Most Indebted Countries by Debt-to-GDP Ratio (2026)

Japan holds the highest government debt-to-GDP ratio of any major economy, with gross general government debt exceeding 250% of GDP. This means Japan owes more than two and a half times the value of everything its economy produces in a single year.

For founders, CFOs, and investors operating across borders, a country’s debt-to-GDP ratio is one of the most reliable signals of fiscal stress, currency risk, and the likelihood of future tax increases or austerity measures. Governments carrying extreme debt loads often crowd out private investment, suppress interest rates to manage borrowing costs, or resort to currency debasement. Understanding which sovereign balance sheets are most stretched helps entrepreneurs assess market entry risk, identify where regulatory environments may shift abruptly, and anticipate the macroeconomic headwinds that affect consumer spending and capital availability in a given country.

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The 15 Most Indebted Countries by Debt-to-GDP Ratio

Figures reflect IMF World Economic Outlook data and are expressed as gross general government debt as a percentage of GDP. Rankings are in descending order.

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Which country has the highest debt-to-GDP ratio in the world?

Japan
Debt-to-GDP: approximately 255% (2025 estimate)

Japan has carried the world’s highest debt burden among large economies for decades, driven by persistent fiscal deficits, an aging population that requires heavy social spending, and a series of economic stimulus programs dating back to the 1990s. The Bank of Japan (the country’s central bank) owns a significant portion of this debt, which has so far prevented a market-driven debt crisis. Japan’s situation demonstrates that high debt can persist for long periods when a country borrows predominantly in its own currency and from domestic creditors.

Takeaway: When entering the Japanese market, build in expectations of structural fiscal drag, an aging consumer base, and policy interest rates that have historically stayed near zero, all of which shape demand patterns and financing costs.

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What is Sudan’s debt-to-GDP ratio?

Sudan
Debt-to-GDP: approximately 186% (2025 estimate)

Sudan’s debt burden reflects decades of international sanctions, civil conflict, and economic mismanagement that have shrunk the denominator (GDP) while liabilities accumulated. The country was partially relieved of some legacy debt under the Heavily Indebted Poor Countries (HIPC) Initiative, an IMF and World Bank program for debt relief, but ongoing instability has prevented meaningful fiscal consolidation. Sudan represents a category of high-debt countries where the ratio is elevated not by borrowing excess but by economic collapse.

Takeaway: In conflict-affected or sanction-exposed markets, debt ratios often reflect GDP destruction more than actual borrowing capacity. Assess the underlying cause before drawing conclusions about a government’s creditworthiness.

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How indebted is Greece compared to its GDP?

Greece
Debt-to-GDP: approximately 163% (2025 estimate)

Greece’s debt crisis, which erupted in 2010 and required three international bailouts from the European Union and IMF, remains the defining fiscal event for the eurozone. Debt was partially restructured in 2012 in the largest sovereign debt restructuring in history at that time. Greece has since improved its primary budget balance (revenues minus non-interest spending), but the absolute debt stock remains very high relative to a still-recovering economy.

Takeaway: Sovereign debt restructuring is possible even in advanced economies. Businesses with Greek government contracts or euro-denominated receivables learned that payment delays and contract renegotiation are real operational risks when a government is under fiscal stress.

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What is Italy’s national debt as a percentage of GDP?

Italy
Debt-to-GDP: approximately 138% (2025 estimate)

Italy carries the largest nominal government debt stock in the eurozone by absolute value, making it systemically important to European financial stability. Sluggish economic growth over two decades has kept the ratio elevated even when annual deficits were relatively modest. Italy’s debt is monitored closely by the European Central Bank (ECB), the monetary authority for the eurozone, because a loss of market confidence in Italian bonds could destabilize the broader currency union.

Takeaway: High-debt countries with large nominal debt stocks carry systemic risk that affects neighboring markets. Businesses operating in Southern Europe should monitor ECB policy and Italian bond spreads as leading indicators of regional financial conditions.

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How much debt does Singapore carry relative to its GDP?

Singapore
Debt-to-GDP: approximately 168% (2025 estimate)

Singapore’s high gross debt figure is widely misunderstood. The Singapore government issues bonds primarily to develop its domestic bond market and to invest through its sovereign wealth funds, Temasek and GIC. These assets more than offset the liabilities, meaning Singapore runs a net creditor position. This makes Singapore a critical case study in distinguishing gross debt from net debt.

Takeaway: Gross debt-to-GDP ratios can be misleading when a government holds large offsetting assets. Always examine net debt figures alongside gross debt before drawing conclusions about fiscal sustainability.

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What is the United States government debt-to-GDP ratio?

United States
Debt-to-GDP: approximately 124% (2025 estimate)

The United States held approximately $36 trillion in federal debt as of early 2026, with the ratio having risen sharply following pandemic-era stimulus spending. The U.S. dollar’s status as the world’s primary reserve currency gives the United States an unusually high capacity to carry debt without triggering the market panic that would affect smaller economies. However, rising interest costs now represent one of the largest line items in the federal budget.

Takeaway: The U.S. debt trajectory is directly relevant to global interest rates. When U.S. Treasury yields rise to attract buyers for new debt issuance, borrowing costs increase for businesses worldwide, affecting startup financing, real estate, and corporate bond markets.

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How indebted is France by debt-to-GDP ratio?

France
Debt-to-GDP: approximately 113% (2025 estimate)

France crossed the 100% debt-to-GDP threshold during the COVID-19 pandemic and has not retreated significantly. The French government runs a persistent structural deficit, partly due to one of the highest public spending ratios in the OECD (Organisation for Economic Co-operation and Development, a group of advanced economies). Rating agencies downgraded France’s sovereign credit rating in 2024, reflecting concerns about fiscal trajectory.

Takeaway: Even large, wealthy economies face sovereign credit downgrades when structural deficits persist. Businesses relying on French government contracts or public sector clients should monitor budget negotiations carefully.

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What is Spain’s debt-to-GDP ratio?

Spain
Debt-to-GDP: approximately 105% (2025 estimate)

Spain’s debt ratio jumped dramatically during the 2010-2012 eurozone crisis, when the government had to bail out its banking sector and GDP contracted sharply. A stronger post-pandemic recovery has begun to reduce the ratio gradually. Spain remains above the EU’s Stability and Growth Pact target of 60%, a threshold set for eurozone member fiscal discipline.

Takeaway: Banking sector crises can rapidly transfer private debt onto sovereign balance sheets. Entrepreneurs in financial services should factor in the risk that government debt burdens can spike suddenly when systemic banking failures occur.

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How much debt does Canada carry relative to its economy?

Canada
Debt-to-GDP: approximately 107% (2025 estimate)

Canada’s federal debt-to-GDP ratio is often cited as relatively moderate, but the IMF’s gross general government measure, which includes provincial and territorial debt, places it above 100%. Provincial governments in Canada carry significant independent borrowing, which elevates the consolidated figure substantially. Canada’s resource-rich economy and strong institutions have kept borrowing costs relatively low.

Takeaway: In federal systems, always examine consolidated debt (federal plus subnational) rather than central government debt alone. Entrepreneurs doing business in Canadian provinces face fiscal environments that vary significantly by region.

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What is Bahrain’s debt-to-GDP ratio?

Bahrain
Debt-to-GDP: approximately 129% (2025 estimate)

Bahrain is the smallest economy in the Gulf Cooperation Council (GCC, a regional bloc of six Arab states) and has the weakest fiscal position among its neighbors. Its heavy dependence on oil revenues, without the sovereign wealth fund buffers of Abu Dhabi or Kuwait, has resulted in rapid debt accumulation as oil prices fluctuated. Bahrain received a financial support package from Saudi Arabia, the UAE, and Kuwait in 2018 to stabilize its finances.

Takeaway: Small, resource-dependent economies without diversified revenue bases or sovereign wealth buffers are disproportionately vulnerable to commodity price shocks. Factor commodity cycle risk into any market entry or expansion plan in single-resource economies.

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How indebted is Portugal relative to its GDP?

Portugal
Debt-to-GDP: approximately 99% (2025 estimate)

Portugal was one of the countries that required a bailout during the eurozone debt crisis, receiving a joint EU-IMF program in 2011. Since exiting that program, Portugal has consistently run primary surpluses and reduced its debt ratio from a peak above 130% in 2014. Portugal’s fiscal consolidation is one of the more successful examples of debt reduction without sovereign default in recent history.

Takeaway: Sustained primary surpluses (spending less than you collect, before interest payments) are the most reliable mechanism for reducing government debt ratios over time. The same principle applies at the business level: operating cash flow is the only durable path to deleveraging.

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What is Belgium’s national debt as a share of GDP?

Belgium
Debt-to-GDP: approximately 105% (2025 estimate)

Belgium has carried debt above 100% of GDP for extended periods, largely due to political fragmentation (Belgium has frequently gone extended periods without a functioning federal government) that has made structural reforms difficult to implement. Despite this, Belgium has maintained solid credit ratings, partly because of high household savings rates and a strong industrial base.

Takeaway: Political gridlock is a direct fiscal risk. Countries where coalition formation is slow or difficult tend to defer hard budget decisions, which allows debt to accumulate. Factor governance stability into long-term market assessments.

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What is Brazil’s government debt-to-GDP ratio?

Brazil
Debt-to-GDP: approximately 90% (2025 estimate)

Brazil’s gross government debt has risen sharply over the past decade amid slow growth, high mandatory spending, and elevated interest rates. Brazil operates with some of the highest real interest rates in the world, which means its debt service costs consume a large share of government revenue. This fiscal pressure constrains public investment and contributes to a difficult business environment for private operators.

Takeaway: High nominal interest rates, often deployed to fight inflation, increase government debt servicing costs rapidly. Businesses operating in such environments face higher capital costs and more volatile macroeconomic conditions.

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How indebted is the United Kingdom by debt-to-GDP?

United Kingdom
Debt-to-GDP: approximately 100% (2025 estimate)

The United Kingdom crossed the 100% debt-to-GDP threshold in 2024, the first time since the 1960s. A combination of pandemic spending, energy subsidies following the 2022 energy crisis, and weak underlying growth drove the increase. The UK government has implemented fiscal rules requiring debt to fall as a share of GDP over a rolling five-year window, though the credibility of those rules has been questioned by markets.

Takeaway: When governments announce fiscal rules in response to rising debt, market participants test those commitments. The 2022 UK gilt market crisis, triggered by unfunded tax cuts, demonstrated how quickly bond market confidence can collapse, with direct consequences for mortgage rates and business financing.

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What is China’s government debt-to-GDP ratio?

China
Debt-to-GDP: approximately 88% (2025 estimate)

China’s official central government debt figure is significantly lower than the IMF’s consolidated estimate, which includes local government financing vehicles (LGFVs), entities created by municipal governments to borrow off-balance-sheet for infrastructure projects. The true consolidated debt burden, including LGFV liabilities, is estimated to be substantially higher. China’s debt dynamics are complicated by the opacity of its public finances.

Takeaway: Off-balance-sheet borrowing by subnational governments is a hidden risk in many emerging markets. When assessing sovereign fiscal health, look beyond the headline central government figure to understand the full public sector liability picture.

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Comparison Table: Most Indebted Countries by Debt-to-GDP Ratio (2025 Estimates)

Note: Figures are IMF gross general government debt estimates for 2025. Sudan ranking reflects GDP collapse as a driver, not absolute borrowing capacity. Singapore’s net fiscal position is positive despite high gross figures.

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Frequently Asked Questions

What does debt-to-GDP ratio actually mean?

The debt-to-GDP ratio compares a government’s total outstanding debt to the annual economic output of its country, expressed as a percentage. A ratio of 100% means a country owes an amount equal to its entire annual GDP. The ratio is the standard benchmark for comparing fiscal sustainability across countries of different sizes.

Is a high debt-to-GDP ratio always dangerous?

Not automatically. Japan has sustained a ratio above 200% for years without a debt crisis, largely because its debt is held domestically and denominated in its own currency. Context matters: who holds the debt, in which currency it is denominated, and whether the economy is growing or contracting all determine the actual risk.

Why is Singapore’s debt-to-GDP ratio so high if it is considered fiscally strong?

Singapore issues government bonds not because it needs to finance a deficit, but to develop its domestic capital market and to give its sovereign wealth funds investable domestic assets. The assets held by Temasek and GIC (Singapore’s two sovereign wealth vehicles) exceed the country’s total gross debt, resulting in a net creditor position. This is why gross and net debt figures tell very different stories for Singapore.

How does government debt affect businesses operating in a country?

High government debt can suppress private investment by consuming a large share of domestic savings, push up taxes as governments seek more revenue, and trigger currency depreciation if investors lose confidence. It can also lead to prolonged low interest rates (as in Japan) that distort asset pricing and reduce returns on savings-based business models. In severe cases, fiscal crises disrupt payment systems, contract enforcement, and regulatory stability.

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The Business Model Analyst Take

The single most useful insight from this data is the difference between debt that reflects economic dysfunction and debt that reflects deliberate financial architecture.

Japan and Singapore both appear near the top of gross debt rankings, yet their underlying situations are fundamentally different. Japan’s debt reflects decades of fiscal deficits and structural economic challenges. Singapore’s reflects a sophisticated strategy of using government balance sheet capacity to build capital markets and fund long-term national investments.

For entrepreneurs evaluating market entry, partnership structures, or investment exposure, the raw debt-to-GDP ratio is a starting point, not a conclusion. The questions that matter are: Who holds the debt? In what currency? Is the government’s fiscal trajectory improving or deteriorating? Does the country control its own monetary policy?

Countries with high debt, deteriorating primary balances, and foreign-currency-denominated obligations present qualitatively different risks from high-debt countries with domestic creditors, monetary sovereignty, and improving fiscal discipline. Build that distinction into every cross-border business decision.