Ratio
in sentence
1146 examples of Ratio in a sentence
We measured the progress of each country’s stock-market by the level of stock-market capitalisation as a
ratio
to GDP in 1988, a decade before the late 1990s investment booms began.
In a shrinking economy, a country’s debt-to-GDP
ratio
rises rather than falls, and Europe’s recession-ridden crisis countries have now saved themselves into a depression, resulting in mass unemployment, alarming levels of poverty, and scant hope.
Yes, in theory, if buybacks help to boost the price-to-earnings ratio, that might help shareholders generally, all else being equal.
There is nothing progressive about large budget deficits and a rising debt-to-GDP
ratio.
Given massive global corporate debt and a soaring US stock market – the cyclically adjusted price-to-earnings
ratio
is high by historical standards – one possible trigger for a downturn in the coming years is a negative shock that could send securities tumbling.
Indeed, Italy boasted the lowest deficit-to-GDP
ratio
in the eurozone, and the Italian government had no problem refinancing at attractive interest rates.
Even if the Greek government were to succeed shortly in stabilizing its debt
ratio
(soon to reach 150% of GDP), it would be at too high a level to convince creditors to continue lending.
Greece will need to reduce its debt
ratio
considerably before it can return to the capital markets, which implies – even under an optimistic scenario – creating a primary surplus in excess of eight percentage points of GDP.
The McKinsey Global Institute recently estimated that world financial assets today are more than three times world GDP – triple the
ratio
in 1980 (and up from only two-thirds of world GDP after World War II).
If it loosens monetary policy further – by, say, cutting banks’ reserve requirement
ratio
– the momentum for restructuring could be lost; and there is no guarantee that the additional liquidity would flow into the real sector.
Finally, Chinese banks’ activities are impeded by outdated and unnecessary regulations, including limits on how much credit they can extend in a year and a 75% cap on the loan-to-deposit
ratio.
While it was necessary to price risk more accurately, it is difficult to believe that the Netherlands, with a debt
ratio
nearly 20 percentage points lower than Germany’s, deserves to be assessed as a higher default risk.
Back then, America urgently needed to rebalance the federal budget to rein in explosive growth in the debt/GDP ratio; to overhaul America’s extraordinarily expensive and inefficient health-care system; and to begin to deal with global warming via a slow ramp-up of a carbon tax.
The crisis led to a 30-percentage-point jump in the public-debt
ratio.
Turkey’s unemployment rate is currently at its lowest point in a decade, and the public-debt
ratio
is significantly below the pre-crisis level.
Regarding the banking sector, stress tests have been applied since 2004, and a target capital-adequacy
ratio
of 12% has been maintained since 2006.
Even if we look at current-account deficits relative to countries’ GDP, America’s 3.3%
ratio
exceeds that of almost every other economy.
They pledge allegiance to long-term fiscal responsibility, yet propose budgets with large deficits for years to come and big hikes in the debt-GDP
ratio.
The debt-GDP
ratio
varies a lot by country.
A Tale of Two Debt Write-DownsSINGAPORE – At the end of 2015, Greece’s public debt was 176% of GDP, while Japan’s debt
ratio
was 248%.
The rescue program for Greece launched that year assumed that a falling debt
ratio
could be achieved without any private debt write-offs.
After a huge restructuring of privately held debt in 2011, the
ratio
was forecast to reach 124% by 2020, a target the International Monetary Fund believed could be achieved, “but not with high probability.”
Today, the IMF believes that a debt
ratio
of 173% is possible by 2020, but only if Greece’s official European creditors grant significant further debt relief.
The 2010 program committed Greece to turn a primary fiscal deficit (excluding debt service) of 5% of GDP into a 6% surplus; but the austerity needed to deliver that consolidation produced a deep recession and a rising debt
ratio.
The IMF now proposes a more realistic 1.5%-of-GDP surplus, but that could put the debt
ratio
on a sustainable path only if combined with a significant write-down.
In fact, fiscal tightening on anything like this scale would produce a deep recession, increasing the debt
ratio.
The Japanese government has therefore abandoned its plan for an increase in sales tax in 2017, and the IMF has ceased publishing any scenario in which the debt
ratio
falls to some defined “sustainable” level.
The biggest problem is that such concentrated acquisitions have increased leverage, and a higher debt-equity
ratio
carries a greater risk of downgrading.
As the Nobel laureate Robert Shiller pointed out two weeks before the correction, the US cyclically adjusted price-to-earnings
ratio
has been higher than it is now only twice in the last century: at the peaks that preceded the stock-market crashes of 1929 and 2000-2002.
To see why, consider the tax rate necessary to pay for social benefits, which equals the replacement rate (the average level of benefits relative to taxpayer incomes) multiplied by the dependency
ratio
(the share of the population receiving the benefits).
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