Country risk March 2006
Oil producers strike it rich, but long-term issues remain<br><br> The high price of oil highlights the fact that many economies are too reliant on raw materials exports, with governments creating unfavourable conditions for foreign investment through neglect or for political reasons. Florian Neuhof looks at the main drivers behind Euromoney’s latest country risk poll.
Find out which countries remain the key focus, why there is a concern over leftward shifts in certain regions, how oil producers strike it rish, but long- term issues remain, who is a big risk factor and most importantly how each country rank.
Country risk index
By Florian Neuhof
THE SOARING PRICE of oil is a key risk to the global economy, but it has boosted the national balance sheets of the emerging market countries that are major producers of crude.
This is reflected in Euromoney’s latest country risk rankings, which indicate that despite geopolitical problems such as terrorism the world is a less risky place than it was six months ago.
Overall, the total score has increased by 1.41% since the survey, based on the views of 47 analysts, was last published in September 2005. And it is noticeable that most of the commodity-rich countries improved their rankings.