Gce Model Questions Vol1 2018 Government Question 15

Country B does not recognise governments that come to power through military coups. After a coup in Country C, Country B imposed economic sanctions on three sectors: oil, banking and tourism, reducing their GDP contributions by \(12\%\), \(8\%\) and \(5\%\) respectively. One year later, Country C held elections deemed free, so Country B lifted the sanctions on oil and banking but kept the tourism sanction, and introduced a diplomatic embargo that reduces foreign direct investment inflows by \(10\%\) across all sectors. Prior to any sanctions, the sectoral contributions to Country C's GDP were: oil \(30\%\), banking \(20\%\), tourism \(10\%\) and other sectors \(40\%\). Calculate the net percentage change in Country C's total GDP after the first year, relative to the pre‑sanction level.