COUNTRY REPORT INSTRUCTIONS

You should write the country reports as if you were advisors to a firm or a
government that tries to decide whether investing some money in the country
would be a good deal. That investor or that government has no idea about the
country.
The report follows the following structure, based on the practical classes:

- An abstract (half page).

1. National accounting.
Download the quarterly series for your country. (From 1960Q1 until 2022Q4)
Percentage growth

 Compute the GDP deflator. Make a graph and analyze the results
obtained from 1960 till 2020.
 Compute the QoQ % variation of real GDP. Make a graph.
 Compute the YoY % variation of real GDP. Make a graph.
 Compute the Annual % variation of real GDP. Make a graph and
analyze the results obtained from 1980 till 2020.
o Describe the variations of GDP of the country. Relation with
your country’s events.
o What about its population?
o Compute GDP per capita in the last 10 years.
o Download the quarterly series of Gross domestic product,
volume, market prices for OECD Total. (From 1960Q1 until
2020Q4). Compute the Annual % variation. Is your country
growing more or less than OECD?
Contributions to growth

 Compute the shares of the demand-side components of GDP

 Compute the YoY % variation of the demand-side components of
GDP
 Compute the contributions to GDP growth. Make a graph showing the
contributions to GDP growth (2017-2022), analyze the results and
relate recent events with the different components of GDP.

2. Savings and investment.

Download the annual series for your country. (From 1960 until 2024)
Savings-Investment Identity

 Compute the National Savings and net exports.

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  Compute the National Savings, net exports and Investment as % of
GDP and graph the relationship between National Savings,
Investment and Net exports as a % of GDP:
o Since 1995 till 2022, how long did your country present
financing needs?
o According to the OECD, will your country have capital inflows
or outflows in the future?
o What are its main exports and imports in this period? What is
the trade balance of the country?

3. Fiscal policy (limits).

Download the annual series for your country. (From 1995 until 2022)
Analyzing the sustainability of your country’s Debt

 Compute the Government deficit and the primary deficit (G-T).

 Compute the interest payments and the implicit interest rate of the
accumulated debt.
 Relativize the aforementioned variables in terms of GDP.
 Compute the annual variation of GDP and the change in debt over
GDP.
 Decompose the change in debt in terms of “snow-ball effect” and
primary deficit.
 Graph the following series:
o The gov. deficit and the primary deficit over GDP
o The public debt over GDP
o The implicit interest rate of the accumulated debt and the GDP
growth.
o The decomposition of the change in debt in terms of “snow-ball
effect” and primary deficit

 According to the OECD, how much did the public debt of your country
increased in 1995-2022? Did the country follow expansionary or
contractionary policies in the recent past?
 What does OECD think about public debt in 2023 and 2024?

4. Monetary policy. Who conducts the monetary policy in the country?

5. Conclusion. Would you recommend investing in this country? Does it have a
promising future according to its recent past?

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Please make sure to quote well your sources (never Wikipedia). In total, including
references, the report should take a maximum of 30 pages. It should look
professional and readable.
Graphs:
 Don’t use too many zeros, use K, M, B,…
 Number the graphs and charts.
 Clear viewing.
 Variables identified and with units.

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