Country risk premia quarterly update

Quarter one 2020 update

In the wake of COVID-19, Q1 2020 has seen a significant rise of country risk premia (CRP) relative to the previous quarter. This update sets out the trends PwC has observed in global CRPs so far this year and looks at the emerging role that COVID-19 might be playing in driving risk patterns globally.

How has country risk evolved?

Our interactive map, above, shows just how much country risk has evolved over the past decade. Some countries have become much riskier to operate in, whilst others have seen their risk levels fall. An analysis of country risk trends can help organisations identify these risks and opportunities early on in their planning processes.

For companies that have international operations or are considering opportunities abroad, managing and accounting for country risk will be a key consideration.

How can we help?

Our country risk service can help companies to quantify and manage such risks in order to make better business decisions.

We calculate Country Risk Premiums (CRPs) for 186 sovereign nations using an economic model that we have developed since 1998. Our model uses a range of inputs in generating CRPs, including reliable sources of credit and risk ratings and sovereign bond information.

For more information, please contact a member of the team below.