Total reserves (% of total external debt)
Countries By Total reserves (% of total external debt)
Key points
- Algeria holds the highest percentage of total reserves in relation to total external debt, with a value of 1147.85%, indicating a strong position in managing external debt obligations.
- Zimbabwe, on the other hand, has the lowest percentage with only 0.26%, suggesting a significant vulnerability in meeting external debt commitments.
- The average total reserves to total external debt ratio among the listed countries is 66.13%, reflecting a moderate level of financial stability in managing external debts.
- Some countries exhibit high percentages such as Timor-Leste with 283.23%, Solomon Islands with 154.10%, and Samoa with 58.06%, indicating potentially robust financial positions against external debt.
- In contrast, countries like Zambia with 4.01%, Laos with 6.79%, and Mozambique with 6.94% have notably lower ratios, suggesting a relatively weaker capacity to handle external debt burdens.
Official Definition of Total reserves (% of total external debt)
International reserves to total external debt stocks.
Importance
The Total reserves (% of total external debt) statistic is crucial for a country's economic stability and financial health.
- Implications of a Low Value:
- If the percentage of total reserves in relation to total external debt is low, it indicates that a country may have difficulty meeting its external debt obligations.
- This situation can lead to a higher risk of default on debt payments, which can result in credit rating downgrades and increased borrowing costs.
- A low value of this statistic can also signal to investors and creditors that the country may face liquidity issues and struggles to manage its debt burden effectively.
- Implications of a High Value:
- Conversely, a high percentage of total reserves to total external debt suggests that a country has sufficient resources to cover its external debt obligations.
- Having a high value indicates strong financial buffers and the ability to weather economic crises or external shocks more effectively.
- It can enhance investor confidence, lower borrowing costs, and strengthen the country's overall economic resilience.
Top 10 Countries by Total reserves (% of total external debt)
Bottom 10 Countries by Total reserves (% of total external debt)
Regions
Europe
In analyzing the Total reserves (% of total external debt) statistic for the listed countries, we observe that the Russian Federation stands out with a significantly high ratio of 129.47%, indicating a strong position in managing its external debt. Bulgaria follows closely with a ratio of 80.78%, showcasing a robust reserve buffer. On the other hand, Montenegro and Belarus have lower ratios at 22.55% and 17.87% respectively, suggesting vulnerability to external debt obligations. For countries like Romania and Serbia, the ratios fall in the mid-range. While a high ratio signifies resilience against potential debt crises, it may also indicate underutilization of reserves for developmental purposes, affecting economic growth. Conversely, a low ratio may signal higher debt risks but could signify more aggressive investments in development projects.
Far East: East Asia, SE Asia, Australia
Among the listed countries, China holds the highest total reserves as a percentage of total external debt, indicating a strong financial position and ability to manage its debt obligations. Cambodia and Thailand also have relatively high reserves compared to their debt levels, suggesting financial stability. Vietnam and the Philippines follow with moderate ratios, showcasing a balanced approach. Indonesia, Myanmar, and Papua New Guinea have lower percentages, indicating potential vulnerability to external shocks. Laos has the smallest ratio, signaling a higher dependency on external support. While high ratios imply a strong buffer against economic crises, they may also indicate underutilized resources. Conversely, low ratios suggest greater debt exposure but could reflect efficient debt management. This statistic's significance lies in influencing investor confidence, currency stability, and overall economic resilience in these nations.
ASEAN
Analysis of Total Reserves (% of total external debt) in Selected Countries:
- Cambodia has a high ratio of 121.23%, indicating ample reserves compared to external debt, providing a buffer against potential economic shocks. This surplus may enhance investor confidence and allow for greater economic stability.
- Indonesia's ratio of 32.58% reflects a moderate level of reserves in relation to external debt, suggesting a need to bolster reserves to improve resilience to financial crises.
- Laos with a ratio of 6.79% poses higher vulnerability to external economic pressures due to limited reserves compared to debt, potentially hindering long-term economic sustainability.
- Myanmar at 57.21% showcases a balanced position, which could support gradual economic growth and attract foreign investments given a moderate level of reserves.
- The Philippines and Vietnam exhibit strong ratios of 111.67% and 73.24%, respectively, indicating financial stability with sufficient reserves to cover external debt, fostering economic development and safeguarding against volatility.
- Thailand's high ratio of 130.86% signifies robust financial health, reducing risks associated with external debt and fostering favorable conditions for sustained growth and investment.
Latin America
Analysis of Total Reserves (% of total external debt) across selected countries reveals Brazil and Peru as standout performers with ratios above 64% and 100% respectively, indicating strong reserve holdings compared to their external debt. Conversely, countries like Ecuador and Panama exhibit lower ratios, hinting at potential vulnerabilities in managing external debt. Guatemala and Honduras showcase exceptionally high ratios, suggesting a robust buffer against debt repayment challenges. This statistic's implications are profound; countries with higher ratios enjoy greater financial stability, easier access to credit, and reduced risk of default. On the other hand, those with lower ratios may face difficulties servicing debt and attracting investments, impacting their economic growth and development.
Middle East
Algeria stands out with a Total reserves (% of total external debt) at 1147.85%, reflecting a strong financial position. Meanwhile, Georgia and Armenia have lower percentages at 19.48% and 20.76% respectively, indicating higher external debt relative to reserves. Lebanon, Morocco, and Tunisia have moderately healthy ratios, while Azerbaijan, Egypt, Turkey, and Yemen fall below the 30% mark, suggesting vulnerability to external shocks. Higher reserves imply better ability to honor debt obligations and weather economic crises, offering stability and credibility for attracting investments and facilitating economic growth. Conversely, over-reliance on reserves may signal underlying economic weaknesses or currency pegs, impacting long-term sustainability.
Rivals
Russia v Ukraine
The Total reserves (% of total external debt) statistic for the Russian Federation stands at 129.47%, indicating a surplus in international reserves compared to external debt. In contrast, Ukraine has a ratio of 22.01%, suggesting lower reserves in proportion to its external debt. The Russian Federation's significantly higher ratio signifies a strong capacity to manage its external debt obligations and withstand economic shocks, offering stability and confidence to investors. However, this reliance on reserves could potentially limit investment in other areas. On the other hand, Ukraine's lower ratio exposes it to greater vulnerability in servicing its external debt, potentially leading to dependency on creditors and higher borrowing costs, impacting its development trajectory.
India v Pakistan
India holds a significantly high total reserves compared to its total external debt, standing at 104.47%, indicating a strong financial position that can cover its external debt obligations. In contrast, Pakistan's total reserves represent only 15.69% of its external debt, reflecting a lower capacity to meet its debt commitments. For India, this high ratio provides a cushion against external shocks and enhances investor confidence, but it may also indicate underutilization of reserves. Pakistan's lower ratio poses a higher risk in managing external debt and may lead to dependency on foreign aid and higher borrowing costs. This statistic suggests that India has a more stable economy and better financial management compared to Pakistan.
FAQs
- Which country has the most Total reserves (% of total external debt)?
Answer: Algeria currently has the highest Total reserves (% of total external debt) with a value of 1147.85. - Which country has the least Total reserves (% of total external debt)?
Answer: Zimbabwe has the lowest Total reserves (% of total external debt) with a value of 0.26. - What is the average Total reserves (% of total external debt) among the listed countries?
Answer: The average Total reserves (% of total external debt) among the listed countries is approximately 66.13.