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 ?
The Ministry of Finance announced that the government aims to decrease the public debt-to-GDP ratio gradually over the next three years, to reach less than its level in 2011 by the end of the fiscal year (FY) 2021/22, the ministry stated in a press statement.
Among others, Paduano said that Rwanda's debt-to-GDP ratio is 53 percent, that Rwanda will spend more on paying interest-and have less to spend on basic services for its people.
In 2018, the debt-to-GDP ratio stood at 41.9 percent and the government had wanted to bring the share of debt to the economy to 38.6 percent by 2022.
Romer examine why the debt-to-GDP ratio is such a strong predictor of crisis response, and in particular the role of sovereign credit market access in damping the fiscal response.
Under Presi-dent Arroyo, the debt-to-GDP ratio was at 75 percent, going down to around 55 per-cent during the Aquino III administration, declining further in 2018 to 41.9 percent under the current Duterte administration.This debt-to-GDP ratio is expected to fur-ther decrease to 38.6 percent by 2022.
That's quite impressive, in contrast to other countries where we're seeing a rise in the public debt-to-GDP ratio," Moorty said.
The net debt-to-GDP ratio nets out the national government's cash balance from the country's debt level.
As of December 31, 2018, Viet Nams public debt-to-GDP ratio dipped to a five-year low of 58.4%.
ISLAMABAD -- The International Monetary Fund (IMF) on Wednesday forecast Pakistan's fiscal deficit continuously elevated at close to 8pc and deteriorating debt-to-GDP ratio to reach 86pc over the next five years.
Emerging Markets Consulting senior consultant Ngeth Chou on Wednesday said Cambodia's debt-to-GDP ratio, which is about 30 per cent, remains low risk.
'Early indications suggest that Pakistani authorities requested aid of $12 billion, which is almost twice as large as the previous bailout package of $6.6 billion in 2013.' The ratings agency said measures to strengthen the country's fiscal and debt dynamics will likely be a major cornerstone of the IMF deal, with the end goal of narrowing the budget deficit and stabilising the debt-to-GDP ratio through austerity measures.
Government and lawmaker Marlen Mamataliyev suggest increasing the debt-to-GDP ratio to 70%.