Financial crisis: World round-up

A look at the regions of the world most affected by the financial crisis, and what governments are doing to try to alleviate the financial turmoil.

ARGENTINA:

Background: Rich in resources with a well-educated workforce and one of South America's largest economies, but it has also fallen prey to a boom and bust cycle.

Key data: Gross National Income per capita: $6,050 (World Bank, 2007)

Latest: The government has nationalised the country's 10 private pension funds, putting it in control of almost $30bn (£18bn) of investments. Shares slumped in response to the move, which the government said was aimed at protecting the funds from global market turmoil.

BRAZIL:

Background: Natural resources, particularly iron ore, are highly prized by major manufacturing nations. Has become self-sufficient in oil, ending decades of dependence on foreign producers. Has had to be bailed out in times of economic crisis, but reforms in the 1990s, including privatisations, brought some financial stability. There is a wide gap between rich and poor.

Key data: Gross National Income per capita: $5,910 (World Bank, 2007)

Latest: On 22 October, Brazil announced a plan to allow government-controlled Banco do Brasil and Caixa Economica Federal to purchase shares in private financial institutions. It hopes that the measure will shore up the market, but shares fall 10% and trading is suspended for the fifth time in recent weeks. On 23 October, the government abandons its tax on foreign investments and announces plans to sell up to $50bn in dollar swap futures contracts to try to stop its currency falling.

CANADA:

Background: One of the world's richest nations - thanks partly to immigration. The North American Free Trade Agreement, involving Canada, the US and Mexico, has brought a trade boom. Has been asserting sovereignty in the Arctic with the possible bounty from previously-untapped reserves of oil and gas at stake.

Key data: Gross National Income per capita: $39,420 (World Bank, 2007)

Latest: The Bank of Canada cut its key interest rate by a quarter point, to 2.25%, on 21 October.

This is the second cut this month - the bank cut the rate by half a percentage point on 8 October in a co-ordinated effort with other central banks.

On 10 October, Finance Minister Jim Flaherty attempted to ease the credit crunch by announcing CAN$25bn ($21bn) of asset-swaps between the country's major banks and the government-owned Canada Mortgage and Housing Corporation (CMHC). The Bank of Canada said three days later it would provide exceptional liquidity to the financial system "as long as conditions warrant".

MEXICO:

Background: Major oil producer and exporter. Nearly one-third of government revenue comes from the industry. Much bought by the US. Prosperity remains a dream for most Mexicans. Rural areas are often neglected and huge shanty towns ring the cities. Many poor Mexicans try to cross the 3,000-km border with the US in search of a job.

Key data: Gross National Income per capita: $8,340 (World Bank, 2007)

Latest: On 21 October, the Mexican government said it would offer $3.92bn in loan guarantees to help local firms refinance debt maturing in 2008. This is in addition to President Felipe Calderon's proposal to spend $4.4bn on infrastructure and energy projects to boost the economy.

Earlier in October, the central bank sold a combined $8.9bn in foreign currency reserves in a week to prop up the falling peso, which recovered somewhat on 13 October after falling to an all-time low against the US dollar.

US:

Background: The world's foremost economic and military power. Despite relative prosperity in recent years, the gap between rich and poor is a major challenge. More than 30 million Americans live below the official poverty line, with a disproportionate percentage of these being African-Americans and Hispanics.

Key data: Gross National Income per capita: $46,040 (World Bank, 2007)

Latest: The Treasury has said it wants to implement its $700bn financial bail-out plan quickly. It also announced plans to inject $250bn into many of the nation's banks, including JP Morgan Chase, Goldman Sachs and the Bank of New York Mellon Corp.

AUSTRALIA:

Background: In the past 20 years has made its near neighbours a priority in foreign policy and its economy is geared towards Asia. Migration continues to shape Australia.

Key data: Gross National Income per capita: $35,960 (World Bank, 2007)

Latest: Australia's central bank intervened to support its currency on 24 October and then again on 27 October.

It had last intervened more than a year ago and before that had not done so since 2001.

On 7 October, Australia's central bank cut its key interest rate from 7% to 6% - a much larger-than-expected reduction. The government later announced it would guarantee all bank deposits with financial institutions over the next three years.

CHINA:

Background: After stagnating for more than two decades under the rigid authoritarianism of early communist rule China now has the world's fastest-growing economy and is undergoing what has been described as a second industrial revolution. Relations with trading partners have been strained over China's huge trade surplus and the piracy of goods

Key data: Gross National Income per capita: $2,360 (World Bank, 2007)

Latest: China has also joined the interest rate offensive, cutting rates by 0.27 percentage points. It will join Japan, South Korea and other Asian countries in an $80bn reserve-pool scheme from mid-2009 to boost liquidity in the region.

HONG KONG:

Background: The former British colony became a special administrative region of China in 1997. Governed under the principle of "one country, two systems", under which China has agreed to give the region a high degree of autonomy and to preserve its economic and social systems for 50 years from the date of the handover.

Key data: Gross National Income per capita: $31,610 (World Bank, 2007)

Latest: The central banks joined the growing number of countries to cut their interest rates. Has promised to guarantee all bank deposits until 2010.

JAPAN:

Background: The world's second-biggest economy, achieving an economic miracle in the second half of the 20th century that was the envy of the rest of the world.

Key data: Gross National Income per capita: $37,670 (World Bank, 2006)

Latest: Japan's Economy Minister Kaoru Yosano said on 21 October the government was ready to support major banks with public funds, so that small and medium-sized companies would not struggle to access credit.

The authorities have also relaxed regulations on companies buying up their own shares.

A 1.8 trillion yen ($18bn) stimulus plan was approved by the lower house of parliament and the Bank of Japan has put 4.5 trillion yen ($45.5bn) into the banking system.

Prime Minister Taro Aso said more action was needed to boost the country's flagging economy.

MALAYSIA:

Background: Malaysia is one of the world's largest producers of computer disk drives, palm oil, rubber and timber.

Exports are a key part of the economy, but the government has been trying to increase domestic demand.

Data: Gross national income per capita: $6,540 (World Bank, 2007)

Latest: The government has offered to guarantee all local and foreign currency deposits up until the end of 2010.

NEW ZEALAND:

Background: Agriculture is the economic mainstay, but manufacturing and tourism are important and there is a fledgling film industry. New Zealand has diversified its export markets and has developed strong trade links with Australia, the US, Japan, and China.

Key data: Gross national income per capita: $28,780 (World Bank, 2007)

Latest: The government is planning to guarantee retail deposits, initially for two years.

SINGAPORE:

Background: Singapore is south-east Asia's hi-tech, wealthy city state. A former colonial outpost of Britain, Singapore has become one of the world's most prosperous regions - with a thriving port, and skyscrapers.

It is often referred to as one of Asia's economic "tigers". Singapore's economy has been driven by electronics manufacturing as well as financial services.

Data: Gross national income per capita: $32,470 (World Bank, 2007)

Latest: The government has offered to guarantee all local and foreign currency deposits up until the end of 2010.

SOUTH KOREA:

Background: South Korea is one of Asia's wealthiest countries. It enjoys major export success in a number of manufacturing industries, but especially shipbuilding, car-making, and electronics.

Key data: Gross national income per capita: $28,780 (World Bank, 2007)

Latest: On 27 October, South Korea's central bank cut its key interest rate from 5% to 4.25% at a rare, unscheduled meeting.

Previously, South Korea's government had pledged to guarantee foreign-currency borrowing by the country's banks to help stabilise financial markets.

The finance ministry, the central bank and the financial services commission said about $100bn of borrowed funds would be covered by the deal. The government will also provide $30bn of liquidity to banks, and there will be more aid to small businesses.

AUSTRIA:

Background: One of the eurozone's strongest economies which has grown faster than average for the last four years. It exports products such as vehicles and luxury commodities to other European nations and increasingly to newer EU member states such as Hungary.

Data: Gross national income per capita: $42,700 (World Bank, 2007)

Latest: Chancellor Alfred Gusenbauer said on 13 October that his government would provide up to 85bn euros ($114bn) in interbank loan guarantees and up to 15bn euros ($20bn) in equity to support the country's banking sector. The government had already announced a guarantee for all personal bank savings, applicable from 1 October.

BELARUS:

Background: The country became independent in 1991 after the collapse of the Soviet Union. Much of its growth in recent years has stemmed from its access to relatively cheap Russian gas and oil, which it has been able to sell on the international market at a higher price.

Data: Gross national income per capita: $4,220 (World Bank, 2007)

Latest: Belarus has been in talks with the International Monetary Fund to obtain funding in the wake of the recent financial turmoil.

BELGIUM:

Background: With few natural resources, Belgium is reliant on imported raw materials and so is vulnerable to rising commodity prices. Roughly three-quarters of its trade is with other EU countries; Germany, Netherlands and France are its biggest trading partners.

Data: Gross national income per capita: $40,710 (World Bank, 2007)

Latest: The government agreed to guarantee bank deposits of up to 100,000 euros ($136,000) - an increase of 80,000 euros.

The country's largest banking group, Fortis, needed the intervention of the Belgian and Dutch governments and the sale of some of its assets to French giant BNP Paribas, to stay alive after getting into difficulty over the purchase of Dutch bank ABN Amro.

DENMARK:

Background: Danes enjoy one of the highest standards of living in the world thanks to successful exports and extensive government welfare measures. It opted out of the European Economic and Monetary Union but its currency, the krona, is pegged to the euro.

Data: Gross national income per capita: $54,910 (World Bank, 2007)

Latest: The Danish parliament approved a government-backed crisis plan, which includes an unlimited guarantee on savings deposits. The central bank has raised its key interest rate by 0.5 percentage points to 5.5%.

ESTONIA:

Background: Estonia regained its independence after the collapse of the USSR in 1991 and since then has established one of the strongest economies in Central Europe. Its electronics and communications sectors are particularly strong. It joined the EU in 2004 and its currency is pegged to the euro.

Data: Gross national income per capita: $13,200 (World Bank, 2007)

Latest: The government more than doubled its bank deposit guarantee to 50,000 euros ($68,000), in line with other European Union member states.

FRANCE:

Background: Nicolas Sarkozy was elected President in 2007 promising sweeping economic and social reforms to tackle sluggish economic growth and high unemployment. He aims to cut taxes, make employment rules more flexible and rein in powerful trades unions. According to French finance minister Christine Lagarde, the country looks to be heading for recession.

Data: Gross national income per capita: $38,500 (World Bank, 2007)

Latest: The chairman of French savings bank Caisse d'Epargne has quit over the loss of 600m euros (£466m) in a "trading incident" amid global market chaos.

Charles Milhaud said he accepted full responsibility for the lost cash and is expected to leave without a pay-off.

GERMANY: