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 ?
Egypt succeeded in reducing the government debt to GDP ratio to 90.5 percent by the end of June, compared to 98 in the same month last year.
The journalist reflected on countries like Djibouti saying that the debt to GDP ratio it owes China stands at 77 percent raising fears that China will take over one of Djibouti's ports.
BRUSSELS, July 19 (KUNA) -- At the end of the first quarter of 2019, the government debt to GDP ratio in the European Union (EU) increased from 80.0 percent to 80.7 percent at the end of the fourth quarter of 2018.
This represents a debt to GDP ratio of 57.1 per cent.
With this, the best way to check how well can do so is to monitor our Debt to GDP ratio, which mea-sures debt as a percentage of GDP or an economy's ability to grow.
ISLAMABAD -- Asserting that the Debt to GDP ratio has hiked beyond the Fiscal Responsibility and Debt Limitation (FRDL), Finance Minister Asad Umar said on Wednesday that the government would reduce it gradually and put it in a better position at the completion of its tenure in 2023, compared to what it had received when assumed power in 2018.
The hydropower debt to GDP ratio, therefore, is also expected to decline from 73%of GDP to 60% by the end of 12th Plan.
the debt to GDP ratio that was known when the yields were determined in the market.
IndiaaACAOs debt to GDP ratio was 46.5 per cent in 2017-18.
Compared with the second quarter of 2018, six Member States registered an increase in their debt to GDP ratio in Q3 2018, 19 a decrease and the ratio remained stable in three Member States.
He said having a debt to GDP ratio of 60 percent or lower was still considered 'healthy.'
Its ratings balance high public sector indebtedness (with the government debt to GDP ratio more than double the 'AA' median) against high income per capita and macroeconomic stability, a still substantial net external creditor position, and strong governance indicators.