Debt service on external debt, total (TDS, current US$)



Countries By Debt service on external debt, total (TDS, current US$)



Key points



Official Definition of Debt service on external debt, total (TDS, current US$)

Total debt service is the sum of principal repayments and interest actually paid in currency, goods, or services on long-term debt, interest paid on short-term debt, and repayments (repurchases and charges) to the IMF. Data are in current U.S. dollars.



Importance

The statistic of Debt service on external debt, total (TDS, current US$) is crucial for a country's economic stability and growth. It measures the total amount of money a country pays in principal repayments and interest on its external debts in current U.S. dollars.

When the value of this statistic is low, it signifies that the country may have more financial flexibility as less of its resources are being allocated to debt servicing. This can free up funds for public spending, investments in infrastructure, education, healthcare, and other development projects. Additionally, a lower debt service value can enhance the country's creditworthiness and ability to borrow at favorable terms in the future.

On the other hand, a high value of Debt service on external debt indicates that a significant portion of the country's income is being used to service its debts. This can lead to budget constraints, reduced government spending on essential services, increased borrowing costs, and potential difficulties in managing the debt burden. High levels of debt service may also indicate financial vulnerability and dependence on external financing, which can pose risks to the country's economic stability.



Top 10 Countries by Debt service on external debt, total (TDS, current US$)

Bottom 10 Countries by Debt service on external debt, total (TDS, current US$)



Regions

Europe

Debt service on external debt represents a significant financial obligation for these countries. Romania stands out with the highest total of $20.35 billion, followed by the Russian Federation at $110.11 billion. These two countries have substantial external debt burdens, which could potentially strain their economies as they allocate a significant portion of their resources towards debt repayment. Belarus and Ukraine also have sizable debt service amounts, indicating a vulnerability to external economic shocks. Albania, Bosnia and Herzegovina, Bulgaria, Moldova, Montenegro, and Serbia exhibit lower debt service figures but still face the challenge of managing their external debt responsibilities while striving for economic growth. This statistic highlights the importance of debt management and fiscal stability for the development of these countries, with each facing unique advantages and disadvantages in terms of their debt repayment capacity and economic resiliency.

Far East: East Asia, SE Asia, Australia

Debt service on external debt is a vital macroeconomic indicator that showcases a country's ability to manage its international financial obligations. Among the selected countries, China stands out with a substantial debt service of $274.4 billion, reflecting its massive external debt burden due to extensive investments and projects. Indonesia and Thailand follow with notable debt service amounts, indicating a reliance on external financing. While such debt can stimulate growth, it also poses risks of economic vulnerability to external shocks. In contrast, countries like Laos and Myanmar have significantly lower debt service figures, suggesting a more conservative approach to borrowing. The impact of this statistic on a country's development varies; excessive debt service can strain the economy, while controlled levels can support infrastructure and economic expansion.

ASEAN

Debt service on external debt varies significantly among the selected countries. Indonesia has the highest total debt service, followed by Thailand and Vietnam. This indicates a higher level of repayment obligations on external debt for these countries. While high debt service may signify past borrowing for infrastructural development, it can also lead to financial strain and dependency on creditors. Cambodia and Laos have comparatively lower debt service, suggesting either prudent borrowing practices or underinvestment in critical sectors. The impact of high debt service can hinder economic growth by crowding out spending on essential services and infrastructure projects, while low debt service may limit future borrowing capacity and potential for development.

Latin America

Debt service on external debt is a crucial macroeconomic statistic reflecting a country's financial obligations. Among the listed countries, Brazil stands out with a significant debt service of $130.06 billion, followed by Mexico at $71.61 billion and Argentina at $29.41 billion. While high debt service can indicate financial strain and limited resources for development, it can also signify access to international capital markets. Countries like Bolivia and Paraguay have lower debt service figures, indicating potentially lower financial leverage but also possibly limited access to credit for growth. Effective management of this debt is essential for sustainable economic development, as high debt service can divert resources from critical sectors like infrastructure and social welfare.

Middle East

Debt service on external debt, totaling in current US dollars, varies significantly among the listed countries. Turkey stands out with the highest debt service, followed by Lebanon and Egypt. These countries face the advantage of accessing international capital but suffer from the disadvantage of high repayment burdens. For Turkey, the substantial debt service may strain its economic stability, while Lebanon's debt service surpasses its GDP. Egypt's high debt service could limit fiscal flexibility. In contrast, Armenia and Georgia have lower debt service burdens, providing them with more financial maneuverability for development projects. Overall, the debt service statistic highlights the financial challenges each country faces in balancing external debt repayment with domestic development priorities.



Rivals

Russia v Ukraine

The Debt service on external debt in the Russian Federation amounts to approximately $110.11 billion, while in Ukraine it stands at around $17.4 billion. The Russian Federation's high level of debt service reflects its significant external debt obligations, indicating a reliance on external financing. This can be advantageous in allowing for access to capital for development projects but poses risks in terms of economic stability and potential foreign influence. On the other hand, Ukraine's lower debt service signifies a comparatively lesser burden but may indicate limitations in accessing international funds for growth. Managing external debt obligations effectively is crucial for both countries to ensure sustainable economic development and safeguard national interests.

India v Pakistan

India's debt service on external debt amounts to $76.37 billion, reflecting its significant international financial obligations. In contrast, Pakistan's debt service is notably lower at $10.67 billion. India's higher debt service signifies a larger burden on its financial resources, potentially limiting its capacity for domestic investment and economic growth. However, it also demonstrates India's access to global capital markets. Pakistan's lower debt service indicates a relatively lighter debt burden but may also imply limited access to international financing. India's challenge lies in managing its debt burden to ensure sustainable development, while Pakistan faces the task of attracting foreign investment to support its growth.



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