Country risk: how has it evolved over the last 10 years?

Immersed in insecurity, disinvestment and political uncertainty; We are facing one of the most volatile moments in the Ecuadorian economy. Understanding the trajectory of a country’s risk profile over time can help us contextualize the current position and the consequences that could be triggered as a result of these early elections.

In order to quantify country risk, international markets are guided by a differential (spread) EMBIG (Emerging Markets Bond Index Global), an index prepared by JP Morgan bank. “EMBIG spread” refers to the difference between the yield on a country’s government bond and the United States government bond.

How does the country’s high risk – which has already exceeded 1,500 points – affect the Government, companies and citizens?

This article reveals the key events that have shaped the risk landscape in Ecuador.

Ecuador Country Risk Schedule

(Monthly averages)

What’s next for Country Risk in Ecuador?

The last decade has been a bumpy journey into the country of Ecuador. It is obvious that both internal factors (insecurity, ungovernability and corruption) and external factors (the pandemic, the price of crude oil and the conflict between Russia and Ukraine) have contributed to these fluctuations. As the nation stands at the crossroads of economic recovery, it is vitally important to learn from the past and create a future characterized by prudent economic management, structural reforms and a commitment to stability.

This Sunday, August 20, Ecuadorians have the opportunity to decide the fate of our country. This decision can restore our hope for personal security, economic and social stability that the country longs for. And re-position itself as an attractive country for capital and people. (OR)

Questions and answers Elections 2023