In 2024, the Argentina risk showed a significant drop, going from 1,888 points in January to 1,143 in April. This measurement, carried out by the financial services company JP Morgan and published by the portal Infobaerepresents a reduction of 745 pointsequivalent to almost 40%.
O country risk It is an indicator that reflects market confidence in a country’s economy and its ability to honor payments.
This indicator takes into account political, social and fiscal issues. When country risk is low, there is a greater probability of attracting foreign capitalwith several investors directing resources to the country’s bonds.
Consulting analysts Quantum examined this change in the Argentine economic scenario, also considering the global financial sector.
One of the relevant factors was the risk-free rate on US bondswhich increased from 3.8% to 4.6% per year during the first four months of the government of Javier Milei.
This drop in the index demonstrates that, under Milei’s management, there is greater confidence in Argentina’s ability to meet its financial commitments.
Consequently, the country tends to attract more foreign investment. When Milei took over Pink Houseannounced a management shock, with cut of subsidies and reduction of the public machine.
In his government’s first fiscal result, there was a surplus of US$620 millionsomething that has not happened since August 2012.
Tags: Argentinas risk plummets months Mileis government NUMBERS
