
Which Countries Are Most Vulnerable?
Table 1, which lists the largest 25 developing economies that together account for 85% of external debt in our 62-country sample, shows the final results of our framework. For each variable listed, we established thresholds that we believe are significant in segmenting different levels of vulnerability. These thresholds help us identify which countries have High, Moderate or Low vulnerability as it relates to each of the individual indicators included in the table. We also use a scorecard approach to aggregate these variables into an overall level of external debt vulnerability, the column furthest to the left. The intricacies of the scoring system are a bit complex, but in an effort to simplify, we adopted a color scheme to highlight High, Medium and Low vulnerability for each variable. Green represents "Low Vulnerability," yellow suggests "Moderate Vulnerability" and red suggests "High Vulnerability."
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