Suggested Peers algorithm
Suggested Peers uses countries' similarities based on two indicators: GDP per capita (current $US) (WDI) and Population, Total (WDI).
Economies are ranked according to percentiles for these indicators. For example, China is 100% percentile in population and India will be at 99.4% percentile as the second most populated country according to the latest available data.
Then we construct a variable with equal weight for GDP and Population as the result of comparing the selected country with the rest.
For each economy (econ) calculate: 0.5*ABS(Percent_rank_GDP econ – Percent_rank_GDP selected country) + 0.5*ABS(Percent_Rank_Pop econ – Percent_Rank_Pop selected country)
Suggested peers for Selected Country will be the 5 economies (econ) with the lowest values in the above formula.