As the global economy faces challenges, the issue of over-indebtedness is becoming increasingly prominent. According to the International Monetary Fund, a significant portion of the world's nations are grappling with notable levels of debt.
Here's an overview of the five countries that stand out due to their substantial external debt, encompassing both public and private sectors.
France Hits a New Debt Milestone
In a landmark moment for the nation, France's external debt surged to nearly $3.3 trillion by June 30, 2023, accounting for 112.5% of its Gross Domestic Product (GDP). The vast majority of this figure is attributed to public debt, highlighting the country's financial challenges.
The Netherlands: A Surprising Entry
Ranking fourth globally, the Netherlands boasts an external debt reaching $3.79 trillion as of December 2022, which astonishingly represents 381% of its national GDP. This equates to a per capita debt of $215,569, underscoring the extensive borrowing beyond its public sector.
Japan Leads in Asia
Japan stands as the most indebted nation in Asia and third worldwide, with its debt totaling $4.34 trillion as of June 2023. Despite this large figure, the debt per Japanese citizen is relatively lower at $34,832, making up 98.4% of the country's GDP.
United Kingdom: European Debt Leader
The United Kingdom secures the second spot on this list, with its combined private and public sectors amassing a debt of $8.7 trillion. The year 2023 saw a significant rise in the UK's public debt, which now exceeds 100% of its GDP, marking a critical point for the nation's economy.
United States: The Debt Giant
Topping the chart, the United States sets a daunting record with $32.9 trillion in accumulated foreign debt. Jerome Powell, the president of the American central bank, has notably referred to the U.S. public debt as "unsustainable." This statement comes at a time when concerns over the country's solvency are growing, emphasizing the pressing need for fiscal reforms.
This analysis highlights the diverse challenges faced by these indebted nations, each grappling with its unique economic pressures and the imperative for sustainable financial management strategies.
