Top 10 Developed Nations with the Highest Public Debt
Many of the world's wealthiest nations are becoming increasingly indebted, accumulating more debt than their annual Gross Domestic Product (GDP) output. This is mentioned in the IMF report.
The coronavirus pandemic has dramatically increased the total debt amassed by countries globally.
According to the International Monetary Fund, in 2021, public debt – that is, the debt of the central governments of countries – made up the highest portion of the total global debt in over 50 years.
The Organisation for Economic Co-operation and Development (OECD), a group of predominantly high-income countries committed to democracy and market economy, tracks public debt as a proportion of each country's GDP for its 36 member nations.
The ratio, as per OECD, is an indicator of a country's economic health. The public debt to GDP ratio measures the gross debt of total general government as a percentage of GDP. It is a key indicator of the soundness of government finances. Debt is calculated as the sum of the following liability categories (where applicable): currency and deposits; debt securities; loans; insurance, pensions and standardized guarantee schemes; and other accounts payable.
Changes in public debt over time primarily reflect the impact of past government deficits. OECD data do not reflect recent political measures, such as the impact of tax cuts on a country's total debt.
Here are the top 10 countries with the highest debt-to-GDP ratio along with the gross debt of the total general government of these countries, or the sum of the country's obligations that will require future payments, according to the latest available estimates from the OECD.
1. Japan
Debt to GDP Ratio: 256%
Total Debt: $10.1 trillion
2. Greece
Debt to GDP Ratio: 191.5%
Total Debt: $415.35 billion
3. Italy
Debt to GDP Ratio: 172.5%
Total Debt: $2.94 trillion
4. USA
Debt to GDP Ratio: 144.4%
Total Debt: $36.8 trillion*
*Data include government pension liabilities whether funded or not.
5. Spain
Debt to GDP Ratio: 142.7%
Total Debt: $1.74 trillion
6. France
Debt to GDP Ratio: 137.7%
Total Debt: $3.478 trillion
7. Portugal
Debt to GDP Ratio: 116.6%
Total Debt: $305.45 billion
8. Canada
Debt to GDP Ratio: 112.8%
Total Debt: $2.52 trillion*
*Data include government pension liabilities whether funded or not.
9. Brazil
Debt to GDP Ratio: 110%
Total Debt: N/A*
*Brazil is not a 'key partner' of the OECD.
10. Belgium
Debt to GDP Ratio: 103.8%
Total Debt: $640.3 billion
In recent news, US President Joe Biden has signed a bill to increase the US debt ceiling, seeking to prevent the country's first-ever default.