S. Korea’s debt-to-GDP ratio rises to record high in 2012; the rate of combined debts to the nominal GDP was 283 percent in 2012, higher than the 227 percent for the 1998-99 Asian foreign exchange crisis and the 278 percent in 2009 when the global financial crisis peaked
March 27, 2013 Leave a comment
S. Korea’s debt-to-GDP ratio rises to record high in 2012
English.news.cn 2013-03-27
SEOUL, March 27 (Xinhua) — The ratio of South Korea‘s total debt to gross domestic product (GDP) rose to a record high last year, boosting concerns over lack of capabilities to repay massive debts, central bank data showed Wednesday. Combined debts of households, companies and the government were 3,607.3 trillion won (3.25 trillion U.S. dollars) as of the end of 2012, according to the Bank of Korea (BOK) data. The rate of combined debts to the nominal GDP was 283 percent in 2012, the highest since the related data began to be compiled. The figure was higher than the 227 percent for the 1998-99 Asian foreign exchange crisis and the 278 percent in 2009 when the global financial crisis peaked. The ratio continued to rise from 221 percent in 2003, 236 percent in 2006 and 274 percent in 2008. The rapid rise was attributed to a faster growth in debts than economic output, boosting concerns that the Asia’s No.4 economy may fail to pay back debts amid slowing economic growth and its consequent low income gain.
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