Public and publicly guaranteed debt service (% of GNI)

This financial indicator quantifies the proportion of a nation's gross national income allocated to servicing public debt and obligations backed by public entities. It encompasses all actual payments towards both principal and interest on long-term debts, reflecting the fiscal burden these commitments impose on economic resources. By measuring this debt service as a percentage of GNI, it offers critical insights into a country’s financial health and sustainability, illustrating the extent to which income is dedicated to debt obligations rather than productive investment or social services. High levels of debt service relative to GNI can signal potential economic vulnerabilities, limiting flexibility in fiscal policy and potentially impacting economic growth and stability. Source: