r vs g in BRICS and major economies

A common rule of thumb economists use to think about the trajectory for government debt is that it tends to rise when borrowing costs are higher than economic growth (so-called r > g). For more than a decade, r has been higher than g in South Africa, with the government debt-to-GDP ratio rising substantially. The opposite has been true in economies such as Australia, Canada, China, India or the United States, particularly before the COVID-19 pandemic.

 

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