BBVA Country Risk Observatory

The recent financial crisis has reinforced the need to advance in the analysis of country risk as an additional tool for monitoring the global economy. The analysis of the interconnection between financial and real variables, the identification of the main risk transmission channels and a deeper analysis of the vulnerability of the economies from different perspectives will constitute a helpful element to improve our vision of the world economic outlook.

In this new section we complement our vision of the global economy with a new Quarterly Risk Report and Country Risk Specific Notes which includes our view of country risk through the results of a comprehensive country risk analysis provided by different diagnostic tools and models developed at BBVA Research to identify the key elements of vulnerability of different economies.

Our Country Risk analysis is completed through a multi-dimension perspective including the monitoring of international markets and rating agencies, alternative tools for the analysis of different vulnerability dimensions (liquidity, fiscal, external, institutional ... ), our own country risk models and up to date models and instruments to analyze the interconnection between the real and financial variables and risk spill-over through different economies. This comprehensive analysis will help us to understand the global risk position and its implications.