The economy continues to expand amid heightened external risks and moderating tourism activity. Inflation has eased from its 2024 peak and is converging to partner country levels. The public debt-to-GDP ratio eased from 101 percent in 2020 to an estimated 68 percent in 2025, aided by an improved fiscal position reflecting both improved tax collections and one-off factors. But arrears to domestic and Paris Club creditors are significant and gross financing needs (GFNs) are elevated. The overall financial system is stable and liquid.