New Methodology Spells Gains

May 2007 | Ratings Update

Our new methodology for calculating political risk raises Peru's short-term risk rating from 73.0 to 79.8. This places the country in 3rd place in Latin America where the average is 72.5, highlighting the recent improvements made. The long-term risk rating is also up from 51.5 to 60.0. This is slightly above the regional average of 61.8, yet falls a long way behind Chile's score of 87.2, considered the Latin American benchmark. Improvements in poverty reduction and income distribution, as well as increasing the share of government spending of GDP are needed to improve Peru's long-term risk rating.

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