The 10 and top 20 Countries With the Most Debt

The 10 Countries With the Most Debt

AS THE UNITED STATES inches closer to its current $14.3 trillion debt ceiling, policymakers are renewing the public debate over government borrowing and spending. Earlier this year, White House economic adviser Austan Goolsbee warned that, if the ceiling is not raised, "The impact on the economy would be catastrophic. I mean, that would be a worse financial economic crisis than anything we saw in 2008." Many top Republicans, meanwhile, are more cautious about such an increase. South Carolina Republican Sen. Lindsey Graham has expressed cautious support for raising the ceiling, but also has advocated for decreasing government spending to 2010 levels. South Carolina's junior Republican senator, Jim DeMint, is even more hawkish on the subject, calling for the passage of a balanced budget amendment. [See a slide show of the 10 countries with the most debt.]

Even accounting for inflation, the total U.S. public debt--the amount of treasury securities held outside the government, plus federal obligations for programs like Social Security--has increased more than fourfold since 1990, when it stood at just over $3 trillion. [See the 10 states with the largest budget shortfalls.]

While the United States total public debt is indeed the largest in the world, a broader context shows that other countries face even more dire debt situations. One way to put debt in perspective is to compare it to gross domestic product, or GDP. The debt-to-GDP ratio is one primary indicator of a country's economic health; a lower ratio is generally seen as more favorable, as it shows that a country is producing enough to eventually be able to repay its debts. According to figures from the International Monetary Fund, Japan has the largest debt-to-GDP ratio in the world, with government debt more than twice the size of its GDP. Also notable are Greece and Iceland, which have both suffered major recent financial crises and both have government debts that exceed their annual GDPs. The U.S. ratio of 92.7 percent is nearly 20 percentage points away from inclusion in the top 10 countries with the worst debt-to-GDP ratios, listed below:

COUNTRY DEBT AS PERCENT OF GDP (2010 EST.)
Japan 225.9
St. Kitts and Nevis 196.3
Lebanon 139.0
Jamaica 135.7
Greece 130.2
Eritrea 129.7
Grenada 119.1
Italy

118.4
Iceland
115.6

Barbados 111.6

Of course, many countries with such high ratios, such as the Caribbean nations of Jamaica, and Barbados, are not among the world's economic powerhouses. A more apples-to-apples comparison is to look at the United States debt situation within the context of the other largest world economies. Among the 10 countries with the largest GDPs, the U.S. ranks third in terms of debt as a percentage of GDP, behind Japan and Italy. One major outlier on the list is China, whose 2010 GDP is estimated to be the world's second-largest, at roughly $5.7 trillion. The country's debts, however, only equal 19.1 percent of its GDP--well below the rates of nearly all other major world economies.

COUNTRY GDP (2010 EST., USD) DEBT AS PERCENT OF GDP (2010 EST.)
United States $14.6 trillion 92.7
China $5.7 trillion 19.1
Japan $5.4 trillion 225.9
Germany $3.3 trillion 75.3
France $2.6 trillion 84.2
United Kingdom $2.3 trillion 76.7
Italy $2.0 trillion 118.4
Brazil $2.0 trillion 66.8
Canada $1.6 trillion 81.7
Russia $1.5 trillion 11.1

Source: IMF World Economic Outlook Database, October 2010

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20 Countries Who Currently Have the Most Debt Nat Berman 9 Months Ago

Governments exist by borrowing to fund the various activities that are necessary including public education, roads, hospitals and other projects. Debt is a common function of all working economies. There has been an increase in the debt to GDP rations throughout the world in past decades. This is because governments took advantage of the low interest rates offered, piling up debt that will cost them less in the long run, when the rates begin to rise, which is inevitable. Borrowing is a positive thing for working economies unless it goes unchecked and gets out of hand. It is particularly damaging for a country to borrow when the economy is in an economic downturn. The cheap debt that is amassed can quickly become unaffordable if it becomes too high and there is not enough money being generated within the country. Ideally, countries will have the ability to pay back debt without incurring further debt to meet obligations.

Here are the 20 nations in the world with the most debt to GDP ratios.

Norway – Total debt: $623,223,000,000

Norway is the country that has the twentieth largest debt in the world. This nation features a market economy combined with a Nordic welfare model that includes universal health care as well as a social security system that is considered to be comprehensive. The extensive reserves of seafood, lumber, minerals, natural gas, fresh water, hydropower and petroleum are the products which are exported, with petroleum accounting for roughly 25% of the country’s gross domestic product. Norway is the largest producer of natural gas and oil in the world with the exception of middle eastern countries.

Austria – Total debt: $629,050,000,000

Austria has maintained its neutral status since the 1918 collapse of the Austro-Hungarian empire. It remains a sovereign state after a failed attempt to form a union with Germany because of the restrictions made by the Treaty of Versailles and the Treaty of Saint Germain-en-Laye. The country is composed of nine federal states and the capitol is Vienna with a population of more than 1.8 million citizens. Austria is one of the richest countries in the world per capita as ranked by GDP terms. A high standard of living has been established in the country which has been a member country of the United Nations since 1955, and of the European Union since 1995. Austria is the founder of the OECD and formally adopted the euro currency in 1999 after signing the Schengen Agreement in 1995

Sweden – Total debt: $938,692,000,000

Sweden joined the European Union in January of 1995, but has not sought membership with Eurozone or NATO membership. They are, however, members of the Council of Europe, the United Nations, the World Trade Organization, the Nordic Council and the Organization for Economic Co-operation and Development, which they founded. Sweden, like Norway has adopted a Nordic social welfare system that offers universal health care to all citizens of the country as well as tertiary education. This country is widely recognized throughout the world for high performance in protection of civil liberties, prosperity and human development, equality, economic competitiveness, health, education, quality of life and it ranks number eight in the world for highest income per capita.

Belgium – Total debt: $1,194,235,000,000

Belgium ranks seventeenth in the accumulation of the most debt. The country was an active participant in the Industrial revolution and established several colonies in Africa throughout the 20th century. Issues between French speaking citizens and Dutch speaking citizens arose because of cultural differences and a language barrier, further fueled by inequalities in the economic development of Wallonia and Flanders. This preceded the revolutionary reforms which moved the country from a unitary government to a federal system from 1970 through 1993. The tensions are still present even with the reforms n place and separatism exists within the country. Inequality is seen as the unemployment rate in Wallonia more than twice exceeds the numbers found in Flanders. Belgium is one of the six countries responsible for the founding of the European Union. the country also hosts the official seats of the Council of the European Union, the European Council, the European Commission, and a set of the European Parliament located in the capital city of Brussels. Belgium has been a key player in the founding of several more European alliances including NATO, the World Trade Organization, OECD, the Eurozone and the trilateral Benelux Union. The city of Brussels serves as host for many of the EUs official seats in addition to providing headquarters for multiple international organizations. The country is ranked as having a very high standing in the Human Development Index and maintains an “advanced high-income economy.”

Singapore – Total debt: $1,300,310,000,000

Singapore was founded in 1819 by Stamford Raffles as an east India Company trading post. when the company went into decline, the British Raj was established, as the islands became a part of the British Straits Settlements in 1826, and were ceded to Britain. Singapore was previously occupied by Japan during World War II. In 1963, the country gained its independence from Britain and federated with the territories which once were under the control of Britain to form what is now known as Malaysia. The federation separated a few scant years later because of differences in ideology and in 1965, Singapore became a sovereign nation. The country quickly developed under the umbrella of an Asian Tiger economy that was based upon its external trade and its workforce. It is a global commerce, transport and finance hub and has earned the distinctions of being the city with the best investment potential, the most technology ready nation and the top city to hold international meetings in the world. They rank third in being the largest foreign exchange market, the largest trading and oil refining center and largest financial center. In addition, Singapore ranks second for most competitive country and it is known to be a tax haven.
20 Countries Who Currently Have the Most Debt Nat Berman 9 Months Ago

Here are the 20 nations in the world with the most debt to GDP ratios.

Norway – Total debt: $623,223,000,000

Austria – Total debt: $629,050,000,000

Sweden – Total debt: $938,692,000,000

Belgium – Total debt: $1,194,235,000,000

Singapore – Total debt: $1,300,310,000,000

China (Hong Kong Specifically) – Total debt: $1,416,010,000,000

Hong Kong is known as one of the most significant financial centers in the world. It ranks number one for highest Financial Development Index scores and it is considered to be the most competitive economic entity as well as the freest. It remains a hot spot for international travelers, bringing in huge sums in tourist and business traveler business. The Hong Kong dollar is the legal tender of the country and is the thirteenth highest traded currency in the world today. The tertiary sector dominates the economy which features a competitive form of simple taxation. Hong Kong suffers from a severe case of income inequality, but it also has one of the highest incomes per capita rankings in the world. It’s port is the fifth busiest in the world and its Human Development Index features one of the longest life expectancy rates on the planet.

China – Total debt: $1,437,800,000,000

China underwent a series of economic reforms in 1978, and has since become among the fastest growing, ranking as second in largest economy in the world in 2016 as rated by GDP. It possesses the largest by the purchasing power parity, and maintains the position of being the largest exporter in the world.

Australia – Total debt: $1,563,330,000,000

Australia is number thirteen in countries that have the most debt, and also ranks the same place as having the 13th largest economy. The income per capita rating is ninth in the world and the country comes in as number two for having the highest human development index, globally. They are in the top position for quality in life, economic freedom, education, health, political rights and civil liberties. Australia is a member of several international organizations and alliances including: The World Trade Organization; the United Nations; Commonwealth of Nations; G20; Asia-Pacific Economic Cooperation; the Pacific Islands Forum, OECD and ANZUS. The nation is ranked as having the ninth largest population of immigrants with 26% of the total population being made up of immigrants from other nations.

Switzerland – Total debt: $1,699,690,000,000

Switzerland is near the top in ranking as a global performer in government transparency, economic competitiveness, quality of life, human development and civil liberties. It is among the most highly developed countries on the globe, with the eighth-highest gross domestic product per capita and the highest nominal wealth per adult. Two of the principal cities which are Geneva and Zurich are ranked as top cities for quality of life. Living in Switzerland is good for its natural citizens.

Canada – Total debt: $1,791,870,000,000

Canada ranks number eleven for having the most debt of all countries in the world, and the fifteenth for the highest nominal per capita income. It ranks number ten for its Human Development Index and is one of the top counties for certain international measurements. These include: economic freedom, civil liberties, education, quality of life and governmental transparency. Canada sponsors a national health care system for its citizens. It is a member of multiple international organizations which are: The North American Free Trade Agreement; the Asia-Pacific Economic Cooperation forum; G7, The Group of Ten; the North Atlantic Treaty Organization, the G20; the United nations and is a nation that lies within the Commonwealth of nations as well as a member of the Francophonie.