The household debt to GDP ratio is a measure of the total amount of debt that households owe as a percentage of the country's gross domestic product (GDP). A high household debt to GDP ratio can be a sign of financial vulnerability, as it means that households are struggling to make their debt payments. This can lead to a decline in economic activity, as households may reduce their spending in order to make their debt payments.
As you can see, the household debt to GDP ratio varies widely across G-20 countries. Switzerland has the highest ratio, with households owing more than 129% of GDP. At the other end of the spectrum, Argentina has the lowest ratio, with households owing less than 5% of GDP.
There are a number of factors that can contribute to a high household debt to GDP ratio. These include:
- Low interest rates: Low interest rates make it easier for households to borrow money, which can lead to an increase in borrowing.
- Rising house prices: Rising house prices can make it easier for households to borrow money against the value of their homes.
- Loose lending standards: Loose lending standards make it easier for households to borrow money, even if they may not be able to afford to repay the loans.
A high household debt to GDP ratio can have a number of negative consequences, including:
- A decline in economic activity: If households are struggling to make their debt payments, they may reduce their spending. This can lead to a decline in economic activity.
- A financial crisis: If a large number of households default on their loans, it can lead to a financial crisis.
Governments can take a number of steps to reduce household debt, including:
- Raising interest rates: Raising interest rates can make it more expensive for households to borrow money, which can help to reduce borrowing.
- Tightening lending standards: Tightening lending standards can make it more difficult for households to borrow money, which can help to reduce the number of households that are over-borrowed.
- Providing financial education: Providing financial education to households can help them to make better decisions about borrowing and debt.
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| | Country | Current | Previous | Reference | Unit | Difference |
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| 0 | Switzerland | 129 | 129 | Sep/22 | % | 0 |
| 1 | Australia | 114 | 116 | Sep/22 | % | -2 |
| 2 | South Korea | 105 | 106 | Sep/22 | % | -1 |
| 3 | Canada | 103 | 104 | Dec/22 | % | -1 |
| 4 | Netherlands | 97.2 | 98.6 | Sep/22 | % | -1.4 |
| 5 | United Kingdom | 84.5 | 83.9 | Sep/22 | % | 0.6 |
| 6 | United States | 75.2 | 75.5 | Sep/22 | % | -0.3 |
| 7 | Japan | 67.9 | 67.8 | Sep/22 | % | 0.1 |
| 8 | France | 66.5 | 66.4 | Sep/22 | % | 0.1 |
| 9 | China | 61.4 | 61.3 | Sep/22 | % | 0.1 |
| 10 | Euro Area | 58.3 | 58.8 | Sep/22 | % | -0.5 |
| 11 | Germany | 55.7 | 55.9 | Sep/22 | % | -0.2 |
| 12 | Spain | 54.3 | 56.3 | Sep/22 | % | -2 |
| 13 | Singapore | 49.9 | 56.2 | Sep/22 | % | -6.3 |
| 14 | Italy | 42.6 | 42.8 | Sep/22 | % | -0.2 |
| 15 | India | 35.5 | 35.5 | Sep/22 | % | 0 |
| 16 | Brazil | 34.2 | 33.6 | Sep/22 | % | 0.6 |
| 17 | South Africa | 34.1 | 34.5 | Sep/22 | % | -0.4 |
| 18 | Russia | 21 | 21.4 | Sep/22 | % | -0.4 |
| 19 | Mexico | 16.6 | 16.3 | Sep/22 | % | 0.3 |
| 20 | Indonesia | 16.3 | 16.5 | Sep/22 | % | -0.2 |
| 21 | Saudi Arabia | 13.1 | 14.2 | Sep/22 | % | -1.1 |
| 22 | Turkey | 11.3 | 12.5 | Sep/22 | % | -1.2 |
| 23 | Argentina | 4.1 | 4.4 | Sep/22 | % | -0.3 |
| 24 | Average | 56.2792 | 56.975 | | | -0.695833 |
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