APAC increased risk index due to political and economic tensions
The geopolitical and economic tensions among countries in the Asia Pacific (APAC) have contributed to its increased global risk index, said UK-based data and analytics firm GlobalData.
GlobalData business fundamentals analyst Gargi Rao said that the “rising geopolitical tensions, including the Taliban’s takeover of Afghanistan, a military coup in Myanmar, ongoing South China Sea conflicts, and [the] emergence of new variants of COVID-19, pose risk” in the region.
APAC came in third in the latest global risk index with 41.28. The Middle East and Africa had the highest risk at 50.42 followed by the Americas at 46.69.
The spread of new COVID-19 variants is leading to renewed restrictions, putting more pressure on regions with heightened risks.
GlobalData also reported that the latest global risk index marginally decreased to 42.74 out of 100 in the second quarter of the year from the Q1’s 43.53, due to the vaccination programs of various countries.
However, while it is seen as an improvement, the score is still much higher than the pre-pandemic level of 41.1, indicating a higher economic risk for regions across the globe.
