Low Financial Risk for Developed and Oil-Rich Countries

Developed economies and oil-rich nations dominate the low-financial-risk category, while many emerging markets or states facing certain conflicts fall into riskier categories, according to an analysis by visualcapitalist.com.

Based on data from Allianz Trade, it presents the global short-term financing and trade risk landscape as of the second quarter of 2025. Financial and trade risk measures how vulnerable countries are to short-term shocks, from pressures on liquidity between companies to disruptions to trade activity.

Short-term risk ratings indicate the risk of default by companies in a given country based on two indicators that track financing flows and demand disruptions.

• 90 low-risk countries

A total of 90 countries fall into the low-risk category, 57 are in the high-risk zone, and others are in the medium- and sensitive-risk categories, according to the cited source. Countries such as the United States, Canada, Germany and Japan fall into the low-risk category. Most of Western Europe - including France, Switzerland and the Nordic nations - also fall into this category.

In the Asia-Pacific region, China, Singapore, Japan and South Korea remain anchors of stability, along with Australia. Meanwhile, emerging markets such as Brazil, India, Vietnam and Mexico face medium risks in the near term.

• High- and sensitive-risk regions

According to Allianz, 42 countries fall into the sensitive-risk category (one notch above medium risk), including Argentina, Bangladesh, South Africa and more than 15 other African nations.

High-risk countries are concentrated in sub-Saharan Africa, parts of the Middle East, and conflict-affected states such as Ukraine, Syria, and Sudan. These economies could face credit constraints and short-term disruptions to demand and economic activity.