The sustained favorable external debt profile, demonstrated by the continued easing of the country’s external debt to GDP ratio, supports the external sector position. The country’s external debt metrics continue to ease significantly with external debt-to-GDP ratio settling at 23.7 percent as of end-September 2019 compared to about 60.0 percent in mid2000s.
In a monetary union, monetary policy cannot be directed at contrasting inflationary (or disinflationary) pressures in any individual country per se. As a consequence, each country has to conduct its own appropriate internal policies - whether fiscal or structural - in order to contain excessive internal price inflation.