Peru relies on lowest country risk in Latin America

LIMA, Dec 29, 2019, ANDINA. Peru’s country risk level has been reduced by 60 basis points as at December 23, 2019 —below that registered in Chile and the Latin American average— due to the country’s macroeconomic strength, according to Scotiabank, ANDINA reported.

Peru’s country risk —measured by the EMBIG (Emerging Market Bond Global Index)— stood at 108 basis points on December 23, 2019, from 168 basis points on December 31, 2018.

The country risk level in Peru recorded as at December 23 was about one third of the average country risk recorded in Latin America (350 bps) on the same date, according to information released by the Central Reserve Bank (BCR).

Even, as at December 23, our country risk showed the best position in the region and was below those of Chile (139 bps), Colombia (162 bps), Mexico (294 bps), Brazil (210 bps), and Argentina (1,851 bps), based on Scotiabank and BCR figures.

Peru differs from other countries due to its macroeconomic strength, despite internal and external shocks, because —although its economy has slowed down— it continues to grow and is ranked among the first spots in Latin America, said Scotiabank’s Monetary Economy Department Chief Mario Guerrero.

Besides, Peru has not had social protests of the magnitude of Chile, since those had been rather focused on the mining sector.

Also, Peru had a profile of political distension, after the dissolution of Congress on September 30. This allowed the release of “dissatisfaction energy” from the population, he told Andina news agency.