Low country risk manteined despite regional volatility in early 2025

Between December 2024 and April 2025, Latin America's country risk index showed mixed results, with Paraguay remaining among the region's most stable economies. While countries like Argentina and Ecuador experienced sharp increases in their risk levels, Paraguay’s rise was moderate—moving from 161 to 197 basis points—according to data from Bloomberg Línea.

The EMBI index (Emerging Markets Bond Index), compiled by J.P. Morgan, measures the extra yield investors demand to hold a country’s bonds compared to U.S. Treasury bonds. It serves as a key indicator of investor confidence.

In this period, Argentina’s country risk jumped from 635 to 873 points, while Ecuador saw an even steeper climb from 1,200 to 1,736. Despite these sharp shifts in neighboring markets, Paraguay continues to rank among the countries with the lowest risk levels in the region, just behind Uruguay and Chile.

Other nations like El Salvador, Colombia, and Mexico also saw slight increases, while Brazil and Bolivia experienced small declines. Overall, Paraguay’s consistent economic performance and relative stability have helped it remain an attractive destination for foreign investors in 2025. Source: MarketData