DEFINITION of 'Net Debt Per Capita'

A measurement of the value of a government's debt expressed in terms of the amount attributable to each citizen under the government's jurisdiction. It is commonly computed using the following formula:

Net Debt Per Capita

BREAKING DOWN 'Net Debt Per Capita'

The level of net debt per capita is an important factor to consider when analyzing a government's ability to continue to pay its debt service costs through its current levels of tax revenue. In other words, this measure helps indicate the default risk of government bonds.

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