Japan tops the list of most indebted nations with a 230% debt-to-GDP ratio, while six European countries also face severe fiscal challenges.
Japan leads in global debt ranking
Recent data from the International Monetary Fund (IMF) shows that Japan has the highest debt-to-GDP ratio in the world, at 230%, which is equivalent to 8,000 billion euros. This figure highlights the country's significant financial burden compared to other nations.Global top 10 includes European countries
Six European countries—France, Italy, Greece, Spain, Portugal, and the United Kingdom—are among the top 10 most indebted nations. This demonstrates that high debt is not limited to Asia but is also a concern in Europe, where economic challenges have persisted for years.Japan's debt explained by domestic factors
Japan's debt of 1,300 billion yen, or 8,000 billion euros, is driven by an aging population that increases social spending, economic stagnation since the 1990s, and government reliance on borrowing to fund public services. Much of this debt is held by domestic investors, which helps avoid a loss of confidence in the market.United States has higher absolute debt but lower ratio
The United States has a debt of 35,000 billion euros, which is ten times that of France. However, its debt-to-GDP ratio of 124% is lower than Japan's due to the size of its economy and the dollar's role as a global reserve currency. France, fourth in absolute debt, faces challenges with its budget deficit and pension system.Europe's debt crisis has deep roots
Six European countries—Portugal, the United Kingdom, Greece, Spain, France, and Italy—are among the most indebted. Greece's entry into the eurozone in 2001 exposed structural problems, which worsened during the 2010 crisis. Portugal and the United Kingdom saw increased debt during the 2008 financial crisis and the 2020 pandemic, respectively.Global crises have deepened deficits
The 2008 financial crisis required governments to inject liquidity into banks, increasing deficits in countries like Portugal, Spain, and the United Kingdom. The 2020 pandemic further strained budgets with emergency support measures, leading to a significant rise in public debt across developed nations.Singapore's high debt is strategic
Singapore has a debt-to-GDP ratio of 176%, which seems high for a prosperous city-state. However, its debt is used to fund the Central Provident Fund, a system for pensions and health. The government borrows to build reserves that generate returns higher than the interest paid, which is a deliberate financial strategy rather than a sign of crisis.Italy struggles with long-term economic stagnation
Italy has experienced economic stagnation since the 1970s, with public spending consistently exceeding tax revenues. With the euro as its currency, monetary depreciation is no longer an option. This has led to slow GDP growth and a growing debt burden, despite efforts by the current government to implement reforms.Sudan's debt reflects economic collapse
Sudan, the only African country in the ranking, has a debt-to-GDP ratio of 222%, but its GDP is much lower than that of Western powers. Most of this debt consists of unpaid arrears from the 1980s. Political instability and a civil war have prevented debt restructuring, making it difficult for the country to refinance its obligations.Global debt is at record levels
Global debt has reached unprecedented levels in 2026, with the United States alone having 360,000 billion in cumulative public and private debt. As Thierry Breton notes, this reflects a broader global financialization trend, raising questions about how economies will adapt to this new reality.
