Geopolitical Risk and a Country’s External Position: What’s the Connection?

This Fall, the IMF – a longstanding client of PRS – presented an overview of its EBA-Lite methodology, which is a key input in external sector assessments for over three-quarters of Fund member countries, representing a broad set of emerging and low-income economies

For the purposes of locating the relevance of geopolitical risk, the EBA-Lite methodology uses a range of our ICRG variables as a proxy for ‘institutional quality.”

Significantly, higher institutional quality tends to lower a sovereign’s current account balance.

External sector assessments are a core mandate of the Fund and are included in each Article IV staff report.

The paper describes the refinements in EBA-Lite 3.0.  Have a look:
(https://lnkd.in/eD9FAmA3)

It’s always enjoyable to see our data assist in the process of international lending and reform, especially via the Fund, and the range of countries it assists.

Our data drives….

The PRS Group
www.PRSGroup.com
www.christophermckee.net

CHRISTOPHER MCKEE, PHD CHIEF EXECUTIVE

Christopher McKee is PRS’ CEO and Owner. An international political economist, global investor, entrepreneur, and author, Chris received his PhD from Queen’s University (Canada) and has been involved in the field of geopolitical risk, limited recourse financing, and private sector development for the past 25 years.