Geopolitical Instability

Political instability is a situation where by a country is going through political turmoil, which can negatively impact its GDP.

Businesses rarely gain from political instability so trying to predict unrest is a critical activity for any entity investing in a volatile corner of the world. One of the factors most often cited as contributing to unrest is high oil prices.

Drawing a link between rising oil prices and political instability is not particularly novel. Indeed, it has been pointed out by countless observers who see anger with rising costs leading to political activism. They note that oil is linked to higher costs across the board. The most direct interaction with oil for many people is at a gas station. But oil prices affect the cost of nearly everything else.

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