Page "Debt-to-GDP ratio" Paragraph 4

A low debt-to-GDP ratio indicates an economy that produces a large number of goods and services and probably profits that are high enough to pay back debts.

Governments aim for low debt-to-GDP ratios and can stand up to the risks involved by increasing debt as their economies have a higher GDP and profit margin.

The 2011 United States public debt-to-GDP ratio was about 69. 4 %.

The level of public debt in Japan in 2010 was 225. 8 % of GDP.

The level of public debt in Germany in the same year was 78. 8 % of GDP.

Almost a third of US public debt of USD 15 trillion is held by foreign countries, particularly China and Japan.

Conversely, fewer than 5 % of Japanese public debt is held by foreign countries.