Below are several key statistics for three countries:
(In billions except where noted) | Country A | Country B | Country C |
Nominal GDP | $1,796.19 | $1,511.25 | $53.24 |
Population (millions) | 206.10 | 50.80 | 7.13 |
Government expenditures | $749.00 | $338.00 | $20.31 |
Government revenues | $726.60 | $351.60 | $19.53 |
Current account balance | –$23.53 | $98.68 | $2.20 |
Imports | $139.40 | $371.10 | $27.00 |
Exports | $184.50 | $511.80 | $24.96 |
Government debt | $1,329.90 | $544.74 | $15.44 |
Based on the statistics provided, which country is most likely to be the highest-rated credit?
- Country A
- Country B
- Country C
is country B the answer?
is it c
B is correct. Overall, Country B will most likely have the highest credit rating. Country B has the highest GDP per capita, the highest current account as a share of GDP, the highest budget and trade surpluses, and a relatively low government debt-to-GDP ratio (second only to Country C).
A is incorrect. Country A has the highest government debt/GDP of the three countries and a relatively low GDP per capita. Additionally, its current account as a share of GDP is negative, which means it must attract funding from outside the country. On the bright side, the country has a trade surplus, but that is offset by the budget deficit and other factors already mentioned.
C is incorrect. Country C does have the lowest government debt/GDP, but only by a small margin. In every other category, Country B appears stronger than Country C.