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 ?
Kenya's total debt to Gross Domestic Product ratio has marginally dropped, despite the country's increasing appetite for loans.
When the euro was launched in 1999, Italy had a public debt to gross domestic product ratio of 105 per cent; today it is 133 per cent.
The public debt to gross domestic product ratio is projected to decline to 105.3 per cent next year, according to the finance ministry's September figures, which revised an initial 101.5 per cent April forecast.
The total debt to Gross Domestic Product ratio of Swaziland was 16.9% in 2013/14, and then increasing to 17.8% in 2014/15, revealed the African Economic Outlook report.
It has a shocking 250 per cent debt to gross domestic product ratio and a trillion dollar 'shadow banking system'.
Oman's continued robust fiscal position witnessed in 2013 was also validated in terms of debt to gross domestic product ratio as it stood at 4.9 per cent as well as in terms of debt services ratio, measuring 0.5 per cent last year.
According to the international monetary fund (IMF), Dubai's debt to gross domestic product ratio stood at 100 percent in 2013.
Singapore's household debt to gross domestic product ratio is at 77.2 percent as of end of March 2013, just below Malaysia's 83 percent that was recorded in March 2012.
"Additional measures, if necessary" are not to be excluded at a later date in order to meet the 2020 target of bringing the debt to gross domestic product ratio down to 124%.
Japan has the highest public debt to gross domestic product ratio among industrialized nations.
Russia's current foreign debt to gross domestic product ratio of 11.2 percent is one of the lowest among the world's major nations.
S&P also downgraded Portugal, saying it could struggle to stabilise its relatively high government debt to gross domestic product ratio by 2013, and lowered its rating on Spain.