Eurasia Group has released it’s Global Political Risk Index for August, which ranks emerging markets for political stability. The index uses twenty indicators in four equally weighted categories: government, society, security and economy, to provide valuable insights for businesses looking to invest in emerging markets.
Writing for Marketwatch.com, Polya Lesova, reports that the top three for stability are:
- Hungary
- South Korea
- Poland
At the bottom of the rankings is Pakistan. A Eurasia analyst comments, “President Pervez Musharraf’s crackdown against extremists is unlikely to ease political pressures on his government.” However, Lesova notes that “despite heightened political risk, Pakistan is attracting the attention of some equity strategists who see its stock market as a bargain compared to regional peers.”
Only slightly less unstable are the oil-rich countries of Nigeria and Venezuela.
