LONDON, May 22, 2019 /PRNewswire/ --
- Over the last 6 decades, per capita GDP growth has been 3 times higher in highly peaceful countries than in countries with low levels of peace.
- Interest rates are lower and more stable in more peaceful countries
- On average, inflation is 3 times higher and 10 times more volatile in less peaceful countries than in peaceful countries.
- Countries with the largest improvements in peace recorded 7 times higher GDP per capita growth than those that deteriorated the most.
This new Business and Peace report, produced by international think-tank the Institute for Economics & Peace (IEP), reveals that peace can be a good predictor of economic success and examines at what peace can offer business.
With Brexit posing a potential threat to the economic stability of the country, will the UK weather the storm? This research finds that levels of peace and stability can act as a good predictor of a country's future performance across a number of macroeconomic indicators.
Steve Killelea, Founder and Executive Chairman of the IEP, said, "The business community has long been encouraged to support peace and development, but businesses are unaware of the benefits peace can offer them.
"This paper shows the mutually reinforcing link relationship between business performance and peacefulness."
There has been sustained global economic growth for the last seven decades. Higher global prosperity can be explained by many factors, including higher productivity, itself driven by technological innovation and a steady rise in human capital, which in turn is driven by strong and stable institutions. However, this cycle of peace and prosperity is not equally shared by all societies.
Unsurprisingly, the widest gap between individual country performance and the best performing economies occurs in conflict-affected countries, such as Afghanistan, Syria and South Sudan. Surprisingly, there are a number of mid-level peaceful countries such as Rwanda, Bhutan and Georgia that have improved in peace over the last decade. With continued improvements in peace, these countries could offer potentially attractive investment opportunities.
About the Institute for Economics and Peace
IEP is an international and independent think-tank dedicated to shifting the world's focus to peace as a positive, achievable and tangible measure of human well-being and progress. It has offices in Sydney, New York, The Hagueand Mexico City.
SOURCE Institute for Economics & Peace (IEP)