For the time being—and possibly for a considerable time to come—developments and prospects for the euro area are quite favorable. This upbeat outlook is underpinned by buoyant activity indicators and a supportive policy mix. High household and business confidence, rising capacity utilization...

This paper presents key findings of debt sustainability analysis (DSA) for Ethiopia. The stress tests reveal that Ethiopia’s external debt and debt service indicators are particularly sensitive to the terms of new borrowing and negative export shocks. The baseline projections appear fragile to...