This level was equivalent to 10.3 months worth of imports of goods and payments of services and primary income. It was also 5.9 and 8.6 times the country’s short-term external debt based on residual and original maturities, respectively. Amid strong rebound in external demand from trade partners, exports of goods increased by 14.5 percent in 2021 to $ billion.
Clearly, more private risk sharing through the financial system should not be seen as a substitute for public risk sharing, but to be fully effective, private risk sharing through the financial system needs not only common supervision, regulation and resolution, but also a common fiscal backstop.