New Zealand led a study into how resilient each country is to the coronavirus pandemic, with UAE ranked in the top 20.
The Pacific nation topped a list of 53 nations into a Bloomberg report titled the 'Best and Worst Places to Ride Out Covid'.
Japan and Taiwan were close behind in second and third, followed by South Korea and Finland.
Languishing at the bottom of the chart was Mexico, Argentina, Peru, Belgium and Czech Republic.
The report's authors found advanced economies like the US and UK, ranked by pre-2020 measures as the most prepared for a pandemic, have "repeatedly been overwhelmed by infections and face a return to costly lockdowns".
They looked at cases, fatality rate, the severity of lockdown, GDP growth forecasts and healthcare coverage, among other metrics.
'Back to normal life'
New Zealand had just two cases per month per 100,000 population, and 5 deaths per million people.
"New Zealanders are basically living in a world without Covid," Bloomberg's authors wrote in the report, which is available in full here.
"The nation has seen just a handful of infections in the community in recent months and live music and large-scale social events are back on."
It noted that although its tourism industries have suffered, Prime Minister Jacinda Ardern's government already has two vaccine deals in place, including the ready-to-go Pfizer / BioNTech shot.
'Lightning fast' contact tracing teams
Japan was second best-placed having dealt with outbreaks of tuberculosis in recent years and already had a health centre staffed with contact tracers who were quickly redeployed. In contrast, many countries hired untrained personnel with often chaotic results.
Even as cases rise in the winter, the country of 120 million had just 330 seriously-ill patients when the study was released.
That compared to France, with half its population, which has about 5,000 in intensive care.
Early on, Japan sewed up four vaccine deals for its huge and ageing population.
Taiwan's response was equally fast and the island nation of 23 million shut borders as cases spread from Wuhan on the mainland.
Apps advised its population which shops stocked masks and listed locations were cases had been reported.
As with New Zealand, it has gone more than 200 days without a single locally-transmitted case - but has so far failed to secure a deal for a far-along vaccine.
In South Korea, ranked no.4, contract tracers even combed through credit card records and CCTV footage to track down clusters. Experience of tackling Mers in 2015 and Sars in 2003 proved vital.
For the UAE, Bloomberg positively noted the current 'lockdown' measures are low compared to many countries. It had 371 cases per 100,000 people per month and 56 deaths per one million people, similar to Finland and Norway.
They also noted the Emirates already has access to one vaccine - China's Sinopharm shot that was trialled in Abu Dhabi.
As with many countries, the UAE faces a negative GDP growth of 6.6 per cent for 2020, similar to New Zealand at 6.1 per cent and Singapore at 6 per cent.
Does type of government matter in fight against pandemic?
Authors questioned whether the under-performance of some of the world's most prominent democracies - including the United States, UK and India, against major non-democracies such as China and Vietnam - meant different systems of government impacted how pandemics could be tackled.
But eight out of the top 10 in its list were democracies and success appeared to rely on gaining the trust and willing compliance of its people, not on the type of government a country had.
That said, Western Europe is now in the throes of a ferocious wave that’s forced governments to impose new lockdowns. The containment achieved in the spring was undone by the easing of restrictions, allowing the virus to be seeded again by summer vacationers.
Belgium has the worst overall mortality rate of the 53 economies after the virus ripped through aged-care homes.
The UK, Italy and France have all seen cases and fatalities soar over recent months, with France’s stricter lockdown pushing it down in the ranking. France’s positive test rate rose to more than 20 per cent at the start of November from around 1 per cent in July. After imposing a new lockdown on Oct. 30, the rate has fallen to below 12 per cent as of Nov. 23.
Pilloried initially for eschewing lockdowns, Sweden is now scored relatively highly on nearly all of Bloomberg’s metrics, ranking 16th overall.
Inequality matters
Alan Lopez, director of University of Melbourne's global burden of disease group, said countries with less inequality had fared best.
"If you look at Japanese society, the Scandinavian societies, there's very little inequality and a lot of discipline in them," he said in a note attached to the study.
"That would translate into a more cohesive response by the country and that's why they're up there at the top."
Bloomberg scored countries with economies valued at more than $200 billion.
The findings were a snapshot and not a final verdict.
"Still, the gap that has opened up between those economies at the top and those at the bottom is likely to endure, with potentially lasting consequences in the post-Covid world."
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
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Will the pound fall to parity with the dollar?
The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.
Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.
New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.
“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.
The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.
The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.
Bloomberg
if you go
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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