SEOUL: South Korea’s national debt ratio is expected to gain at the fastest clip among 35 advanced nations over the next five years despite its high financial soundness, Yonhap reported, citing an International Monetary Fund (IMF) report.

       Seoul’s ratio of national debt to its gross domestic product (GDP) is likely to reach 66.7% in 2026, up 15.4 percentage points from the end of this year, according to the IMF report yesterday.

       The expected growth pace is the highest among 35 nations that the Washington-based international organisation defines as advanced economies.

       Over the cited period, the average ratio of the 35 countries is forecast to decrease to 118.6% from 121.6%.

       In particular, the Group of Seven nations – the United States, Britain, France, Germany, Japan, Canada and Italy – are projected to drop by 3.2 percentage points to 135.8%.

       South Korea’s growth rate is much higher than the 8.7 percentage points of the Czech Republic, followed by Belgium with 6.3 percentage points and Singapore with six percentage points. — The Korea Herald/ANN

       In addition, experts point out that South Korea’s state debt is widely projected to increase down the road due to its low birthrate and population aging.

       Yet the report showed South Korea’s current financial health remains high, with its debt-GDP ratio coming to 51.3% this year, the 25th lowest among the 35 comparable countries. – The Korea Herald/ANN