The economy of the globe and individual countries is always a hot talking point, with incidents both positive and negative, natural and man-made constantly evolving how it looks and how it is set to pan out in the future.
There are countless predictions over what will be the next biggest threat to our economy, from risk of international conflict to failure of national governance, cyber attacks and even natural catastrophes. From politicians and businessmen telling us what to watch out for, RS Components have mapped out the real risks to every country’s economy. Although the global economic outlook is stable right now, risks are always looming on the horizon. Question is, are we implementing the correct precautions to ensure we avoid these economical disasters as much as possible?
You can view the map here. The biggest threat to economies across the world are:
|Rank||Risk||Number of countries at risk|
Cyber Attacks are the biggest risk to the UK and US economy
Blasted across the news in the last few years, fears of cyber attacks has been on the rise, now becoming the biggest risk to both the UK and the US economy. With high profile attacks on some of the world’s most well-known companies including Ticketmaster, HSBC and British Airways, it’s no surprise that this has become the biggest threat to the economies of 19 countries.
Cyber attacks install a threat to a country’s ability to carry out secure financial transactions, and can install fear amongst the public extremely quickly, The impact these attacks can have on so many individuals makes this a threat really felt by the public, showing the power of web-based terrorism.
As a result of these threats, both the public and private sector are currently investing millions of pounds into installing cyber-security and ensuring companies and individuals feel safe on the web.
Employment is the biggest risk to the economy in the world
Impacting a staggering 31 countries, issues around unemployment and underemployment come out as the biggest risk to most countries in the world.
Unemployment in Europe
Despite a slight improvement this year, France holds one of the highest unemployment rates in Europe, at 8.8%. Unemployment figures have been a challenge for the country for a number of years, with last year seeing figures slightly higher at 9.1% and in 2017 seeing between 200,000 and 330,000 vacancies unfilled. With an increasing number of companies complaining about the lack of skilled workers, it is pivotal that the country find solutions to please both employers and employees and ensure a recovery from the risks that unemployment poses to their economy.
One of the steps France is making towards reducing this threat is an announcement in March 2018 by the French government stating that by January 2020, each worker, including those who work part-time, will be able to spend 5,000 euros over their careers on training courses of their choice. Will France manage their unemployment rates that pose such a threat to their economy over the next year or two?
Unemployment in Africa
Over two thirds of the countries whose economy is most threatened by employment issues are from Africa, including Zimbabwe, Angola, and Nigeria.
Youths account for 60% of all of those unemployed in Africa and women in particular feel the impact of unemployment as figures rise at higher rates for them than men. It is worth noting that Africa as a continent is considered relatively young, where the median age is about 19-years and is only expected to reach 25-years in 2046.
As a result, young people make up about half of the population of most countries on the continent in the next few decades. With many of these youths desperately wanting opportunities that will ensure a better life, it is important that countries across the continent and globe work towards ensuring development schemes are implemented and more youths are given the opportunities they deserve.
Other issues that threaten country’s economies include failure of national governance, which impacts the likes of Greece, Ireland and Croatia, natural catastrophes affecting Iceland and China, and also energy prices which is the biggest risk to Australia.
Will these countries manage to avoid the biggest threats to their economy?