Household Debt is a topic I have looked at many times in Australia and the United Kingdom, but now I wonder how it compares in the Asian countries.
Malaysian Household Debt is in the news at the moment, and this has raised my curiosity about the region.
The governor of Malaysia’s Central Bank, “Bank Negara Malaysia“, had said that lending measures have been tightened after the Household Debt to GDP ratio hit 80 per cent last year.
How does this figure compare to the rest of the world?
Here is a list showing Household and Total Debt in Q2, 2011 for the world’s 10 largest economies, with a few of the figures for Household Debt in Asia in the central column.
|Household Debt to GDP Ratio
||Total Debt to GDP Ratio
80% Household Debt does not look too bad, when compared against the others above, coming in at about 5th place against the top 10 world economies.
However, a report from the Royal Bank of Scotland (RBS) stated that Malaysian household debt has now risen past 65 per cent of GDP.
Now for the other types of Debt to GDP ratio, for Malaysia and other countries in Asia, in 2011.
|Public debt as % of GDP
||Government debt as % of GDP
||External debt as % of GDP
Non Asian Comparison
- Debt to GDP Ratio = Gross Domestic Product divided by the amount of Debt.
- Household Debt = The total amount of money that all adults in a household owe to all financial institutions, including mortgages.
- Public Debt = The cumulative total of all government borrowings less repayments that are denominated in a country’s home currency.
- External Debt = The foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.
- National debt = Public sector debt.
- Gross Debt = Gross debt refers to all debt outstanding
- Net Debt = Net debt is the difference between gross debt and gross credits/assets
More Figures to be added
47.9% 2012 Sri Lanka External Debt to GDP Ratio
42.2% 2011 Sri Lanka External Debt to GDP Ratio
79.1% 2012 Sri Lanka Total debt to GDP ratio (Public Debt?)
US Debt in 2011
102.9% Gross US debt to GDP Ratio is 2011
67.8% Net US debt to GDP Ratio in 2011
UK National debt in 2012
82.5% UK Gross National Debt as % of GDP in 2012
67.0% UK Net National Debt as % of GDP in 2012
634.1 - 537,530