This project provides an insightful data visualization of the Central Government Debt as a percentage of Gross Domestic Product (GDP) for the South Asian countries: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
The shaded regions provide a visual representation of the central government debt relative to GDP that emphasizes periods of higher indebtedness.
Data Source: IMF Data Mapper 2022
Graph by: Nischal Dhungel
Data Source: IMF Data Mapper 2022
Graph by: Nischal Dhungel
In 2022, among Emerging Market and Developing Economies (EMDEs) regions, South Asia recorded the highest government debt-to-GDP ratio, with an average of 86 percent.
Source: World Bank South Asia Update, October 2023
Source: World Bank South Asia Update, October 2023
Sovereign Default Risks in the Region
Source: World Bank South Asia Update, October 2023
Compiled by: Nischal Dhungel
Research spanning 44 countries over 50 years indicates a strong correlation between a debt-to-GDP ratio above 60% and default risk. This study also underscores the potential threat to long-term economic growth when debt crosses this mark.***
IMF Debt Sustainability Analysis for Low-Income Countries
Afghanistan: Faces a high risk of debt stress, indicating imminent financial challenges.
Bangladesh: Enjoys a low risk of debt stress, showcasing sustainable debt levels.
Bhutan: Holds a moderate risk, necessitating vigilant monitoring of its economic indicators.
Maldives: Positioned at high risk, signaling potential fiscal concerns in its current trajectory.
Nepal: Demonstrates a low-risk profile, suggesting a stable and controlled debt situation.
South Asia stands at a crossroads with its rich cultural heritage and vast economic potential. The region's central government debt scenario, marked by some alarming figures, warrants immediate attention. The path ahead is undeniably fraught with challenges. But with the right strategies and a commitment to the welfare of its people, South Asia can navigate its way toward stability and prosperity.
Notes and References
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