Total debt service (% of exports of goods, services and primary income)

This indicator measures the proportion of a country's total debt service obligations relative to its exports of goods, services, and primary income, providing essential insights into the nation's financial health and sustainability. Total debt service encompasses all repayments, including principal and interest on long-term debts, interest on short-term loans, and any repayments to the International Monetary Fund (IMF). By analyzing this ratio, stakeholders can assess the potential strain on a country’s foreign exchange earnings, indicating how effectively it can service its debt obligations without compromising its economic stability. A lower percentage suggests a healthier economy with greater capacity to manage debt, while a higher percentage raises concerns about debt sustainability and may indicate the need for policy adjustments or economic reforms. Source: