Present value of external debt (% of exports of goods, services and primary income)

This indicator measures the financial health of a country's external obligations by expressing the present value of its external debt relative to the average export earnings derived from goods, services, and primary income over three years. It encapsulates both short-term debts and the discounted future payments of long-term obligations, including public and private entities, thus providing a comprehensive snapshot of debt sustainability. By incorporating a discount factor, the indicator adjusts for the time value of money, highlighting the economic burden of current debts. A lower ratio suggests a healthier export capability to service debts, indicating potential strengths in trade competitiveness and fiscal resilience, while a higher ratio may signal vulnerability and increased risk to creditors. Source: