Countries with Highest Debt to GDP Ratio In 2023: Japan – 262%, US -129%, Ghana – 81.8%
Countries with the Highest Debt to GDP Ratio In 2023 Is Out With Japan leading the table with 262% however there are many African countries in the list which are not also doing well after borrowing so much.
A high debt-to-GDP ratio indicates that a country’s debt levels are relatively large compared to the size of its economy. Here’s what it could mean for the economy and citizens in the coming years:
- Economic Impact: High levels of debt can pose challenges to an economy. When a country spends a significant portion of its budget on debt servicing (i.e., interest payments), it leaves less room for public investment, social programs, and other developmental initiatives. This can hinder economic growth and limit the government’s ability to address important issues such as infrastructure development, healthcare, and education.
- Fiscal Sustainability: A high debt-to-GDP ratio raises concerns about the fiscal sustainability of a country. If a government is unable to manage its debt effectively, it may face difficulties in borrowing money in the future or may be forced to pay higher interest rates on its debt. This can lead to a downward spiral, as higher borrowing costs and increased debt burden can exacerbate the financial challenges.
- Austerity Measures: To address high debt levels, governments may implement austerity measures, such as cutting public spending, increasing taxes, or reducing subsidies. While these measures are aimed at improving fiscal stability, they can have adverse effects on citizens. Reductions in public services, social welfare programs, and infrastructure investment can impact the standard of living and quality of life for citizens.
- Potential Default Risk: In extreme cases, countries with high debt levels may face the risk of defaulting on their debt obligations. This can have severe consequences for the economy, including a loss of investor confidence, higher borrowing costs, and difficulties in accessing international financial markets. A sovereign default can also lead to a currency crisis, inflation, and economic instability, affecting citizens’ purchasing power and overall economic well-being.
Countries with the highest Debt to GDP ratio:
🇯🇵 Japan – 262%
🇻🇪 Venezuela – 241%
🇬🇷 Greece – 193%
🇸🇩 Sudan – 182%
🇱🇧 Lebanon – 172%
🇪🇷 Eritrea – 165%
🇸🇬 Singapore – 160%
🇱🇾 Libya – 155%
🇮🇹 Italy – 151%
🇧🇹 Bhutan – 135%
🇺🇸 USA – 129%
🇵🇹 Portugal – 127%
🇸🇷 Suriname – 124%
🇿🇲 Zambia – 123%
🇧🇭 Bahrain – 120%
🇪🇸 Spain – 118%
🇨🇺 Cuba – 117%
🇨🇦 Canada – 113%
🇫🇷 France – 113%
🇧🇪 Belgium – 108%
🇱🇰 Sri Lanka – 105%
🇲🇿 Mozambique – 101%
🇬🇧 UK – 97.4%
🇯🇲 Jamaica – 91.5%
🇯🇴 Jordan – 89.4%
🇮🇳 India – 89.2%
🇪🇬 Egypt – 87.2%
🇦🇴 Angola – 85%
🇸🇻 El Salvador – 84.7%
🇵🇰 Pakistan – 84%
🇲🇪 Montenegro – 83.2%
🇦🇹 Austria – 82.8%
🇬🇭 Ghana – 81.8%
🇦🇷 Argentina – 80.5%
🇧🇷 Brazil – 80.2%
🇹🇳 Tunisia – 80%
🇭🇷 Croatia – 79.8%
🇨🇷 Costa Rica – 78.6%
🇦🇱 Albania – 78.1%
🇲🇦 Morocco – 77.9%
🇿🇼 Zimbabwe – 77.2%
🇨🇳 China – 76.9%
🇳🇦 Namibia – 76%
🇮🇸 Iceland – 75%
🇸🇮 Slovenia – 74.7%
🇧🇿 Belize – 74.5%
🇭🇺 Hungary – 73.5%
READ: 2023 Monthly minimum wage of 65 countries ($2,140 : Luxembourg, Nigeria: $68, Ghana $40)
It’s important to note that the impact of a high debt-to-GDP ratio on an economy and its citizens depends on various factors, including the country’s overall economic health, policy responses, and external factors such as global economic conditions. Governments often implement measures to manage and reduce debt, such as fiscal reforms, debt restructuring, and promoting economic growth. Nonetheless, addressing high debt levels is a complex and long-term challenge that requires careful management and prudent fiscal policies.
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