site.btaBulgaria Has Highest Social Risk in EU, Shows Report

Bulgaria has the highest social risk in the European Union, according to the Social Resilience Index. It tracks 12 economic, social and political parametres in 185 countries around the world, said Allianz Trade, which produces the ranking.

The results of the study covered the period from early 2022 to September 2023.

The Social Resilience Index ranks countries from first to 185th, with those with the lowest risk at the top. This year, Bulgaria retained its 59th position, albeit with slightly worse indicators, while Romania has moved up to 56th place compared to 2021, Allianz Trade indicated. 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 warned of a worsening of social stability at the global level, the main reasons for which are the devaluation of currencies, the growth of food and fuel prices, and reduced labour 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, the report noted.

The country with the best social sustainability in the world remains Denmark, with Finland and Switzerland making up the top three. Latin America is the only region in the world where social risk has decreased over the past two years.

Allianz Trade experts identified 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.

The Social Resilience 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 can be expected in the future when conducting commercial transactions with partners in the respective markets, commented Kamelia Popova, head of Euler Hermes for Bulgaria, which already operates under the trade mark Allianz Trade.