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The EIU warns Donald Trump could disrupt the global economy and heighten political and security risks in the US.
However, it does not expect Donald Trump to defeat Hillary Clinton who it sees as “his most likely Democratic contender”.
Donald Trump is rated as riskier than Britain leaving the European Union or an armed clash in the South China Sea.
China encountering a “hard landing” or sharp economic slowdown and Russia’s interventions in Ukraine and Syria preceding a new “cold war” are among the events seen as more dangerous.
“Thus far Mr. Trump has given very few details of his policies – and these tend to be prone to constant revision,” the EIU said in its global risk assessment, which looks at impact and probability.
The EIU ranking uses a scale of one to 25, with Donald Trump garnering a rating of 12, the same level of risk as “the rising threat of jihadi terrorism destabilizing the global economy”.
“He has been exceptionally hostile towards free trade, including notably Nafta, and has repeatedly labeled China as a <<currency manipulator>>,” the EIU said.
It warned his strong language directed towards Mexico and China in particular “could escalate rapidly into a trade war”.
Donald Trump has called for a “big big wall” to be built on the US-Mexican border, paid for by Mexico, to keep its illegal immigrants and drug dealers out of the United States.
On the campaign trail, Donald Trump has advocated killing the families of terrorists and invading Syria to eradicate ISIS and appropriate its oil.
“His militaristic tendencies towards the Middle East and ban on all Muslim travel to the US would be a potent recruitment tool for jihadi groups, increasing their threat both within the region and beyond,” the EIU added.
Critics of Donald Trump have raised similar concerns.
However, Donald Trump is moving closer to clinching the Republican presidential nominee ticket after winning most of the popular vote.
Donald Trump, who has no prior political experience, has said his supporters would “riot” if he was denied the nomination.
In the event Donald Trump does win the nomination and presidency, the EIU forecasts that domestic and foreign policymaking will be undermined.
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