Debt cycle stage
Where an economy sits in its long-term debt cycle, read from how much private and public debt it carries and which way it is moving.
Ray Dalio’s long-term debt cycle (Principles for Navigating Big Debt Crises, 2018), with Hyman Minsky’s financing postures and Carmen Reinhart and Kenneth Rogoff’s crisis record behind it. Dalio’s finer phases (top, depression, beautiful deleveraging, normalization) are folded into four stages the annual data can tell apart.
Stages describe where a country sits against its own past and other countries. They are not ratings: no stage is better or worse than another, and Palanor never sorts countries by one.
Publishing stages · 71 countries · yearly, 1990 on · method v1, pre-registered 2026-10-22
Passes the pre-registered episode check: 8 of 8 episodes read as expected (0 missed, 0 untestable).
The stages
1. Early cycle
Debt is moderate and growing roughly in line with income.
2. Leveraging
Private credit is growing much faster than the economy.
3. Late cycle
Debt is high and its service takes a large share of revenue; growth in credit has stalled.
4. Deleveraging
Private debt is shrinking relative to income, usually while public debt rises.
Chile
Country Dossier →Deleveraging73% · coverage 100% · as of 2025-12-31
Deleveraging. 3 of 5 indicators that speak to this stage sit at or near its range. Private credit, 5-year change (pts of GDP) reads -21.5, within < -10.0. Government debt, % of GDP disagrees at 41.5%, reading as Early cycle.
| Evidence | Value | As of | Reads as |
|---|---|---|---|
| Private credit, 5-year change (pts of GDP) | -21.5 | 2025 | stage 4 |
| Private credit, % of GDP | 102.1% | 2025 | stage 2 |
| Government debt, % of GDP | 41.5% | 2025 | stage 1 |
| Government debt, 5-year change (pts) | +9.16 | 2025 | stage 2 |
| Interest, % of government revenue | 5.22% | 2024 | stage 1 |
Where each country has been
One row per country, alphabetical; one cell per year, shaded by the leading stage. Hatched cells were withheld: too little of the evidence was published to place the country. Select a country for its reading and evidence.
| Country | 1990 | 1995 | 2000 | 2005 | 2010 | 2015 | 2020 | 2025 | Latest | ||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Argentina | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Australia | Late cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Austria | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Bahrain | Withheld | ||||||||||||||||||||||||||||||||||||
| Belgium | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Bolivia | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Brazil | Late cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Bulgaria | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Canada | Withheld | ||||||||||||||||||||||||||||||||||||
| Chile | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| China | Leveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Colombia | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Costa Rica | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Croatia | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Cyprus | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Czechia | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Denmark | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| DR Congo | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Ecuador | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Egypt | Late cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Estonia | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Ethiopia | Withheld | ||||||||||||||||||||||||||||||||||||
| Finland | Late cycle 2025 | ||||||||||||||||||||||||||||||||||||
| France | Late cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Germany | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Greece | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Hungary | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Iceland | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| India | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Indonesia | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Iran | Withheld | ||||||||||||||||||||||||||||||||||||
| Iraq | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Ireland | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Israel | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Italy | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Japan | Late cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Jordan | Late cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Kuwait | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Latvia | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Lithuania | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Luxembourg | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Malta | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Mexico | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Namibia | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Netherlands | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| New Zealand | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Norway | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Oman | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Panama | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Paraguay | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Peru | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Poland | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Portugal | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Qatar | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Romania | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Russia | Early cycle 2023 | ||||||||||||||||||||||||||||||||||||
| Saudi Arabia | Withheld | ||||||||||||||||||||||||||||||||||||
| Sierra Leone | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Slovakia | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Slovenia | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| South Africa | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| South Korea | Leveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Spain | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Sweden | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Switzerland | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Turkey | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| United Arab Emirates | Early cycle 2024 | ||||||||||||||||||||||||||||||||||||
| United Kingdom | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| United States | Deleveraging 2025 | ||||||||||||||||||||||||||||||||||||
| Uruguay | Early cycle 2025 | ||||||||||||||||||||||||||||||||||||
| Zambia | Late cycle 2025 |
How it is read
Each indicator has a range for every stage it speaks to, in its own units. A value inside a range counts fully for that stage and less the further outside it falls. Stage fits become probabilities; the leading stage is published only when at least 60% of the indicator weight is readable and fresh, a strong stage’s named evidence agrees (gates), and a challenger leads the current stage by 15 points before the call changes.
| Indicator | Weight | Early cycle | Leveraging | Late cycle | Deleveraging |
|---|---|---|---|---|---|
| Private credit, 5-year change (pts of GDP)change over 5 years | 33% | -6.0 – +10.0 | > +12.0 | -8.0 – +12.0 | < -10.0 |
| Private credit, % of GDP | 20% | < 80.0% | > 30.0% | > 100.0% | > 70.0% |
| Government debt, % of GDP | 20% | < 60.0% | < 90.0% | > 80.0% | > 60.0% |
| Government debt, 5-year change (pts)change over 5 years | 13% | -10.0 – +8.0 | -10.0 – +10.0 | > 0.0 | > +5.0 |
| Interest, % of government revenue | 13% | < 8.0% | < 10.0% | > 10.0% | > 8.0% |
Gates: Leveraging needs private credit, 5-year change (pts of gdp) at or near its range; Deleveraging needs private credit, 5-year change (pts of gdp) at or near its range.
The publish gate
Before any reading was computed, Palanor named known episodes and the stages they should read as. A schema publishes stages only if at least two episodes read as expected and hits outnumber misses. Misses stay on this page.
| Episode | Expected | Read (years) | Outcome |
|---|---|---|---|
| Spain, 2005–2008 | Leveraging | Leveraging 3, Early cycle 1 | hit |
| Spain, 2012–2016 | Late cycle or Deleveraging | Deleveraging 5 | hit |
| Ireland, 2004–2008 | Leveraging | Leveraging 3, Early cycle 2 | hit |
| Japan, 1999–2005 | Late cycle or Deleveraging | Deleveraging 5, Late cycle 2 | hit |
| China, 2009–2017 | Leveraging or Late cycle | Leveraging 8, Early cycle 1 | hit |
| United States, 2010–2013 | Late cycle or Deleveraging | Late cycle 2, Deleveraging 2 | hit |
| Argentina, 2001–2003 | Late cycle or Deleveraging | Early cycle 1, Late cycle 1, Deleveraging 1 | hit |
| Greece, 2012–2018 | Late cycle or Deleveraging | Late cycle 4, Deleveraging 3 | hit |
What it cannot see
Private credit is domestic bank and market credit to the private sector (World Bank, from IMF statistics); it misses cross-border and shadow lending. Government debt is general government where the OECD or the IMF publishes it. A stage is a position, not a forecast of a crisis.
References
- Ray Dalio, Principles for Navigating Big Debt Crises (2018).
- Hyman P. Minsky, Stabilizing an Unstable Economy (1986).
- Carmen M. Reinhart and Kenneth S. Rogoff, This Time Is Different: Eight Centuries of Financial Folly (2009).
Recomputed weekly · last 2026-10-22 · signals country.<iso3>.schema.debt-cycle.stage and .position · How Country Schemas work