Chart of the week: Positive Peace linked to GDP growth
Positive Peace has the ability to promote economic and social resilience.
Nations that improve in Positive Peace consistently outperform comparable countries in real gross domestic product (GDP) growth.
Every one index point of improvement in the PPI is associated with a two percentage point rise in GDP per capita.
Research from the Institute for Economics and Peace shows a strong direct link between the levels of Positive Peace and favourable economic outcomes. High Positive Peace countries tend to be more economically developed than low Positive Peace countries. This is also true across time: countries that improve in Positive Peace over the years tend to develop faster than comparable countries.
Other macroeconomic gauges such as consumption, business valued added and capital expenditure, also perform better in countries with improving Positive Peace.
Positive Peace is a reliable gauge of economic resilience and can be used to select portfolios of countries that consistently outperform global GDP growth.