Clustering countries based on macroeconomic imbalances

In this section, we will develop an unsupervised model to visually detect macroeconomic problems in countries and also understand a little more about the main drivers of credit ratings. We will start by creating a cluster of the countries with macroeconomic problems. In the next chapter, we will move on to predicting the credit ratings based on these clusters.

Throughout this chapter, I've tried to make an effort to reiterate the code from the previous chapters.

Let's get started!

Data collection

As in the previous model, we need to collect the largest amount of data possible. First, we need the macroeconomic indicators of countries to analyze the macroeconomic...