Rising fuel and food prices are expected to spur an “inevitable” increase in civil unrest, with middle-income developing countries such as Brazil and Egypt particularly at risk, a report from a risk consultancy said.
Three-quarters of nations expected to be at high risk or extreme risk of civil unrest by the fourth quarter of 2022 are middle-income countries, as defined by the World Bank, Verisk Maplecroft said in an update to its political risk monitor.
“Unlike low-income countries, they were rich enough to offer social protection during the pandemic, but now they struggle to maintain the high social spending that is vital to maintaining the living standards of large sectors of their populations,” he pointed out. the report.
Argentina, Tunisia, Pakistan and the Philippines are also among the countries to watch over the next six months, the authors said, pointing to their high dependence on food and energy imports.
The Ukrainian War accelerated the soaring of food prices, whose inflation reached a record high in February and again in March. Energy prices have also risen sharply.
According to the report, with no resolution to the conflict in sight, the global cost-of-living crisis will continue until 2023.
Civil unrest could hamper a potential economic recovery, but also discourage investors focused on environmental, social and corporate governance (ESG), the document said.
The report showed that more than 50% of the nearly 200 countries covered by its index have experienced an increase in civil unrest since the Covid-19 pandemic.
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
