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Ratio in sentence

1146 examples of Ratio in a sentence

For example, French banks’ risk-weighted assets are €2.2 trillion, against a capital base of €167 billion – just above the 7.5% ratio established by the international Basel 2 rules.
But, once risk weights are removed, assets balloon to €8.1 trillion (roughly 400% of GDP), and the equity-to-asset ratio plummets to 2%.
First, over the last 30 years, the ratio of wealth to income has steadily increased.
Piketty observes a rising wealth-to-income ratio from 1970 to 2010 – a period divided by a significant change in the monetary environment.
During that period, the wealth-to-income ratio increased only modestly, if at all, in these countries.
In Europe, Piketty singles out Italy as the country where the wealth-to-income ratio rose the most, to about 680% in 2010, compared to 230% in 1970.
Germany appears to be a more “virtuous” country, with a wealth-to-income ratio of 400%, up from 210% in 1970.
The declining ratio of the dependent population (children and the elderly) to the working-age population (16-64 years old) contributed 26.8% to per capita GDP growth in 1982-2000.
But, according to conservative estimates, the dependency ratio will stop falling in 2013 and then begin rising.
South Korea and Thailand will soon face a rising dependency ratio as well, but their per capita GDP is higher than China’s – three times higher in the case of South Korea.
Although the US debt-to-GDP ratio doubled in the past decade, the Obama administration and Congress ignored the problem, focusing instead on the annual deficit’s decline since 2012 and the relative stability of the deficit as a share of GDP.
But the longer-term rise in the annual deficits – owing to an aging population, changing medical technology, and rising interest rates – and the resulting increase in the debt-to-GDP ratio were inevitable (and were clearly predicted by the CBO and others).
With a federal debt of 141% of GDP, that 5.8%-of-GDP interest cost implies an average nominal interest rate of just 4% and, given the CBO’s inflation forecast, a real interest rate of about 2% – similar to historic rates when the debt ratio was less than 40% of GDP.
The bright spot in this bleak picture is that it would not take much in terms of annual deficit reductions to prevent the rise in the debt ratio, or even to bring it back to where it was a decade ago.
Reducing the annual deficit by 1.7% of GDP by any combination of reduced spending and higher revenue would, if begun in 2017, prevent an increase from the current 75% debt-to-GDP ratio.
At the same time, China is targeting a research-and-development share of GDP of 2.2% by 2015 – double the ratio in 2002.
Based on current economic assumptions, the US needs about $4 trillion in savings to stabilize the debt/GDP ratio over the next decade.
Although it could stabilize the debt/GDP ratio, the sequester would be a mistake: it fails to distinguish among spending priorities, would undermine essential programs, and would mean another significant dent in growth this year.
The US economy grew rapidly for several years after WWII with a higher debt/GDP ratio, and today’s ratio is lower than in all other major industrial countries (and roughly half that of Greece, analogies to which are absurd and misleading).
During the last two years, Washington has been obsessed with the need to cut the deficit and put the debt/GDP ratio on a “sustainable” path, even as global investors have flocked to US government debt, driving interest rates to historic lows.
Permanent tax cuts and those on marginal rates have proved more likely to increase growth than spending increases or temporary, infra-marginal tax rebates; successful fiscal consolidations have emphasized spending cuts over tax hikes by a ratio of five or six to one; and spending cuts have been less likely than tax increases to cause recessions in OECD countries.
According to official price estimates (which are lower than market prices), the value of real estate in China has already reached 261% of GDP – similar to the ratio in the United States.
For an investor, the rate of return is the sum of the rate of appreciation and the rent-price ratio, so the low rent-price ratio reduces the advantage of faster appreciation.
The S&P 500 price/earnings ratio is gradually climbing back to its long-term average of 16.
According to a study by the Chinese Academy of Social Sciences, the debt/GDP ratio for China’s nonfinancial corporations was 113% by the end of 2012.
There is no indication that the ratio will decline anytime soon, which is particularly worrisome, given the low profitability and high borrowing costs that China’s industrial enterprises face.
For example, if companies reduce investment, they will weaken growth and boost their leverage ratio further.
For starters, no one knows at what corporate leverage ratio a crisis will be triggered.
In 1996, when Japan’s public debt/GDP ratio reached 80%, many Japanese economists and officials worried about a looming crisis.
Almost two decades later, the ratio has surpassed 200% – and still no crisis has erupted.
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