The year 2024 has witnessed significant shifts in the country risk landscape of Latin America. Uruguay and Chile emerge as the safest investment options in the region, while Argentina shows improvement surpassing Ecuador in perceived risk.
The Emerging Markets Bond Index (EMBI) by JPMorgan measures country risk, with Argentina’s notable reduction in EMBI attributed to President Javier Milei’s pro-market policies. Despite progress, Argentina’s bonds remain among the most penalized globally.
Ecuador also sees a decrease in risk due to President Daniel Noboa’s market-friendly approach. Venezuela holds the highest risk in the region, with Bolivia following closely behind. Brazil and Mexico maintain stable risk levels, while Uruguay, Chile, Paraguay, and Peru stand out as low-risk investment destinations with sound fiscal policies.
El Salvador’s remarkable risk reduction marks a significant milestone in the country’s economic progress. As Latin America faces ongoing economic and political complexities, investors must stay vigilant of fluctuating risk assessments in the region.