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New report points to rising tensions in Asia

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Underlying political and social tensions  are on the rise in some of Asia’s key markets according to a new report.
 
High levels of youth unemployment, government corruption, rising sensitivity to food and fuel prices and low levels of domestic investment are impacting economic growth, according to the new research.

These are the key findings  released by Political Monitor, a political risk research and advisory firm.

The research provides a political risk assessment for 15 key countries in the Asia region and ranks them on the Political Monitor Asia Political Risk Index.

The research reveals those economies that offer the greatest opportunities are also those that represent the greatest risk.

China and the Philippines in particular offer large and growing markets but have underlying social currents that threaten stability and make the investment outlook uncertain according to the report.

The index is compiled from economic, political and social variables that are often excluded in most macro-economic analysis but are clear precursors to emerging political tensions and dislocation.

The risk measured relates to political and social turmoil that is likely to disrupt normal business conditions and potentially lead to severe national dislocation and even regime change.

Political Monitor Partner, Damian Karmelich, said: “For many countries the macro environment looks very positive. Growing economies with emerging middle classes present exciting new opportunities for investors. However, the best opportunities each have significant risks. For some high levels of youth unemployment, entrenched government corruption, growing inequality, exposure to volatile food prices or rising levels of external debt threaten political and social stability over coming years.”

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business China corruption Economic growth Environment food Government investment Philippines Report The Philippines youth

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