Public Debt Sustainability Assessments for Developing Asia

  • Benno Ferrarini
  • Arief Ramayandi
Part of the India Studies in Business and Economics book series (ISBE)


This paper discusses the evolution of fiscal balances and public debt ratios in developing Asia from the mid-1990s to 2010 and investigates the conditions for public debt sustainability in the region. The economies in this region have derived great benefits from having relied on rapid economic growth and low interest rates, which together have been exerting a persistent downward pressure on debt ratios. The main emphasis is on the historical and prospective evolution of public debt indicators under different macroeconomic assumptions. The discussion revolves around debt sustainability implications of a negative interest rate–growth differential, a characteristic of the macroeconomic environment in Asia during the last two decades. The debt sustainability analysis shows overwhelming evidence of a generally benign outlook for public debt sustainability in the region.


Fiscal Policy Public Debt Global Financial Crisis Debt Ratio Asian Development Bank 
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Copyright information

© Springer India 2016

Authors and Affiliations

  1. 1.Macroeconomics Research Division, Economic Research and Regional Cooperation DepartmentAsian Development BankManilaPhilippines

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