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.
External and Domestic Debt
Total External Debt is the sum of a country's outstanding liabilities that are owed to non-residents and are required to be repaid in foreign currency, goods, or services, including both principal and interest payments on the debt. This encompasses all debt obligations from the government, public corporations, and private entities within the country owed to foreign creditors. Domestic debt is the portion of a government's total debt owed to lenders and institutions within a country, such as commercial banks, pension funds, and domestic financial markets. It consists of domestic securities like bonds, treasury bills, and other short-term notes. (World Bank)
Components
Central Government Debt and Private Debt
Total Debt refers to the cumulative amount of money owed by an individual, organization, or country to creditors. It encompasses all types of debts, including loans, bonds, and other financial obligations, and may include both public (government) and private sector debt. Government Debt refers specifically to the total amount of money borrowed by a government to fund its expenditures when revenues fall short. This debt is typically raised through the issuance of government bonds and can be owed to domestic or foreign lenders.
Sovereign Credit Rating
A forecast of a country's ability to meet its financial obligations, taking into account not only the country's economic and financial positions, but also the effectiveness of its economic policies and its political stability. A sovereign credit rating is an independent assessment of the creditworthiness of a country or sovereign entity, and represents one indication of whether a country is able to borrow and repay funds to support large investment projects. Sovereign credit ratings can give investors insights into the level of risk associated with investing in a particular country, including any political risk that could lead to disruptions in repayments.
Total Reserves
Total reserves are the total monetary reserves held by a country's central bank, which include foreign exchange, gold, Special Drawing Rights (SDRs) and reserves held by the International Monetary Fund (IMF) to ensure stability and meet international obligations.