Peru's country risk stood at 160 basis points as of July 3, remaining below the region's average (511 bps), according to the
From June 26 to July 3, the country risk —measured by the EMBIG Peru spread— and the EMBIG Latin America spread increased by 4 bps and 59 bps, respectively.
The country risk measures the ability of a country to meet its financial obligations and the implicit political risk and, based on that, receives an international credit rating.
The main consequences of a high country risk are a drop in foreign investment and lower economic growth, which could lead to unemployment and low wages.
This is an orientation index for investors, because it indicates the risk of doing business in a country is more or less high.
It should be noted that the higher the risk, the less likely projects obtain a return in accordance with funds; and the lower this index is, the more attractive the country will be to investors.
(END) NDP/MVB