown to around 60 percent of total domestic output. Procedures for setting up a business have been streamlined, with the number of licensing requirements reduced. Bankruptcy proceedings are fairly easy and straightforward. Steps taken in 2010 to reform the labor market make it less costly to dismiss a permanent worker and give employers more influence over employee organizing. Despite some progress, labor regulations remain restrictive. Monetary stability has been well maintained. Open Markets

Spains trade policy is the same as that of other members of the European Union, with the common EU weighted average tariff rate standing at 1.4 percent, but myriad non-tariff barriers increase the cost of trade. Nearly all sectors are open to foreign investment, and approval procedures have been streamlined. The banking sector has been under considerable strain, with savings banks burdened with volumes of bad loans.

Canada
As an affluent, high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US, its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010 and 2011 and plans to balance the budget by 2015. In addition, the country's petroleum sector is rapidly becoming an even larger economic driver with Alberta's oil sands significantly boosting Canada's proven oil reserves, ranking the country third in the world behing Saudia Arabia and Venezuela.

Economic Indexes
GDP (purchasing power parity): $1.389 trillion (2011 est.)

country comparison to the world: 15 $1.359 trillion (2010 est.) $1.318 trillion (2009 est.) note: data are in 2011 US dollars GDP (official exchange rate): $1.759 trillion (2011 est.) GDP - real growth rate: 2.2% (2011 est.) country comparison to the world: 147 3.1% (2010 est.) -2.5% (2009 est.) GDP - per capita (PPP): $40,300 (2011 est.) country comparison to the world: 22 $39,100 (2010 est.) $37,900 (2009 est.) note: data are in 2011 US dollars GDP - composition by sector: agriculture: 1.9% industry: 27.1% services: 71% (2011 est.) Labor force: 18.68 million (2011 est.) country comparison to the world: 31 Labor force - by occupation: agriculture: 2% manufacturing: 13% construction: 6% services: 76% other: 3% (2006 est.) Unemployment rate: 7.4% (2011 est.) country comparison to the world: 85 8% (2010 est.) Population below poverty line: 9.4%

note: this figure is the Low Income Cut-Off (LICO), a calculation that results in higher figures than found in many comparable economies; Canada does not have an official poverty line (2008) Household income or consumption by percentage share: lowest 10%: 2.6% highest 10%: 24.8% (2000) Distribution of family income - Gini index: 32.1 (2005) country comparison to the world: 106 31.5 (1994) Investment (gross fixed): 22.7% of GDP (2011 est.) country comparison to the world: 86 Inflation rate (consumer prices): 2.8% (2011 est.) country comparison to the world: 49 1.8% (2010 est.) Industrial production growth rate: 4% (2011 est.) country comparison to the world: 84 Current account balance: -$52.6 billion (2011 est.) country comparison to the world: 190 -$49.37 billion (2010 est.) Exports: $450.6 billion (2011 est.) country comparison to the world: 12 $393 billion (2010 est.) Exports - commodities:

motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment; chemicals, plastics, fertilizers; wood pulp, timber, crude petroleum, natural gas, electricity, aluminum Exports - partners: US 74.9%, UK 4.1% (2010) Imports: $459.6 billion (2011 est.) country comparison to the world: 12 $401.7 billion (2010 est.) Imports - commodities: machinery and equipment, motor vehicles and parts, crude oil, chemicals, electricity, durable consumer goods Imports - partners: US 50.4%, China 11%, Mexico 5.5% (2010) Debt - external: $1.181 trillion (30 June 2011) country comparison to the world: 15 $1.009 trillion (30 June 2010) Stock of direct foreign investment - at home: $596.8 billion (31 December 2011 est.) country comparison to the world: 9 $561.1 billion (31 December 2010 est.) Stock of direct foreign investment - abroad: $659.8 billion (31 December 2011 est.) country comparison to the world: 11 $616.1 billion (31 December 2010 est.) GNI/capita $ 43, 270

Corruption Perception Index 8.7 (10) Canadas economic freedom score is 79.9, making its economy the 6th freest in the 2012 Index. Its overall score is 0.9 point lower than last year, reflecting worsening scores for government size and monetary freedom. Canada continues to be the freest economy in the North America region, though it has dropped just below the cutoff for characterization as a free economy. The foundations of economic freedom are very strong in Canada, and the economy has emerged from the global economic slowdown relatively unscathed. The rule of law is sustained by an effective and independent court system, ensuring protection of property rights and the equitable application of the commercial code. Canada also performs well in other pillars of economic freedom and continues to sharpen its long-term competitiveness. The soundness of public finance has been notable, although government spending has been rising as a share of GDP. Along with open-market policies that support trade and dynamic investment, the efficient regulatory environment facilitates entrepreneurial activity and provides a high degree of certainty for business planning. The steady reduction of the standard corporate tax rate over the past three years has also contributed to Canadas competitiveness. Canadas multi-ethnic population is governed under a federal democratic system that provides substantial provincial and territorial autonomy. Prime Minister Stephen Harper, whose priorities include lower taxes, a strong defense, and fighting crime, won a second term in May 2011 as his Conservative Party gained a solid majority in Parliament. Tensions between Anglo and French Canadians have softened in the past decade, and cultural protectionism in international trade has declined. Restrictions on foreign ownership in media and other sectors have been under review by the government and the courts. As a party to the North American Free Trade Agreement, which connects 450 million people in an economic area producing about one-third of the worlds GDP, Canada is a major exporter of oil, minerals, automobiles, manufactured goods, and forest products. Canadas foundations of economic freedom are solid. Private property is well protected, with an independent and transparent judicial system firmly in place. Contract enforcement is very secure, and expropriation is highly unusual. Protection of intellectual property rights is consistent with world standards. Effective anti-corruption measures discourage bribery of public officials and uphold clean government. Limited Government The top federal income tax rate remains at 29 percent. The 16.5 percent top corporate tax rate is scheduled to decline further to 15 percent in January 2012. Other

taxes include a value-added tax (VAT) and a property tax, with the overall tax burden amounting to 31.1 percent of total domestic income. Government spending has increased to over 40 percent of total domestic output. Budget deficits have widened, and public debt has risen. The regulatory framework is highly conducive to business formation and operation, with no minimum capital required for starting a company. The average cost of getting necessary licenses has been cut almost in half. Flexible labor regulations enhance employment and productivity growth. Inflation has been modest, but the government controls virtually all prices for health care services through its mandatory single-payer nationalized program. The trade regime is very competitive, with low tariff and non-tariff barriers facilitating dynamic gains from free trade. The countrys openness and flexibility strongly sustain the investment environment, which has been efficient and dynamic. The prudent banking sector has weathered the global financial turmoil with no need for bailouts or considerable injections of state funds. The big six domestic banks account for around 90 percent of total assets.

References: https://www.cia.gov/library/publications/the-world-factbook/geos/ca.html http://data.worldbank.org/indicator/NY.GNP.PCAP.CD http://www.heritage.org/index/explore.aspx http://cpi.transparency.org/cpi2011/results/#CountryResults http://hdr.undp.org/en/statistics/hdi/