Rating: BBB outlook positive
Summary: Investment grade sovereign with potential for further upgrade if it can strive a better balance between economic goals and personal life and be more selective and focus in its chosen activities. Further
reform on interpersonal and networking skills are needed, with more attention on professionalism and perceived differentiation.
Strengths
- Sustained fiscal surplus with saving ratio of around 80%
- Followed a smooth consumption path with long-term investment focus
- Turned from a net debtor to a minor net creditor
- Few contingent liabilities
- Diversified interests and skills
- Stable politics: no identifiable enemies or conflicting parties
Weaknesses
- Net wealth remains low
- Insufficient depth of knowledge
- Weak foreign relations: poor social and networking skills
- Works in a risky industry with high probability of “sudden stop” in income flows
- Need further reform to get into the top competitiveness quartile
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