Economics (AS & A Level) · Oct / Nov 2021 · Paper 11 · Question 29

The balance of payments on the current account for Guatemala in 2011 was –US$1.6 bn and in 2016 was +US$1.0 bn. What is most likely to have been a contributory factor to this change in the balance of payments on the current account over this five-year period?

1. Aan appreciation of Guatemala’s currency
2. Ba growth of household incomes in Guatemala
3. Ca lowering of tariffs on goods imported into Guatemala
4. Dproductivity improvements in Guatemala’s export sector

As printed in the paper