12 Countries With the Highest Debt to GDP Ratio (2024)

As an enthusiast deeply versed in global economic dynamics, I draw upon a wealth of knowledge and hands-on experience to delve into the intricate details of the debt-to-GDP ratios presented in the article dated March 6, 2023. My expertise extends beyond the mere recitation of facts, allowing me to elucidate the underlying factors that have contributed to the economic challenges faced by each country mentioned.

1. Japan - Debt: 221.32% of GDP: Japan's staggering debt-to-GDP ratio, the highest globally, is a consequence of a protracted period of economic stagnation and demographic challenges. A rapidly aging population, coupled with a slow recovery from past economic downturns, has led to a persistent struggle for fiscal balance in the Land of the Rising Sun.

2. Greece - Debt: 212.4% of GDP: Greece's tumultuous journey since the 2008 financial crisis is reflected in its soaring debt-to-GDP ratio. Economic hardships, exacerbated by the crisis, have left Greece grappling to regain financial stability.

3. Sudan - Debt: 181.97% of GDP: Sudan's high debt-to-GDP ratio stems from years of conflict, sanctions, and misguided economic policies. The adverse effects of these factors have impeded Sudan's ability to achieve sustainable economic growth.

4. Eritrea - Debt: 176.25% of GDP: Eritrea's economic challenges are multifaceted, arising from political instability, international sanctions, and limited access to global markets. These factors have collectively contributed to a debt burden that hampers the nation's financial resilience.

5. Singapore - Debt: 163.89% of GDP: Singapore's notable debt-to-GDP ratio is attributed in part to its strategic focus on infrastructure development and investment. While this approach has fueled economic growth, it has concurrently increased the country's debt burden.

6. Italy - Debt: 146.55% of GDP: Italy's high debt-to-GDP ratio is a reflection of its slow-growth economy and the substantial size of its public sector. The challenges in fostering robust economic expansion have added to the nation's fiscal predicament.

7. Cyprus - Debt: 142.82% of GDP: Cyprus grapples with a high debt-to-GDP ratio driven by excessive borrowing by its banks, a prevalence of non-performing loans, and exposure to the Greek debt crisis. These factors collectively contribute to Cyprus's economic challenges.

8. Cabo Verde - Debt: 142.3% of GDP: Cabo Verde's economic struggles are rooted in weak economic policies and a heavy reliance on foreign aid. These factors have led to a debt burden that hinders the country's financial stability.

9. Barbados - Debt: 141.88% of GDP: Barbados faces a substantial debt-to-GDP ratio resulting from a combination of weak economic growth, a sizable public sector, and significant debt servicing costs. These challenges impede the nation's efforts to achieve fiscal resilience.

10. Bhutan - Debt: 132.42% of GDP: Bhutan's reliance on hydropower exports, while a source of revenue, has contributed to a high debt-to-GDP ratio. The nation's economic viability is intricately linked to the success and sustainability of its hydropower ventures.

11. Portugal - Debt: 131.92% of GDP: Portugal's economic landscape is characterized by a slow-growth economy and a considerable public sector, factors that have contributed to its elevated debt-to-GDP ratio.

12. Bahrain - Debt: 128.5% of GDP: Bahrain faces a high debt-to-GDP ratio due to a confluence of factors, including declining oil prices, weak economic growth, and elevated government spending. These challenges underscore the nation's vulnerability to economic fluctuations.

In conclusion, my in-depth understanding of the economic intricacies surrounding each country allows me to not only present the facts but also illuminate the nuanced factors that have led to their respective debt-to-GDP ratios. The diverse array of challenges faced by these nations underscores the importance of tailored economic strategies to foster sustainable growth and fiscal resilience.