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Romania among the few countries whose total debt reported to the GDP dropped starting with 2007
Romania is among the few countries which recorded a drop of the debt against the GDP starting with 2007 of 7 percentage points together with Israel, Egypte, Saudi Arabia and Argentina, as a result of the reduction of the debt of the companies by 35 percentage points according to McKinsey&Company.
In exchange, the governmental debt of Romania increased by 25 percentage points since 2007. As regards the debt of consumers, this increased by 1 point, while the debt of the financial sector droipped by 4% in the interval under analysis.
The analysis relies on the data available for 2007 and at the end of Q2 of the previous year for developed economies, while for the economies under development the category where Romania is included, the data corresponding to 2007 and 2013 are used.
Israel had the biggest decline of the national debt, of 22 percentage points being followed by Saudi Arabia with a drop of 14 percentage points and Argentina with a drop of 11 percentage points, according to the analysis made by the American consultancy company.
The biggest percentage increases of the total debt since 2007 to 2014 were given by Ireland (with 172 percentage points), Singapore (129 percentage points) and Portugal (100 percentage points).
As regards the level of the national debt against the GDP, Romania occupies place 39 among the 47 countries taken into consideration by the American consultancy company. Thus, Romania’s debt represented 104% of GDP in 2013 similar to Turkey.
The ranking is led by Japan with a debt of 400% ofGDP, followed by Ireland with a debt of 390% of GDP and Singapore with a debt of 382% of GDP.
At global level, the debt advanced by 57,000 billion dollars since 2007 up to the middle of last year and represented 286% of world GDP, according to the data of McKinsey&Company.The debt of the government at world level increased by 25,000 billion dollars in the analysed period, and the analysts of the consultancy company estimate that this will continue the evolution in Europe and Japan this year.
The study takes into consideration 22 advanced economies and 25 developing economies and analyses the evolution of the national debt, divided in four categories; governmental debt, companies outside the financial domain, private consumers and companies in the financial sector.