In 2012 Country K had a population of about 2.7 million and GNI per capita of US$5,140, placing it within the middleincome group of countries. Its human development index was 0.730, in the ‘high human development’ range. These indicators may suggest that the country has made decent progress in development terms, but closer inspection suggests that Country K faces problems and challenges.
For the last two decades, Country K’s economy has been characterised by slow growth and high levels of international debt.The growth rate of GDP has averaged less than 1% per year for over two decades. The poverty rate almost doubled between 2007 and 2010, with most of the poor concentrated in the rural areas. Unemployment was at 15.2% in 2013, with youth unemployment at about 30%. High levels of crime and violence pose a particular challenge for the country’s development.
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