This increase experienced by El Salvador, is presented at the beginning of the country's electoral periods, which creates variations and uncertainty in both national and international markets, which influences the national economy, considering that by june 2022 El Salvador presented an indicator of 27.04, being the highest number registered since 2007 data, the current increase keeps the country in an indicator above countries such as: Argentina, Venezuela, Ecuador and Bolivia.

These data are based on the behavior of the foreign debt issued by each country, the less certainty that the country will honor its obligations, the higher the EMBI of such country, and vice versa.

Foreign direct investment is exposed to political risk or country risk in all its international investment decisions. The economic, political and social characteristics and circumstances of a country may cause losses to foreign investors operating in that country.

Each country, according to its economic, social, political or even natural and geographical conditions, generates a specific level of risk for investments made there. This risk is known as Country Risk, which is evaluated according to each investor's knowledge of such conditions.

Any risk assessment will express the level of probability of suffering a loss, in the face of which there will be a greater or lesser need to reduce or avoid the consequences of such a loss.

Translated by: A.M