punisa
28th June 2011, 11:14
As situation heats up in Greece, can someone explain why is the ratio of GDP and external debt such an important factor? And why some numbers don't correspond...?
for example:
source 1)
http://edition.cnn.com/2011/BUSINESS/06/19/europe.debt.explainer/index.html?hpt=hp_t1
Amount of government debt as percent of annual GDP.
Lists FRANCE at 81,7 %
but here...
source 2)
http://en.wikipedia.org/wiki/List_of_countries_by_external_debt
List of countries by external debt
It says FRANCE is at 188% (???)
So what figures are correct? or do they mean something different?
Also, according to wikipedia Ireland has 1224% Debt-to-GDP ratio and Greece has 165%.
I'm no expert... but I can see how with strong measures of savings you can bring Greece's problem from 165% back to at least 100%, but what in the world will Ireland do about it?
BTW, Luxembourg has 4636%, but I guess that Lux is more of a corporate-banking state and thus these numbers are *somehow* normal..
for example:
source 1)
http://edition.cnn.com/2011/BUSINESS/06/19/europe.debt.explainer/index.html?hpt=hp_t1
Amount of government debt as percent of annual GDP.
Lists FRANCE at 81,7 %
but here...
source 2)
http://en.wikipedia.org/wiki/List_of_countries_by_external_debt
List of countries by external debt
It says FRANCE is at 188% (???)
So what figures are correct? or do they mean something different?
Also, according to wikipedia Ireland has 1224% Debt-to-GDP ratio and Greece has 165%.
I'm no expert... but I can see how with strong measures of savings you can bring Greece's problem from 165% back to at least 100%, but what in the world will Ireland do about it?
BTW, Luxembourg has 4636%, but I guess that Lux is more of a corporate-banking state and thus these numbers are *somehow* normal..