Ratio
in sentence
1146 examples of Ratio in a sentence
Indeed, the US current-account deficit is widening once again just as Germany’s current-account surplus is expected to hit a high of about 8.5% of GDP this year (about three times China’s ratio).
In the US (and the United Kingdom), the general government deficit today is still around 8% of GDP, compared to a little more than 3% of GDP in the eurozone, and the US debt/GDP
ratio
has increased by more than 41 percentage points, compared to “only” 25 points in the eurozone.
Others recommend monitoring the leverage ratio, particularly the
ratio
of capital to assets in the banking system, on the grounds that banks are the weak link in the financial chain.
To explain the rise in inequality that began in the 1980s and has accelerated since the turn of the century, many have pointed out that indicators of globalization, such as the trade-to-GDP ratio, have also risen since 1980.
The global trade-to-GDP
ratio
peaked in 2008 at 61%, after a 35-year climb, falling back to 56% by 2016 – at precisely the time when fear of globalization reached political fever pitch.
Why would business leaders invest in an uncertain world, rather than paying dividends to demanding (but generally risk-averse) investors, or buying back some of their companies’ own shares (thereby improving the price/earnings
ratio
and, better yet, increasing their own remuneration)?
The debt-to-GDP
ratio
has doubled in the last ten years, to 75%, and is projected to rise to nearly 100% during the coming decade.
With China’s trade-to-GDP
ratio
and exports-to-GDP
ratio
already exceeding 60% and 30%, respectively, the economy cannot continue to depend on external demand to sustain growth.
By 2050 the population of the 50 least developed countries is projected to double, and while the
ratio
of working-age to non-working-age people in Europe will fall to around 1.4, in the developing world it will be considerably higher.
With an annual growth rate of 10%, an investment rate of 50% implies a capital-output
ratio
of five, which is unusually high relative to other countries.
But this is hardly a trivial development for low-income families in the developing world, where the share of foodstuffs in household budgets – 46% in India and 33% in China – is 2-3 times the
ratio
in developed countries.
There is nothing wrong with imposing market discipline on countries that follow unsound policies, but the risk-reward
ratio
for lending and investing has shifted too far against the periphery.
With a 132% debt-to-GDP ratio, Italy’s public finances are precarious.
With a stagnant denominator, it is hard to reduce the debt-to-GDP ratio: the legacy of the past continues to weigh excessively on the present.
In Sub-Saharan African countries, for example, there are some 44 pupils for every qualified secondary school teacher, on average; for primary schools, the
ratio
is even worse, at 58 to one.
Instead, officials opted for a bank credit boom, which caused the debt-to-GDP
ratio
to rise from around 150% in 2008 to 250% by 2014.
Since price declines would bring with them wage declines, the
ratio
of monthly mortgage payments to wage income would rise.
In fact, the more comprehensive employment/population
ratio
stands at only 58.6%.
The case of Belgium is particularly instructive, because the risk premium on Belgian sovereign debt has remained modest throughout most of the euro crisis, although the country’s debt/GDP
ratio
is above the eurozone average, at around 100%, and it went without a government for more than a year.
An even starker example of the crucial difference between foreign and domestic debt is provided by Japan, which has by far the highest debt/GDP
ratio
among OECD countries.
First, it has often been pointed out that austerity can be self-defeating, because a reduction in the fiscal deficit can lead in the short run to an increase in the debt/GDP
ratio
if both the debt level and the multiplier are large.
The economy is contracting so much that the debt/GDP
ratio
is actually increasing, and the actual deficit is improving only marginally, because government revenues are falling along with GDP.
Indeed, German policymakers view as essential a reduction of Germany’s debt-to-GDP
ratio
toward the 60% ceiling set by European rules.
But the more critical issue concerns Brown's assumption that the tax/GDP
ratio
will rise in coming years.
Not only is the Pact's fixed 3% limit for the
ratio
of budget deficit to GDP arbitrary, but it also ignores the fact that when an economy slows, deficits increase automatically.
The US and Japan also have heavier debt burdens: the debt-to-GDP
ratio
stands at 107% in the US and more than 200% in Japan, compared to 90% in the eurozone.
Another consequence of China’s skewed growth model has been a decline in household income as a share of GDP, from 70% in 1990 to 60% in 2009, whereas in the US, for example, the
ratio
has remained stable, at around 80% of GDP.
If you deliberately aim to shrink your GDP, your debt-to-GDP
ratio
is bound to grow.
If it stays at that level, the debt
ratio
would eventually rise to 125%.
But if the US debt
ratio
really is on the fast track to triple-digit levels, investors in the US and abroad may rightly fear that the government has lost control of the budget process.
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