It’s no secret that many countries are in debt. But which ones will have the highest debt-to-GDP ratio in 2022? This list compiled by Trading Economics takes a look at the top 10 countries with the highest Debt-to-GDP ratio in 2022. The list includes both developed and developing countries, as well as those with large and small economies.
10. Sri Lanka
Sri Lanka’s Debt-to-GDP Ratio in 2022: 130.5%
The debt-to-GDP ratio is an important indicator of a country’s fiscal health. It shows the amount of a country’s debt compared to its gross domestic product (GDP), which is the value of all goods and services produced within the country. A high debt-to-GDP ratio indicates that a large portion of the country’s economic output is being used to service its debt, which can be unsustainable in the long run.
Sri Lanka’s debt-to-GDP ratio is projected to reach 93.2% in 2022, up from 91.4% in 2021. This increase is due to Sri Lanka’s continued borrowing to finance its budget deficit. While Sri Lanka’s debt burden is relatively high, it remains manageable and serviceable thanks to the country’s strong economic growth prospects.
Looking ahead, Sri Lanka will need to take steps to reduce its budget deficit in order to keep its debt burden under control. Otherwise, the country risks becoming unsustainable in its current form.
9. Bhutan
Bhutan’s Debt-to-GDP Ratio in 2022: 130.8%
The Gross Domestic Product (GDP) in Bhutan was worth 3.52 billion US dollars in 2020. The GDP value of Bhutan represents 0.01 percent of the world economy. GDP in Bhutan averaged 2.43 USD Billion from 1980 until 2020, reaching an all-time high of 3.52 USD Billion in 2020 and a record low of 1.40 USD Billion in 1982. This page provides – Bhutan GDP – actual values, historical data, forecast, chart, statistics, economic calendar and news.
Bhutan’s debt-to-GDP ratio is expected to improve slightly in 2022 as the country’s economy continues to grow. The government has been working to reduce the budget deficit and increase revenue collection in recent years, which should help to keep the debt-to-GDP ratio under control. However, given the small size of the economy, any shocks could have a significant impact on the debt-to-GDP ratio.
8. Suriname
Suriname’s Debt-to-GDP Ratio in 2022: 134%
In Suriname, the debt-to-GDP ratio is expected to reach 1130.4% in 2022, up from 84.3% in 2021. This increase is due to the country’s continued reliance on borrowing to finance its budget deficit. While the government has been successful in reducing the deficit in recent years, it has been unable to bring it down to a sustainable level. As a result, Suriname’s debt burden is expected to continue to grow in the coming years. The country’s high debt-to-GDP ratio is a cause for concern, as it indicates that the government may struggle to repay its debts in the future. In addition, high levels of government debt can lead to higher interest rates and inflation, which can hurt the economy. The government will need to take steps to reduce its borrowing and bring down the deficit in order to bring down the debt-to-GDP ratio.
7. Singapore
Singapore’s Debt-to-GDP Ratio in 2022: 141.1%
In Singapore, the Debt-to-GDP ratio is expected to rise to 107.3% in 2022, up from 97.4% in 2021. The country’s debt burden is expected to
increase due to higher government expenditure on healthcare and infrastructure projects.
The government has plans to raise taxes and borrow more money to finance its ambitious plans. This will lead to an increase in the Debt-to-GDP ratio in the short term. However, the government is confident that it can bring down the ratio over the long term through prudent fiscal management and strong economic growth.
6. Italy
Italy’s Debt-to-GDP Ratio in 2022: 147.2%
As of 2022, Italy’s debt-to-GDP ratio is forecast to be at around 132.4%. This means that for every €1 of GDP, the country owes €1.32 in debt. The Italian government has been working on reducing its debt burden in recent years, and as a result, the debt-to-GDP ratio is expected to fall slightly from its current level over the next few years. However, it is still forecast to remain one of the highest in the world.
The high debt-to-GDP ratio is a cause for concern as it indicates that the country may struggle to repay its debts in the future. This could lead to higher borrowing costs and a loss of confidence in the Italian economy. The government is aware of these risks and is taking steps to reduce the debt burden. However, progress has been slow, and more needs to be done to bring down the ratio to a sustainable level.
5. Cabo Verde
Cabo Verde’s Debt-to-GDP Ratio in 2022: 154.5%
In 2022, Cabo Verde’s debt-to-GDP ratio is expected to reach 97.3%, up from 94.9% in 2021. The country’s government has been increasing spending in recent years in an effort to spur economic growth, but this has led to a deterioration in the government’s financial position.
The increase in the debt-to-GDP ratio is a cause for concern, as it indicates that the country is becoming increasingly reliant on borrowing to finance its operations. If left unchecked, this could eventually lead to a debt crisis.
The government is aware of the problem and is taking steps to reduce spending and increase revenue. However, these measures will take time to have an effect, and in the meantime, the debt-to-GDP ratio is likely to continue to rise.
4. Eritrea
Eritrea’s Debt-to-GDP Ratio in 2022: 164.7%
According to the latest estimates, Eritrea’s debt-to-GDP ratio will reach 160.8% in 2022. This is up from 96.5% in 2021 and 95.2% in 2020. The increase is mainly due to higher government borrowing to finance the country’s budget deficit.
Eritrea’s debt burden has been increasing in recent years, largely due to government borrowing to finance the country’s budget deficit. The deficit averaged 5.4% of GDP over the past decade and is projected to reach 6.1% of GDP in 2022.
The government has been using domestic and external sources of financing to cover the deficit. Domestic sources include borrowing from the banking system and selling government bonds. External sources include bilateral and multilateral loans, as well as commercial loans.
The increase in borrowing has led to a rapid increase in Eritrea’s debt-to-GDP ratio, which is now one of the highest in Africa. While the government has been able to service its debt obligations so far, there is a risk that the country could face difficulties in doing so in the future if interest rates rise or economic growth slows down.
3. Greece
Greece’s Debt-to-GDP Ratio in 2022: 177.6%
In 2022, the Greek government is forecast to have a debt-to-GDP ratio of 175.8%. This means that for every €1 the country earns, it will owe €1.76. The Greek economy is predicted to grow by 2.3% in 2022, which is below the Eurozone average of 2.4%.
The high debt-to-GDP ratio is due to years of overspending and a lack of reform. The Greek government has been implementing austerity measures since 2010, but these have not been enough to reduce the deficit. In 2016, Greece reached a bailout agreement with the European Union and International Monetary Fund worth €86 billion. This helped the country avoid bankruptcy, but came with strict conditions such as more austerity measures and pension reforms.
The high debt-to-GDP ratio puts Greece at risk of defaulting on its debt repayments. This could lead to a loss of confidence in the country from investors and creditors and could make it difficult for Greece to borrow money in the future.
2. Sudan
Sudan’s Debt-to-GDP Ratio in 2022: 189.5 %
Sudan’s Debt-to-GDP ratio is forecast to reach 200 percent in 2022, up from an estimated 150 percent in 2021 and 105 percent in 2020, according to the latest World Economic Outlook report from the International Monetary Fund (IMF).
The country’s public debt has been on the rise in recent years due to a combination of factors, including large fiscal deficits, low revenue collection, and high borrowing costs. The government has also had to contend with a number of shocks, such as the COVID-19 pandemic and floods.
Despite these challenges, Sudan has made some progress in reducing its debt burden. In 2019, the government reached an agreement with creditors to restructure $3 billion worth of external debt, which helped reduce the country’s Debt-to-GDP ratio by around 4 percentage points.
Looking ahead, the IMF expects Sudan’s economy to grow by 3.5 percent in 2021 and 4.2 percent in 2022, helped by higher oil production and continued reform efforts. This should enable the country to further reduce its Debt-to-GDP ratio over the medium term.
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1. Japan
Japan’s Debt-to-GDP Ratio in 2022: 263.9 %
In 2022, Japan’s in-debt ratio (GDP) is expected to be around 250%. This means that the country’s debt will be twice the size of its economy. This is a worrying trend, as it suggests that the country is struggling to pay off its debts. However, there are some positives to take from this situation. Firstly, Japan’s in-debt ratio is still lower than that of many other countries, including the United States ( which has a debt-to-GDP ratio of over 300%). Secondly, Japan has been slowly reducing its in-debt ratio in recent years, and it is hoped that this trend will continue.
Despite these positives, the fact remains that Japan’s in-debt ratio is extremely high, and it is likely to cause problems for the country in the future. It is important for the Japanese government to take steps to reduce the country’s debt levels, or else they could face a financial crisis.
