Debt-to-Gdp Ratio: Debt Consumer and Percentage Points

debt-to-gdp ratio: The total includes all forms of debt consumer, business and government and illustrates the pressure on all parts of the economy to honour debt payments, mostly to banks and international investment funds, according to The Guardian. On average, the debt-to-GDP ratio of the 100 countries affected increased by seven percentage points each year nearly three times as fast as it did during the Latin America debt crisis of the 1980s. The analysis in Global Waves of Debt, a study of the four significant episodes of debt accumulation since 1970, found the debt-to-GDP ratio of developing countries had climbed 54 percentage points to 168% since the debt buildup began in 2010. Ceyla Pazarba io lu, the World Bank's vice-president for equitable growth, finance and institutions, said History shows that large debt surges often coincide with financial crises in developing countries, at great cost to the population. According to the report, the widespread adoption of historically low interest rates since 2008 by central banks to tackle low inflation has mitigated the risk of a crisis for now . But the report argued the record of the past 50 years highlighted the dangers of presuming interest rates and inflation would remain low. Policymakers should act promptly to enhance debt sustainability and reduce exposure to economic shocks. (news.financializer.com). As reported in the news.