Political and economic risks
AMB Country Risk Report
September 28, 2011
France
Country Risk Tier
CRT-1
• France is a CRT-1 country with low levels of risk across all three categories. The French economy has been significantly impacted by the global financial crisis. The economy contracted by 2.6% in 2009 and has recovered modestly, with the economy growing by 1.5% in 2010 and by 1.7% in
2011. A fragile labor market, tight credit conditions, and fiscal tightening will create economic difficulty over the next few years.
Economic Risk
Moderate
Low
High
Very Low
• The Country Risk Tier (CRT) reflects A.M. Best’s assessment of three categories of risk: Economic, Political and
Financial System Risk.
Very High
Political Risk
• A.M. Best considers the majority of countries pictured below to be categorized as CRT-1 and CRT-2. The exceptions are the Eastern European countries of Bosnia and Herzegovina, Belarus, Ukraine, and Poland.
Moderate
Low
High
Very Low
Very High
Financial System Risk
Moderate
Low
High
Very Low
Very High
For information on companies followed
Market Outlooks
Copyright © 2011 by A.M. Best Company, Inc.
All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.
1
AMB Country Risk Report
France
Regional Summary: Western
Europe
• In 2010, Western Europe began to recover from the global economic recession; however, growth has remained modest and has faltered since the start of 2011. This slowdown is partially due to the sovereign debt issues that have arisen in the eurozone and the United States, which have lowered consumer and business confidence, as well as weak global demand for eurozone exports. The European
Central Bank (ECB) has bought bonds from several at-risk member states in an attempt to contain the region’s sovereign debt
September 28, 2011
France
Country Risk Tier
CRT-1
• France is a CRT-1 country with low levels of risk across all three categories. The French economy has been significantly impacted by the global financial crisis. The economy contracted by 2.6% in 2009 and has recovered modestly, with the economy growing by 1.5% in 2010 and by 1.7% in
2011. A fragile labor market, tight credit conditions, and fiscal tightening will create economic difficulty over the next few years.
Economic Risk
Moderate
Low
High
Very Low
• The Country Risk Tier (CRT) reflects A.M. Best’s assessment of three categories of risk: Economic, Political and
Financial System Risk.
Very High
Political Risk
• A.M. Best considers the majority of countries pictured below to be categorized as CRT-1 and CRT-2. The exceptions are the Eastern European countries of Bosnia and Herzegovina, Belarus, Ukraine, and Poland.
Moderate
Low
High
Very Low
Very High
Financial System Risk
Moderate
Low
High
Very Low
Very High
For information on companies followed
Market Outlooks
Copyright © 2011 by A.M. Best Company, Inc.
All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.
1
AMB Country Risk Report
France
Regional Summary: Western
Europe
• In 2010, Western Europe began to recover from the global economic recession; however, growth has remained modest and has faltered since the start of 2011. This slowdown is partially due to the sovereign debt issues that have arisen in the eurozone and the United States, which have lowered consumer and business confidence, as well as weak global demand for eurozone exports. The European
Central Bank (ECB) has bought bonds from several at-risk member states in an attempt to contain the region’s sovereign debt