Government Debts Not as Daunting When Assets Are Mixed In

By Anonymous

Measuring debt against GDP doesn’t capture the full picture, according to IMF research that calls for factoring in what governments own, including natural resources

NUSA DUA, Indonesia—Lots of people worry about government debt. But they don’t really consider the assets that governments hold—and that should change, according to new research from the International Monetary Fund.

When comparing countries’ indebtedness, analysts traditionally use each government’s debt as a share of its national economy. But it turns out that some of the most indebted countries have massive asset holdings, against which their debts don’t appear nearly as onerous.