Iran’s debt-to-GDP halves in four years, IMF says

TEHRAN, May 16 (MNA) – The ratio of Iran’s foreign debts to its gross domestic production (debt-to-GDP) was 7 percent in 2008, half of the figure for 2005, the International Monetary Fund has reported.

An IMF Regional Economic Outlook Report says that as of 2005, Iran’s debt-to-GDP shows a decreasing trend and has reached seven percent in 2008, while the figure was above 14.3 percent in 2004. IMF predicted the figure will reach 6 percent in 2009, Fars News Agency reported.


The debt-to-GDP ratio of Iran in 2005, 2006, and 2007 were respectively 13.2 percent, 10.4 percent, and 9.4 percent.


IMF also said that in 2004, the average debt-to-GDP ratio of 11 countries of the Middle East was 35 percent, which has decreased to 25.1 percent in 2008.


In the region, Algeria stands in first place by decreasing its debt-to-GDP ratio from 37.5 percent in 2004 to 2.7 percent in 2008, followed by Libya with the figure of 5.6 percent in 2008. Iran is in third place in the region.


Other countries like Bahrain, Saudi Arabia, and the UAE have witnessed an increasing trend in their debt-to-GDP ratio in 2008.


In economics, particularly macroeconomics, various debt-to-GDP ratio can be calculated. The most commonly used ratio is the Government debt divided by the Gross Domestic Product (GDP), which reflects the government’s finances, while another common ratio is the total debt to GDP, which reflects the nation as a whole's finance.





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