Countries With The Highest Investment Risk

country flagpoles

Market participants should use caution when investing their money outside of the G7 as capital is scarce, mobile, and sensitive. Country specific risk can play a huge role in determining investment returns due to unstable political environments and poor economic conditions.

In addition to political and economic risk, a country’s legal and default risk must also be analyzed. The following list was compiled by analyzing all these factors together to estimate a risk premium (the extra risk in a given market). The U.S. served as the baseline used for measuring the extra risk in each country. See the graphic below and the country list below the graphic for a listed ranking of countries.

country investment risk map

  • Belarus: 24.8%
  • Sudan: 24.8%
  • Syria: 24.8%
  • Venezuela: 24.8%
  • Lebanon: 24.8%
  • Argentina: 18.2%
  • Ukraine: 18.2%
  • Sri Lanka: 18.2%
  • Ghana: 18.2%
  • Cuba: 18.2%
  • North Korea: 18.2%
  • Zambia 18.2%
  • Russia: 18.2%
  • Haiti: 18.2%
  • Malawi: 18.2%
  • Somalia: 18.2%
  • Sierra Leone: 18.2%
  • Laos: 15.2%
  • Ecuador: 15.2%
  • Liberia: 15.2%
  • El Salvador: 15.2%
  • Suriname: 15.2%
  • Myanmar: 15.2%
  • Pakistan: 15.2%
  • Yemen: 15.2%
  • Tunisia: 13.7%
  • Belize: 13.7%
  • Congo: 13.7%
  • Ethiopia: 13.7%
  • Guinea: 13.7%
  • Mali: 13.7%
  • Mozambique: 13.7%
  • Barbados: 11.4%
  • Bolivia: 11.4%
  • Nigeria: 11.4%
  • Iraq: 11.4%
  • Gabon: 11.4%
  • Maldives: 11.4%
  • Zimbabwe: 11.4%
  • Burkina Faso: 11.4%
  • Solomon Islands: 11.4%
  • Egypt: 9.9%
  • Cape Verde: 9.9%
  • Swaziland: 9.9%
  • Tajikistan: 9.9%
  • Moldova: 9.9%
  • Angola: 9.9%
  • Bosnia & Herzegovina: 9.9%
  • Kenya: 9.9%
  • Nicaragua: 9.9%
  • Niger: 9.9%
  • Togo: 9.9%
  • Iran: 9.9%
  • Turkey: 9.9%
  • St. Vincent & the Grenadines: 9.9%
  • Madagascar: 9.9%
  • Mongolia: 9.9%
  • Kyrgyzstan: 9.9%
  • Moldova: 9.9%
  • Jamaica: 8.4%
  • Gambia: 8.4%
  • Rwanda: 8.4%
  • Guinea-Bissau: 8.4%
  • Cook Islands: 8.4%
  • Uganda: 8.4%
  • Bahrain: 8.4%
  • Tanzania: 8.4%
  • Cambodia: 8.4%
  • Papua New Guinea: 8.4%
  • Costa Rica: 8.4%
  • Cameroon: 8.4%
  • Jordan: 6.8%
  • Namibia: 6.8%
  • Benin: 6.8%
  • Montenegro: 6.8%
  • Fiji: 6.8%
  • Honduras: 6.8%
  • Bangladesh: 6.8%
  • Albania: 6.8%
  • Benin: 6.8%
  • Macedonia: 5.5%
  • Dominican Republic: 5.5%
  • Algeria: 5.5%
  • Armenia: 5.5%
  • Greece: 5.5%
  • Cote d’Ivoire: 5.5%
  • Uzbekistan: 5.5%
  • Senegal: 5.5%
  • St. Maarten: 4.6%
  • Trinidad & Tobago: 4.6%
  • Oman: 4.6%
  • South Africa: 4.6%
  • Vietnam: 4.6%
  • Brazil: 4.6%
  • Serbia: 4.6%
  • Georgia: 4.6%
  • Guatemala: 3.8%
  • Azerbaijan: 3.8%
  • Morocco: 3.8%
  • Sharjah: 3.8%
  • Paraguay: 3.8%
  • Cyprus: 3.8%
  • Montserrat: 3.3%
  • Mauritius: 3.3%
  • India: 3.3%
  • Italy: 3.3%
  • Romania: 3.3%
  • Curacao: 2.9%
  • Panama: 2.9%
  • Libya: 2.9%
  • Portugal: 2.9%
  • Mexico: 2.9%
  • Uruguay: 2.9%
  • Kazakhstan: 2.9%
  • Philippines: 2.9%
  • Mexico: 2.9%
  • Indonesia: 2.9%
  • Andorra: 2.9%
  • Hungary: 2.9%
  • Croatia: 2.9%
  • Aruba: 2.9%
  • Columbia: 2.9%
  • Turks & Caicos: 2.4%
  • Spain: 2.4%
  • Guyana: 2.4%
  • Thailand: 2.4%
  • Peru: 2.4%
  • Bulgaria: 2.4%
  • Botswana: 1.8%
  • Slovenia: 1.8%
  • Latvia: 1.8%
  • Malaysia: 1.8%
  • Malta: 1.3%
  • Bermuda: 1.3%
  • Slovakia: 1.3%
  • Lithuania: 1.3%
  • Poland: 1.3%
  • Chile: 1.3%
  • Iceland: 1.3%
  • Saudi Arabia: 1.1%
  • Japan: 1.1%
  • Kuwait: 1.1%
  • Israel: 1.1%
  • Estonia: 1.1%
  • China: 1.1%
  • Macao: 0.9%
  • U.K.: 0.9%
  • Cayman Islands: 0.9%
  • Ireland: 0.9%
  • Belgium: 0.9%
  • Hong Kong: 0.9%
  • Brunei: 0.9%
  • Taiwan: 0.9%
  • Czech Republic: 0.9%
  • Isle of Man: 0.9%
  • Qatar: 0.9%
  • Jersey: 0.9%
  • U.A.E.: 0.8%
  • Abu Dhabi: 0.8%
  • Guernsey: 0.8%
  • France: 0.8%
  • Korea: 0.8%
  • Austria: 0.6%
  • Finland: 0.6%
  • U.S.: 0%
  • Canada: 0%
  • Germany: 0%
  • Australia: 0%
  • New Zealand: 0%
  • Switzerland: 0%
  • Norway: 0%
  • Sweden: 0%
  • Denmark: 0%
  • Germany 0%
  • Singapore: 0%
  • Netherlands: 0%
  • Luxembourg: 0%
  • Liechtenstein: 0%
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