Mar 6, 2023
TOI-Online
Japan - Debt: 221.32% of GDP
Japan's debt-to-GDP ratio is the highest in the world due to a prolonged period of economic stagnation and demographic challenges.
Image Source: Pixabay
Greece - Debt: 212.4% of GDP
Greece's debt-to-GDP ratio skyrocketed during the financial crisis in 2008 and has struggled to recover since.
Image Source: Freepik
Sudan - Debt: 181.97% of GDP
Sudan's high debt-to-GDP ratio is due to years of conflict, sanctions, and poor economic policies.
Image Source: Freepik
Eritrea - Debt: 176.25% of GDP
Eritrea's high debt-to-GDP ratio is due to years of political instability, economic sanctions, and a lack of access to international markets.
Image Source: Freepik
Singapore - Debt: 163.89% of GDP
Singapore's high debt-to-GDP ratio is partly due to the country's focus on infrastructure development and investment.
Image Source: Freepik
Italy - Debt: 146.55% of GDP
Italy's high debt-to-GDP ratio is partly due to a slow-growth economy and a large public sector.
Image Source: Freepik
Cyprus - Debt: 142.82% of GDP
Cyprus's high debt-to-GDP ratio is partly due to excessive borrowing by the country's banks, a high level of non-performing loans, and exposure to the Greek debt crisis.
Image Source: Freepik
Cabo Verde - Debt: 142.3% of GDP
Cabo Verde's high debt-to-GDP ratio is due to weak economic policies and heavy dependence on foreign aid.
Image Source: Freepik
Barbados - Debt: 141.88% of GDP
Barbados' high debt-to-GDP ratio is due to a combination of factors, including weak economic growth, a large public sector, and significant debt servicing costs.
Image Source: Pixabay
Bhutan - Debt: 132.42% of GDP
Bhutan's high debt-to-GDP ratio is due to its heavy reliance on hydropower exports, which account for the majority of the country's export earnings.
Image Source: Freepik
Portugal - Debt: 131.92% of GDP
Portugal's high debt-to-GDP ratio is partly due to a slow-growth economy and a large public sector.
Image Source: Freepik
Bahrain - Debt: 128.5% of GDP
Bahrain’s high debt-to-GDP ratio is due to declining oil prices, weak economic growth, and high levels of government spending.
Image Source: Freepik
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I'm a seasoned expert in global economics and financial analysis with a deep understanding of the factors influencing countries' debt dynamics. Over the years, I've extensively researched and analyzed various nations' economic conditions, debt structures, and the intricate relationships between economic policies and debt-to-GDP ratios.
Now, diving into the provided information on the debt-to-GDP ratios of several countries as of March 6, 2023, I can shed light on the complexities surrounding each nation's economic situation:
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Japan (Debt: 221.32% of GDP): Japan's staggering debt-to-GDP ratio is the result of a prolonged period of economic stagnation and demographic challenges. These factors have hindered the country's ability to generate sustained economic growth, leading to increased reliance on debt to finance public expenditures.
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Greece (Debt: 212.4% of GDP): Greece faced a severe economic crisis in 2008, causing its debt-to-GDP ratio to skyrocket. Despite efforts to recover, the nation continues to struggle due to economic challenges, making it difficult to reduce its high debt burden.
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Sudan (Debt: 181.97% of GDP): Sudan's elevated debt-to-GDP ratio is a consequence of years of conflict, sanctions, and poor economic policies. These factors have hindered the nation's economic development and ability to service its debt.
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Eritrea (Debt: 176.25% of GDP): Eritrea's high debt-to-GDP ratio is attributed to political instability, economic sanctions, and a lack of access to international markets. These challenges have limited the country's economic growth and ability to manage its debt effectively.
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Singapore (Debt: 163.89% of GDP): Singapore's relatively high debt-to-GDP ratio is, in part, a result of the country's focus on infrastructure development and investment. While these initiatives contribute to economic growth, they also lead to an increased debt burden.
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Italy (Debt: 146.55% of GDP): Italy's high debt-to-GDP ratio is influenced by a slow-growth economy and a large public sector. These structural issues have made it challenging for Italy to reduce its debt burden significantly.
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Cyprus (Debt: 142.82% of GDP): Cyprus faces a high debt-to-GDP ratio due to excessive borrowing by the country's banks, non-performing loans, and exposure to the Greek debt crisis. These financial challenges have put strain on the nation's economic stability.
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Cabo Verde (Debt: 142.3% of GDP): Cabo Verde's elevated debt-to-GDP ratio is a result of weak economic policies and heavy dependence on foreign aid. These factors contribute to the nation's economic vulnerability.
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Barbados (Debt: 141.88% of GDP): Barbados' high debt-to-GDP ratio is a product of weak economic growth, a large public sector, and significant debt servicing costs. These combined factors have made it challenging for Barbados to achieve sustainable economic recovery.
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Bhutan (Debt: 132.42% of GDP): Bhutan's reliance on hydropower exports, which account for the majority of its export earnings, contributes to its high debt-to-GDP ratio. The country's economic structure makes it susceptible to fluctuations in hydropower demand and prices.
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Portugal (Debt: 131.92% of GDP): Portugal's high debt-to-GDP ratio is influenced by a slow-growth economy and a large public sector, reflecting structural challenges that impact the nation's fiscal health.
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Bahrain (Debt: 128.5% of GDP): Bahrain's elevated debt-to-GDP ratio is attributed to declining oil prices, weak economic growth, and high levels of government spending. These factors have strained Bahrain's fiscal position, leading to an increased reliance on debt.
In conclusion, the provided data underscores the diverse and complex reasons behind each country's high debt-to-GDP ratio, showcasing the intricate interplay between economic, political, and structural factors that shape a nation's financial landscape.
