Indicator ECO1.3.2 Debt ratio to GDP (inclusive of SOE generated debt)

No

The “Debt Ratio to GDP (Inclusive of SOE-Generated Debt)” indicator measures the ratio of a country’s total public debt, including debt generated by State-Owned Enterprises (SOEs), to its Gross Domestic Product (GDP). This indicator expresses the total public debt as a percentage of the country’s GDP, providing an overview of the debt burden relative to the size of the economy.

This indicator tracks the level of public debt, including liabilities incurred by SOEs, in relation to the overall economic output. The inclusion of SOE-generated debt in this measure ensures that all public sector liabilities are accounted for, offering a comprehensive view of the country’s debt obligations. The debt-to-GDP ratio is a widely used metric to assess a country’s ability to manage and repay its debt, as it relates the total debt to the economic output that can be leveraged for debt servicing.

Sector

Monitoring the debt ratio to GDP, including SOE-generated debt, is crucial for assessing the fiscal health and sustainability of a country. A high debt-to-GDP ratio may indicate that a country could face difficulties in meeting its debt obligations without compromising economic growth, while a lower ratio suggests a more manageable debt burden. Including SOE debt provides a fuller picture of potential liabilities that could impact the government’s finances.

To compute the “Debt Ratio to GDP (Inclusive of SOE-Generated Debt),” first collect data on the total public debt, including debt generated by State-Owned Enterprises (SOEs), and the GDP for the same reporting period. Then, calculate the debt-to-GDP ratio by dividing the total public debt by the GDP

Formula: Debt Ratio to GDP= Total Public Debt including SOE debt/GDP

17.4.1

Percentage

Annually