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 ?
The debt to GDP ratios presented in the original report calculated a constant GDP series (2006 base) as followsJune 2014: $7,945.
Following these corrections, public debt to GDP ratios are now estimated as follows: 76.
The second projection estimates how much consolidation the Czech Republic and Slovakia would have to undertake if they aimed to keep their public debt to GDP ratios at current levels.
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.
This allowed them to calculate the required degree of consolidation to maintain the debt to GDP ratio at its current level.
For Visegrad countries Uradnicek and Zimkova [16] using panel regression techniques have identified a threshold point at a debt to GDP ratio of 55%, above which further debt has no identifiable positive growth impact.
Surprisingly, only relatively scant attention has been paid to the analysis of reducing public debt to GDP ratios in macro-theoretical modeling.
t=0] [greater than or equal to] 0, and of debt to GDP ratios [{[b.
The transitional dynamics of the capital-output and of the debt to GDP ratio from a high to a lower debt to GDP ratio is traced out under the assumption that the target debt to GDP ratio and the length of the fiscal adjustment period are chosen outside of the model (exogenous fiscal retrenchment policy).
However, Frisch confined himself to analyzing the isolated dynamics of the public debt to GDP ratio and did not attempt to consider the consequences of fiscal retrenchment for private capital accumulation.
5% from its pre-election lows, underpinning lower public debt to GDP ratios.