Infrastructure investment continued to be the major driving force for China’s economic growth. The Chinese government has set sights on increasing the length of high-speed railways in operation to 30,000 kms by 2020, connecting more than 80% of its big cities. On the geo-political aspect, the risk from natural disasters persisted.  The recurrence of typhoons affected millions of people causing heavy economic losses across the country.

India recorded it’s fastest economic growth at a 2-year high of 8.2% during the April-June quarter. During the period, technology companies such as HCL, Infosys, and Tech Mahindra announced their expansion plans in the country. However, high fuel prices and declining rupee are key challenges that continued to affect the country.

Poland has witnessed tremendous growth in its services sector owing to its strategic access to western European markets, a developed labor pool, and cost advantages. The country is focused on its infrastructure development and the European Union to invest around US$370 M into Poland’s road infrastructure. With respect to the geopolitical front, the Risk associated with social unrest remained high due to frequent protests.

Ireland witnessed several protests during the quarter due to the housing crisis. With respect to natural disasters, the country witnessed several storms and gales which disrupted traffic and power supply in parts of the country. On a positive note, several companies such as Microsoft, Qualtrics, and Neueda Technologies announced their expansion plans in the country.

Philippine’s inflation rate increased for the fourth straight month in September 2018 compelling Central Bank of Philippines to raise its key interest rate. During the period, peso also weakened to near 13-year low. On geo-political front, Metro Manila was on high alert due to multiple bomb explosions in Southern Philippines. The country also reported several natural disasters in the form of typhoons and floods.

After a prolonged negotiation process, Mexico and US agreed to replace NAFTA deal with new “United States-Mexico-Canada Agreement (USMCA)” during the quarter. In July 2018, the United States government issued its highest-level travel warning to the Mexican states Colima, Guerrero, Michoacán, Sinaloa, and Tamaulipas citing violent crimes.  The homicide rates in the country surged by 16% in the first half of 2018 compared with same period in 2017.

Brazil’s economy grew by 1% in Q2 2018, thereby recording its slowest expansion since Q2 2017.  On the other hand, the inflation rate surged to 4.53% in September 2018, the highest since March 2017, primarily driven by an increase in food and oil price. Nevertheless, it remained within the central bank’s target range of 4.5% plus or minus 1.5% points. On the geo-political front, the Risk associated with social unrest & epidemic outbreak remained high due to an increase in the cases of measles in the country.

Colombia recorded a 4-year low inflation rate of 3.12% in July 2018, following a slight increase in June. Nevertheless, it remained within the central bank’s target rate of 2% to 4%. On the geo-political front, the country witnessed an eruption of ‘Nevado del Ruiz’ volcano with ash fall reported across the region of Manizales. Furthermore, the risk from natural disasters in the form of floods and landslides and drug cartel crime posed a serious threat to the geo-political stability of the region.

Infrastructure has been identified as one of the top priority areas by the Vietnamese government. Special Economic Zones and Business Parks have been planned in the country to attract more investments and to support the expansion of IT outsourcing sector. On the geo-political front, the country was affected by floods and landslides. Also, rising number of vector-borne diseases remained a cause of concern.

Hungarian economy advanced at a faster 4.8% during April-June quarter, higher than preliminary estimate of 4.6%, boosted by investments. Further, in the month of September, the government recorded budget surplus. On the flip side, businesses operating in the country remained vulnerable to high risk of cyberattacks.