IMF Report: Economies Dealing with Public Debt

IMF released a public report today analyzing economies dealing with public debt. It shows some alarming correlation between debt and GDP. The complete report can be downloaded from here [link]

I am still going through the 28page report, but few Point worth noting:

-> Since World War II, public debt
in advanced economies has climbed to its highest level.

Debt-to-GDP Ratio

In Japan, the United States, and several European countries, it now exceeds 100 percent of GDP. Below real picture og Debt-to-GDP ratio


-> After 15 years, the median  debt-to-GDP ratio is only about 10 percentage  points lower than in the first year after debt rises above 100 percent.

-> One particular concern with high public debt
ratios is that they may lower economic growth.
Several empirical papers document a negative  correlation between public debt and GDP growth, with some suggesting that a debt-to-GDP ratio of 90
percent or more may constrain growth