07.11.2023
BULGARIA HAS THE HIGHEST SOCIAL RISK IN THE EU
Bulgaria has the highest social risk in the European Union, according to the Social Resilience Index, which monitors 12 economic, social and political parameters in 185 countries around the world. This was announced by the company "Allianz Trade" (Allianz Trade), which prepares the ranking.
The results of the study cover the period from early 2022 to September 2023.
The Social Sustainability Index ranks countries from first to 185th, with those with the lowest risk at the top. This year, Bulgaria retains the 59th position, albeit with slightly worse indicators, while Romania is already in 56th place compared to 2021, according to Allianz Trade. Experts note that the two countries remain the poorest in the EU and have the lowest levels of public trust in government, adding that this is evidenced by frequent civil protests, early elections and unstable governments.
This year, the company's experts warn of a worsening of social stability at the global level, and among the main reasons for this are the devaluation of currencies, the growth of food and fuel prices, and reduced labor force participation. Thus, the differences in the level of social risk between developed and developing economies around the world are deepening because of the different resilience to rising living costs and the energy crisis, they note.
The country with the best social sustainability in the world remains Denmark, and the top three also include Finland and Switzerland, which climb by three and one position compared to 2021. Latin America is the only region in the world where in the last two years there has been reducing social risk. The most serious deterioration occurs in countries that rely exclusively on food and fuel imports. At the same time, some exporters such as the UAE and Qatar are reporting favorable trends, the analysis states.
Allianz Trade experts identify the upcoming elections in a large number of countries in 2024 as a potential factor for increasing social tension and risk on a global scale. Another factor in the coming years is expected to be the development of artificial intelligence, which could lead to job losses and the spread of misinformation.
"Some governments are beginning to put in place responsive regulatory mechanisms to protect jobs and avoid other risks to social stability with the advent of artificial intelligence. But for economies heavily dependent on service industries, it will be a serious challenge to adapt quickly and catch up with technological advances," the report states.
"The social risk index can serve as another tool for companies to navigate the stability of the business environment in the respective countries. This is an additional signal of what we can expect in the future when conducting commercial transactions with partners in the respective markets," commented Кamelia Popova, manager of "Euler Hermes" for Bulgaria, already operating under the trademark "Allianz Trade", quoted in the announcement.
