Phnom Penh (FN), Nov. 22 – The government debt-to-GDP ratio is a key measure of financial health, reflecting debt management capacity, fiscal flexibility, and investor confidence.

Low debt ratios, like Brunei's, result in favourable scores, while high ratios, like Japan's, lead to lower scores. High ratios can undermine confidence, limit fiscal options, and slow economic growth.

However, debt ratios may not reveal underlying issues. For example, China’s federal debt appears stable, but high local debt poses risks to its financial stability.

This article was originally published on Voronoiapp.
=FRESH NEWS