Peru's country risk stood at 173 basis points as of September 11, remaining below the region's average (519 bps), the
From September 3 to 11, the country risk —measured by the EMBIG Peru spread— and the EMBIG Latin America spread increased 7 bps and 8 bps, respectively, due to concerns about a possible economic slowdown in the United States and in the main economies (such as the Eurozone and China).
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