In 2022, Lebanon ranked had the highest public debt level in relation to its GDP, with an estimated debt almost three times larger than its GDP. The countries with the highest public debt often have a high level of economic instability, however there are also many more developed economies on this list, such as five of the G7 countries, who feature due to their high levels of national borrowing and public spending.
Venezuela's public debt
Since 2010, after a period of uncontrolled public spending, Venezuela's government and population have been facing one of the most severe economic crises seen since the Second World War. The economic situation, exacerbated by political instability and repression, has resulted in widespread starvation
, unemployment, and crime, as well as a migrant crisis that has spilled into neighboring countries
. The Venezuelan government has grown increasingly authoritarian following the crisis, and many of its major trading partners, particularly the U.S., have imposed sanctions due to perceived human rights abuses and corruption. The government's continued spending in denial of the crisis saw Venezuela's inflation rate become the highest in the world in 2014, with hyperinflation peaking at over 65,000 percent in 2018
, compared to the previous year. The government claimed that hyperinflation ended in early 2022, and the economy is now showing signs of recovery, but it remains to be seen how this will impact the national debt.
Japan's public debt
Japan consistently ranks among the countries with the highest national debt. In 2022, the nation’s debt was estimated at almost 10 trillion U.S. dollars
, while it's GDP is just 4.2 trillion
. The Japanese government is currently spending around half of its total tax revenue on servicing its massive debt. Despite this, the yield on 10-year Japanese bonds remains at a surprisingly low level at under 1 percent.
FAQs
At the end of 2022, 13 out of 27 EU Member States reported debt to GDP ratios higher than the reference value of 60.0 %, while six EU Member States recorded debt to GDP ratios of more than 100.0 %: Greece recorded the highest debt to GDP ratio at 171.3 %, followed by Italy (144.4 %), Portugal (113.9 %), Spain (113.2 %) ...
Which country has the highest public debt? ›
Profiles of Select Countries by National Debt
- Japan. Japan has the highest percentage of national debt in the world at 259.43% of its annual GDP. ...
- United States. ...
- China. ...
- Russia.
At the end of 2022, 13 out of 27 EU Member States reported debt to GDP ratios higher than the reference value of 60.0 %, while six EU Member States recorded debt to GDP ratios of more than 100.0 %: Greece recorded the highest debt to GDP ratio at 171.3 %, followed by Italy (144.4 %), Portugal (113.9 %), Spain (113.2 %) ...
Why is US debt so high? ›
It began rising at a fast rate in the 1980's and was accelerated through events like the Iraq Wars and the 2008 Great Recession. Most recently, the debt made another big jump thanks to the pandemic with the federal government spending significantly more than it took in to keep the country running.
What is the top 10 countries' national debt? ›
- China, People's Republic of. no data.
- France. 92.15.
- Germany. 45.95.
- Italy. 140.57.
- Japan. 214.27.
- United Kingdom. 100.75.
- United States. 110.15.
Japan owns the most at $1.1 trillion, followed by China, with $859 billion, and the United Kingdom at $668 billion.
Is China's debt higher than the US? ›
Debt as a share of GDP has risen to about the same level as in the United States, while in dollar terms China's total debt ($47.5 trillion) is still markedly below that of the United States (close to $70 trillion). As for non-financial corporate debt, China's 28 percent share is the largest in the world.
Who does the US owe 34 trillion to? ›
The national debt is the total amount of money the U.S. owes its creditors, which includes “the public” (individual investors, businesses, commercial banks, pension funds, mutual funds, state and local governments, the Federal Reserve System and foreign governments) as well as other parts of the federal government, ...
What country has the least debt? ›
Countries with the Lowest National Debt
- Brunei. 3.2%
- Afghanistan. 7.8%
- Kuwait. 11.5%
- Democratic Republic of Congo. 15.2%
- Eswatini. 15.5%
- Palestine. 16.4%
- Russia. 17.8%
As of 2023, the United States' debt-to-GDP ratio is among the highest in the developed world, behind only Japan and Italy. However, the United States has long been the world's largest economy, with no record of defaulting on its debt.
Under current policy, the United States has about 20 years for corrective action after which no amount of future tax increases or spending cuts could avoid the government defaulting on its debt whether explicitly or implicitly (i.e., debt monetization producing significant inflation).
Why doesn't America pay off its debt? ›
This is because America doesn't actually pay off debt, but only rolls it over. When it's time to repay old debt, the Treasury simply issues new debt to cover repayment of what was originally borrowed, plus the accrued interest that's due.
How can the US fix its debt? ›
Of course, just as with an individual or family, cutting spending and increasing revenue are smart first steps. Beyond that, the government considers things like new taxes, a higher retirement age, removing loopholes from the tax code, and more to reduce annual deficits and the national debt.
Does the US have the most debt? ›
The United States has the world's highest national debt at $31.4 trillion. Global debt currently stands at $305 trillion, $45 trillion higher than before the COVID-19 pandemic, according to the Institute of International Finance (IIF) – a global association of the financial industry.
Which countries have the lowest public debt? ›
Countries with the Lowest National Debt
- Brunei. 3.2%
- Afghanistan. 7.8%
- Kuwait. 11.5%
- Democratic Republic of Congo. 15.2%
- Eswatini. 15.5%
- Palestine. 16.4%
- Russia. 17.8%
First of all, the debt is not to be considered to be a big problem because it is mostly held by Japanese citizens, who have an extremely high savings rate. The debt is high because Japan has a low birth rate and it's a struggle to pay for retirement for its aging population.
Which country has the highest average debt per person? ›
Based on the table, the top three countries with the higher household or personal debt based on a portion of their annual disposable income are Denmark, Norway, and the Netherlands. High debts may be influenced by many factors, including the cost of living, mortgage, property loans, auto loans, credit cards, and more.
