Which country do you believe has the highest national debt? Check out our list below.
The global economy is not what it used to be. Oil prices are down, half of the world is somehow engaged or threatened by war, and instability is everywhere. All these factors affect national economic situations, where countries might reach a point where they have borrowed more than they can return, putting them in national debt.
The World Economic Forum’s Global Competitiveness Survey took a look at the economies of all the countries on our planet, and prepared a list, from highest to lowest national debt in comparison the country’s GDP.
That is done by looking at the country’s debt as a percentage of its GDP, that way you can predict how likely a government is to repay money borrowed.
The 10 countries with most debt are the following:
10. Belgium (106.3%)
The small European country is home to the UN headquarters, yet it suffers from high government debt levels as it battles with restrictive labor and tax regulations.
9. Cyprus (108.7%)
This island nation has actually reduced its GDP to debt ratio from 112% last year. But the situation in Greece had its impact.
8. Bhutan (115.7%)
It is not hard to see why this small Asian country is struggling. It is tiny, landlocked and up in the Himalayas. They depend heavily on India for financial assistance.
7. Cape Verde (119.3%)
Also an island nation, this country is poor in natural resources and have to import 82% of its food. Their economy highly depends on tourism.s.
6. Jamaica (124.3%)
Yet another island nation whose economy relies on services industry, which accounts for 80% of their national GDP. However, they suffer high crime and corruption rates, as well as large-scale unemployment.
5. Portugal (128.8%)
Portugal has been implementing their own bailout strategy since 2014, but are still struggling.
4. Italy (132.6%)
Known for art, fashion, history, food and wine, as well as a history of government corruption. With the second highest debt to GDP ratio in the Eurozone, the country is voting for constitutional reform very soon.
3. Lebanon (139.1%)
Lebanon is a very popular tourist destination, but they don’t have much peace. The country has for long been involved in both internal and outside conflicts which have left heavy imprints in their economy.
2. Greece (178.4%)
We all know has been going on in Greece. They have been bailed out time after time by the European Union, but are still struggling to repay their debts.
1. Japan (248.1%)
This might come as a surprise since Japan is known for their exports globally. But in fact, the country’s debt to GDP ratio is enormous.