Skip to content
Subscriber Only

Moody’s Says Tide of Populism Is Putting World’s Credit at Risk

  • Unrest from Chile to Lebanon flags global risk to sovereigns
  • Weaker institutions can’t address slowing growth, Moody’s says
Demonstrators clash with riot police during protests against the government economic policies, in the surroundings of La Moneda presidential palace in Santiago, on Oct. 29, 2019.

Photographer: Pedro Ugarte/AFP via Getty Images

A wave of social unrest -- from Chile and Ecuador to Lebanon -- has Moody’s Investors Service worried.

The rating company said its 2020 outlook for global sovereign credit is negative, given unpredictable domestic and geopolitical risks and a push for populist policies that weaken institutions, help slow growth and boost the risk of economic and financial shocks. Governments will struggle to address further credit challenges in the coming year, analysts including Jaime Reusche, Calyn Lindquist and Marie Diron wrote in a note on Monday.