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Government debt bar chart
What is general government debt?
General government debt-to-GDP ratio measures the gross debt of the general government as a percentage of GDP. It is a key indicator for the sustainability of government finance. Debt is calculated as the sum of the following liability categories (as applicable): currency and deposits; debt securities, loans; insurance, pensions and standardised guarantee schemes, and other accounts payable. Changes in government debt over time primarily reflect the impact of past government deficits. (OECD 2024)
The debt-to-GDP ratio is the ratio of a country’s public debt to its gross domestic product. The debt-to-GDP ratio can also be interpreted as the number of years it would take to pay back debt if GDP was used for repayment. The higher the debt-to-GDP ratio, the less likely the country will pay back its debt and the higher its risk of default, which could cause a financial panic in the domestic and international markets. (Debt-to-GDP Ratio: Formula and What It Can Tell You. (n.d.). Investopedia)
Heat Map
Description
Heat map visualization of the general government debt-to-GDP of countries for 2022. The numbers are the measure of the gross debt of the general government as a percentage of GDP calculated over the years (1995-2022). The blue color represents the lower percentage whereas the orange color represents the higher percentage.
The third data visualization
Description
I have calculated and represented the average debt-to-GDP ratio of the countries. Since the ratios vary from country to country, I have represented the data in a geographical representation. I have labeled the country and its average debt-to-GDP ratio. I have made the representation user interactive by adding a slider for average debt-to-GDP changes over the years (1995-2022). Combining all the data over years in a single visual representation, especially geographical or bar charts might create visual clutter. The slider can be used to vary the years and visualize data for whichever year the viewer chooses. I have chosen the average value of the debt-to-GDP ratio because it shows what a country owes to what it produces. It also shows the capability of each country to pay back its debt over the years.
An average value gives a clearer picture of the ratio as compared to a single year. For example, the COVID-19 pandemic years led to increased borrowing shooting up the debt for many countries. Developed nations like Japan and the United States have high average debt-to-GDP ratios as evidenced from the chart. The additional bar graphs provide a cherry on top of the data visualization by sorting the countries according to the average debt-to-GDP ratio. If a viewer wants to see the information for example the top 5 or the bottom 5, the bar graph comes to the rescue.
Summary
To interpret and communicate complex data, Data Visualization is a powerful tool to convey information clearly and effectively. The most common visualization methods include line charts, bar charts, pie charts, scatter plots, and geographical maps. The use of each of these depends on the type of data and the information that needs to be conveyed.
Line charts help in showing trends and changes over time, making them ideal for time series data. The data points connected with the lines show a continuous progression over a parameter (like time). This is a good visualization for temperature variation, stock market changes, etc. Bar charts, on the other hand, are effective for comparing different categories or groups. The length of the bar gives a clearer understanding of the value it represents. It is also easier to compare different categories (Which Type of Chart or Graph is Right for You? n.d.).
Pie charts are useful for showing proportions and percentages, from parts of a whole. One disadvantage to a pie chart is that it cannot give a better representation when there are many categories. Scatter plots help reveal relationships and correlations between variables. By plotting data points on a two-dimensional graph, scatter plots help in identifying patterns, trends, or outliers. Working with large sets of data is easier using scatter plots as compared to other charts. (Which Type of Chart or Graph is Right for You? n.d.).
For the visualization of the Average debt-to-GDP measures, the third data visualization of a geographical map combined with bar representation offers a clear, concise, and comprehensive view. The geographical map offers an immediate visual understanding of the data’s distribution across different countries. The best way to represent the data that I could think of is by representing the values on a map. This makes the comparison more intuitive as it gives a clearer comparison of the data from country to country. I have used cooler intuitive colors which gives a calmer sense of visualization. I have used lighter colors for low values and darker colors for high values. As already mentioned, the bar chart complements the geographical representation with the rankings of the countries. Another thing to notice is the color codes that I used for both the geographical and the bar charts. I have made it to make the color and variables consistent throughout.
References
- OECD (2024), General government debt (indicator). doi: 10.1787/a0528cc2-en (Accessed on 29 January 2024)
- Debt-to-GDP Ratio: Formula and What It Can Tell You. (n.d.). Investopedia. Retrieved January 29, 2024, from https://www.investopedia.com/terms/d/debtgdpratio.asp
- Which Type of Chart or Graph is Right for You? (n.d.). Retrieved January 29, 2024, from https://www.tableau.com/learn/whitepapers/which-type-chart-or-graph-right-for-you-ungated