This bodes well for job creation. Favorable external debt profile acts as a cushion against external shocks. External debt-to-GDP ratio settled at 27.3 percent as of end-September 2021, compared with about 60 percent in mid-2000s.
Given that the bulk of the country’s external debt have medium and long-term maturity, and bears fixed interest rate, debt repayment schedule is more manageable and financially sustainable over the medium to long term. Considering recent economic developments and significant progress in vaccine rollout, we are optimistic that there is sufficient support for the country’s recovery this year and in the near term.