debt-to-GDP
National borrowing ratio
Debt-to-GDP is a ratio comparing a country’s total government debt to its gross domestic product (GDP), expressed as a percentage.
It gauges a nation’s ability to repay debt by measuring its economic output relative to its liabilities.
Historically, post-World War II debt-to-GDP ratios in developed nations surged above 100% due to reconstruction costs.
The Maastricht Treaty set a 60% debt-to-GDP limit for EU member states, though many countries exceed this threshold.
High ratios can trigger downgrades in sovereign credit ratings, increasing borrowing costs.
Japan’s debt-to-GDP ratio exceeds 200%, the highest among major economies.
Cannot be maintained indefinitely
- restructuringRearranging an existing framework
- austerityEnforced economic stringency
- bailoutEmergency aid preventing bankruptcy
- bond yieldsReturns on debt instruments
credit downgrade · insolvency · fiscal cliff · capital flight · currency crisis · contagion · haircut · jubilee
Expenditures funded by debt
- government borrowingState taking on debt
- budget balanceRevenue equaling expenditure
- fiscal policyState spending and taxation
- economic indicatorStatistic measuring market health
Monetary union sharing currency
- emerging marketsRapidly growing economies
- developing nationsCountries with lower economic output
- G20Top economies' coordination body
- cross-countryTraversing wide natural terrain
Proportion out of hundred
- time seriesChronologically ordered observations
- trend analysisExamining directional data shifts
- numeratorNumber being divided
- consolidationCombining into unified whole
unsustainable
Cannot be maintained indefinitely
- restructuringRearranging an existing framework
- austerityEnforced economic stringency
- bailoutEmergency aid preventing bankruptcy
bond yields · credit downgrade · insolvency · fiscal cliff · capital flight · currency crisis · contagion · haircut · jubilee · liquidity crisis
deficit spending
Expenditures funded by debt
- government borrowingState taking on debt
- budget balanceRevenue equaling expenditure
- fiscal policyState spending and taxation
economic indicator · creditworthiness · bond markets · treasury · public sector
eurozone
Monetary union sharing currency
- emerging marketsRapidly growing economies
- developing nationsCountries with lower economic output
- G20Top economies' coordination body
percentage
Proportion out of hundred
- time seriesChronologically ordered observations
- trend analysisExamining directional data shifts
- numeratorNumber being divided
- public debtgovernment bonds, treasury notes, treasury bonds, treasury securities, government borrowing
- sovereign debtgovernment bonds, treasury notes, T-bills, treasury bonds, gilt