# Sandbox

Wikirating needs somebody who wants to update the economic data for the SWI. |

Last update: 2019-12-23 - Credit rating table |

## Contents

## Criteria

The **Sovereign Wikirating Index** (SWI) uses the following five criteria (with weights):

- Public debt (in % of the GDP) — 50% weight
- Account balance (in % of the GDP) — 20% weight
- GDP growth rate — 10% weight
- Inflation rate — 10% weight
- Unemployment rate — 10% weight

The resulting value is adjusted by multiplying it with a **Scaling factor**, which is composed by the Human Development Index (HDI)^{[1]} (60% weight), the Corruption Perceptions Index^{[2]} (20% weight) and the Political Instability Index^{[3]} (20% weight).

## Calculations

Each criterium is calibrated with respect to the relative minimum and maximum value of all countries. For some criterion a threshold value is defined in order to avoid distorted values. The calculated values are done with a spreadsheet (wr_swi_method+data_2011-09-26.xls).

Short Title | Long Title | Value | Weight | Real Min | Real Max | SWI Min | SWI Max |
---|---|---|---|---|---|---|---|

HD | Human Development Index | Weighted index of development indicators | 0.6 | 0 | 1 | 0 | 1 |

CO | Corruption Perceptions Index | Index of perceived corruption | 0.2 | 0 | 10 | 0 | 1 |

PI | Political Instability Index | Index of political instability | 0.2 | 0 | 10 | 0 | 1 |

PD | Public Debt | Debt/GDP as %, reflects the economies ability to honour loans. | 0.5 | 0 | inf | 15 | 90 |

AB | Current Account Balance | Current account balance as % of GDP, reflects foreign inflows and outflows. | 0.2 | -inf | +inf | -20 | 20 |

PG | GDP Growth | Domestic growth an an annual % | 0.1 | -1 | inf | -0.1 | 0.1 |

IR | Consumer Price Index | CPI as % | 0.1 | -1 | inf | 0.02 | 0.2 |

UR | Unemployment Rate | Rate of unemployment as % | 0.1 | 0 | 1 | 0.03 | 0.3 |

R | Rating | Result of SWI calculation | 1 | 0 | 100 | 0 | 100 |

#### Formula

Where:

Where:

#### General Variable Modifiers

For example, the variable AB.

- AB = Number used in calculations for SWI.
- rAB = Raw or real value, actual data from source in whichever format it is acquired.
- wAB = Weighting value for the data.
- minAB = Floor value of variable, will cause ABC to equal 0 or 100 if ABC is below this value.
- maxAB = Ceiling value of variable, will cause ABC to equal 0 or 100 if ABC is above this variable.
- nAB = Number of ratings (for rating)

So for instance, if the real value (rAB) was 4 on a 10 point scale, this would be divided by 10 to create the value for calculations (AB) which, in calculations, is multiplied by the weighting (e.g. 0.5 for 50% weight.)

#### Scaling Factor

- HD =

- CO =

- PI =

#### General Formula

Applies to: PD, AB, PG, IR, UR

## List

- List of countries by credit rating (SWI)
- List of countries by credit rating - comparison with SWI method