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Debt-to-GDP Ratio

det-tuh-jee-dee-PEE RAY-shee-oh

/dɛt tuː dʒiː diː ˈpiː ˈreɪʃiːoʊ/

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Syllable breakdown

debttoGDPratio

Dictionary meaning

A key metric comparing a country's total public debt to its gross domestic product; used to assess fiscal sustainability, with higher ratios generally indicating greater vulnerability to default or market pressure

Examples

  • Japan's debt-to-GDP ratio exceeds 250%, the highest among advanced economies, yet it has avoided a debt crisis partly because most debt is held domestically.
  • The EU's Stability and Growth Pact sets a 60% debt-to-GDP ratio as the reference value for member states.

Synonyms: public debt ratio, debt/GDP ratio, national debt as share of GDP

Pronunciation tips

Spell out GDP as three letters when reading aloud; stress 'RAY-shee-oh' not 'rash-oh'

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