Still Some Work To Do

May 2007 | Ratings Update

Under our new methodology, Colombia scores a respectable 71.5 for its short-term political risk rating - testament to the political stability brought in under the Uribe administration. It does fare badly, however, in the social stability category, where it scores just 52.5. In this respect, high unemployment (the jobless rate and under-employment rates came in at 13.8% and 28.3% respectively in January), and the dominance of insurgent groups in Colombia's peripheral regions impinge heavily upon the ratings. Policy continuity remains high at 90.0, but a prolonged investigation into alleged government links to paramilitary groups could force us to reassess.

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