Economic Risk

Economic risk refers to the possibility that changes in a country's economic conditions could negatively impact investments or business operations. Factors like inflation, recession, currency fluctuations, or government policies can reduce profits or cause financial losses. Essentially, it’s the chance that economic instability will make it more difficult or less profitable for companies and investors to succeed within that economy. This risk varies from country to country and can influence decisions on where to invest or expand, highlighting the importance of understanding economic stability when planning business strategies.