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 ?
For example, the debt-GDP ratio of most developed countries ranges 80-100 per cent, and over 200 per cent for with Japan (IMF, 2015).
Any sign that the relevance of the 3% of GDP EU deficit criteria weakens as a fiscal anchor, or failure to stabilise the debt-GDP ratio in the medium term.
From a high of nearly 75 percent in 2004, debt-GDP ratio was drastically reduced to below 45 percent, owing to prudent debt management, fiscal discipline, and economic growth," the DOF said.
From a high of nearly 75 percent in 2004, Beltran said that debt-GDP ratio was "drastically" reduced to below 45 percent owing to prudent debt management, fiscal discipline, and economic growth.
The debt-GDP ratio will increase insignificantly in 2016 before stabilising next year and beginning to decrease in 2018.
Korea's household debt-GDP ratio was higher than the 74 percent average of advanced economies and more than doubled the 40 percent average among Asia's emerging economies.
Keywords: fiscal policy, federal debt, interest costs, debt-GDP ratio, health costs, entitlements
The federal debt headwind causes a decline in disposable income relative to total income as a result of cuts in benefits or increases in taxes needed to stabilize the federal debt-GDP ratio.
Thailand has seen one of the sharpest surges in household debt in the region, with the debt-GDP ratio rising from 60 per cent to 85 per cent over the past five years," Krystal Tan, an analyst with Capital Economics, told AFP.
8 per cent of nominal gross domestic product) and low debt-GDP ratio (6.
9 and India's external debt has remained within manageable limits as indicated by external debt-GDP ratio of 21.