In the first seven months of 2021, net foreign direct investments increased by 43.1 percent. This is due to positive foreign investor sentiment on the country’s macroeconomic fundamentals and strong growth prospects. The country’s outstanding external debt also remains at a prudent level as its ratio to GDP slightly eased to 26.5 percent in end-June 2021.
Notably, a large portion of our external debt has medium- and long-term maturity profile and carry fixed interest rates. These support a manageable debt repayment schedule and foreign borrowings are less susceptible to volatilities in global interest rates or foreign exchange fluctuations.