Determination of the Country Risk Index in Nicaragua for the period 2014-2017 and its outlook for the year 2018.

Abstract

This article aims to determine the country risk index for Nicaragua in the 2014-2017 period, and also, to carry out its projection for 2018, based on assumptions that are clarified in the development of the brief. The calculation was made through the International Country Risk Guide (ICRG). This is composed of 22 variables arranged in three subcategories of risks; economic, financial and political, for the adequate implementation in the case of Nicaragua, some variables were adapted for effective implementation. When analyzing each of these variables, it was determined that in Nicaragua the Country Risk Index, in the last four years, had shown a continuous improvement and with a tendency to continue improving. And this is proven by moving from moderate risk to low risk for 2017, however, a deterioration is shown for 2018, where it decreases to high risk, as a result of the deterioration of the economy and the social crisis.