G20 Debt and Credit Rating Infographic

In this final installment of OANDA’s series of infographics detailing sovereign debt and credit ratings, attention turns this time to the G20 countries. This group includes the world’s largest economies together with several emerging nations poised to play a greater role in global economic matters. The G20 meets regularly to discuss pressing worldwide monetary issues with the first summit convened to address the 2007 financial crisis.

It is interesting to note that the original members of the G7 industrial nations are clustered around the top two credit rating levels, yet, for the most part, have much higher debt-to-GDP ratios than the lower-ranking countries. This is explained largely by the strength of these economies and their ability to weather economic downturns.

The lower risk these countries represent means investors are willing to accept lower yields in return for greater safety for their investment. In the graphic, the 10-year bond yield – where available – is represented by the anchor dragging behind each economy. The bigger the anchor, the greater the drag on the economy.

Created by OANDA

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