High Debt Signals Economic Distress

Measuring a country's economic health can be effectively done through the debt-to-GDP ratio, which indicates how manageable a nation's public debt is relative to its economic output. A high ratio signifies increased difficulty in debt management and a greater risk of default, potentially triggering financial crises. France is currently facing this challenge, with its debt-to-GDP ratio reaching approximately 110%, equating to about 3.2 trillion euros in debt. This situation is alarming as prolonged ratios over 77% can hinder economic growth, suggesting that France's financial stability is under threat.