Economics and Finance
Economics and Finance captures the economic and financial capacity of a country to support large cross-border investment projects. Use 'Economics and Finance' to assess forecasted population dynamics, potential economic strengths and risks, and existing national infrastructure, including human infrastructure.
Balance of Payments
Balance of Payments is a comprehensive financial statement that summarizes a country’s economic transactions with the rest of the world over a specific period, typically a quarter or a year. It records all payments and receipts between residents of the country and non-residents, covering trade, investments, and financial transfers.
Components
Current Account Balance
The current account balance is the sum of net exports of goods and services, net foreign direct investment, net income paid abroad and net transfers from abroad. The data is % of GDP. Having positive balances in current account indicates that a country has positive cash flow and therefore better access to financing/capital needed to fund a large investment project.
Trade Balance
The value of a country's exports minus imports. The trade balance is the difference in value between exports and imports of goods and services, and is the largest component of the current account balance. The data is % of GDP. A positive trade balance, or trade surplus, indicates that a country exports more than it imports and therefore generates foreign currency and cashflow to purchase needed goods and services on external markets.
Foreign Direct Investment
A category of cross-border investment in which an investor from one country establishes a lasting financial interest in, and significant influence over a company in another country. Data is the net inflow as a % of GDP. Foreign direct investment is an imporant driver of economic development and growth because it promotes greater economic integration, access to additional foreign trade markets and technology transfer, in addition to providing capital on the ground.