Global Risk Report Quarterly Update: Q2 2019

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.

The ninth update version of MarketLine Country Risk Index (MLCRI) Q2 2019 ranks Singapore at the top followed by Switzerland and the US. 29 countries were identified in the very low risk zone, 29 countries in the low risk zone, 36 countries under manageable risk, 32 countries under high risk and ten countries in the very high risk zone in MLCRI Q2 2019.

Scope

– Asia-Pacific has the second lowest risk score after Europe in the Q2 2019 update of the MLCRI. Despite this, risks remain in the form of geopolitical tensions, the US-China trade war, and sudden capital outflows from the region in the case of a decline in investor confidence, and Chinese debt.

– Europe retained its position as the lowest risk region in the world, according to the GCRI Q2 2019 update, due to its strong macroeconomic fundamentals. The risk score of the European region witnessed an increase in Q2 2019 on the back of uncertainty over Brexit, a slowdown in China which is impacting exports, lingering trade tensions and the deepening manufacturing downturn.

– The risk score of the Americas also increased in Q2 2019 over the previous update in Q1 2019. Risk score in Paraguay, Costa Rica and Guatemala declined whereas it increased in Brazil, Ecuador and Bolivia in the MLCRI Q2 2019 update.

– The Middle East and Africa (MEA) is the highest risk region according to the MLCRI 2019 Q2 update, with a regional risk score of 49.02 out of 100, up from 48.79 in the MLCRI 2019 Q1 update and 47.59 in the MLCRI 2018 Q4 update. The region continues to be plagued by social conflict and geopolitical turmoil.

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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