Although the current account deficit remains well below the peak reached in 2006, net external debt has soared to more than 40% of GDP, up from only 10% a decade ago. The external debt burden is still a long way below the levels that triggered currency crises in other countries, but the surge suggests that, over the longer-term at least, the dollar is more likely to weaken from current levels.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services