Debt burdens rise fast. Debt to GDP rises at an annual rate of about 10 percent over three years. Foreign-currency debt rises (on average to around 35 percent of total debt and to around 45 percent of GDP). Typically, the level of economic activity (i.e., the GDP gap) is very strong and growth is well above potential, leading to tight capacity (as reflected in a GDP gap of around +4 percent). The charts below convey what
