## Figure 1.25. Group of Twenty Nonfinancial Private Sector Credit and Debt Service Ratios

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**Canonical URL:** [Figure 1.25. Group of Twenty Nonfinancial Private Sector Credit and Debt Service Ratios](https://www.imf.org/-/media/files/publications/gfsr/2017/october/chapter-1/pdf-data/figure1-25.pdf)

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### Change in Private Nonfinancial Sector Debt and Debt Service Ratios, 2006–16
- Change in debt service ratio (percentage points) plotted on horizontal axis with ticks at: –6, –4, –2, 0, 2, 4, 6, 8, 10.
- Change in debt to GDP (percentage points) plotted on vertical axis with ticks at: 0, 10, 20, 30, 40, 50, 60, 70, 80.
- In panel 1, the size of the circles is proportional to debt to GDP in 2016.
- Labels show ISO country codes for Group of Twenty economies, including: USA, GBR, KOR, JPN, ITA, DEU, FRA, CAN, AUS, TUR, ZAF, RUS, MEX, IDN, IND, CHN, BRA.

### Debt Service Ratios and Debt, 2016
- Debt service ratios are defined as annualized interest payments plus amortizations as a percentage of income, as calculated by the Bank for International Settlements.
- Income definitions used in panel 2: gross disposable income plus interest payments (plus dividends paid for firms).
- Vertical axis examples and ticks shown:
  - Nonfinancial companies: Deviation from mean, percentage points with ticks at 0, 100, 200, 300, 400, 500, 600, 700.
  - Households: Deviation from mean, percentage points with ticks at 40, 60, 80, 100, 120, 140, 160, 180.
  - Nonfinancial private sector: Deviation from mean, percentage points with ticks at 0, 50, 100, 150, 200, 250.
- Gross debt to income plotted (percent) with example tick values: 0, 20, 40, 60, 80, 100, 120.
- Caption emphasis: "Debt service ratios have increased with higher leverage, despite low interest rates."
- Caption further notes: "Debt service ratios in some countries are now at high levels ... in economies with credit booms ...... a  nd house price growth."

### Change in Credit-to-GDP Ratio (Panel 3)
- Change in credit-to-GDP ratio shown in percentage points with ticks and ranges including: –10, –5, 0, 5, 10, 15.
- Panel 3 compares Group of Twenty economies with higher demeaned nonfinancial private sector debt service ratios and debt levels against past booms.
- Past booms reference: sample of 43 advanced and emerging market economies where the credit-to-GDP gap rose above 10 percent.
- Start and end dates of past booms are defined as periods when the credit gap was above 6 percent.
- Financial crisis dates for past booms were taken from Laeven and Valencia 2012.
- The figure indicates averages for:
  - "Average of credit booms that did not lead to financial crises"
  - "Average of credit booms that led to financial crises"

### Cumulative Real House Price Growth (Panel 4)
- Cumulative real house price growth plotted in percent with ticks at: –10, 0, 10, 20, 30, 40, 50, 60, 70, 80.
- Relationship shown between house price growth and higher debt service and leverage across economies.

### Key observations visible in the figure
- Debt service ratios have increased with higher leverage, despite low interest rates.
- Debt service ratios in some countries are now at high levels.
- Economies with credit booms show elevated debt service ratios alongside cumulative real house price growth.
- Country groupings and repeated labels across panels include: USA, GBR, KOR, JPN, ITA, DEU, FRA, CAN, AUS, TUR, ZAF, RUS, MEX, IDN, IND, CHN, BRA.
- Specific country mentions in the figure body include: Canada, USA, Australia, China, Korea.

### Notes
- Data sources: Bank for International Settlements; Bloomberg Finance L.P.; national statistical offices; Organisation for Economic Co-operation and Development; and IMF staff calculations.
- Data labeling: Data labels in the figure use International Organization for Standardization (ISO) country codes.

*Source: IMF staff calculations, Bank for International Settlements, Bloomberg Finance L.P., national statistical offices, and OECD.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2017/october/chapter-1/pdf-data/figure1-25.pdf_