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Debt-to-GDP ratio

The Debt-to-GDP ratio is a metric that compares a country's total government debt to its gross domestic product, expressed as a percentage. It is used to assess a country's ability to repay its debts, with higher ratios generally indicating greater fiscal risk and potentially impacting currency values and bond yields.

Example

Japan's debt-to-GDP ratio exceeds 250%, making it one of the highest in the world, though the yen remains relatively stable due to domestic bond ownership.