Political risks higher in Asia, says Coface

October 11, 2018 – Asia Today International reports that global risk insurer Coface’s Political Risk Model currently ranks Asia above the world average in terms of political risk, behind the Middle East and North Africa (MENA), Sub-Saharan Africa and Latin America.

Coface

Although political risks in Asia have remained broadly stable relative to other parts of the world, some exceptions are notable, Coface says. “These risks could cloud the outlook for some economies going forward.”

Coface says South Asia has the highest political risk score, followed by Southeast Asia, with East Asia having the fastest pace of political risk increases since 2007, led by risk increases in China. “Our model also attaches a terrorism “penalty” in countries where there is a high number of conflicts and terrorist attacks.

“South and Southeast Asia feature high levels of ethnic, religious and linguistic fractionalization, resulting in tensions between different groups. “Noteworthy examples of this can be seen in India, Pakistan, Myanmar and the Philippines.”

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