Our ranking of countries by public debt as a proportion of GDP can be found below.
Venezuela 304.125%
The national debt of this South American country is estimated to be $160 billion based on data from 2020. When it comes to the countries with the largest debt, Venezuela is clearly in the lead.
What should the debt-to-GDP ratio be?
Applications. The debt-to-GDP ratio is a measure of an economy’s financial leverage. The government debt-to-GDP ratio should be less than 60%, according to one of the Euro convergence criteria.
What is the cause of Japan’s massive debt?
The Japanese public debt is predicted to be around US$12.20 trillion (1.4 quadrillion yen) as of 2022, or 266 percent of GDP, the largest of any developed country. The Bank of Japan holds 45 percent of this debt.
The collapse of Japan’s asset price bubble in 1991 ushered in a long period of economic stagnation known as the “lost decade,” with real GDP decreasing considerably during the 1990s. As a result, in the early 2000s, the Bank of Japan embarked on a non-traditional strategy of quantitative easing to inject liquidity into the market in order to promote economic growth. By 2013, Japan’s public debt had surpassed one quadrillion yen (US$10.46 trillion), more than twice the country’s yearly gross domestic product and already the world’s highest debt ratio.
Japan’s public debt has continued to climb in response to a number of issues, including the Global Financial Crisis in 2007-08, the Tsunami in 2011, and the COVID-19 epidemic, which began in late 2019 and has consequences for Tokyo’s hosting of the 2020 Summer Olympics. In August 2011, Moody’s downgraded Japan’s long-term sovereign debt rating from Aa2 to Aa3 due to the country’s large deficit and high borrowing levels. The ratings drop was influenced by substantial budget deficits and government debt since the global recession of 2008-09, as well as the Tohoku earthquake and tsunami in March 2011. The Yearbook of the Organisation for Economic Co-operation and Development (OECD) noted in 2012 that Japan’s “debt surged above 200 percent of GDP partially as a result of the devastating earthquake and subsequent reconstruction efforts.” Because of the growing debt, former Prime Minister Naoto Kan labeled the issue “urgent.”
What accounts for Singapore’s high debt-to-GDP ratio?
One of the main reasons Singapore opted to increase its debt was to promote the development of a debt market in the country. Singapore’s development as an international finance hub was aided by this market, which increased the country’s appeal to foreign banks.
Who owns the international debt?
Debt dynamics, on the other hand, vary greatly between countries. More than 90% of the $28 trillion debt increase in 2020 was accounted for by advanced economies and China.
Who is responsible for the US national debt?
Debt of the State Over $22 trillion of the national debt is held by the general populace. 3 A substantial amount of the public debt is held by foreign governments, while the balance is held by banks and investors in the United States, the Federal Reserve, state and local governments, mutual funds, pension funds, insurance companies, and holders of savings bonds.
How can the United States get out of its debt?
- Beyond simply raising taxes and lowering discretionary spending, there are a number of ways to reduce the US national debt.
- One of the most divisive proposals is to open the country’s borders to immigrants in order to boost business and consumption.