Iran

April 2007 | Ratings Update

Iran''s poor scores in our new political risk ratings - 52.9 for short term risk and 50.2 for long term risk - reflect ongoing security threats, whether from domestic ethnic tensions or the slipover of conflict from neighbouring Iraq and Afghanistan, as well as tensions with the US. At the same time, high levels of unemployment and double-digit inflation weigh on the country''s short term rating along with the heavily fragmented nature of the polity which stifles the policy formation process. In the long term, the lack of entrenched democratic institutions pose a further threat to stability, although both short

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