This year, the United States moved up one spot to take the title of country with the highest external debt. That’s according to data from the Organization for Economic Cooperation and Development (OECD).
10. Australia
Debt – 1.83 Trillion USD
Australia has a large amount of external debt. As of September 2020, Australia’s external debt was $1.83 trillion. This is the equivalent of about 130% of Australia’s GDP.
External debt is money that is owed to foreign creditors. It includes things like government debt, corporate debt, and individual debt. Australia’s government owes about $500 billion to foreign creditors. Australian corporations owe about $700 billion. And Australian households owe about $100 billion.
Australia’s high level of external debt is a cause for concern. If Australia ever experiences an economic downturn, it could struggle to repay its debts. This could lead to defaults on loans and a loss of confidence in the Australian economy.
Despite these concerns, Australia is still considered a relatively safe investment destination. This is because the Australian government has a good track record of repaying its debts on time. In addition, Australia has a strong economy and large reserves of natural resources.
Overall, Australia is a country with a high level of external debt. While this poses some risks, it is still considered a safe investment destination by many investors.
9. Canada
Debt – 1.93 Trillion USD
1. According to the latest data from the International Monetary Fund (IMF), Canada has the highest level of external debt in the world. This is largely due to the country’s high level of government borrowing.
2. The IMF estimates that Canada’s total external debt is around US$1.8 trillion. This is equivalent to around 143% of the country’s GDP.
3. Canada’s high level of external debt is a concern because it makes the country vulnerable to economic shocks. If there is a sudden change in the global economy, Canada could find it difficult to meet its debt obligations.
4. However, it is worth noting that Canada has a strong economy and a AAA credit rating. This means that lenders are still willing to lend money to the Canadian government at low interest rates.
5. Overall, Canada’s high level of external debt is a cause for concern but the country’s strong fundamentals mean that it is unlikely to face any serious problems in the near future.
8. Spain
Debt – 2.26 Trillion USD (8th country with highest external debt)
Spain has the highest external debt in the world, with a total of $2.26 trillion. This is equivalent to about 170% of Spain’s GDP. The country has been struggling to reduce its debt levels in recent years, but has been unsuccessful so far.
Spain’s high debt levels are due to a number of factors. One is the country’s high level of government spending. Spain’s government spending is equivalent to about 46% of GDP, which is one of the highest levels in the European Union. Another factor is the country’s high level of private sector debt. Private sector debt in Spain is equivalent to about 170% of GDP, which is also one of the highest levels in the EU.
The high level of debt in Spain has led to a number of problems for the country. One is that it has made it difficult for the government to borrow money. This has led to austerity measures, such as cuts to public spending and increases in taxes. These measures have been unpopular with the Spanish people and have led to protests and riots in some cases.
Another problem caused by Spain’s high debt levels is that it has made the country’s economy very vulnerable to shocks.
7. Italy
Debt – 1.51 Trillion USD (7th country with highest external debt)
Italy has the highest external debt of any country in the world. As of 2019, Italy’s external debt was about 2.4 trillion US dollars. That’s about 132% of the country’s GDP.
The majority of Italy’s debt is held by other countries in the European Union. In fact, about 60% of Italy’s debt is held by other EU countries. This is because Italy is a member of the eurozone, and all eurozone countries are required to help each other out if one member country gets into financial trouble.
Italy’s high debt levels have caused some problems for the country. In 2011, Italy had to ask for a bailout from the EU in order to avoid defaulting on its debt payments. And in 2018, the Italian government nearly collapsed due to fears that it would not be able to make its debt payments.
Despite these problems, Italy has managed to stay afloat so far. But it will likely need help from the EU again in the future if it wants to avoid defaulting on its large amount of debt.
6. Japan
Debt – 4.77 Trillion USD
Japan is one of the countries with the highest external debt in the world. As of March 2020, the country’s external debt was estimated to be $4.77 trillion. The majority of this debt is held by Japanese banks and other financial institutions.
The high level of external debt in Japan is due to a number of factors. First, the country has a large trade deficit. This means that it imports more goods and services than it exports. Second, the Japanese government has been borrowing heavily in recent years to finance its budget deficit.
The high level of external debt in Japan is a cause for concern. If the country’s economy were to weaken, it could struggle to repay its debts. This could lead to a financial crisis. However, the Japanese government has taken steps to reduce its debt levels in recent years, and the country’s economy remains strong.
5. Germany
Debt – 5.74 Trillion USD
Germany has the highest external debt of any country in the world. As of 2020, Germany’s external debt was estimated to be $5.74 trillion. This is largely due to the fact that Germany is a member of the European Union and uses the euro as its currency.
Germany’s high external debt is due to a number of factors. First, Germany has a large trade surplus. This means that it exports more than it imports, and as a result, it accumulates large amounts of debt. Second, Germany has a large budget deficit. The government spend more money than it takes in through taxes and other revenue sources. This deficit is financed by borrowing, which adds to the country’s overall debt burden.
Despite having the highest external debt, Germany is still considered to be a very economically stable country. It has a AAA credit rating from all three major credit rating agencies (Moody’s, Standard & Poor’s, and Fitch). In addition, Germany has one of the lowest levels of public debt relative to GDP in the developed world.
While Germany’s high external debt may be cause for some concern, the country remains economically strong and is unlikely to default on its debts anytime soon.
4. France – 4th country with highest external debt
Debt – 7.32 Trillion USD
France has a large amount of external debt, totaling over $7.3 trillion. Most of this debt is in the form of government bonds. France’s government has been running deficits for many years, which has led to the accumulation of debt.
France’s external debt is equal to about 230% of its GDP. This means that if France were to default on its debt, it would have a very large impact on the global economy. France is considered to be a very safe investment by creditors, so its borrowing costs are low.
Even though France has a large amount of external debt, its economy is still strong. The French government has been working to reduce its deficit and improve its financial situation. It is also working to reform its pension system and reduce its overall spending. These measures should help to reduce France’s external debt over time.
3. United Kingdom – 3rd country with highest external debt
Debt – 9.02 Trillion USD
The United Kingdom has the highest external debt of any country in the world. As of 2019, the UK’s external debt was $9.3 trillion. That’s more than twice the size of the UK’s GDP.
The UK’s high level of debt is due to a number of factors. One is that the UK has a large trade deficit. This means that it imports more goods and services than it exports. The UK also has a large government debt. The government borrowed heavily to finance its response to the financial crisis of 2008.
The UK’s high level of debt is a concern because it makes the country vulnerable to economic shocks. If interest rates rise or there is another financial crisis, the UK could find it difficult to finance its debt. This could lead to a default on its debt payments, which would be disastrous for the economy.
The good news is that the UK is taking steps to reduce its debt levels. The government has introduced austerity measures to reduce spending and increase taxes. It is also working to increase exports and reduce imports. These measures should help to reduce the UK’s external debt over time.
2. China – 2nd country with highest external debt
Debt – 13 Trillion USD
According to the International Monetary Fund, China has the world’s largest external debt. As of December 2021, China’s external debt was estimated to be over $13 trillion. That’s about 75% of the world’s total external debt.
China’s large population and booming economy are two of the main reasons why it has such a large external debt. China’s population is over 1.4 billion, and its economy is growing rapidly. The country has been investing heavily in infrastructure and manufacturing. This has led to a large demand for loans from other countries.
China is also a major holder of US Treasury bonds. As of April 2018, China held $1.18 trillion in US Treasury bonds. This makes China the largest foreign holder of US government debt.
China’s large external debt is not a cause for concern at present. The country has a strong economy and is able to make timely payments on its debts. However, it is important to monitor China’s external debt levels in the future, as they could become a cause for concern if the country’s economy slows down or encounters other problems.
1. United States – Top Country with highest external debt
Debt – 30.4 Trillion USD
The United States has the highest level of external debt in the world. As of June 2022, the country’s external debt was estimated to be about $30.4 trillion. This is equivalent to about 102% of the country’s GDP. The majority of the country’s external debt is in the form of bonds. The United States has been able to maintain a high level of external debt because of its large economy and high credit rating.
The United States is followed by Japan, which has an external debt of about $4.77 trillion. This is equivalent to about 96% of the country’s GDP. Like the United States, most of Japan’s external debt is in the form of bonds. Japan’s high level of external debt is due to a number of factors, including its low savings rate and aging population.
China is in Second place with an external debt of $13 trillion. This is equivalent to about 75% of the country’s GDP. China’s external debt is mostly in the form of loans from other countries. China has a high level of external debt because it has been investing heavily in infrastructure and other projects in recent years.
Source: https://en.wikipedia.org/wiki/List_of_countries_by_external_debt
