Danger Map by Deutsche Bank identifies countries in financial stress

Deutsche bank’s danger map is an representation of financial health of major developed and developing economies of the world. It allots scores on the basis of several financial criteria like Deregulation of lending,%of credit to GDP, Unemployment, interest rates, Exchange rate Volatility, etc. Map shows Greece, Ireland, Portugal and Spain under the danger zone among developed nations and India with China in danger zone among emerging economies.

Danger map thinking

Danger Map Deutche Bank 

There are some good news though. Many countries, developed and developing are still in stable zone (indicated by grey cells on map). These countries are Australia, Sweden, Germany and Israel among developed ones and Thailand, Malaysia and Indonesia among emerging economies.

Unemployment scores of emerging economies are far better than the developed economies. All the emerging economies are out of danger zone of unemployment but developed countries like US, France, Greece, Ireland, Portugal and Spain are finding themselves in unemployment danger zone.

Japan is the safest bet among all the listed countries, though it still has the highest Debt to GDP ratio in the world. May be that is why Japanese Yen has been appreciating as investors run for safe heaven.

Overall report of emerging economies is marginally better than developed ones and that might not be enough to pull up the sentiments of world finance currently.

Hitesh Anand

I am a post graduate from Newcastle University, UK. I like studying and analyzing economic data and financial health of world.

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