Understanding the debt levels of different countries can reveal a lot about their economic health and fiscal strategies. Working from a recent analysis, we’ve put together a list of the countries with the most debt, based on GDP, consumer debt, and government debt. We were dismayed but not really surprised to see the UK rank in the top five.
12. Netherlands
The Netherlands scores 55.6, with consumer debt at 94.8% of GDP and government debt at 49.5%. This reflects the country’s balance between high personal borrowing and relatively low public debt, driven by strong economic policies and social welfare systems.
11. China
China scores 62.2, with consumer debt at 61.46% of GDP and government debt at 83%. The country’s rapid economic growth and urbanization have led to increased borrowing, both at the personal and governmental levels.
10. Korea
Korea scores 62.4, highlighting its economic model with consumer debt reaching 105.09% of GDP and government debt at 54.3%. Korea’s focus on technological innovation, export-led growth, and infrastructure development drives consumer spending while maintaining manageable levels of government debt.
9. Switzerland
Switzerland scores 62.8 with the highest consumer debt ratio at 128.3% of GDP, contrasted with a lower government debt of 39.5%. This reflects Switzerland’s strong financial sector, competitive tax rates, and policies promoting individual financial responsibility and savings.
8. Australia
Australia earns a score of 63.6, showing high consumer confidence with personal debt at 111.75% of GDP, while maintaining lower government borrowing at 51.9%. This balance indicates a robust economy driven by consumer spending, supported by prudent government fiscal policies.
7. Spain
Spain scores 72.9, with consumer debt at 52.88% of GDP and government debt at 107%. Spain’s efforts to recover from the financial crisis and high unemployment have led to increased public spending, focusing on renewable energy and digitalization to drive growth.
6. France
France achieves a score of 79.9, managing consumer debt at 66.15% of GDP and government debt at 110%. These figures reflect France’s commitment to a comprehensive state-supported social model, despite fiscal pressures from significant expenditures on healthcare, education, and social welfare.
5. United Kingdom
The UK scores 83.1, with consumer debt at 83.17% of GDP and government debt at 104%. Post-Brexit economic policies and responses to the COVID-19 pandemic have significantly impacted public finances, leading to increased borrowing to sustain the economy and social welfare systems.
4. Italy
Italy scores 90.3, with a government debt-to-GDP ratio of 144% and a consumer debt-to-GDP ratio of 41.72%. Italy’s moderate personal debt level contrasts with its significant public debt, underscoring the balancing act between stimulating consumer spending and managing fiscal responsibilities.
3. United States
The United States scores 90.8 with a government debt-to-GDP ratio of 123% and a consumer debt-to-GDP ratio of 74.44%. This highlights the nation’s substantial fiscal commitments alongside its vibrant consumer economy, reflecting the complexity of balancing personal and public debt.
2. Canada
Canada scores 92, with personal debt exceeding 102% of GDP and government debt over 106%. Canada’s significant investment in social services and infrastructure, funded by government borrowing, reflects its commitment to a strong social safety net and economic growth.
1. Japan
Japan scores 99, facing a big challenge with government debt soaring to 255% of its GDP, far above what its citizens owe. This is due to decades of economic policies aimed at combating deflation and promoting growth, including vast public works projects and social spending to support an aging society.
Methodology
CreditSecrets analyzed public records from reliable sources, applying specific weights on a simple 0-100 scale to rank the top 12 countries with the highest debt levels.
Katy Willis is a writer, master herbalist, master gardener, and certified canine nutritionist who has been writing since 2002. She’s finds joy in learning new and interesting things, and finds history, science, and nature endlessly fascinating.
