Some countries (about one-third of the sample) did manage to reduce debt to or below
pre-adjustment episode levels through a combination of higher primary balances maintained for a longer period, and growth slightly above the pre-adjustment episode
average.
This contributed to falling interest-rate–growth differentials (Figure 1.2). Conversely, in unsuccessful episodes—those whose debt did not fall to or below pre-adjustment episode levels primary balances declined relatively soon after debt ratios stabilized.