debt-to-GDP ratio

In economics, the debt-to-GDP ratio is the ratio of a country's accumulation of government debt to its gross domestic product (GDP). A low debt-to-GDP ratio indicates that an economy produces goods and services sufficient to pay back debts without incurring further debt. Geopolitical and economic considerations – including interest rates, war, recessions, and other variables – influence the borrowing practices of a nation and the choice to incur further debt. Economists and international institu