It is more meaningful to measure the growth of the public debt relative to the GDP than to measure it in absolute terms.

Question

Quizplus · Accepted Answer

Measuring the growth of public debt relative to the GDP provides a more accurate understanding of a country's ability to service its debt as it takes into account the size of the economy. Absolute terms can be misleading as a larger nominal debt may not necessarily reflect a higher burden on the economy if the GDP has grown proportionally as well.

It Is More Meaningful to Measure the Growth of the Public