Ratio
in sentence
1146 examples of Ratio in a sentence
In Brazil, for example, the debt-to-GDP
ratio
is more than 80%, and debt burdens are growing in Colombia, Mexico, and Uruguay as well.
A conservative assessment by Louis Kuijs, working with the World Bank, shows that, from 1978 to 1994, China’s GDP grew by an average of 9.9% annually, labor productivity increased by 6.4%, TFP rose by 3%, and the capital-labor
ratio
increased by 2.9%.
In the period from 1994 to 2009, annual GDP growth averaged 9.6%, labor productivity increased by 8.6%, TFP increased by 2.7%, and the capital-labor
ratio
rose by 5.5%.
In Greece, for example, measures intended to lower the debt burden have in fact left the country more burdened than it was in 2010: the debt-to-GDP
ratio
has increased, owing to the bruising impact of fiscal austerity on output.
Indeed, according to the OECD, by the end of this year, America’s national debt/GDP
ratio
will climb to 108.6%.
Public debt in the eurozone stands at 99.1% of GDP, led by France, where the
ratio
is expected to reach 105.5%, and the United Kingdom, where it will reach 104.2%.
China’s debt, for example, has increased fourfold since 2007, and its debt-to-GDP
ratio
is some 282% – higher than in many other major economies, including the United States.
Similarly, India has a gender
ratio
at birth of around 110 boys for every 100 girls, with large regional variations.
Compare this to the natural
ratio
of 105 boys per 100 girls.
Although US federal debt is projected to rise at an unsustainable rate in the long term, the right solution is not fiscal belt-tightening now, but rather a credible plan to stabilize the debt/GDP
ratio
gradually as the economy recovers.
Although there are pockets of high unemployment in Europe today, the
ratio
of workers to elderly people will decline considerably in the longer term.
In the US, that
ratio
has remained relatively constant.
In all major economies, the debt-to-GDP
ratio
(including both public and private debt) is higher today than it was in 2007.
Already, 25-30% of bonds in these markets have been issued by companies at a higher risk of default (defined as having an interest-coverage
ratio
of less than 1.5).
Japanese governments have tried to overcome the slump with Hansen’s recipes, issuing one Keynesian program of deficit spending after the other and pushing the debt-to-GDP
ratio
from 64% in 1991 to 171% in 2008.
Moreover, these essential interventions cost little and deliver a lot: to enrich cooking oil with Vitamin A costs less than $0.10 per liter, and fortification in general has a benefit-to-cost
ratio
of at least eight to one.
One partial result of this is that production in Europe has in many places become more labor-intensive, with the capital-to-labor
ratio
tightening markedly.
Indeed, although Belgium’s debt
ratio
is above the euro area average (at around 100 % of GDP), the country still pays a risk premium of less than 100 basis points – despite being without a government for more than a year.
The “troika” institutions (the European Commission, the European Central Bank, and the International Monetary Fund) have, over the years, relied on a process of backward induction: They set a date (say, the year 2020) and a target for the
ratio
of nominal debt to national income (say, 120%) that must be achieved before money markets are deemed ready to lend to Greece at reasonable rates.
When fiscal consolidation turns on a predetermined debt
ratio
to be achieved at a predetermined point in the future, the primary surpluses needed to hit those targets are such that the effect on the private sector undermines the assumed growth rates and thus derails the planned fiscal path.
Instead, we should map out a forward-looking plan based on reasonable assumptions about the primary surpluses consistent with the rates of output growth, net investment, and export expansion that can stabilize Greece’s economy and debt
ratio.
If this means that the debt-to-GDP
ratio
will be higher than 120% in 2020, we devise smart ways to rationalize, re-profile, or restructure the debt – keeping in mind the aim of maximizing the effective present value that will be returned to Greece’s creditors.
Japan’s debt-to-GDP
ratio
now exceeds 150% of GDP (taking into account the large financial assets of the government-owned savings institutions), and continues to rise, owing to large fiscal deficits.
This brings us to a final key lesson from Japan: in a low-growth economy, the debt-to-GDP
ratio
can quickly spin of out control.
The deficit cap imposed by the Stability and Growth Pact (3% of GDP) seems to have had at least some impact in terms of stabilizing the debt
ratio.
So the
ratio
of central to regional votes is 1:0.7.
In fact, the
ratio
of federal to national votes in the ECB is 1:2.5.
With budget deficits that are projected to be 5% of GDP by the end of the coming decade, and a debt/GDP
ratio
that has roughly doubled in the past five years and is continuing to grow, the real interest rate on Treasuries should be significantly higher than it was in the past.
But warnings that the
ratio
of workers to retirees will fall from 2.1 to 1.3 overstate the case, because they arbitrarily define working age as ending at 65, and ignore the potential to increase retirement ages, as the Abe government is now doing.
If the average age at which people stopped working rose to 70, the
ratio
of workers to retirees would still fall, but only from 2.1 today to 1.8 in 2050.
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