Country risk

Country risk
General level of political and economic uncertainty in a country affecting the value of loans or investments in that country. The New York Times Financial Glossary

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   Risks associated with lending funds to, or making an investment in, a particular country. Also known as sovereign risk.

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country risk UK US noun [U or C]
ECONOMICS, FINANCE the level of risk connected with doing business with another country, relating to whether that country will be able to pay back loans or pay for imports: »

This guide gives country risk ratings for financial, political and macroeconomic risk for 140 countries worldwide.


The main consequences of a high country risk are a drop in foreign investment and lower economic growth.

Financial and business terms. 2012.

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