Which country has the most debt?
Japan has the highest percentage of national debt in the world at 259.43% of its annual GDP.
Japan has the highest percentage of national debt in the world at 259.43% of its annual GDP.
As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).
Among the most populated countries, the United States ranks second behind Japan in terms of debt as a percentage of GDP. Japan has the world's largest debt-to-GDP ratio, with government debt more than twice the size of its GDP—it's also the least populous nation in this chart.
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.
The United States of America. The United States upholds its status as the major global economy and richest country, steadfastly preserving its pinnacle position from 1960 to 2023. Its economy boasts remarkable diversity, propelled by important sectors, including services, manufacturing, finance, and technology.
Of all the countries in the world, China had, by far, the largest international reserves in 2022, with 3.46 trillion USD in reserves and foreign currency liquidity.
If China “dumped” USA treasuries, they would take a serious monetary loss. The price of the treasuries would drop, effective raising the return for those who bought the bonds.
It ultimately comes down to the U.S. taxpayers. That means in order to pay it off, or at least make a larger dent in the debt, the federal government would have to raise taxes and cut spending.
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).
What country has the best economy?
The United States is the undisputed heavyweight when it comes to the economies of the world. America's gross domestic product in 2022 was more than 40% greater than that of China, the world No. 2. Even more striking, U.S. GDP was over five times that of the next two largest economies, Japan and Germany.
Many people believe that much of the U.S. national debt is owed to foreign countries like China and Japan, but the truth is that most of it is owed to Social Security and pension funds right here in the U.S. This means that U.S. citizens own most of the national debt.
The financial position of the United States includes assets of at least $269 trillion (1576% of GDP) and debts of $145.8 trillion (852% of GDP) to produce a net worth of at least $123.8 trillion (723% of GDP).
Related information about Russia Government Debt: % of GDP
In the latest reports, Russia National Government Debt reached 285.4 USD bn in Dec 2023. The country's Nominal GDP reached 494.7 USD bn in Mar 2023.
China invests heavily in U.S. Treasury bonds to keep its export prices lower. China focuses on export-led growth to help generate jobs. To keep its export prices low, China must keep the renminbi low compared to the U.S. dollar.
The following 45 countries were still listed as least developed countries by the UN as of December 2023: Afghanistan, Angola, Bangladesh, Benin, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, ...
1. Canada. After beating Switzerland, today, Canada stands as the number 1 country in the world, as per the reports in 2021. Despite being ranked as the second-largest nation on this planet by landmass, Canada has jumped one stance since 2020 and is now the world's most populous country.
Ireland's generous corporate-tax regime has made it a hub for multinational tech and pharmaceutical companies. These firms generate much of their income in Ireland, inflating its GDP, but funnel that money to their headquarters (or shell companies) abroad.
Years of elevated budget deficits, exacerbated by massive federal spending during the COVID-19 pandemic, have taken the debt to historic levels: totaling more than $26 trillion in 2023, U.S. federal government debt is now at its highest percentage of gross domestic product (GDP) since World War II.
Having no more debt means, that the government does not have to pay interest anymore. This can mean, that there is more money free to spend on other things like infrastructure or welfare.
Which country is debt ridden?
| Country/Region | Per capita US dollars | External debt US dollars |
|---|---|---|
| United States | 98,094 | 32.9 trillion |
| United Kingdom | 46754 | 3.24 trillion |
| Japan | 34,832 | 4.34 trillion |
| Netherlands | 215,569 | 3.79 trillion |
- Japan. $1,098.2. 14.52%
- China. $769.6. 10.17%
- United Kingdom. $693. 9.16%
- Luxembourg. $345.4. 4.57%
- Cayman Islands. $323.8. 4.28%
Prior to 1971, the US dollar was backed by gold. Today, the dollar is backed by 2 things: the government's ability to generate revenues (via debt or taxes), and its authority to compel economic participants to transact in dollars.
So banks, insurance companies, pension funds, and individual citizens buy US debt (as does the government as part of its foreign exchange reserves). The reason is simple. Japan has long been one of the largest exporters to US.
The total debt is nearly $34 trillion, but changes somewhat depending on how you calculate it. And about a third, or 30%, of the publicly held national debt is owned by foreign countries and foreign investors. The biggest foreign holder of U.S. debt is Japan, followed by China.
