Debt-to-GDP Ratio

Ratio of gross government debt to annual output; the standard scale for comparing sovereign debt burdens.

Specifications & Metrics

type

Coincident

frequency

Quarterly

publisher

IMF World Economic Outlook; national accounts

Core Principles & Analysis

• The Maastricht criteria capped euro-area deficits at 3 percent of GDP and debt at 60 percent.
• When the interest rate exceeds the growth rate, the ratio rises even with a balanced primary budget.
• Reinhart and Rogoff's 2010 growth-threshold claim shaped austerity debate and later drew data corrections.

Sources

• Wikipedia: Debt-to-GDP ratio