21.12.2021

BULGARIA IS AMONG THE COUNTRIES WITH THE HIGHEST SOCIAL RISK IN THE EU

Bulgaria and Romania are the countries with the highest social risk in the European Union. This shows the Social Risk Index*, which surveys 185 countries around the world.

The ranking is prepared by Euler Hermes, and the assessment takes into account various factors that indicate the degree of long-term vulnerability. It provides a perspective on social tensions, which can have an impact on government, business development and the investment climate.

The Social Risk Index ranks countries from 1st to 185th, with those with the lowest risk at the forefront. Thus, Bulgaria ranks 59th, followed by only one member state of the European Union - Romania (63rd place). Experts point out that the two countries are the poorest in the EU and have the lowest level of public confidence in governance, as evidenced by a series of early elections. The assessment also took into account the low level of vaccination against COVID-19 with access.

The country with the lowest social risk in the world is Denmark, with Norway and Sweden also in the top three. France and the United States are the two developed economies for which Euler Hermes analysts report a significant increase in social risk compared to a previous study published in June 2020. In the current ranking, they rank 17th and 35th, respectively.

The winners in Central and Eastern Europe are the Czech Republic and Slovenia with 19th and 20th positions. With a better ranking than Bulgaria are countries in the region that are still outside the EU - Serbia and Montenegro - in 46th and 55th place.

Russia (75) and Ukraine (81) are behind, and Turkey (122) is in a very worrying position, where tensions are rising due to the weakening Turkish lira and declining purchasing power. "At the bottom" are Congo (185), Sudan (184) and Afghanistan (183).

"The Social Risk Index takes into account 12 parameters and in the long run can guide us to the vulnerability and stability of business in the respective countries. Therefore, it is another tool for companies to assess the degree of danger in commercial transactions," explains Kamelia Popova, manager of Euler Hermes for Bulgaria.

"Turkey, Romania and Russia are traditionally destinations where Bulgarian business finds its trading partners. Therefore, the tendency for higher social risk there should be taken into account, among other factors when concluding deals," she added.