What is GCC government debt compared to GDP?
Since 2015, GCC governments have issued sovereign debt to fund the gap between revenue and expenditure; as well as draw down savings.
In the case of Saudi Arabia, Kuwait and Qatar, although debt as a % of GDP has risen, it remains at relatively low levels by international standards. U.S. federal debt held by the public stands at 78% of GDP; the equivalent number in the UK is 86%.
There is no real consensus on what is an appropriate level of debt-to-GDP. The Maastricht Treaty of 1992, which laid the groundwork for the Euro, set a cap of 60%. However, many of the Eurozone countries have long-since exceeded that level.