Which countries have the highest levels of economic risk, and which are best positioned to continue weathering the COVID-19 storm?
In times of crisis, risk is thrown under the microscope and former assumptions are reassessed. From the political climate to the flow of international trade, the impact of COVID-19 has destabilized macroeconomic conditions in many jurisdictions globally.
The above Markets in a Minute chart from New York Life Investments is a macroeconomic risk map of 241 countries and regions as global economies shift.
Data for the risk map comes from Euler Hermes, and it scores macroeconomic risk primarily based on the following categories: political risk, structural business environment, commercial risk, and financing risk.
The political risk category, for example, takes into account the concentration of power in a country. It also assesses the degree of independence of national institutions and social cohesion.
In total, a country’s macroeconomic risk profile is determined, representing the broad risk of non-payment of companies within a country.