Debt Sustainability Analysis (DSA)

Debt Sustainability Analysis (DSA) is a process used to assess whether a country's current and future debt levels are manageable given its economic capacity. It considers factors like income, government revenues, and expenses to determine if the country can reliably repay its debts without risking financial instability. Essentially, DSA helps identify if a country's debt situation is sustainable or if adjustments are needed to ensure long-term financial health. It’s a tool for policymakers and creditors to make informed decisions and prevent debt crises.