Global Risk Report -Quarterly Update: Q1 2017

The second update version of MarketLine Country Risk Index (MLCRI) Q1 2017 ranks Singapore at the top followed by Sweden and New Zealand. 31 countries were identified in the very low risk zone, 34 countries in the low risk zone, 39 countries under manageable risk, 24 countries under high risk and 8 countries in the very high risk zone in MLCRI Q1 2017.

Reverse globalization, cyber crimes, geo-political tensions, rising inequality, policy uncertainty of major economies, automation and job loss rising pollution levels, ageing population and fiscal crisis has been identified as the key global risk factors of 2017. Global political instability is at all times high as reflected from the recent events in Italy, USA and UK. Voters are increasingly becoming hostile towards globalization and international trade which is resulted from heightened feeling of nationalism across the world. Prolonged period of low interest rates in major economies in the world have heightened economic concerns. Some central banks have kept the interest rates below zero. The central banks have been unsuccessful in reviving the economic activities and financial markets by keeping the interest rates at a very low level which is a worrisome sign for the global economy.

Synopsis

Global Risk Report is based on MarketLine Country Risk Index (MLCRI) which is a unique country risk-rating model that determines the existing and future level of country risk by assessing various qualitative and quantitative factors. The index is formulated to help firms prepare their global business strategies on the basis of historical developments in an economy and also their future expectations.

The Country Risk Index incorporates the latest available macroeconomics, political, social, technological, environmental and legal data from a range of recognized national and international statistical sources, and incorporates proprietary data from MarketLine Economics Research. The model also features expert analytical judgment from in-house economists and takes into account their insights and opinions. By applying a robust approach to assessing risk, MarketLine analysts ensure that strategists have an effective tool to assess current trends and risks facing the economies across the globe.

Scope

– Based on political stability factor, greater transparency, good governance, better regulatory quality and control of corruption; MLCRI ranks Norway at the top and Syria at the bottom in 2017.

– Analysis based on higher economic growth, lower inflation rate, lower debt, easy access to credit, availability of venture capital etc, Sweden tops the countries list indicating lowest economic risk followed by USA, Taiwan and Norway in MLCRI in 2017.

– In terms of literacy rate, life expectancy, lower dependency ratio, flexible wages and capacity to attract, Singapore ranked at the top and Chad at the bottom in MLCRI 2017.

– Finland tops the countries list in terms of lowest technological risk factor followed by Korea, Japan and Singapore in MLCRI in 2017 based on the capacity for innovation, ICT landscape, mobile and internet penetration.

– New Zealand is having the least risk and Syria highest in terms of legal risk factor in MLCRI in 2017 based on the property rights, strength of investor’s protection, intellectual property protection and efficiency in legal frame work.

– 42 out of 136 nations have least environmental risk in MLCRI 2017. Countries such as the Philippines, Costa Rica and El Salvador which are prone to environmental vulnerability such as flood, earthquakes etc are ranked at the bottom in MLCRI’s environmental risk pillar.

Reasons to buy

- Global Risk Report is based on MarketLine Country Risk Index (MLCRI) which is a unique country risk-rating model that determines the existing and future level of country risk by assessing various qualitative and quantitative factors. The index is formulated to help firms prepare their global business strategies on the basis of historical developments in an economy and also their future expectations.

- The Country Risk Index incorporates the latest available macroeconomics, political, social, technological, environmental and legal data from a range of recognized national and international statistical sources, and incorporates proprietary data from MarketLine Economics Research. The model also features expert analytical judgment from in-house economists and takes into account their insights and opinions. By applying a robust approach to assessing risk, MarketLine analysts ensure that strategists have an effective tool to assess current trends and risks facing the economies across the globe.

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