Dimension reduction in unsupervised learning refers to the process of reducing the number of input variables (features) in a dataset while retaining as much relevant information as possible. In other words it is a way of converting the higher dimensions dataset into lesser dimensions dataset ensuring that it provides similar information.

Why Use Dimension Reduction?

Types of Dimension Reduction Techniques

knitr::include_graphics("/Users/ashutoshverma/Downloads/Semester First folder/Unsupervised Learning/dimensionality-reduction-technique.png")

For this assignment i have focused on performing PCA (Principal Component Analysis) & t-SNE techniques on a data set. For data set i have used World Development Indicators database available on World banks’s official website. Link to the dataset : https://databank.worldbank.org/source/world-development-indicators#

Features of the dataset selected

Originally the dataset contained data related to world development indicators covering various areas Economic Policies , External Debt , Education , Environment etc. (1496 Variables) for 266 countries for time period 1960-2023. For for this assignment i have selected 18 variables for 2023.

wdi <- read.xlsx("/Users/ashutoshverma/Downloads/World_Development_Indicator.xlsm")#read the input file
colnames(wdi)#get the name of columns in the input file
##  [1] "Time"                                                             
##  [2] "Time.Code"                                                        
##  [3] "Country.Name"                                                     
##  [4] "Country.Code"                                                     
##  [5] "Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)"       
##  [6] "Exports.of.goods.and.services.(%.of.GDP)"                         
##  [7] "External.balance.on.goods.and.services.(%.of.GDP)"                
##  [8] "Final.consumption.expenditure.(%.of.GDP)"                         
##  [9] "General.government.final.consumption.expenditure.(%.of.GDP)"      
## [10] "Gross.capital.formation.(%.of.GDP)"                               
## [11] "Gross.domestic.savings.(%.of.GDP)"                                
## [12] "Gross.fixed.capital.formation.(%.of.GDP)"                         
## [13] "Gross.national.expenditure.(%.of.GDP)"                            
## [14] "Gross.national.expenditure.deflator.(base.year.varies.by.country)"
## [15] "Gross.savings.(%.of.GDP)"                                         
## [16] "Gross.savings.(%.of.GNI)"                                         
## [17] "Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)"   
## [18] "Imports.of.goods.and.services.(%.of.GDP)"                         
## [19] "Industry.(including.construction),.value.added.(%.of.GDP)"        
## [20] "Manufacturing,.value.added.(%.of.GDP)"                            
## [21] "Services,.value.added.(%.of.GDP)"                                 
## [22] "Trade.(%.of.GDP)"

We can see the file contains extra columns such as “Time” , “Time.Code” , “Country.Code”. I removed these three columns to keep the data easy to handle.

# Remove the specified columns using column names . I dont think i will need these for any analysis so getting rid of them
wdi <- wdi[, !(names(wdi) %in% c("Time", "Time.Code", "Country.Code"))]
head(wdi)#check first 5 entries of the data set
##     Country.Name Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)
## 1    Afghanistan                                           34.5208917527827
## 2        Albania                                           16.2225675343538
## 3        Algeria                                            13.086784145579
## 4 American Samoa                                                       <NA>
## 5        Andorra                                           0.47849213558896
## 6         Angola                                           14.9021524183832
##   Exports.of.goods.and.services.(%.of.GDP)
## 1                         16.7751362822863
## 2                         38.6650817896799
## 3                         23.6195363708424
## 4                                     <NA>
## 5                                     <NA>
## 6                         40.8567793904075
##   External.balance.on.goods.and.services.(%.of.GDP)
## 1                                 -33.7230707114777
## 2                                 -5.16352101892789
## 3                                  3.55615854611284
## 4                                              <NA>
## 5                                              <NA>
## 6                                  14.6718701718861
##   Final.consumption.expenditure.(%.of.GDP)
## 1                         118.571747189003
## 2                         82.2528072478475
## 3                         58.7188952438211
## 4                                     <NA>
## 5                                     <NA>
## 6                         61.5348797704301
##   General.government.final.consumption.expenditure.(%.of.GDP)
## 1                                            21.1902114344589
## 2                                            12.0464697906067
## 3                                            17.9279465789317
## 4                                                        <NA>
## 5                                                        <NA>
## 6                                            5.17486195152652
##   Gross.capital.formation.(%.of.GDP) Gross.domestic.savings.(%.of.GDP)
## 1                               15.2                 -18.5717471890027
## 2                   22.9107180604133                  17.7471927521525
## 3                    37.724946210066                  41.2811047561789
## 4                               <NA>                              <NA>
## 5                               <NA>                              <NA>
## 6                   23.7932500575225                  38.4651202295699
##   Gross.fixed.capital.formation.(%.of.GDP)
## 1                         15.1513235151073
## 2                         24.0498902560405
## 3                         32.8153081859397
## 4                                     <NA>
## 5                                     <NA>
## 6                         23.7932500575225
##   Gross.national.expenditure.(%.of.GDP)
## 1                      133.771747189003
## 2                      105.163525308261
## 3                      96.4438414538872
## 4                                  <NA>
## 5                                  <NA>
## 6                      85.3281298279526
##   Gross.national.expenditure.deflator.(base.year.varies.by.country)
## 1                                                   126.82960126154
## 2                                                  133.981548734979
## 3                                                  308.090901788823
## 4                                                              <NA>
## 5                                                              <NA>
## 6                                                  4069.14184740003
##   Gross.savings.(%.of.GDP) Gross.savings.(%.of.GNI)
## 1                     <NA>                     <NA>
## 2         21.9664584876914         22.2505983429017
## 3         40.5777787869868         41.1738760660909
## 4                     <NA>                     <NA>
## 5                     <NA>                     <NA>
## 6         28.3837613800852          31.366558244779
##   Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)
## 1                                               97.3815357619115
## 2                                               70.2063374572408
## 3                                               40.7909486648895
## 4                                                           <NA>
## 5                                                           <NA>
## 6                                               56.3600178190649
##   Imports.of.goods.and.services.(%.of.GDP)
## 1                          50.498206993764
## 2                         43.8286028086077
## 3                         20.0633778247296
## 4                                     <NA>
## 5                                     <NA>
## 6                         26.1849092185214
##   Industry.(including.construction),.value.added.(%.of.GDP)
## 1                                          13.5231032701819
## 2                                          23.0184724953671
## 3                                          37.7570495314503
## 4                                                      <NA>
## 5                                          12.4282261796617
## 6                                          45.2629187172157
##   Manufacturing,.value.added.(%.of.GDP) Services,.value.added.(%.of.GDP)
## 1                      7.60664995853586                 46.5489009688383
## 2                      6.87772585101551                 47.9574813038329
## 3                      9.29539942964952                 45.6157814802809
## 4                                  <NA>                             <NA>
## 5                      3.39743699615492                 78.3110227448023
## 6                      7.99574282011019                 39.7932678112576
##   Trade.(%.of.GDP)
## 1 67.2733432760503
## 2 82.4936845982876
## 3  43.682914195572
## 4             <NA>
## 5             <NA>
## 6 67.0416886089289

One of important checks that was mentioned in the class in order for a dataset to be considered for dimension reduction was to ensure that variables are not highly correlated (<60%). In order to perfrom correlation between variables we have to ensure that we dont have any NA values.

# Count rows with at least one NA value
sum(!complete.cases(wdi))
## [1] 163

Based on above output we can see that there are 163 such rows which have one or more NA value in it. Instead of replacing these NA with mean or median values i decided to drop these rows off as mean or median values cannot rightly predict the values related to development indicator variables.

#remove rows having NA to get clean data  for analysis
wdi<- na.omit(wdi)
# Count rows with at least one NA value
sum(!complete.cases(wdi))
## [1] 0

All rows with NA values have been dropped. Now in order to perform correlation we need to ensure that variables are of numeric data type.

str(wdi)#check data type of variables
## 'data.frame':    103 obs. of  19 variables:
##  $ Country.Name                                                     : chr  "Albania" "Algeria" "Angola" "Argentina" ...
##  $ Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)       : chr  "16.2225675343538" "13.086784145579" "14.9021524183832" "5.92985376183283" ...
##  $ Exports.of.goods.and.services.(%.of.GDP)                         : chr  "38.6650817896799" "23.6195363708424" "40.8567793904075" "12.7492457826544" ...
##  $ External.balance.on.goods.and.services.(%.of.GDP)                : chr  "-5.16352101892789" "3.55615854611284" "14.6718701718861" "-1.14202056813496" ...
##  $ Final.consumption.expenditure.(%.of.GDP)                         : chr  "82.2528072478475" "58.7188952438211" "61.5348797704301" "82.3366500981434" ...
##  $ General.government.final.consumption.expenditure.(%.of.GDP)      : chr  "12.0464697906067" "17.9279465789317" "5.17486195152652" "16.3874689950096" ...
##  $ Gross.capital.formation.(%.of.GDP)                               : chr  "22.9107180604133" "37.724946210066" "23.7932500575225" "19.3715390134256" ...
##  $ Gross.domestic.savings.(%.of.GDP)                                : chr  "17.7471927521525" "41.2811047561789" "38.4651202295699" "17.6633499018566" ...
##  $ Gross.fixed.capital.formation.(%.of.GDP)                         : chr  "24.0498902560405" "32.8153081859397" "23.7932500575225" "18.5700907686492" ...
##  $ Gross.national.expenditure.(%.of.GDP)                            : chr  "105.163525308261" "96.4438414538872" "85.3281298279526" "101.708189111569" ...
##  $ Gross.national.expenditure.deflator.(base.year.varies.by.country): chr  "133.981548734979" "308.090901788823" "4069.14184740003" "25012.2668205438" ...
##  $ Gross.savings.(%.of.GDP)                                         : chr  "21.9664584876914" "40.5777787869868" "28.3837613800852" "15.8917417806538" ...
##  $ Gross.savings.(%.of.GNI)                                         : chr  "22.2505983429017" "41.1738760660909" "31.366558244779" "16.2269268248294" ...
##  $ Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)   : chr  "70.2063374572408" "40.7909486648895" "56.3600178190649" "65.9491811031337" ...
##  $ Imports.of.goods.and.services.(%.of.GDP)                         : chr  "43.8286028086077" "20.0633778247296" "26.1849092185214" "13.8912663507893" ...
##  $ Industry.(including.construction),.value.added.(%.of.GDP)        : chr  "23.0184724953671" "37.7570495314503" "45.2629187172157" "25.0563816101503" ...
##  $ Manufacturing,.value.added.(%.of.GDP)                            : chr  "6.87772585101551" "9.29539942964952" "7.99574282011019" "16.3174987404154" ...
##  $ Services,.value.added.(%.of.GDP)                                 : chr  "47.9574813038329" "45.6157814802809" "39.7932678112576" "53.1486935707399" ...
##  $ Trade.(%.of.GDP)                                                 : chr  "82.4936845982876" "43.682914195572" "67.0416886089289" "26.6405121334437" ...
##  - attr(*, "na.action")= 'omit' Named int [1:163] 1 4 5 7 10 13 17 21 22 23 ...
##   ..- attr(*, "names")= chr [1:163] "1" "4" "5" "7" ...

We can see that variables are of “Character” data type.

# Convert all columns except "Country.Name" to numeric
numeric_data <- wdi %>%
  mutate(across(-Country.Name, ~ as.numeric(gsub(",", "", as.character(.)))))

# Recheck the structure of the data
str(numeric_data)
## 'data.frame':    103 obs. of  19 variables:
##  $ Country.Name                                                     : chr  "Albania" "Algeria" "Angola" "Argentina" ...
##  $ Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)       : num  16.22 13.09 14.9 5.93 8.48 ...
##  $ Exports.of.goods.and.services.(%.of.GDP)                         : num  38.7 23.6 40.9 12.7 59.5 ...
##  $ External.balance.on.goods.and.services.(%.of.GDP)                : num  -5.16 3.56 14.67 -1.14 -0.81 ...
##  $ Final.consumption.expenditure.(%.of.GDP)                         : num  82.3 58.7 61.5 82.3 79.5 ...
##  $ General.government.final.consumption.expenditure.(%.of.GDP)      : num  12.05 17.93 5.17 16.39 14.15 ...
##  $ Gross.capital.formation.(%.of.GDP)                               : num  22.9 37.7 23.8 19.4 21.3 ...
##  $ Gross.domestic.savings.(%.of.GDP)                                : num  17.7 41.3 38.5 17.7 20.5 ...
##  $ Gross.fixed.capital.formation.(%.of.GDP)                         : num  24 32.8 23.8 18.6 20.9 ...
##  $ Gross.national.expenditure.(%.of.GDP)                            : num  105.2 96.4 85.3 101.7 100.8 ...
##  $ Gross.national.expenditure.deflator.(base.year.varies.by.country): num  134 308 4069 25012 140 ...
##  $ Gross.savings.(%.of.GDP)                                         : num  22 40.6 28.4 15.9 19 ...
##  $ Gross.savings.(%.of.GNI)                                         : num  22.3 41.2 31.4 16.2 19.5 ...
##  $ Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)   : num  70.2 40.8 56.4 65.9 65.4 ...
##  $ Imports.of.goods.and.services.(%.of.GDP)                         : num  43.8 20.1 26.2 13.9 60.3 ...
##  $ Industry.(including.construction),.value.added.(%.of.GDP)        : num  23 37.8 45.3 25.1 23.4 ...
##  $ Manufacturing,.value.added.(%.of.GDP)                            : num  6.88 9.3 8 16.32 10.56 ...
##  $ Services,.value.added.(%.of.GDP)                                 : num  48 45.6 39.8 53.1 59.4 ...
##  $ Trade.(%.of.GDP)                                                 : num  82.5 43.7 67 26.6 119.7 ...
##  - attr(*, "na.action")= 'omit' Named int [1:163] 1 4 5 7 10 13 17 21 22 23 ...
##   ..- attr(*, "names")= chr [1:163] "1" "4" "5" "7" ...

Based on above result correlation matrix can be now calculated.

# Select only numeric columns (excluding "Country.Name")
numeric_columns <- numeric_data %>% select(-Country.Name)

# Calculate correlation matrix
correlation_matrix <- cor(numeric_columns, use = "complete.obs")

# View the correlation matrix
head(correlation_matrix)
##                                                             Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)                                                  1.00000000
## Exports.of.goods.and.services.(%.of.GDP)                                                                   -0.49379310
## External.balance.on.goods.and.services.(%.of.GDP)                                                          -0.40994284
## Final.consumption.expenditure.(%.of.GDP)                                                                    0.31581494
## General.government.final.consumption.expenditure.(%.of.GDP)                                                -0.42316056
## Gross.capital.formation.(%.of.GDP)                                                                          0.07790321
##                                                             Exports.of.goods.and.services.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)                                -0.4937931
## Exports.of.goods.and.services.(%.of.GDP)                                                   1.0000000
## External.balance.on.goods.and.services.(%.of.GDP)                                          0.5131565
## Final.consumption.expenditure.(%.of.GDP)                                                  -0.4243638
## General.government.final.consumption.expenditure.(%.of.GDP)                                0.1447155
## Gross.capital.formation.(%.of.GDP)                                                        -0.0510922
##                                                             External.balance.on.goods.and.services.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)                                         -0.4099428
## Exports.of.goods.and.services.(%.of.GDP)                                                            0.5131565
## External.balance.on.goods.and.services.(%.of.GDP)                                                   1.0000000
## Final.consumption.expenditure.(%.of.GDP)                                                           -0.8866930
## General.government.final.consumption.expenditure.(%.of.GDP)                                        -0.2108651
## Gross.capital.formation.(%.of.GDP)                                                                 -0.0404394
##                                                             Final.consumption.expenditure.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)                                 0.3158149
## Exports.of.goods.and.services.(%.of.GDP)                                                  -0.4243638
## External.balance.on.goods.and.services.(%.of.GDP)                                         -0.8866930
## Final.consumption.expenditure.(%.of.GDP)                                                   1.0000000
## General.government.final.consumption.expenditure.(%.of.GDP)                                0.2447532
## Gross.capital.formation.(%.of.GDP)                                                        -0.4103576
##                                                             General.government.final.consumption.expenditure.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)                                                  -0.42316056
## Exports.of.goods.and.services.(%.of.GDP)                                                                     0.14471552
## External.balance.on.goods.and.services.(%.of.GDP)                                                           -0.21086510
## Final.consumption.expenditure.(%.of.GDP)                                                                     0.24475315
## General.government.final.consumption.expenditure.(%.of.GDP)                                                  1.00000000
## Gross.capital.formation.(%.of.GDP)                                                                          -0.09974415
##                                                             Gross.capital.formation.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)                          0.07790321
## Exports.of.goods.and.services.(%.of.GDP)                                           -0.05109220
## External.balance.on.goods.and.services.(%.of.GDP)                                  -0.04043940
## Final.consumption.expenditure.(%.of.GDP)                                           -0.41035762
## General.government.final.consumption.expenditure.(%.of.GDP)                        -0.09974415
## Gross.capital.formation.(%.of.GDP)                                                  1.00000000
##                                                             Gross.domestic.savings.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)                         -0.3158149
## Exports.of.goods.and.services.(%.of.GDP)                                            0.4243638
## External.balance.on.goods.and.services.(%.of.GDP)                                   0.8866930
## Final.consumption.expenditure.(%.of.GDP)                                           -1.0000000
## General.government.final.consumption.expenditure.(%.of.GDP)                        -0.2447532
## Gross.capital.formation.(%.of.GDP)                                                  0.4103576
##                                                             Gross.fixed.capital.formation.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)                               0.046996893
## Exports.of.goods.and.services.(%.of.GDP)                                                -0.018268948
## External.balance.on.goods.and.services.(%.of.GDP)                                       -0.008808552
## Final.consumption.expenditure.(%.of.GDP)                                                -0.390882553
## General.government.final.consumption.expenditure.(%.of.GDP)                             -0.086609499
## Gross.capital.formation.(%.of.GDP)                                                       0.899295909
##                                                             Gross.national.expenditure.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)                             0.38469199
## Exports.of.goods.and.services.(%.of.GDP)                                              -0.49023928
## External.balance.on.goods.and.services.(%.of.GDP)                                     -0.99132566
## Final.consumption.expenditure.(%.of.GDP)                                               0.89102675
## General.government.final.consumption.expenditure.(%.of.GDP)                            0.21842617
## Gross.capital.formation.(%.of.GDP)                                                     0.04832933
##                                                             Gross.national.expenditure.deflator.(base.year.varies.by.country)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)                                                        -0.04535453
## Exports.of.goods.and.services.(%.of.GDP)                                                                          -0.11965039
## External.balance.on.goods.and.services.(%.of.GDP)                                                                 -0.01948175
## Final.consumption.expenditure.(%.of.GDP)                                                                           0.08168604
## General.government.final.consumption.expenditure.(%.of.GDP)                                                       -0.03083415
## Gross.capital.formation.(%.of.GDP)                                                                                -0.13792877
##                                                             Gross.savings.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)               -0.08113728
## Exports.of.goods.and.services.(%.of.GDP)                                  0.08527140
## External.balance.on.goods.and.services.(%.of.GDP)                         0.37741085
## Final.consumption.expenditure.(%.of.GDP)                                 -0.67516921
## General.government.final.consumption.expenditure.(%.of.GDP)              -0.23093095
## Gross.capital.formation.(%.of.GDP)                                        0.69735727
##                                                             Gross.savings.(%.of.GNI)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)               -0.09508484
## Exports.of.goods.and.services.(%.of.GDP)                                  0.16063551
## External.balance.on.goods.and.services.(%.of.GDP)                         0.45927582
## Final.consumption.expenditure.(%.of.GDP)                                 -0.74480500
## General.government.final.consumption.expenditure.(%.of.GDP)              -0.26409116
## Gross.capital.formation.(%.of.GDP)                                        0.69076241
##                                                             Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)                                                       0.5293935
## Exports.of.goods.and.services.(%.of.GDP)                                                                        -0.4946055
## External.balance.on.goods.and.services.(%.of.GDP)                                                               -0.7801651
## Final.consumption.expenditure.(%.of.GDP)                                                                         0.8733558
## General.government.final.consumption.expenditure.(%.of.GDP)                                                     -0.2557972
## Gross.capital.formation.(%.of.GDP)                                                                              -0.3537929
##                                                             Imports.of.goods.and.services.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)                               -0.38319950
## Exports.of.goods.and.services.(%.of.GDP)                                                  0.92042731
## External.balance.on.goods.and.services.(%.of.GDP)                                         0.13680394
## Final.consumption.expenditure.(%.of.GDP)                                                 -0.08593029
## General.government.final.consumption.expenditure.(%.of.GDP)                               0.26306222
## Gross.capital.formation.(%.of.GDP)                                                       -0.04054959
##                                                             Industry.(including.construction),.value.added.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)                                                 0.09569294
## Exports.of.goods.and.services.(%.of.GDP)                                                                  -0.14906210
## External.balance.on.goods.and.services.(%.of.GDP)                                                          0.25275537
## Final.consumption.expenditure.(%.of.GDP)                                                                  -0.40365065
## General.government.final.consumption.expenditure.(%.of.GDP)                                               -0.16905830
## Gross.capital.formation.(%.of.GDP)                                                                         0.35008062
##                                                             Manufacturing,.value.added.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)                           -0.109604816
## Exports.of.goods.and.services.(%.of.GDP)                                             -0.008524538
## External.balance.on.goods.and.services.(%.of.GDP)                                     0.231277241
## Final.consumption.expenditure.(%.of.GDP)                                             -0.236826490
## General.government.final.consumption.expenditure.(%.of.GDP)                          -0.209129487
## Gross.capital.formation.(%.of.GDP)                                                    0.074081037
##                                                             Services,.value.added.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)                       -0.68359926
## Exports.of.goods.and.services.(%.of.GDP)                                          0.44838807
## External.balance.on.goods.and.services.(%.of.GDP)                                 0.14885155
## Final.consumption.expenditure.(%.of.GDP)                                          0.03918809
## General.government.final.consumption.expenditure.(%.of.GDP)                       0.35871302
## Gross.capital.formation.(%.of.GDP)                                               -0.33534362
##                                                             Trade.(%.of.GDP)
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)       -0.45147880
## Exports.of.goods.and.services.(%.of.GDP)                          0.98270609
## External.balance.on.goods.and.services.(%.of.GDP)                 0.34534969
## Final.consumption.expenditure.(%.of.GDP)                         -0.27270761
## General.government.final.consumption.expenditure.(%.of.GDP)       0.20372728
## Gross.capital.formation.(%.of.GDP)                               -0.04714049

For ease of viewing below is the screenshot of correlation matrix.

knitr::include_graphics("/Users/ashutoshverma/Desktop/Correlation Matrix.png")

Based on above result we can see for the majority correlation value is less that 0.6(or 60%). Hence we can proceed ahead with this dataset for performing dimension reduction.

Principal Component Analysis (PCA) Technique

PCA is a linear dimension reduction technique that transforms high-dimensional data into a lower-dimensional space by identifying directions (called principal components) that maximize variance in the data.

Steps of PCA

Note : In R we have inbuilt function prcomp to perform PCA.

# Perform PCA
pca_result <- prcomp(numeric_columns, center = TRUE, scale. = TRUE)
pca_result
## Standard deviations (1, .., p=18):
##  [1] 2.584215e+00 2.083590e+00 1.440654e+00 1.143879e+00 1.076671e+00
##  [6] 9.537928e-01 8.350575e-01 6.287249e-01 5.018562e-01 3.118655e-01
## [11] 2.539715e-01 1.063182e-01 9.211591e-02 3.973715e-02 1.244755e-14
## [16] 3.659873e-15 2.533730e-15 1.484538e-15
## 
## Rotation (n x k) = (18 x 18):
##                                                                           PC1
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -0.15170942
## Exports.of.goods.and.services.(%.of.GDP)                           0.19968010
## External.balance.on.goods.and.services.(%.of.GDP)                  0.31819862
## Final.consumption.expenditure.(%.of.GDP)                          -0.37374754
## General.government.final.consumption.expenditure.(%.of.GDP)       -0.05830388
## Gross.capital.formation.(%.of.GDP)                                 0.18403698
## Gross.domestic.savings.(%.of.GDP)                                  0.37374754
## Gross.fixed.capital.formation.(%.of.GDP)                           0.18210620
## Gross.national.expenditure.(%.of.GDP)                             -0.31775329
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -0.04568053
## Gross.savings.(%.of.GDP)                                           0.29542727
## Gross.savings.(%.of.GNI)                                           0.31833198
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.34285388
## Imports.of.goods.and.services.(%.of.GDP)                           0.08553529
## Industry.(including.construction),.value.added.(%.of.GDP)          0.17882365
## Manufacturing,.value.added.(%.of.GDP)                              0.12239145
## Services,.value.added.(%.of.GDP)                                  -0.01270183
## Trade.(%.of.GDP)                                                   0.14968404
##                                                                           PC2
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -0.29069917
## Exports.of.goods.and.services.(%.of.GDP)                           0.35954729
## External.balance.on.goods.and.services.(%.of.GDP)                  0.11511903
## Final.consumption.expenditure.(%.of.GDP)                           0.01414393
## General.government.final.consumption.expenditure.(%.of.GDP)        0.20647757
## Gross.capital.formation.(%.of.GDP)                                -0.24005974
## Gross.domestic.savings.(%.of.GDP)                                 -0.01414393
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.22092967
## Gross.national.expenditure.(%.of.GDP)                             -0.10400849
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -0.01133551
## Gross.savings.(%.of.GDP)                                          -0.21266056
## Gross.savings.(%.of.GNI)                                          -0.19064108
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.09088670
## Imports.of.goods.and.services.(%.of.GDP)                           0.36253882
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.28515336
## Manufacturing,.value.added.(%.of.GDP)                             -0.13773793
## Services,.value.added.(%.of.GDP)                                   0.39415473
## Trade.(%.of.GDP)                                                   0.36829873
##                                                                             PC3
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -5.694624e-03
## Exports.of.goods.and.services.(%.of.GDP)                          -1.284733e-01
## External.balance.on.goods.and.services.(%.of.GDP)                  3.344832e-01
## Final.consumption.expenditure.(%.of.GDP)                          -1.110799e-01
## General.government.final.consumption.expenditure.(%.of.GDP)       -2.287461e-01
## Gross.capital.formation.(%.of.GDP)                                -4.480988e-01
## Gross.domestic.savings.(%.of.GDP)                                  1.110799e-01
## Gross.fixed.capital.formation.(%.of.GDP)                          -4.438990e-01
## Gross.national.expenditure.(%.of.GDP)                             -3.447268e-01
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  2.343665e-01
## Gross.savings.(%.of.GDP)                                          -1.659715e-01
## Gross.savings.(%.of.GNI)                                          -1.415761e-01
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -9.295668e-05
## Imports.of.goods.and.services.(%.of.GDP)                          -3.006186e-01
## Industry.(including.construction),.value.added.(%.of.GDP)          9.058866e-02
## Manufacturing,.value.added.(%.of.GDP)                              1.767965e-01
## Services,.value.added.(%.of.GDP)                                  -1.838151e-02
## Trade.(%.of.GDP)                                                  -2.126376e-01
##                                                                            PC4
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -0.434492511
## Exports.of.goods.and.services.(%.of.GDP)                          -0.296377489
## External.balance.on.goods.and.services.(%.of.GDP)                 -0.030904696
## Final.consumption.expenditure.(%.of.GDP)                          -0.012058458
## General.government.final.consumption.expenditure.(%.of.GDP)        0.541268691
## Gross.capital.formation.(%.of.GDP)                                 0.090039662
## Gross.domestic.savings.(%.of.GDP)                                  0.012058458
## Gross.fixed.capital.formation.(%.of.GDP)                           0.070004616
## Gross.national.expenditure.(%.of.GDP)                              0.031613586
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  0.178675016
## Gross.savings.(%.of.GDP)                                           0.047303279
## Gross.savings.(%.of.GNI)                                           0.002338038
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.285127234
## Imports.of.goods.and.services.(%.of.GDP)                          -0.327987355
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.034404901
## Manufacturing,.value.added.(%.of.GDP)                             -0.103336874
## Services,.value.added.(%.of.GDP)                                   0.281971393
## Trade.(%.of.GDP)                                                  -0.317396569
##                                                                            PC5
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         0.209574214
## Exports.of.goods.and.services.(%.of.GDP)                          -0.117667439
## External.balance.on.goods.and.services.(%.of.GDP)                  0.119817985
## Final.consumption.expenditure.(%.of.GDP)                          -0.152362628
## General.government.final.consumption.expenditure.(%.of.GDP)       -0.258351132
## Gross.capital.formation.(%.of.GDP)                                 0.071452257
## Gross.domestic.savings.(%.of.GDP)                                  0.152362628
## Gross.fixed.capital.formation.(%.of.GDP)                           0.044632215
## Gross.national.expenditure.(%.of.GDP)                             -0.131314327
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -0.322038460
## Gross.savings.(%.of.GDP)                                          -0.006648352
## Gross.savings.(%.of.GNI)                                           0.004975932
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.022952503
## Imports.of.goods.and.services.(%.of.GDP)                          -0.190377014
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.430693922
## Manufacturing,.value.added.(%.of.GDP)                             -0.640015066
## Services,.value.added.(%.of.GDP)                                   0.175567684
## Trade.(%.of.GDP)                                                  -0.154509572
##                                                                            PC6
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -0.004282157
## Exports.of.goods.and.services.(%.of.GDP)                           0.037435766
## External.balance.on.goods.and.services.(%.of.GDP)                 -0.050619474
## Final.consumption.expenditure.(%.of.GDP)                          -0.023882365
## General.government.final.consumption.expenditure.(%.of.GDP)       -0.302160589
## Gross.capital.formation.(%.of.GDP)                                 0.171145646
## Gross.domestic.savings.(%.of.GDP)                                  0.023882365
## Gross.fixed.capital.formation.(%.of.GDP)                           0.085997121
## Gross.national.expenditure.(%.of.GDP)                              0.059036944
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  0.844465045
## Gross.savings.(%.of.GDP)                                           0.117683297
## Gross.savings.(%.of.GNI)                                           0.122801487
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)     0.128617991
## Imports.of.goods.and.services.(%.of.GDP)                           0.066261188
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.237701642
## Manufacturing,.value.added.(%.of.GDP)                             -0.130909934
## Services,.value.added.(%.of.GDP)                                   0.155216756
## Trade.(%.of.GDP)                                                   0.051853747
##                                                                           PC7
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         0.35358493
## Exports.of.goods.and.services.(%.of.GDP)                           0.08916646
## External.balance.on.goods.and.services.(%.of.GDP)                  0.03738434
## Final.consumption.expenditure.(%.of.GDP)                          -0.04673493
## General.government.final.consumption.expenditure.(%.of.GDP)        0.39360780
## Gross.capital.formation.(%.of.GDP)                                -0.02412002
## Gross.domestic.savings.(%.of.GDP)                                  0.04673493
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.11744485
## Gross.national.expenditure.(%.of.GDP)                             -0.06319560
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  0.28704504
## Gross.savings.(%.of.GDP)                                          -0.11110998
## Gross.savings.(%.of.GNI)                                          -0.09035377
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.23376908
## Imports.of.goods.and.services.(%.of.GDP)                           0.08588431
## Industry.(including.construction),.value.added.(%.of.GDP)          0.27168646
## Manufacturing,.value.added.(%.of.GDP)                             -0.51035699
## Services,.value.added.(%.of.GDP)                                  -0.42516054
## Trade.(%.of.GDP)                                                   0.08943064
##                                                                            PC8
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         0.079728077
## Exports.of.goods.and.services.(%.of.GDP)                           0.004055053
## External.balance.on.goods.and.services.(%.of.GDP)                  0.093392733
## Final.consumption.expenditure.(%.of.GDP)                          -0.150266644
## General.government.final.consumption.expenditure.(%.of.GDP)       -0.034146225
## Gross.capital.formation.(%.of.GDP)                                 0.242603314
## Gross.domestic.savings.(%.of.GDP)                                  0.150266644
## Gross.fixed.capital.formation.(%.of.GDP)                           0.465027071
## Gross.national.expenditure.(%.of.GDP)                             -0.043820593
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  0.079606229
## Gross.savings.(%.of.GDP)                                          -0.564626712
## Gross.savings.(%.of.GNI)                                          -0.482785347
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.134313199
## Imports.of.goods.and.services.(%.of.GDP)                          -0.037855953
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.131409757
## Manufacturing,.value.added.(%.of.GDP)                              0.247095413
## Services,.value.added.(%.of.GDP)                                  -0.072697996
## Trade.(%.of.GDP)                                                  -0.015715078
##                                                                            PC9
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         0.554986161
## Exports.of.goods.and.services.(%.of.GDP)                          -0.008114635
## External.balance.on.goods.and.services.(%.of.GDP)                  0.017187503
## Final.consumption.expenditure.(%.of.GDP)                          -0.001475826
## General.government.final.consumption.expenditure.(%.of.GDP)        0.347734659
## Gross.capital.formation.(%.of.GDP)                                -0.080412410
## Gross.domestic.savings.(%.of.GDP)                                  0.001475826
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.083214431
## Gross.national.expenditure.(%.of.GDP)                             -0.041645303
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  0.043773819
## Gross.savings.(%.of.GDP)                                           0.167092788
## Gross.savings.(%.of.GNI)                                           0.171642080
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.190060840
## Imports.of.goods.and.services.(%.of.GDP)                          -0.017193591
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.541903948
## Manufacturing,.value.added.(%.of.GDP)                              0.406295404
## Services,.value.added.(%.of.GDP)                                   0.031148224
## Trade.(%.of.GDP)                                                  -0.012580781
##                                                                           PC10
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -0.018836114
## Exports.of.goods.and.services.(%.of.GDP)                          -0.032270393
## External.balance.on.goods.and.services.(%.of.GDP)                 -0.149236584
## Final.consumption.expenditure.(%.of.GDP)                          -0.143876937
## General.government.final.consumption.expenditure.(%.of.GDP)       -0.072759775
## Gross.capital.formation.(%.of.GDP)                                 0.621645593
## Gross.domestic.savings.(%.of.GDP)                                  0.143876937
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.681750774
## Gross.national.expenditure.(%.of.GDP)                              0.151863099
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -0.056821505
## Gross.savings.(%.of.GDP)                                          -0.158892153
## Gross.savings.(%.of.GNI)                                          -0.034050103
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.119850298
## Imports.of.goods.and.services.(%.of.GDP)                           0.030725616
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.016254384
## Manufacturing,.value.added.(%.of.GDP)                              0.100101387
## Services,.value.added.(%.of.GDP)                                   0.010505973
## Trade.(%.of.GDP)                                                  -0.003088057
##                                                                            PC11
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -0.4675004664
## Exports.of.goods.and.services.(%.of.GDP)                           0.0029012187
## External.balance.on.goods.and.services.(%.of.GDP)                  0.0066112541
## Final.consumption.expenditure.(%.of.GDP)                           0.0021484594
## General.government.final.consumption.expenditure.(%.of.GDP)       -0.0073009728
## Gross.capital.formation.(%.of.GDP)                                -0.0401610563
## Gross.domestic.savings.(%.of.GDP)                                 -0.0021484594
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.0471900441
## Gross.national.expenditure.(%.of.GDP)                             -0.0176387321
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -0.0142335621
## Gross.savings.(%.of.GDP)                                           0.0612057018
## Gross.savings.(%.of.GNI)                                           0.0200073557
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)     0.0170812497
## Imports.of.goods.and.services.(%.of.GDP)                           0.0003373102
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.5002545613
## Manufacturing,.value.added.(%.of.GDP)                             -0.0106456898
## Services,.value.added.(%.of.GDP)                                  -0.7226104083
## Trade.(%.of.GDP)                                                   0.0017459011
##                                                                           PC12
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         0.014501795
## Exports.of.goods.and.services.(%.of.GDP)                           0.165017940
## External.balance.on.goods.and.services.(%.of.GDP)                  0.793444662
## Final.consumption.expenditure.(%.of.GDP)                           0.203008138
## General.government.final.consumption.expenditure.(%.of.GDP)        0.105620729
## Gross.capital.formation.(%.of.GDP)                                 0.236103525
## Gross.domestic.savings.(%.of.GDP)                                 -0.203008138
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.021604791
## Gross.national.expenditure.(%.of.GDP)                              0.339885854
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -0.004055379
## Gross.savings.(%.of.GDP)                                          -0.056219160
## Gross.savings.(%.of.GNI)                                           0.114521100
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)     0.177731165
## Imports.of.goods.and.services.(%.of.GDP)                          -0.170922549
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.005096417
## Manufacturing,.value.added.(%.of.GDP)                             -0.016139892
## Services,.value.added.(%.of.GDP)                                  -0.014929268
## Trade.(%.of.GDP)                                                   0.009252275
##                                                                           PC13
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         0.034416934
## Exports.of.goods.and.services.(%.of.GDP)                           0.034015062
## External.balance.on.goods.and.services.(%.of.GDP)                  0.103799309
## Final.consumption.expenditure.(%.of.GDP)                          -0.015211294
## General.government.final.consumption.expenditure.(%.of.GDP)        0.001923498
## Gross.capital.formation.(%.of.GDP)                                 0.092798034
## Gross.domestic.savings.(%.of.GDP)                                  0.015211294
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.047072574
## Gross.national.expenditure.(%.of.GDP)                              0.029533386
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  0.001689043
## Gross.savings.(%.of.GDP)                                           0.657357080
## Gross.savings.(%.of.GNI)                                          -0.735706815
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)     0.026235233
## Imports.of.goods.and.services.(%.of.GDP)                          -0.008017432
## Industry.(including.construction),.value.added.(%.of.GDP)          0.003793276
## Manufacturing,.value.added.(%.of.GDP)                              0.016312757
## Services,.value.added.(%.of.GDP)                                   0.008966879
## Trade.(%.of.GDP)                                                   0.014798535
##                                                                           PC14
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         0.005250478
## Exports.of.goods.and.services.(%.of.GDP)                          -0.006585050
## External.balance.on.goods.and.services.(%.of.GDP)                 -0.021783849
## Final.consumption.expenditure.(%.of.GDP)                          -0.273134066
## General.government.final.consumption.expenditure.(%.of.GDP)        0.396365470
## Gross.capital.formation.(%.of.GDP)                                 0.113015438
## Gross.domestic.savings.(%.of.GDP)                                  0.273134066
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.005587409
## Gross.national.expenditure.(%.of.GDP)                             -0.242905420
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -0.001913087
## Gross.savings.(%.of.GDP)                                          -0.021908965
## Gross.savings.(%.of.GNI)                                           0.022818807
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)     0.787451721
## Imports.of.goods.and.services.(%.of.GDP)                           0.002321425
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.004381411
## Manufacturing,.value.added.(%.of.GDP)                              0.009989815
## Services,.value.added.(%.of.GDP)                                   0.011070352
## Trade.(%.of.GDP)                                                  -0.002500464
##                                                                            PC15
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         2.444510e-15
## Exports.of.goods.and.services.(%.of.GDP)                          -1.293202e-02
## External.balance.on.goods.and.services.(%.of.GDP)                  4.403631e-03
## Final.consumption.expenditure.(%.of.GDP)                          -4.136468e-01
## General.government.final.consumption.expenditure.(%.of.GDP)        2.332675e-14
## Gross.capital.formation.(%.of.GDP)                                -3.661278e-01
## Gross.domestic.savings.(%.of.GDP)                                  3.919471e-01
## Gross.fixed.capital.formation.(%.of.GDP)                          -3.405224e-15
## Gross.national.expenditure.(%.of.GDP)                              7.355004e-01
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  8.134514e-16
## Gross.savings.(%.of.GDP)                                          -4.048843e-15
## Gross.savings.(%.of.GNI)                                           5.580629e-15
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)     4.403590e-14
## Imports.of.goods.and.services.(%.of.GDP)                           8.132502e-03
## Industry.(including.construction),.value.added.(%.of.GDP)         -1.163570e-15
## Manufacturing,.value.added.(%.of.GDP)                              6.932779e-16
## Services,.value.added.(%.of.GDP)                                   2.177004e-16
## Trade.(%.of.GDP)                                                   3.242971e-03
##                                                                            PC16
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         1.549641e-15
## Exports.of.goods.and.services.(%.of.GDP)                          -1.626624e-02
## External.balance.on.goods.and.services.(%.of.GDP)                 -6.304585e-04
## Final.consumption.expenditure.(%.of.GDP)                          -7.002008e-01
## General.government.final.consumption.expenditure.(%.of.GDP)        5.878052e-15
## Gross.capital.formation.(%.of.GDP)                                 5.680079e-03
## Gross.domestic.savings.(%.of.GDP)                                 -7.126987e-01
## Gross.fixed.capital.formation.(%.of.GDP)                           6.728359e-16
## Gross.national.expenditure.(%.of.GDP)                             -1.141050e-02
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -1.138143e-16
## Gross.savings.(%.of.GDP)                                          -4.032211e-15
## Gross.savings.(%.of.GNI)                                           4.680198e-15
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)     7.377832e-15
## Imports.of.goods.and.services.(%.of.GDP)                          -1.686223e-02
## Industry.(including.construction),.value.added.(%.of.GDP)          3.684712e-16
## Manufacturing,.value.added.(%.of.GDP)                              8.582098e-17
## Services,.value.added.(%.of.GDP)                                   5.903164e-16
## Trade.(%.of.GDP)                                                   3.267531e-02
##                                                                            PC17
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -3.891789e-16
## Exports.of.goods.and.services.(%.of.GDP)                          -2.200697e-01
## External.balance.on.goods.and.services.(%.of.GDP)                 -8.422694e-02
## Final.consumption.expenditure.(%.of.GDP)                           2.755279e-02
## General.government.final.consumption.expenditure.(%.of.GDP)       -4.698911e-15
## Gross.capital.formation.(%.of.GDP)                                -4.062772e-05
## Gross.domestic.savings.(%.of.GDP)                                  2.764218e-02
## Gross.fixed.capital.formation.(%.of.GDP)                          -8.505532e-16
## Gross.national.expenditure.(%.of.GDP)                              8.161549e-05
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -1.692855e-16
## Gross.savings.(%.of.GDP)                                          -1.512876e-15
## Gross.savings.(%.of.GNI)                                           2.292063e-15
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -9.691217e-15
## Imports.of.goods.and.services.(%.of.GDP)                          -5.605369e-01
## Industry.(including.construction),.value.added.(%.of.GDP)         -1.137825e-15
## Manufacturing,.value.added.(%.of.GDP)                              3.223657e-17
## Services,.value.added.(%.of.GDP)                                  -1.375594e-15
## Trade.(%.of.GDP)                                                   7.929378e-01
##                                                                            PC18
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -7.807942e-16
## Exports.of.goods.and.services.(%.of.GDP)                          -7.904967e-01
## External.balance.on.goods.and.services.(%.of.GDP)                  2.740378e-01
## Final.consumption.expenditure.(%.of.GDP)                           1.350466e-02
## General.government.final.consumption.expenditure.(%.of.GDP)       -2.053819e-15
## Gross.capital.formation.(%.of.GDP)                                 5.884046e-03
## Gross.domestic.savings.(%.of.GDP)                                  5.579489e-04
## Gross.fixed.capital.formation.(%.of.GDP)                          -4.009069e-17
## Gross.national.expenditure.(%.of.GDP)                             -1.182024e-02
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -7.358132e-17
## Gross.savings.(%.of.GDP)                                           6.644472e-15
## Gross.savings.(%.of.GNI)                                          -7.512073e-15
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -2.267380e-15
## Imports.of.goods.and.services.(%.of.GDP)                           5.184427e-01
## Industry.(including.construction),.value.added.(%.of.GDP)          4.515171e-16
## Manufacturing,.value.added.(%.of.GDP)                             -4.552111e-16
## Services,.value.added.(%.of.GDP)                                  -3.178864e-16
## Trade.(%.of.GDP)                                                   1.757224e-01
# View PCA summary
summary(pca_result)
## Importance of components:
##                          PC1    PC2    PC3     PC4    PC5     PC6     PC7
## Standard deviation     2.584 2.0836 1.4407 1.14388 1.0767 0.95379 0.83506
## Proportion of Variance 0.371 0.2412 0.1153 0.07269 0.0644 0.05054 0.03874
## Cumulative Proportion  0.371 0.6122 0.7275 0.80019 0.8646 0.91513 0.95387
##                            PC8     PC9   PC10    PC11    PC12    PC13    PC14
## Standard deviation     0.62872 0.50186 0.3119 0.25397 0.10632 0.09212 0.03974
## Proportion of Variance 0.02196 0.01399 0.0054 0.00358 0.00063 0.00047 0.00009
## Cumulative Proportion  0.97583 0.98983 0.9952 0.99881 0.99944 0.99991 1.00000
##                             PC15     PC16      PC17      PC18
## Standard deviation     1.245e-14 3.66e-15 2.534e-15 1.485e-15
## Proportion of Variance 0.000e+00 0.00e+00 0.000e+00 0.000e+00
## Cumulative Proportion  1.000e+00 1.00e+00 1.000e+00 1.000e+00
# Get PCA loadings (contributions of variables to each principal component)
pca_result$rotation
##                                                                           PC1
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -0.15170942
## Exports.of.goods.and.services.(%.of.GDP)                           0.19968010
## External.balance.on.goods.and.services.(%.of.GDP)                  0.31819862
## Final.consumption.expenditure.(%.of.GDP)                          -0.37374754
## General.government.final.consumption.expenditure.(%.of.GDP)       -0.05830388
## Gross.capital.formation.(%.of.GDP)                                 0.18403698
## Gross.domestic.savings.(%.of.GDP)                                  0.37374754
## Gross.fixed.capital.formation.(%.of.GDP)                           0.18210620
## Gross.national.expenditure.(%.of.GDP)                             -0.31775329
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -0.04568053
## Gross.savings.(%.of.GDP)                                           0.29542727
## Gross.savings.(%.of.GNI)                                           0.31833198
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.34285388
## Imports.of.goods.and.services.(%.of.GDP)                           0.08553529
## Industry.(including.construction),.value.added.(%.of.GDP)          0.17882365
## Manufacturing,.value.added.(%.of.GDP)                              0.12239145
## Services,.value.added.(%.of.GDP)                                  -0.01270183
## Trade.(%.of.GDP)                                                   0.14968404
##                                                                           PC2
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -0.29069917
## Exports.of.goods.and.services.(%.of.GDP)                           0.35954729
## External.balance.on.goods.and.services.(%.of.GDP)                  0.11511903
## Final.consumption.expenditure.(%.of.GDP)                           0.01414393
## General.government.final.consumption.expenditure.(%.of.GDP)        0.20647757
## Gross.capital.formation.(%.of.GDP)                                -0.24005974
## Gross.domestic.savings.(%.of.GDP)                                 -0.01414393
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.22092967
## Gross.national.expenditure.(%.of.GDP)                             -0.10400849
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -0.01133551
## Gross.savings.(%.of.GDP)                                          -0.21266056
## Gross.savings.(%.of.GNI)                                          -0.19064108
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.09088670
## Imports.of.goods.and.services.(%.of.GDP)                           0.36253882
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.28515336
## Manufacturing,.value.added.(%.of.GDP)                             -0.13773793
## Services,.value.added.(%.of.GDP)                                   0.39415473
## Trade.(%.of.GDP)                                                   0.36829873
##                                                                             PC3
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -5.694624e-03
## Exports.of.goods.and.services.(%.of.GDP)                          -1.284733e-01
## External.balance.on.goods.and.services.(%.of.GDP)                  3.344832e-01
## Final.consumption.expenditure.(%.of.GDP)                          -1.110799e-01
## General.government.final.consumption.expenditure.(%.of.GDP)       -2.287461e-01
## Gross.capital.formation.(%.of.GDP)                                -4.480988e-01
## Gross.domestic.savings.(%.of.GDP)                                  1.110799e-01
## Gross.fixed.capital.formation.(%.of.GDP)                          -4.438990e-01
## Gross.national.expenditure.(%.of.GDP)                             -3.447268e-01
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  2.343665e-01
## Gross.savings.(%.of.GDP)                                          -1.659715e-01
## Gross.savings.(%.of.GNI)                                          -1.415761e-01
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -9.295668e-05
## Imports.of.goods.and.services.(%.of.GDP)                          -3.006186e-01
## Industry.(including.construction),.value.added.(%.of.GDP)          9.058866e-02
## Manufacturing,.value.added.(%.of.GDP)                              1.767965e-01
## Services,.value.added.(%.of.GDP)                                  -1.838151e-02
## Trade.(%.of.GDP)                                                  -2.126376e-01
##                                                                            PC4
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -0.434492511
## Exports.of.goods.and.services.(%.of.GDP)                          -0.296377489
## External.balance.on.goods.and.services.(%.of.GDP)                 -0.030904696
## Final.consumption.expenditure.(%.of.GDP)                          -0.012058458
## General.government.final.consumption.expenditure.(%.of.GDP)        0.541268691
## Gross.capital.formation.(%.of.GDP)                                 0.090039662
## Gross.domestic.savings.(%.of.GDP)                                  0.012058458
## Gross.fixed.capital.formation.(%.of.GDP)                           0.070004616
## Gross.national.expenditure.(%.of.GDP)                              0.031613586
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  0.178675016
## Gross.savings.(%.of.GDP)                                           0.047303279
## Gross.savings.(%.of.GNI)                                           0.002338038
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.285127234
## Imports.of.goods.and.services.(%.of.GDP)                          -0.327987355
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.034404901
## Manufacturing,.value.added.(%.of.GDP)                             -0.103336874
## Services,.value.added.(%.of.GDP)                                   0.281971393
## Trade.(%.of.GDP)                                                  -0.317396569
##                                                                            PC5
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         0.209574214
## Exports.of.goods.and.services.(%.of.GDP)                          -0.117667439
## External.balance.on.goods.and.services.(%.of.GDP)                  0.119817985
## Final.consumption.expenditure.(%.of.GDP)                          -0.152362628
## General.government.final.consumption.expenditure.(%.of.GDP)       -0.258351132
## Gross.capital.formation.(%.of.GDP)                                 0.071452257
## Gross.domestic.savings.(%.of.GDP)                                  0.152362628
## Gross.fixed.capital.formation.(%.of.GDP)                           0.044632215
## Gross.national.expenditure.(%.of.GDP)                             -0.131314327
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -0.322038460
## Gross.savings.(%.of.GDP)                                          -0.006648352
## Gross.savings.(%.of.GNI)                                           0.004975932
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.022952503
## Imports.of.goods.and.services.(%.of.GDP)                          -0.190377014
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.430693922
## Manufacturing,.value.added.(%.of.GDP)                             -0.640015066
## Services,.value.added.(%.of.GDP)                                   0.175567684
## Trade.(%.of.GDP)                                                  -0.154509572
##                                                                            PC6
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -0.004282157
## Exports.of.goods.and.services.(%.of.GDP)                           0.037435766
## External.balance.on.goods.and.services.(%.of.GDP)                 -0.050619474
## Final.consumption.expenditure.(%.of.GDP)                          -0.023882365
## General.government.final.consumption.expenditure.(%.of.GDP)       -0.302160589
## Gross.capital.formation.(%.of.GDP)                                 0.171145646
## Gross.domestic.savings.(%.of.GDP)                                  0.023882365
## Gross.fixed.capital.formation.(%.of.GDP)                           0.085997121
## Gross.national.expenditure.(%.of.GDP)                              0.059036944
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  0.844465045
## Gross.savings.(%.of.GDP)                                           0.117683297
## Gross.savings.(%.of.GNI)                                           0.122801487
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)     0.128617991
## Imports.of.goods.and.services.(%.of.GDP)                           0.066261188
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.237701642
## Manufacturing,.value.added.(%.of.GDP)                             -0.130909934
## Services,.value.added.(%.of.GDP)                                   0.155216756
## Trade.(%.of.GDP)                                                   0.051853747
##                                                                           PC7
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         0.35358493
## Exports.of.goods.and.services.(%.of.GDP)                           0.08916646
## External.balance.on.goods.and.services.(%.of.GDP)                  0.03738434
## Final.consumption.expenditure.(%.of.GDP)                          -0.04673493
## General.government.final.consumption.expenditure.(%.of.GDP)        0.39360780
## Gross.capital.formation.(%.of.GDP)                                -0.02412002
## Gross.domestic.savings.(%.of.GDP)                                  0.04673493
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.11744485
## Gross.national.expenditure.(%.of.GDP)                             -0.06319560
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  0.28704504
## Gross.savings.(%.of.GDP)                                          -0.11110998
## Gross.savings.(%.of.GNI)                                          -0.09035377
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.23376908
## Imports.of.goods.and.services.(%.of.GDP)                           0.08588431
## Industry.(including.construction),.value.added.(%.of.GDP)          0.27168646
## Manufacturing,.value.added.(%.of.GDP)                             -0.51035699
## Services,.value.added.(%.of.GDP)                                  -0.42516054
## Trade.(%.of.GDP)                                                   0.08943064
##                                                                            PC8
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         0.079728077
## Exports.of.goods.and.services.(%.of.GDP)                           0.004055053
## External.balance.on.goods.and.services.(%.of.GDP)                  0.093392733
## Final.consumption.expenditure.(%.of.GDP)                          -0.150266644
## General.government.final.consumption.expenditure.(%.of.GDP)       -0.034146225
## Gross.capital.formation.(%.of.GDP)                                 0.242603314
## Gross.domestic.savings.(%.of.GDP)                                  0.150266644
## Gross.fixed.capital.formation.(%.of.GDP)                           0.465027071
## Gross.national.expenditure.(%.of.GDP)                             -0.043820593
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  0.079606229
## Gross.savings.(%.of.GDP)                                          -0.564626712
## Gross.savings.(%.of.GNI)                                          -0.482785347
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.134313199
## Imports.of.goods.and.services.(%.of.GDP)                          -0.037855953
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.131409757
## Manufacturing,.value.added.(%.of.GDP)                              0.247095413
## Services,.value.added.(%.of.GDP)                                  -0.072697996
## Trade.(%.of.GDP)                                                  -0.015715078
##                                                                            PC9
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         0.554986161
## Exports.of.goods.and.services.(%.of.GDP)                          -0.008114635
## External.balance.on.goods.and.services.(%.of.GDP)                  0.017187503
## Final.consumption.expenditure.(%.of.GDP)                          -0.001475826
## General.government.final.consumption.expenditure.(%.of.GDP)        0.347734659
## Gross.capital.formation.(%.of.GDP)                                -0.080412410
## Gross.domestic.savings.(%.of.GDP)                                  0.001475826
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.083214431
## Gross.national.expenditure.(%.of.GDP)                             -0.041645303
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  0.043773819
## Gross.savings.(%.of.GDP)                                           0.167092788
## Gross.savings.(%.of.GNI)                                           0.171642080
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.190060840
## Imports.of.goods.and.services.(%.of.GDP)                          -0.017193591
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.541903948
## Manufacturing,.value.added.(%.of.GDP)                              0.406295404
## Services,.value.added.(%.of.GDP)                                   0.031148224
## Trade.(%.of.GDP)                                                  -0.012580781
##                                                                           PC10
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -0.018836114
## Exports.of.goods.and.services.(%.of.GDP)                          -0.032270393
## External.balance.on.goods.and.services.(%.of.GDP)                 -0.149236584
## Final.consumption.expenditure.(%.of.GDP)                          -0.143876937
## General.government.final.consumption.expenditure.(%.of.GDP)       -0.072759775
## Gross.capital.formation.(%.of.GDP)                                 0.621645593
## Gross.domestic.savings.(%.of.GDP)                                  0.143876937
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.681750774
## Gross.national.expenditure.(%.of.GDP)                              0.151863099
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -0.056821505
## Gross.savings.(%.of.GDP)                                          -0.158892153
## Gross.savings.(%.of.GNI)                                          -0.034050103
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -0.119850298
## Imports.of.goods.and.services.(%.of.GDP)                           0.030725616
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.016254384
## Manufacturing,.value.added.(%.of.GDP)                              0.100101387
## Services,.value.added.(%.of.GDP)                                   0.010505973
## Trade.(%.of.GDP)                                                  -0.003088057
##                                                                            PC11
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -0.4675004664
## Exports.of.goods.and.services.(%.of.GDP)                           0.0029012187
## External.balance.on.goods.and.services.(%.of.GDP)                  0.0066112541
## Final.consumption.expenditure.(%.of.GDP)                           0.0021484594
## General.government.final.consumption.expenditure.(%.of.GDP)       -0.0073009728
## Gross.capital.formation.(%.of.GDP)                                -0.0401610563
## Gross.domestic.savings.(%.of.GDP)                                 -0.0021484594
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.0471900441
## Gross.national.expenditure.(%.of.GDP)                             -0.0176387321
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -0.0142335621
## Gross.savings.(%.of.GDP)                                           0.0612057018
## Gross.savings.(%.of.GNI)                                           0.0200073557
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)     0.0170812497
## Imports.of.goods.and.services.(%.of.GDP)                           0.0003373102
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.5002545613
## Manufacturing,.value.added.(%.of.GDP)                             -0.0106456898
## Services,.value.added.(%.of.GDP)                                  -0.7226104083
## Trade.(%.of.GDP)                                                   0.0017459011
##                                                                           PC12
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         0.014501795
## Exports.of.goods.and.services.(%.of.GDP)                           0.165017940
## External.balance.on.goods.and.services.(%.of.GDP)                  0.793444662
## Final.consumption.expenditure.(%.of.GDP)                           0.203008138
## General.government.final.consumption.expenditure.(%.of.GDP)        0.105620729
## Gross.capital.formation.(%.of.GDP)                                 0.236103525
## Gross.domestic.savings.(%.of.GDP)                                 -0.203008138
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.021604791
## Gross.national.expenditure.(%.of.GDP)                              0.339885854
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -0.004055379
## Gross.savings.(%.of.GDP)                                          -0.056219160
## Gross.savings.(%.of.GNI)                                           0.114521100
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)     0.177731165
## Imports.of.goods.and.services.(%.of.GDP)                          -0.170922549
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.005096417
## Manufacturing,.value.added.(%.of.GDP)                             -0.016139892
## Services,.value.added.(%.of.GDP)                                  -0.014929268
## Trade.(%.of.GDP)                                                   0.009252275
##                                                                           PC13
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         0.034416934
## Exports.of.goods.and.services.(%.of.GDP)                           0.034015062
## External.balance.on.goods.and.services.(%.of.GDP)                  0.103799309
## Final.consumption.expenditure.(%.of.GDP)                          -0.015211294
## General.government.final.consumption.expenditure.(%.of.GDP)        0.001923498
## Gross.capital.formation.(%.of.GDP)                                 0.092798034
## Gross.domestic.savings.(%.of.GDP)                                  0.015211294
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.047072574
## Gross.national.expenditure.(%.of.GDP)                              0.029533386
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  0.001689043
## Gross.savings.(%.of.GDP)                                           0.657357080
## Gross.savings.(%.of.GNI)                                          -0.735706815
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)     0.026235233
## Imports.of.goods.and.services.(%.of.GDP)                          -0.008017432
## Industry.(including.construction),.value.added.(%.of.GDP)          0.003793276
## Manufacturing,.value.added.(%.of.GDP)                              0.016312757
## Services,.value.added.(%.of.GDP)                                   0.008966879
## Trade.(%.of.GDP)                                                   0.014798535
##                                                                           PC14
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         0.005250478
## Exports.of.goods.and.services.(%.of.GDP)                          -0.006585050
## External.balance.on.goods.and.services.(%.of.GDP)                 -0.021783849
## Final.consumption.expenditure.(%.of.GDP)                          -0.273134066
## General.government.final.consumption.expenditure.(%.of.GDP)        0.396365470
## Gross.capital.formation.(%.of.GDP)                                 0.113015438
## Gross.domestic.savings.(%.of.GDP)                                  0.273134066
## Gross.fixed.capital.formation.(%.of.GDP)                          -0.005587409
## Gross.national.expenditure.(%.of.GDP)                             -0.242905420
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -0.001913087
## Gross.savings.(%.of.GDP)                                          -0.021908965
## Gross.savings.(%.of.GNI)                                           0.022818807
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)     0.787451721
## Imports.of.goods.and.services.(%.of.GDP)                           0.002321425
## Industry.(including.construction),.value.added.(%.of.GDP)         -0.004381411
## Manufacturing,.value.added.(%.of.GDP)                              0.009989815
## Services,.value.added.(%.of.GDP)                                   0.011070352
## Trade.(%.of.GDP)                                                  -0.002500464
##                                                                            PC15
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         2.444510e-15
## Exports.of.goods.and.services.(%.of.GDP)                          -1.293202e-02
## External.balance.on.goods.and.services.(%.of.GDP)                  4.403631e-03
## Final.consumption.expenditure.(%.of.GDP)                          -4.136468e-01
## General.government.final.consumption.expenditure.(%.of.GDP)        2.332675e-14
## Gross.capital.formation.(%.of.GDP)                                -3.661278e-01
## Gross.domestic.savings.(%.of.GDP)                                  3.919471e-01
## Gross.fixed.capital.formation.(%.of.GDP)                          -3.405224e-15
## Gross.national.expenditure.(%.of.GDP)                              7.355004e-01
## Gross.national.expenditure.deflator.(base.year.varies.by.country)  8.134514e-16
## Gross.savings.(%.of.GDP)                                          -4.048843e-15
## Gross.savings.(%.of.GNI)                                           5.580629e-15
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)     4.403590e-14
## Imports.of.goods.and.services.(%.of.GDP)                           8.132502e-03
## Industry.(including.construction),.value.added.(%.of.GDP)         -1.163570e-15
## Manufacturing,.value.added.(%.of.GDP)                              6.932779e-16
## Services,.value.added.(%.of.GDP)                                   2.177004e-16
## Trade.(%.of.GDP)                                                   3.242971e-03
##                                                                            PC16
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)         1.549641e-15
## Exports.of.goods.and.services.(%.of.GDP)                          -1.626624e-02
## External.balance.on.goods.and.services.(%.of.GDP)                 -6.304585e-04
## Final.consumption.expenditure.(%.of.GDP)                          -7.002008e-01
## General.government.final.consumption.expenditure.(%.of.GDP)        5.878052e-15
## Gross.capital.formation.(%.of.GDP)                                 5.680079e-03
## Gross.domestic.savings.(%.of.GDP)                                 -7.126987e-01
## Gross.fixed.capital.formation.(%.of.GDP)                           6.728359e-16
## Gross.national.expenditure.(%.of.GDP)                             -1.141050e-02
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -1.138143e-16
## Gross.savings.(%.of.GDP)                                          -4.032211e-15
## Gross.savings.(%.of.GNI)                                           4.680198e-15
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)     7.377832e-15
## Imports.of.goods.and.services.(%.of.GDP)                          -1.686223e-02
## Industry.(including.construction),.value.added.(%.of.GDP)          3.684712e-16
## Manufacturing,.value.added.(%.of.GDP)                              8.582098e-17
## Services,.value.added.(%.of.GDP)                                   5.903164e-16
## Trade.(%.of.GDP)                                                   3.267531e-02
##                                                                            PC17
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -3.891789e-16
## Exports.of.goods.and.services.(%.of.GDP)                          -2.200697e-01
## External.balance.on.goods.and.services.(%.of.GDP)                 -8.422694e-02
## Final.consumption.expenditure.(%.of.GDP)                           2.755279e-02
## General.government.final.consumption.expenditure.(%.of.GDP)       -4.698911e-15
## Gross.capital.formation.(%.of.GDP)                                -4.062772e-05
## Gross.domestic.savings.(%.of.GDP)                                  2.764218e-02
## Gross.fixed.capital.formation.(%.of.GDP)                          -8.505532e-16
## Gross.national.expenditure.(%.of.GDP)                              8.161549e-05
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -1.692855e-16
## Gross.savings.(%.of.GDP)                                          -1.512876e-15
## Gross.savings.(%.of.GNI)                                           2.292063e-15
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -9.691217e-15
## Imports.of.goods.and.services.(%.of.GDP)                          -5.605369e-01
## Industry.(including.construction),.value.added.(%.of.GDP)         -1.137825e-15
## Manufacturing,.value.added.(%.of.GDP)                              3.223657e-17
## Services,.value.added.(%.of.GDP)                                  -1.375594e-15
## Trade.(%.of.GDP)                                                   7.929378e-01
##                                                                            PC18
## Agriculture,.forestry,.and.fishing,.value.added.(%.of.GDP)        -7.807942e-16
## Exports.of.goods.and.services.(%.of.GDP)                          -7.904967e-01
## External.balance.on.goods.and.services.(%.of.GDP)                  2.740378e-01
## Final.consumption.expenditure.(%.of.GDP)                           1.350466e-02
## General.government.final.consumption.expenditure.(%.of.GDP)       -2.053819e-15
## Gross.capital.formation.(%.of.GDP)                                 5.884046e-03
## Gross.domestic.savings.(%.of.GDP)                                  5.579489e-04
## Gross.fixed.capital.formation.(%.of.GDP)                          -4.009069e-17
## Gross.national.expenditure.(%.of.GDP)                             -1.182024e-02
## Gross.national.expenditure.deflator.(base.year.varies.by.country) -7.358132e-17
## Gross.savings.(%.of.GDP)                                           6.644472e-15
## Gross.savings.(%.of.GNI)                                          -7.512073e-15
## Households.and.NPISHs.final.consumption.expenditure.(%.of.GDP)    -2.267380e-15
## Imports.of.goods.and.services.(%.of.GDP)                           5.184427e-01
## Industry.(including.construction),.value.added.(%.of.GDP)          4.515171e-16
## Manufacturing,.value.added.(%.of.GDP)                             -4.552111e-16
## Services,.value.added.(%.of.GDP)                                  -3.178864e-16
## Trade.(%.of.GDP)                                                   1.757224e-01
#loadings refer to the coefficients (or weights) that define the contribution of each original variable (feature) to the principal components.

Interpretation

Based on above results from loading we can see that how each original feature contributes to the principal component. For PC1, the loadings are as follows:(taking first 3 values)

Agriculture, forestry, and fishing, value added (% of GDP): -0.1517

This feature has a negative loading on PC1. A negative value indicates an inverse relationship with the principal component. If PC1 increases, the value for agriculture, forestry, and fishing as a percentage of GDP would tend to decrease, and vice versa.

Exports of goods and services (% of GDP): 0.1997

This feature has a positive loading on PC1. A positive value indicates a direct relationship with the principal component. If PC1 increases, the value of exports of goods and services as a percentage of GDP would also tend to increase, and vice versa.

External balance on goods and services (% of GDP): 0.3182

This feature also has a positive loading on PC1, with a stronger magnitude than exports. This means that external balance on goods and services has a greater influence on PC1 compared to exports. If PC1 increases, the external balance as a percentage of GDP tends to increase as well.

Visualizing PCA

# Plot the variance explained by each principal component
explained_variance <- pca_result$sdev^2 / sum(pca_result$sdev^2) * 100
barplot(explained_variance, main = "Variance Explained by Principal Components",
        xlab = "Principal Component", ylab = "Percentage of Variance", col = "steelblue")

# Biplot for PCA
biplot(pca_result, scale = 0, cex = 0.5)

Interpretation of Biplot

The x-axis and y-axis in a biplot correspond to the first two principal components (PC1 and PC2). Based on arrow direction and length we can interpret:

t-SNE Technique

t-SNE is a non-linear dimension reduction technique designed primarily for visualization of high-dimensional data in 2D or 3D space. Unlike PCA, it preserves local relationships rather than maximizing variance.

Steps of t-SNE

#Prepare data for t-SNE
# Remove the "Country.Name" column as t-SNE requires only numeric data
tsne_input <- numeric_columns

# Run t-SNE
# Set a random seed for reproducibility
set.seed(42)

# Perform t-SNE (Here performing it for 2 dimensions)
tsne_result <- Rtsne(as.matrix(tsne_input), dims = 2, perplexity = 30, verbose = TRUE, max_iter = 500)
## Performing PCA
## Read the 103 x 18 data matrix successfully!
## Using no_dims = 2, perplexity = 30.000000, and theta = 0.500000
## Computing input similarities...
## Building tree...
## Done in 0.00 seconds (sparsity = 0.970308)!
## Learning embedding...
## Iteration 50: error is 50.675359 (50 iterations in 0.01 seconds)
## Iteration 100: error is 50.492930 (50 iterations in 0.01 seconds)
## Iteration 150: error is 51.284187 (50 iterations in 0.01 seconds)
## Iteration 200: error is 51.109574 (50 iterations in 0.01 seconds)
## Iteration 250: error is 48.977678 (50 iterations in 0.01 seconds)
## Iteration 300: error is 1.369714 (50 iterations in 0.00 seconds)
## Iteration 350: error is 0.578178 (50 iterations in 0.00 seconds)
## Iteration 400: error is 0.155347 (50 iterations in 0.00 seconds)
## Iteration 450: error is 0.126394 (50 iterations in 0.00 seconds)
## Iteration 500: error is 0.112426 (50 iterations in 0.00 seconds)
## Fitting performed in 0.05 seconds.

Visualizing t-SNE

# View the t-SNE results
# Install and load plotly if not already installed
if (!requireNamespace("plotly", quietly = TRUE)) {
  install.packages("plotly")
}
library(plotly)
## 
## Attaching package: 'plotly'
## The following object is masked from 'package:ggplot2':
## 
##     last_plot
## The following object is masked from 'package:stats':
## 
##     filter
## The following object is masked from 'package:graphics':
## 
##     layout
# 2D t-SNE Visualization
tsne_data <- data.frame(
  X = tsne_result$Y[, 1],
  Y = tsne_result$Y[, 2],
  Country = numeric_data$Country.Name
)

plot_ly(
  tsne_data, 
  x = ~X, y = ~Y, 
  color = ~Country, 
  type = "scatter", 
  mode = "markers+text",
  text = ~Country
) %>%
  layout(
    title = "t-SNE Visualization in 2D",
    xaxis = list(title = "t-SNE Dimension 1"),
    yaxis = list(title = "t-SNE Dimension 2")
  )
## Warning in RColorBrewer::brewer.pal(N, "Set2"): n too large, allowed maximum for palette Set2 is 8
## Returning the palette you asked for with that many colors
## Warning in RColorBrewer::brewer.pal(N, "Set2"): n too large, allowed maximum for palette Set2 is 8
## Returning the palette you asked for with that many colors

Interpretation of t-SNE plot

In the above plot we can see countries such as Germany and Finland has more similarities in their economic data as they are closely placed to each other. On the other hand Poland is not that much similar to Germany or to Finland.

Comparison of PCA & t- SNE

I think we cannot directly compare PCA and t-SNE for concluding which one is better. Selection of technique for Dimension reduction depends on what we want to do. PCA is better for reducing dimensions while maintaining the variance (i.e., the data’s important information). It can be further used for subsequent analysis and modeling tasks however t-SNE is better for visualizing high-dimensional data and finding underlying patterns (such as clusters or groupings), but it is not as useful for further machine learning tasks due to its non-linear nature and computational complexity.

So if we just want to get a rough idea of how countries are related in terms of their economic data i will prefer t-SNE on the other hand if i want to perform additional analysis and get deeper insight i will go for PCA.