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 ?
The good news, however, is the slight improvement in the external debt-to-gross domestic product ratio the sole external indicator that showed an upturn.
Similarly, the external debt-to-gross domestic product ratio weakened from 18.
At the same time, its debt-to-gross domestic product ratio, at around 25 per cent, is less than a third of the debt ratio in Europe or the US.
The public debt-to-gross domestic product ratio has declined, despite the large budgetary costs of implementing the new constitution, preparing for the March elections, and the recent wage increases in the civil service.
Juncker has clashed publicly with Lagarde over extending Greece's agreed debt-to-gross domestic product ratio target.
The credit rating agency pointed to the estimates of the country's debt-to-gross domestic product ratio, which is expected to reach 77% by 2020, saying they were too low and the ratio would be well above 100% by the end of the decade if the general government measure was used.
Lebanon's debt-to-gross domestic product ratio dipped to 162 percent from 180 percent over the past three years, but at $47.
The only external indicator that showed slight improvement was the external debt-to-gross domestic product ratio that improved from 20.
Indonesia, Moody's said, had earned the bump following steps to bring down its debt-to-gross domestic product ratio as well as having a "well-managed financial system.
However debt-to-gross domestic product ratios in much of the region are in single digits.