Germany: Short-term political risk (1=low, 7=high)
For that indicator, Credendo Group provides data for Germany from 2014 to 2019. The average value for Germany during that period was 1 index points with a minumum of 1 index points in 2014 and a maximum of 1 index points in 2014.
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Definition: The short-term political risk classification measures the likelihood of a risk caused by political and assimilated events connected to cross-border transactions with a risk horizon of up to 1 year. In order to assess this risk, Credendo uses a quantitative model, essentially focusing on the evolution of the liquidity situation of the debtor/obligor countries. The aim is to assess the capacity of a country to honour its short-term payment obligations. The model closely follows any deterioration or improvement in the situation of the debtor countries.
Countries are classified into seven categories: from 1 (low risk) to 7 (high risk).