Yemen

Yemen fares fairly well in our new short and long-term political risk ratings, in part because of its relatively strong democratic credentials. Although the ruling party has overall control, which is good for stability, the relative media freedom and civil rights situation boost its score. Pulling both the ratings down are inflation and unemployment, for which Yemen is in the lowest categories, and the ethno-sectarian divisions (most notably between the Sunni and Shi'a communities, and between the Shi'a and Jewish communities). Although we are largely sanguine on the government's ability to maintain control of the situation with the Houthi militancy,

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