This indicator represents the proportion of domestic private debt securities outstanding in relation to a country's GDP, reflecting the borrowing and investment patterns of the private sector within domestic financial markets. It encompasses a range of instruments, including long-term bonds, notes, commercial papers, and other short-term debt obligations, providing a comprehensive snapshot of private sector financing. Data is aggregated as of year-end, specifically in December, to ensure consistency and relevance. To adjust for inflation and gain a real perspective of financial standing, the figures are deflated using a specific formula that accounts for both current and previous year Consumer Price Index (CPI) levels. This ratio serves as a crucial metric for assessing the
health and reliance on private debt, highlighting trends in private market activity and potential credit risks relative to economic output.
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