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Debt-to-GDP ratio

Government debt set against a year of economic output — a measure of what the debt will be serviced out of.

How to read the number

The denominator does as much work as the numerator: inflation and growth shrink the ratio without a single unit of debt being repaid.

When the metric lies

Comparing countries on this ratio directly is misleading: one owes long, in its own currency, to its own citizens; another owes short and abroad.

Also known as: debt ratio

Related terms