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 ?
Based on the assumptions of economic growth and budget revenue and spending as well as projected net debt financing for the period 2016-2018, government debt-to-GDP ratio is expected to reach about 28.
By comparing what a country owes to what it produces, the debt-to-GDP ratio indicates a country's ability to pay back its debt.
Italy's economy is only now showing signs of sustained growth and its debt-to-GDP ratio is above 132 percent, up from 130 percent in 2013 and 120 percent in 2010.
The kingdom's debt-to-GDP ratio stands at 136 % or an increase by 20 percentage points of GDP.
uCaDespite a reduction in the aggregate debt burdens across commodity groups from 1990-2012, our analysis shows that an increase in commodity prices raises the debt-to-GDP ratio for exporters of agricultural raw materials and metals, but lowers this ratio for fuel exporters, when controlling for time and country- specific factors;
public debt-to-GDP ratio was below 60 percent and falling, after having peaked in 1946 when war financing brought it to a level of 121 percent.
Despite this, the public debt-to-GDP ratio at end-2013 was close to 48 percent, up from 35 percent in 2008.
Germany aimed to limit its debt-to-GDP ratio to below 60 percent, as requested by the Mstricht Treaty of European Union.
The debt-to-GDP ratio will peak at almost 90% in the EU and 96% in the euro area before falling next year.
The decline in Ukraine's fiscal strength, with an expected increase in the debt-to-GDP ratio to 55%-60% by the end of 2014 (from 40.
t] can be interpreted as the gross debt-to-GDP ratio (the beginning-of-period value of debt liabilities per person relative to GDP), and [l.