America is drowning in debt—and the numbers tell a troubling story. With a debt-to-GDP ratio of 122.3% and federal debt surpassing $35 trillion, the U.S. now finds itself in dangerous territory compared to economic powerhouses and emerging markets alike.
While Japan and Singapore top the list for unique reasons, America’s debt is piling up at an alarming rate, outpacing many nations. How did the world’s largest economy get here—and what does it mean for its future?
1. Japan (Debt to GDP: 263.90%)
Japan has the highest debt-to-GDP ratio among these countries. This is mainly because it has had high levels of government spending for many years, especially on social programs and infrastructure.
Furthermore, Japan has faced long periods of low economic growth,(ref) which makes it harder to reduce debt. However, Japan’s debt is mostly owed to its own citizens, which somewhat reduces the risk of default.
2. Singapore (Debt to GDP: 167.80%)
Singapore’s high debt-to-GDP ratio is partly due to its unique financial structure. Singapore has a lot of reserves and uses debt to manage its investments and balance its budget.
The high ratio doesn’t necessarily mean financial trouble because Singapore has strong economic fundamentals and a high level of savings. The country has consistently maintained its AAA credit rating. (ref)
3. Italy (Debt to GDP: 137.30%)
Italy’s debt is high due to a combination of factors, including long-standing economic challenges, frequent political instability, and high government spending.
Italy has struggled with slow economic growth, climate inconsistency, soft labor market, and other factors, which makes it difficult to reduce debt. (ref) The country also has public sector debt that contributes to this high ratio. (ref)
4. USA (Debt to GDP: 122.30%)
The United States has a relatively high debt-to-GDP ratio due to substantial government spending on various programs, including defense, social security, and healthcare.
The US also experienced substantial borrowing during economic crises, like the 2008 financial crash and the COVID-19 pandemic.
The country also has $35.32 trillion in federal debt. (ref) Despite the high ratio, the US benefits from having the world’s largest economy and its debt is considered relatively safe due to the country’s reaffirmed AAA credit rating. (ref)
5. France (Debt to GDP: 110.60%)
France has a high debt-to-GDP ratio due to extensive government spending on social programs like healthcare, pensions, and education.
The country has also experienced economic slowdowns that have made it harder to reduce its debt. Despite the high ratio, France has a strong economy, although its credit rating was downgraded to AA-. (ref)
6. Spain (Debt to GDP: 107.70%)
Spain’s debt-to-GDP ratio is relatively high because it has faced economic challenges, including high unemployment and economic downturns.
The country has had to make reforms and make new investments to finance its budget deficits and support economic recovery. (ref) Spain’s debt is partly due to high government spending on public services and welfare programs.
7. Canada (Debt to GDP: 107.00%)
Canada’s debt-to-GDP ratio is lower than the other countries listed but still significant. Canada has managed its debt through a mix of government spending and fiscal policies.
The country experienced economic slowdowns and has had to borrow to fund various programs and infrastructure projects. Canada has a relatively stable economy, but its AAA credit rating is at risk to show “fiscal discipline.”(ref)
8. UK (Debt to GDP: 97.60%)
The UK’s debt-to-GDP ratio is lower compared to some European countries but still significant. The UK has borrowed money to support economic growth and respond to financial crises, including the 2008 financial crash and the COVID-19 pandemic.
The country’s debt is influenced by government spending on public services and economic support programs. (ref)
9. Argentina (Debt to GDP: 88.40%)
Argentina’s debt-to-GDP ratio is high due to ongoing economic instability, including high inflation and economic crises. The country has frequently borrowed to cover budget deficits and support economic policies.
Argentina has faced challenges with debt repayment and restructuring, which contributes to its high debt ratio. The country’s total sovereign debt surpasses $400 billion, with approximately $110 billion of that amount owed to the International Monetary Fund. (ref)
10. India (Debt to GDP: 86.54%)
India’s debt-to-GDP ratio is lower than many other countries due to its relatively strong economic growth compared to others.
However, the country still has a considerable amount of debt, which comes from borrowing to fund infrastructure projects, social programs, and economic development.
According to a study, fiscal federalism in India has been generating a persistent cycle of deficits and debt for many years. (ref)
11. China (Debt to GDP: 83.60%)
China’s debt-to-GDP ratio is relatively moderate. The country has been investing heavily in infrastructure and development projects to support its rapid economic growth.
By the end of 2023, China had outstanding external debt totaling RMB 17.3352 trillion. (ref) However, China’s strong economic growth and large economy help manage this debt level.
12. Brazil (Debt to GDP: 74.42%)
Brazil’s debt-to-GDP ratio is moderate. The country has faced economic challenges such as slow growth and political instability, which have led to increased borrowing.
Government spending on social programs and infrastructure, along with economic difficulties, has contributed to its debt.
Despite this, Brazil is working to improve its economic stability and reduce debt levels through a tight labor market and business investment. (ref)
13. South Africa (Debt to GDP: 72.20%)
South Africa has a moderate debt-to-GDP ratio. The country has experienced economic difficulties, including slow growth and high unemployment, which have led to increased borrowing.
The country’s Finance Minister announced that South Africa’s gross debt will rise from R4.8 trillion in 2023/24 to R5.2 trillion in 2024/25, requiring around R1.06 billion daily for debt servicing. (ref)
Efforts are being made to improve economic growth and manage debt more effectively.
14. Germany (Debt to GDP: 63.60%)
Germany has one of the lower debt-to-GDP ratios among major economies. The country is known for its strong economy and fiscal discipline.
Germany has managed to keep its debt relatively low through careful budgeting, high economic performance, and a focus on maintaining balanced budgets.
This lower ratio reflects Germany’s economic strength and effective management of public finances.
15. Israel (Debt to GDP: 60.70%)
Israel’s debt-to-GDP ratio is relatively low. The country has maintained a stable and growing economy with effective management of public finances.
Israel’s lower ratio is due to a combination of strong economic performance and prudent fiscal policies. The government’s focus on controlling spending and managing debt has helped keep this ratio lower compared to many other countries.
16. South Korea (Debt to GDP: 49.60%)
South Korea has a relatively low debt-to-GDP ratio. This is because the country has a strong and growing economy with effective management of public finances.
South Korea has maintained low levels of government debt by controlling spending and fostering economic growth. Its strong economic performance helps keep the debt manageable.
17. Netherlands (Debt to GDP: 46.80%)
The Netherlands also has a low debt-to-GDP ratio. The country is known for its strong economy and prudent fiscal policies.
The Dutch government manages public finances well, keeping spending in check and maintaining a stable economy. This disciplined approach helps keep the debt level low.
18. Australia (Debt to GDP: 43.80%)
Australia’s debt-to-GDP ratio is relatively low due to its strong and stable economy. The country has managed its public finances effectively, with a focus on balanced budgets and controlling debt.
Australia’s economic stability and effective fiscal management contribute to its lower debt ratio.
19. Indonesia (Debt to GDP: 39.30%)
Indonesia has a low debt-to-GDP ratio, partly because the country has been managing its public finances carefully.
According to research, Indonesia has managed to maintain a relatively low budget deficit by keeping government spending under control and focusing on economic growth. (ref) Its relatively low debt reflects effective financial management.
20. New Zealand (Debt to GDP: 39.30%)
New Zealand’s debt-to-GDP ratio is similar to Indonesia’s. The country has a strong economy and practices prudent fiscal management.
Their low debt ratio results from careful budgeting, controlled spending, and a focus on maintaining economic stability.
The country’s effective financial policies help keep its debt levels low. Credit-wise, the country has maintained consistent credit ratings with a stable outlook. (ref)
21. Switzerland (Debt to GDP: 38.30%)
Switzerland has a low debt-to-GDP ratio because the country is known for its strong economy and careful financial management.
The Swiss government maintains fiscal discipline, keeping spending under control and running balanced budgets. Switzerland’s high level of economic stability and prosperity help it manage its debt effectively.
22. Saudi Arabia (Debt to GDP: 30.00%)
Saudi Arabia’s debt-to-GDP ratio is low due to its substantial oil revenues. The country earns a significant amount from oil exports, which helps fund its government without needing to borrow much.
Saudi Arabia has used its oil wealth to maintain low levels of debt while investing in various development projects.
23. United Arab Emirates (Debt to GDP: 29.90%)
The UAE also has a low debt-to-GDP ratio, similar to Saudi Arabia. The country benefits from substantial oil and gas revenues, which allow it to keep debt levels low.
The UAE has managed its finances well, using its resources to invest in infrastructure and economic development without relying heavily on borrowing.
24. Turkey (Debt to GDP: 29.50%)
Turkey’s debt-to-GDP ratio is relatively low, though it has faced some economic challenges. The country has managed to keep debt levels down through a combination of economic growth and government policies.
However, Turkey has experienced economic volatility, which can impact debt levels and financial stability. (ref)
25. Russia (Debt to GDP: 14.90%)
Russia has one of the lowest debt-to-GDP ratios. This is because the country has been able to maintain low levels of debt by managing its finances carefully and benefiting from natural resources like oil and gas.
Russia’s low debt reflects its ability to generate revenue and keep borrowing to a minimum.
The data from Trading Economics for 2024/2025 shows that some countries manage their debt better than others. Looking at these ratios helps us understand more than just the numbers and gives us a better view of a country’s economic health and future outlook.
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Nancy Maffia
Nancy received a bachelor’s in biology from Elmira College and a master’s degree in horticulture and communications from the University of Kentucky. Worked in plant taxonomy at the University of Florida and the L. H. Bailey Hortorium at Cornell University, and wrote and edited gardening books at Rodale Press in Emmaus, PA. Her interests are plant identification, gardening, hiking, and reading.
