The US enjoys an investment grade credit rating. This suggests a relatively low likelihood that it will be unable or unwilling to meet its external debt obligations in a systemic sense. Though, needless to say, individual debtors can and do default.
US business climate is ranked 8 out of 190 economies on the World Bank’s ease of doing business gauge — which measures regulation and red tape relevant to a domestic small to mid-sized firm. The US scores in the top quintile across most categories and outperforms other advanced economies in categories such as getting credit, resolving insolvency and enforcing contracts.
The US scores in the top quartile in almost all areas of governance and outperforms most advanced economies in almost every category. But the US does lag on measures of political stability and absence of violence. The risk of expropriation in the United States is low. In the event of expropriation, the law requires fair compensation to the property owner.
Political risk in the United States is low, but political gridlock and bi-partisan squabbling continues to weigh on the government’s ability to effectively carry out its policy agenda. This will continue to be relevant in the face of an incoming Democrat controlled Congress at odds with the Republican Senate and White House. The US government’s announcement of tariffs on select imports could undermine future US trading relations, which could in turn increase political uncertainty.