The ongoing global cost-of-living crisis has heightened social risks on a worldwide scale, exacerbating the divide between advanced economies and emerging markets. In the current year, our exclusive Social Resilience Index (SRI), which amalgamates 12 indicators assessing economic and social vulnerabilities across 185 countries, witnessed a decline of 2.1 points, dropping from 45.7 in December 2021. This decline can be largely attributed to currency depreciations, increased import expenses for food and fuel relative to GDP, and a decrease in labor force participation.
The disparity in social resilience between advanced and emerging economies has expanded further, primarily due to varied fiscal responses to the challenges posed by the rising cost of living and energy crises. Denmark once again claimed the top position in our social resilience ranking, followed by Finland (with a +3 improvement compared to 2021) and Switzerland (+1). Interestingly, Latin America, the sole region experiencing a reduction in social risk over the past few years, now boasts a better overall ranking than Emerging Asia.