Government Debt to GDP

Government debt as a percent of GDP is considered as a measure of a country’s financial flexibility, as it relates to its capacity to perform future payments on its debt. The overall ratio can impact the country’s cost of borrowing in the international markets and current bond yields thus affecting the country’s borrowing costs and government bond yields. Under certain circumstances an extremely high figure can be negative for the currency, whereas in the opposite scenario it can be positive. Historically the index reached an all-time high of 100.60% in 1996 and a record low of 45.30% in 1980.