Debt-to-GDP Ratio

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Debt-to-GDP Ratio

A ratio of a country's national debt to its GDP. The debt-to-GDP ratio is one way to estimate whether or not a country will be able to repay its debt. The higher the ratio is, the more likely a country is to default because its government has borrowed too much relative to the ability of the country as a whole to repay. This may affect the country's sovereign credit rating. However, this ratio is not the only metric used. For example, the United States and the United Kingdom maintain national debts that approach 100% of GDP, but both have AAA credit ratings because the political risk in both countries is very low.
References in periodicals archive ?
Purisima said, Our general government debt to GDP ratio has consistently taken a downward trajectory since the President prioritized putting our fiscal house in order.
BRUSSELS, July 22 (KUNA) -- At the end of the first quarter of 2015, the government debt to GDP ratio in the euro area stood at 92.
In the first quarter of 2015, Bulgaria had the third-lowest government debt to GDP ratio in the EU, at 29.
If the current third bailout for Greece is indeed approved, the national debt as a percentage of its Gross Domestic Product (GDP) will be at 200 per cent, second only to Japan, which has a debt to GDP ratio of 242.
Cyprus had the second-highest private debt to GDP ratio among European Union countries in 2013, according to the latest data released by Eurostat.
In the Euro area the government debt to GDP ratio increased from 90.
The paper now suggests Scotland would inherit debt of around PS143 billion, leaving a debt to GDP ratio of about 86%.
Rana Afzal further stated that debt to GDP ratio has decreased from 62.
These initiatives' he hoped' are expected to bring the external debt to GDP ratio from 24.
These initiatives, he hoped, are expected to bring the external debt to GDP ratio from 24.
Welsh Labour said this was not right, with the debt to GDP ratio now standing at 79% - 24% higher than when Labour left office.
Lagarde earlier this week publicly disagreed with eurozone finance ministers who have suggested that Greece should be given until 2022 to lower its debt to GDP ratio to 120 per cent.