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This refers to the ratio between a country's government debt and its Gross Domestic Product (GDP). A low debt to GDP ratio suggests that a country's economy is producing goods and services that are sufficient to pay back the current debt, without incurring further debt. A study by the World Bank states that a ratio that exceeds 77%, for an extended period of time, will negatively impact a countries growth and economic prospects. Following the COVID-19 adjustments in the October 2020 mini-budget, the South African economy was projected to reach a debt-to-GDP ratio of 95% over the next three years, but that was later reduced to 89% in 2021 because tax collections were R100bn better than expected. In October 2024 the IMF projected that South Africa's debt to GDP ratio would rise to 93% in 2024 and reach 100% in 2030. Some first world economies also run enormous government debts. For example, in October 2024 China's debt-to-GDP ratio was 90,1% and the US had a ratio of 121%.

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