Explore Australia's latest macroeconomic trends and forecasts to inform business strategy and pinpoint opportunities and risks

Australia’s External Debt to GDP Ratio (2010 - 2020, %)

  • Australia’s external debt in relation to its GDP was 112.4% in 2020 
  • External debt as a % of GDP of Australia increased by 3.7% from the previous year in 2020 
  • Between 2010 to 2020, the external debt as a % of GDP in Australia was highest in 2015 with 114.2% and was lowest in 2011 with 85.89% 

 

Australia External Debt as a % of GDP Highlights in 2020 

Australia’s external debt as a % of GDP hit 112.4% in 2020, an increase of 3.7% over the previous year. Between 2010 to 2020, Australia’s external debt as a % of GDP increased by 30.9%.  

According to the IMF, general government gross debt is forecast to increase from 57.3% of GDP in 2020 to 62.1% of GDP in 2021. According to the OECD, household debt as a percentage of net disposable income was 202.1% in 2020, compared to 186.0% in 2011. This increases systemic risk, as during an economic slowdown, high house prices cannot be sustained for very long and debt servicing becomes more expensive. 

Outlook on Global Economy 

Real GDP is measured using inflation-adjusted base year prices. Real GDP changes are a measure of economic growth and show whether there has been an increase or decrease in the volume of economic activity. 

According to real GDP, the world's top five economies are the United States, China, Japan, Germany, and India. After the US, China had the largest real GDP in 2021 with a value of $12.7 trillion in 2021. With a $6 trillion real GDP during the same period, Japan came in third place globally. Germany and India are the other two largest leading economies, with real GDPs of $3.8 trillion and $2.9 trillion, respectively. 

Factors Affecting the Global Economy 

A rise in COVID-19 cases:  

As a result of Omicron, a new variant of COVID-19, more cases have been reported worldwide, resulting in the disruption of supply chain management. However, the global vaccination drive has reduced the fatality rate from the coronavirus.   

Rising Inflation and Interest Rates:  

As a result of rising inflation rates in both developing and advanced economies, central banks have been forced to tighten monetary policy and raise interest rates to keep prices from rising. However, a steady increase in interest rates could cause financial distress in some economies. 

Explore Australia's latest macroeconomic trends and forecasts to inform business strategy and pinpoint opportunities and risks Explore Australia's latest macroeconomic trends and forecasts to inform business strategy and pinpoint opportunities and risks Visit Report Store
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