Debt-to-GDP Ratio
The debt-to-GDP ratio is a measure of a country’s total debt in relation to its gross domestic product (GDP). It is used to assess the sustainability of a country’s debt burden and is an important indicator of a country’s economic health. A high debt-to-GDP ratio indicates that a country is heavily reliant on debt to finance its economic activities, while a low ratio suggests that a country is able to manage its debt burden more effectively.
History of the Term
The debt-to-GDP ratio has been used as an economic indicator since the early 20th century. It was first used by the British economist John Maynard Keynes in his 1936 book The General Theory of Employment, Interest and Money. Since then, the ratio has been widely used by economists, governments, and international organizations to assess the sustainability of a country’s debt burden.
Comparison Table
| Country | Debt-to-GDP Ratio (%) |
|---|---|
| United States | 106.2 |
| Japan | 237.3 |
| Germany | 60.2 |
| China | 51.1 |
| United Kingdom | 86.3 |
Summary
The debt-to-GDP ratio is an important indicator of a country’s economic health. It is used to assess the sustainability of a country’s debt burden and has been used as an economic indicator since the early 20th century. For more information about the debt-to-GDP ratio, you can visit the websites of the International Monetary Fund, the World Bank, and the Organization for Economic Cooperation and Development.
See Also
- Gross Domestic Product (GDP)
- Public Debt
- Fiscal Deficit
- Government Spending
- Budget Deficit
- National Debt
- Debt Service Ratio
- Debt-to-Income Ratio
- Debt-to-Equity Ratio
- Debt-to-Asset Ratio
