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Debt-to-GDP Ratio |
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Debt-to-GDP Ratio A measure of a country's federal debt in relation to its gross domestic product (GDP). By comparing what a country owes and what it produces, the debt-to-GDP ratio indicates the country's ability to pay back its debt. The ratio is a coverage ratio on a national level. Notes: This measure gives an idea of the ability of a country to make future payments on its debt. If a country were unable to pay its debt, it would default, which could cause a panic in the domestic and international markets. The higher the debt-to-GDP ratio, the less likely the country will pay its debt back, and the higher its risk of default. |
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? Mentioned in | ? References in periodicals archive | |
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| This feat has allowed Brazil to gradually reduce its public debt-to-GDP ratio as well as to improve the structure of that debt. There are two really important pillars to Brazil's economy: The debt-to-GDP ratio and beating back inflation. While the government debt-to-GDP ratio of 40% is in line with the 'BB' median, the debt-to-revenue ratio of over 200% is considerably higher than the 'BB' median and highlights the narrowness of the country's revenue base. |
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