Debt-to-GDP Ratio

(redirected from Debt to Gross Domestic Product Ratio)

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 ?
Oman's continued robust fiscal position witnessed in 2013 was also validated in terms of debt to gross domestic product ratio as it stood at 4.
S&P also downgraded Portugal, saying it could struggle to stabilise its relatively high government debt to gross domestic product ratio by 2013, and lowered its rating on Spain.
We had a debt to gross domestic product ratio of only 18.
According to the international monetary fund (IMF), Dubai's debt to gross domestic product ratio stood at 100 percent in 2013.
Singapore's household debt to gross domestic product ratio is at 77.
Japan has the highest public debt to gross domestic product ratio among industrialized nations.
It has a shocking 250 per cent debt to gross domestic product ratio and a trillion dollar 'shadow banking system'.
INDIA'S high fiscal and debt to gross domestic product ratios are the main constraints to a sovereign ratings upgrade, Standard & Poor's ( S& P) credit analyst Agost Benard said in an interview with CNBC- TV18 on Friday.