Debt to GDP ratio

✅ The Debt-to-GDP ratio is the ratio between a country’s government debt and its gross domestic product (GDP).

✅ It measures the financial leverage of an economy.

✅ A country able to continue paying interest on its debt-without refinancing, and without hampering economic growth, is generally considered to be stable.

✅ A country with a high debt-to-GDP ratio typically has trouble paying off external debts (also called “public debts”), which are any balances owed to outside lenders.

✅ A low debt-to-GDP ratio indicates an economy that produces and sells goods and services sufficient to pay back debts without incurring further debt.