Debt-to-GDP Ratio

(redirected from Debt to GDP Ratios)

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 ?
Miftah said singling out one indicator was also not fair, otherwise Japan's debt was almost 120pc of GDP while many developing countries had 70-80pc debt to GDP ratios and were still doing well.
That, he said, was the reason that the debt limitation law talked about debt to GDP ratio and not about absolute debt numbers.
The advisor stressed that it was important that the size of the economy grows faster than debt to GDP ratio which was generally the case in Pakistan as the GDP is expected to grow by 6pc this year and 7-8pc in the coming years.
Figure 5 and table 1 show the public debt to GDP ratios for the Czech Republic's debt adjusting projection.
In the fairly recent past both countries recorded rather modest public debt to GDP ratios, compared to the majority of developed European Union members.
The OECD debt to GDP ratio stood at 79.9 per cent in 2008, and was expected to stabilize at 111.1 per cent in 2014.
We model the paths of the public debt to GDP ratio and the primary balance to GDP ratio up until 2022, under three different projections.