Government & Fiscal
Government debt-to-GDP ratio
The debt-to-GDP ratio compares a government's total outstanding debt to the size of its economy, expressed as a percentage. A ratio of 100% means accumulated public debt equals one full year of the country's economic output; it's the standard shorthand for how much fiscal room a government has left before debt service becomes a strain.
Why it matters
It's watched alongside the budget balance to judge fiscal sustainability, not just the current year's deficit.
Also known as: public debt ratio, debt-to-GDP