"A jump in the political risk of Israeli exporters to Asian countries"

A jump in the political risk of Israeli exporters to Asian countries, including China and India. According to the political risk index of the credit insurance company Coface, Asia's average political risk level now stands at 45 percent, compared to 35 percent for the World Bank. The political risk index ranks the various countries according to the likelihood of a political event that will affect the economy and business of the country. It is important to note that credit insurance protects the exporter and ensures receipt of the payment even if due to a political event in which the client does not pay or can not extract foreign currency from the country According to the Coface Index, the factors that affect the level of political risk include the level of political stability, , Conflicts and terrorist incidents.
According to Carmina Mandola, CEO of Coface Israel, economic growth and political risks are intertwined: The deterioration of the economic situation often results in higher political risks, and vice versa.Advanced political risks can adversely affect economic activity mainly for two main reasons: Lead to a decline in the stock markets and an increase in bond yields, which will cause a deterioration in the financing conditions of the companies in the local economy. Second, the costs of the financing conditions may lead to a decrease in the level of business trust in the companies and consequently to delays or cancellations in investment decisions and expenses. According to him, political risks and risks may cloud the outlook of Asian economies.
According to Coface, the highest level of political risk was recorded in South Asia and Southeast Asia. East Asia saw the fastest acceleration in political risks in the last decade - especially in China, where the overall level rose by 7.2 percent between 2007 and 2017. This is mainly due to an especially high score in the Social Stability Index, which is related to inequality in income and corruption. It should be noted that China's social instability is the highest in South and Southeast Asia, despite strong economic activity in the country.
Coface's political risk model also includes a negative reference to countries where there has been a high level of conflict and terrorist attacks. Such conflicts have been recorded in South and Southeast Asia, mainly as a result of ethnic, religious and linguistic tensions that bring tensions between the various groups in the country. This includes countries such as India, Pakistan, Myanmar, and the Philippines.