The reimposition of lockdowns in the first quarter across many countries has led to an uptick in global risk that affects business sentiment, according to GlobalData, leading data an analytics company in the UK said.
Countries going back to stricter restrictions amid rising cases of Covid-19 have resulted in the latest global risk index marginally increasing to 43.53 out of 100 in the January to March period from 43.42 in the last quarter of 2020.
The Philippines, for one, reverted to the strictest quarantine status toward the end of March as part of its efforts to address a sharp rise in new cases. The country is just gradually opening up as restrictions remain in place.
The risk index aims to help companies prepare their global business strategies and analyze risk parameters pertaining to the political, economic, social, technological, legal, and environmental factors across regions in the world.
“The first quarter risk index remains much higher than the pre-pandemic level of 41.07. High risk score indicates higher risk facing the economies, which may deter investors,” GlobalData said.
In Asia-Pacific, geopolitical and economic tensions among countries are expected to have a deeper impact. “This includes the slowdown in the Indian economy, political unrest in Myanmar, ongoing South China Sea conflicts, and delay in vaccine rollouts,” GlobalData economic research analyst Gargi Rao said.
Any business or economy that intends to succeed in a post-pandemic world will have to deal with the many global risks that can present challenges and frustrate the unprepared. A country like the Philippines where quarantine restrictions are expected to linger further due to delays in vaccine rollout while dealing with territorial conflicts in the South China Sea has to do more to minimize these risks that can discourage the potential investors we need to restart and restore our battered economy.
Every country is working feverishly to create an environment that can encourage recovery and growth. If the Philippines can address these global risks better than our neighbors, we may have a chance of getting a head start in this post-pandemic world where opportunities await those who are prepared.*