The CBI Index: country profiles

Antigua and Barbuda

Antigua and Barbuda are two islands of the Lesser Antilles in the eastern Caribbean Sea. United under one sovereign state, Antigua and Barbuda are harmoniously headed by one democratically elected parliament and a constitutional monarchy, responsible for the governance of the nation’s population of around 91,000 citizens.

Antigua and Barbuda became independent from the UK in 1981, but aspects of British culture remain, such as the official language being English and cricket being the national sport.

Antigua, the largest of the two islands, is divided into six parishes and is home to the port-city of St John’s, the country’s capital. Barbuda is inched to the north of its sister island, and offers a more private Caribbean experience.

Antigua and Barbuda’s GDP grew by 2.5 per cent in 2015, and is expected to moderate to 2 per cent in 2016. Tourism, investment banking, and manufacturing are the largest contributors to the nation’s economy, with tourism accounting for almost 60 per cent of GDP. Despite the islands relying heavily on their natural environment to attract foreign visitors, particularly from the US, Antigua and Barbuda is first in the world for its per cent usage of fossil fuels to generate electric energy.

The financial sector is a growing segment of the economy, with a number of commercial banks having been set up on the islands, including foreign ones from Canada and Britain. Antigua and Barbuda’s primary exports include boats, ships, and petroleum.

Austria

Austria is a cultural masterpiece of art, music, and literature, with notable names such as Gustav Klimt and Wolfgang Amadeus Mozart having called the country home.

A dominant central European power in the 19^th century, Austria has today retained a population with a diverse ethnic heritage, including peoples from Germany, Turkey, and the Balkans. After World War II, Austria became a federal, democratic republic. Austria’s government is seated in the capital, Vienna.

Austria has been a member of the European Union and of the Schengen Area since 1995, but it remains to some extent dependent on Germany, its closest trading partner and a country with which it shares a long history and a common language.

The services sector plays a major role in Austria’s economy, having contributed more than 70 per cent of the nation’s GDP in 2015. The World Trade Organisation (WTO) has ranked Austria as number 22 in the world for exports in commercial services, and number 29 in the world both as an exporter and importer of merchandise. Personal income tax cuts in 2016 have had a positive effect on the economy, expected to grow by 1.4 per cent by the end of the year.

Austria is a mountainous nation, a large portion of which is in the Alps. Skiing is a growing industry, with villages such as Hallstatt and Alpbach becoming increasingly popular. Locations such as the Baroque town of Saltsburg, whose historical centre is a Unesco World Heritage Site, are also major magnets for visitors.

Bulgaria

Bulgaria is a country located within the Balkan Peninsula of south-east Europe, bordering Romania, Turkey, Greece, Macedonia, and Serbia.

With a rich history finding its roots in the late seventh century and encompassing Byzantine and Ottoman rule, as well as Soviet control as a member of the Eastern Block, Bulgaria is now a parliamentary republic and formally part of the European Union. It is not yet a member of the eurozone, but the lev, Bulgaria’s official currency, is pegged to the euro.

After almost a decade of decline and slow growth, fiscal discipline returned Bulgaria to stability. The country enjoyed a GDP growth rate of around 1.6 per cent in 2014 and 3.0 per cent in 2015, which the International Monetary Fund (IMF) expects to be maintained for 2016. Economic growth can also be traced to the government’s increased efforts in tackling corruption.

Sofia, the capital city, is the most successful city in south-eastern Europe with respect to employment and real GDP, with output fuelled by around 39 per cent by the business and finance sectors.

Inflows to the capital and to the country are partly due to Bulgaria’s gentle taxation regime, which affords persons and corporations the lowest income tax in the European Union.

The official language of Bulgaria is Bulgarian.

Bulgaria’s population is estimated at almost 8m, composed primarily by native Bulgarians, and Turkish and Roma minorities. In recent years however, the country has witnessed rapid demographic changes ascribed to the European Migrant Crisis.

Cambodia 

The Kingdom of Cambodia is situated in south-east Asia, where it borders Thailand, Vietnam, and Laos. Cambodia is a country with a rich heritage, having been home to some of the oldest empires in the eastern world, and having been further shaped by its French colonial past.

Cambodia’s population of approximately 15m is governed by a constitutional monarch and a democratic parliament, that has however been largely dominated by the Cambodian People’s Party. The country’s official language is Khmer, although exposure to international trade has resulted in English becoming a familiar language to many.

Phnoem Penh is the nation’s capital and the centrepiece of the country’s infrastructure, culture, and cuisine. Rural Cambodia is responsible for much of the country’s manufacturing and exports, with the Asian Development Bank noting that garment and footwear exports increased by 9.4 per cent in the first six months of 2016. Farming is still a learned trade, passed from generation to generation, which today contributes to around 30 per cent of GDP. Typical harvested produce includes rice, maize and soya beans. Overall, Cambodia has been demonstrating momentous growth for over a decade, with the World Bank anticipating a 6.9 per cent growth for 2016.

The poverty rate in Cambodia varies from urban centres to rural areas, and while wealth has increased in the past years, the United Nations Development Programme estimated that 13.5 per cent of the country’s population lived in poverty in 2014. Deforestation is also a concern, with a 2015 Forest Trends report highlighting that 14 per cent of Cambodia had been earmarked for land conversion.

Comoros

The Union of the Comoros is a cluster of islands 875 kilometres north-west of Madagascar off the African east coast.

One of the smallest but most densely populated countries in Africa, the Comoros is inhabited by approximately 788,000 people, with around 40 per cent of the population aged under 14. The many islands of the Comoros are home to a diverse ethnic population with African, Arabic, and French ancestral ties.

The official languages of the Comoros are Comorian, Arabic, and French, allowing for wide participation in the country’s economy and infrastructure. The capital city, Moroni, is in the island of Grand Comore, also known as N’gazidja, and is shrouded in Arabic and early Islamic influences.

With temperatures being relatively high throughout the year, the Comoros could attract year-round tourism, but the industry is still in its early stages. Ecotourism is a popular experience in the Comorian island of Mohéli, known for its untouched scenery and wildlife.

A developing nation, the Comoros is heavily dependent on fishing and agriculture. In 2013, around 71.5 per cent of its land was being put to agricultural use, with key export products including vanilla and ylang-ylang. The International Monetary Fund (IMF) forecast a real GDP growth rate of 2.2 per cent for 2016.

The Comoros has struggled with maintaining a stable government since its independence from France in 1975. One of the main Comoro Islands, Mayotte, voted to remain part of France, but its status as a French insular department is contested by the Union of the Comoros.

Cyprus

Cyprus is the third largest island of the Mediterranean Sea, and is only a short boat ride away from both Greece and the Middle Eastern nations of Turkey, Syria, Lebanon, Israel and Egypt. Although a united geographical entity, Cyprus is unofficially partitioned into two: the Republic of Cyprus and the Turkish Republic of Northern Cyprus. The latter, the product of Turkish occupation in 1974, is only recognised by Turkey.

The population of Cyprus is estimated to be around 1,165,000, with majority ethnic groups being Greek-Cypriot and Turkish-Cypriot. Recent migration trends have also seen large numbers of foreign communities residing on the island, including many Greek, British, Romanian, Bulgarian, and Filipino individuals.

Cyprus has a strong economy, characterised by little unemployment. Its low tax and inflation rates have made Cyprus a desired destination for offshore companies and the relocation of assets, thus attracting foreign investment. The International Monetary Fund (IMF) has estimated a real GDP growth rate of 2.8 per cent for 2016, but has forecasted a reduction in growth to 2.2 per cent for 2017.

Art, culture, and archaeology play a significant part in shaping Cypriot identity, and draw worldwide visitors. The Kourion Archaeological Area and the Kato Paphos Archaeological Park, both Unesco World Heritage Sites, are just two of the many reminders of the splendour of ancient Cyprus. Tourism made a total contribution of 21.3 per cent to the country’s GDP in 2014.

Dominica

Situated between Guadeloupe and Martinique, the Commonwealth of Dominica is a single-island nation in the Caribbean Sea.

Dominica is one of the most forested countries in the world by percentage of land area, and has thereby earned the epithet ‘Nature Island of the Caribbean’. The environment is of key importance to the government, which is currently heavily investing in eco-tourism and clean energy as a means of championing and preserving the island’s natural habitat. A 2016 study by the Economic Commission for Latin America and the Caribbean (ECLAC) placed Dominica as the Caribbean Community (CARICOM) nation with the highest percentage use of renewable energy, thanks to its extensive use of wind and hydropower.

The capital of Dominica is Roseau, a hub for the provision of financial services – particularly banking. A port city on the south-western coast of the island, Roseau is also at the heart of the country’s international trade.

Dominica is moving to a more service-based economy, with hotels and restaurants adding significant value to the island’s GDP. Nevertheless, agriculture – historically Dominica’s primary source of income – still brings significant revenue. This is reflected in the roughly 33 per cent of the island’s landmass still being put to agricultural use, and being used to cultivate produce such as bananas, bay, and cocoa. The International Monetary Fund (IMF) projects a 2.5 per cent growth rate for Dominica in 2016.

Dominica’s official language is English and its currency is the East Caribbean dollar, a stable currency pegged to the US dollar, and used by seven other Caribbean nations.

Grenada

Grenada is a tri-island country in the south-eastern Caribbean Sea comprising of Grenada, Carriacou, and Petite Martinique. Its approximately 107,000 citizens speak English, and creole French and English are popular unofficial languages.

Known as the ‘Island of Spice’, Grenada is an active producer of many exotic spices including cinnamon, cloves, mace, and nutmeg. Tourism and travel are also key to the economy, accounting for 25.5 per cent of Grenada’s GDP in 2015 – a value that is expected to rise to 31.5 per cent in 2026.

Overall, the World Bank anticipates an annual GDP growth of 3 per cent for Grenada by the end of 2016, the fourth-highest growth in the Eastern Caribbean Currency Union. The Caribbean Community (CARICOM) has also highlighted Grenada’s prominence as one of the highest exporters of telecommunications, computer, and information services of the Organisation of Eastern Caribbean States.

St George’s University, known for its medical curriculum, is a benefactor of the country’s economy and is the largest private employer on the island of Grenada. It attracts renowned academics and a diverse student body.

Grenada’s colonial past has shaped its culture – a blend of African, French, English, and Spanish influences – and is infused into the wide selection of cuisines, traditional attires, and festivals taking place throughout the year. Festivals are sources of allurement for the international community, with the Annual Grenada Sailing Festival and Grenada’s Spice Mas Festival being prime examples.

Malta

Malta is an archipelago located in the central Mediterranean Sea and composed of three major islands: Malta, Gozo, and Comino. Maltese architecture reflects the many cultures that, throughout history, called the country home, with buildings drawing inspiration from differing styles ranging from Italian and French Baroque, to the British Neogothic and Victorian styles.

The country’s official languages are Maltese and English, contributing to Malta’s international character. Despite being one of Europe’s least populated nations, with around 415,000 citizens and only 300 km² at its disposal, it is also one of the most densely inhabited.

Valletta is the capital of Malta and is often frequented as a political space for European meetings and conferences. It hosted, for example, the 2015 Valletta Summit on Migration, where European and African heads of government met to discuss the European migrant crisis. The city is recognised as a Unesco World Heritage Site for its concentration of historical sites, particularly dating to the period in which Malta was governed by the Order of St John – also known as the Knights Hospitaller.

A European Union Member since 2004, and a member of the eurozone since 2008, Malta has a healthy economy. The International Monetary Fund (IMF) forecasts Malta’s real GDP growth rate as 4.1 per cent for 2016. Travel and tourism made a total contribution of 27.7 per cent of GDP in 2015, expected to grow to 33.8 per cent by 2026. Other significant sectors of Malta’s economy include wholesale and retail trade, especially by naval transport, and hospitality services.

Saint Lucia

Saint Lucia is an island nation situated in the Caribbean Sea. Part of the Windward Islands, it is known for its majestic Piton mountains, a Unesco World Heritage Site encompassing vast numbers of rare plant and animal species, including endemic birds. Saint Lucia’s aquatic flora and fauna, as well as its bountiful rainforests, have been pivotal to attracting tourism to the island.

A former French and British colony, Saint Lucia has adopted English as its official language, although many natives speak creole French. The interplay between French and British influences is also reflected in the nation’s legal system: a blend of Common and Civil Law.

Saint Lucia’s economy is driven by financial services and tourism. Travel and tourism contributed to approximately 39.5 per cent of the nation’s GDP in 2014, a figure that is expected to rise to 50.2 per cent in 2025. Around 44 per cent of employment is generated by Saint Lucia’s tourism industry.

Saint Lucia is part of the Organisation of Eastern Caribbean States (OECS), an intergovernmental entity headquartered in Saint Lucia and tasked with promoting the economic and social advancement of its members. A significant contributor to the OECS, Saint Lucia boasted the Organisation’s fourth highest agricultural GDP for 2015. The International Monetary Fund (IMF) predicts a total real GDP growth rate of 1.5 per cent for Saint Lucia in 2016, rising to 1.9 per cent in 2017.

Saint Lucia holds a population of around 185,000, with Castries, its capital city, being the most changing and highly populated demographical space on the island.

St Kitts and Nevis

The Federation of Saint Christopher and Nevis, commonly known as St Kitts and Nevis, is a twin-island country of the Caribbean. Formed by volcanic activity, the islands have both white and black sand beaches, and are dominated by mountainous areas blanketed by vegetation.

Boasting one of the most successful economies in the Caribbean, and a real GDP growth rate of 5 per cent for 2015 and 3.5 per cent for 2016, the Federation can rival the more established economies of the West. The commercial centre of St Kitts and Nevis is Basseterre, the country’s capital city. Basseterre is home to a dynamic financial services industry, and hosts both the Eastern Caribbean Central Bank and the Eastern Caribbean Securities Exchange.

Construction and tourism are largely responsible for St Kitts and Nevis’ robust economic performance. In 2015, the Eastern Caribbean Central Bank (ECCB) reported more than 1m visitors to the island – over 200,000 more visits than in the previous year. New luxury resorts impacted the rising number of tourists, providing additional rooms and catering to the demands of high-end tourism.

Sustainable development and ecology are also national concerns of the islands, with Nevis on the route to achieving 100 per cent green energy use, scheduled for the end of 2017. National parks, plantations, botanical gardens and eco-friendly resorts also receive government support.

Nevis is also renowned for its attractive offshore financial services, particularly with respect to company incorporation and trust set up. The industry is highly regulated to ensure compliance with international anti-money laundering best practices.

Vanuatu

The Republic of Vanuatu is an archipelago of around 80 islands sitting remotely in the South Pacific Ocean. Vanuatu has a population of approximately 280,000, with the largest demographic group being the native Melanesians. Around 74,000 individuals live in rural areas. The official language of Vanuatu is Bislama – a fusion of English and local languages – although French, English, and other dialects are also widely spoken.

Vanuatu is divided into six provinces, each of which have elected parliaments responsible for the formulation and administration of local laws. Vanuatu also has a central, democratically elected government, but community authorities such as village chiefs continue to play an important part in politics.

The capital of Vanuatu is Port Vila, the largest city within the Vanuatu islands. With more than 80 per cent of exports leaving Vanuatu from Port Vila, the capital is an economic lifeline for the country.

Traditional practices such as farming and fishing bring much economic revenue to the islands. In 2014, agriculture and forestry accounted for 74 per cent of Vanuatu’s total exports and agriculture alone added a value of 28.2 per cent to the national GDP.

With tourism on the increase, Vanuatu is becoming better known to the outside world. In the second quarter of 2016, it is estimated that 71,639 visitors arrived in Vanuatu, a 50 per cent increase from 2015. Vanuatu has also increased its reputation in the financial services, with many stakeholders attracted to the benefits of the nation’s low tax regime.