Countries That Have The Biggest National Debt

According to the International Monetary Fund (IMF), the total amount of debt held by governments throughout the globe reached $164 trillion in 2016. The statistics from the Organization for Economic Development (OECD), a coalition of democratic and market dataset-oriented nations, measures the ratio of public debt to GDP for each of its 36 member countries. Economic health may be gauged by looking at the ratio, according to the Organization for Economic Co-operation and Development (OECD). A country’s total debt will not be reflected in the OECD figures because of recent policy changes, such as tax cuts.

Countries That Have The Biggest National Debt

Listed here are the countries with the most private and public debt that is to be paid to nonresidents and nonresident entities. It includes repayments in international currencies, goods or services.  The public debt is the credit or money owed at any government level from local to central, and the private debt is the credit or money owed by private households or corporations based in the country under consideration.

• Debt-to-GDP ratio in Japan: 235%

In the 2018 Best Countries poll, Japan came in seventh place.

• Debt/GDP Ratio in Greece: 188 %

This year, Greece is placed 52nd among the world’s best countries.

• Debt-to-GDP ratio in Italy: 156%

According to the results of the 2018 Best Countries study, Italy comes in at number 18

• Debt-to-GDP ratio in Portugal: 146%

In the 2018 Best Countries poll, Portugal came in 38th place.

• The debt-to-GDP ratio in Belgium: 128%

No country in the world has a worse rating than Belgium, according to the Best Countries 2018 poll.

• Debt-to-GDP ratio in the United States: 127%

According to the Best Countries 2018 study, the United States has the most clout out of all countries.

• The debt-to-GDP ratio in France: 123%.

The 2018 Best Countries survey power rating places France at number six.

• Debt-to-GDP ratio in the United Kingdom: 119%.

In the 2018 Best Countries study, the United Kingdom came in fifth place.

Debt Levels of Some Countries 

At 54.44 percent of GDP, China’s national debt has more than doubled since 2014, when it stood at 41.54 percent of GDP. With a $5 trillion dollar (about $38 trillion) national debt, China is the world’s most indebted country. There is little concern over China’s debt, according to an International Monetary Fund assessment released in 2015. Many analysts believe the debt is modest in both its total amount and as a percentage of China’s GDP. With a total of 1,415,045,928 people, China now boasts the greatest economy and population in the world.

Debt levels in Russia are among the lowest in the world, at only 19.48% of GDP. As of 2016, Russia has the world’s ninth-lowest public debt level. At the current rate of inflation, Russia’s national debt is at more than $161 billion. A majority of Russian foreign debt is owned by the country’s citizens and businesses.

At 83.81 percent of GDP, Canada’s national debt is out of control. About $1.2 trillion CAD ($925 billion USD) is Canada’s current national debt. After the 1990s, Canada’s debt steadily declined until 2010, when it started to rise again.

The German debt-to-GDP ratio now stands at 59.81 per cent. There are around 2.291 trillion Euros ($2.527 trillion USD) in Germany’s total debt. The biggest economy in Europe is Germany.

Having a High Debt-To-GDP Ratio Is a Major Danger

Growing public debt is a significant source of worry. Debt-to-GDP ratio is a good indicator of a country’s risk of defaulting on its debt, which may lead to a financial crisis.

Research by the World Bank found that nations with debt-to-GDP ratios higher than 77% had economic slowdowns over time.

Since the 2008 global recession, COVID-19 has exacerbated a debt issue that has been developing. As many as 100 nations will be forced to cut down on spending on health, education, and social safety nets by the International Monetary Fund (IMF). Loan hardship is also a problem in 30 emerging nations, which means they are having a hard time keeping up with their debt payments.

Conclusion:

Government borrowing contributed to little over half of the $28 trillion rise, putting the global public debt ratio to a new high of 99 percent of GDP. Increasing interest rates, say IMF experts, will reduce the effect of government expenditure and exacerbate worries about the sustainability of the nation’s debt. If global interest rates increase quicker than predicted and economic growth falters, the policymakers warned, “the dangers would be amplified.”

“The most heavily indebted governments, people, and businesses would feel the effects of a severe tightening of financial conditions. Growth prospects would be harmed if the public and private sectors are obliged to deleverage at the same time.”