Debt is an instrument that allows us to analyze the future of a country in the medium and long term. Because of this, it is important to know what the ranking of the countries with the most debt in the world is. In this HowMuch.net chart we can see which are the most indebted countries.
Countries with more debt in the world: what are they?
The country with the most debt in the world right now is Japan. It represents a whopping 238% of its GDP. A figure that is far from the following on the list, Greece, with 182% of debt volume taking into account GDP.
But why does Japan have this level of indebtedness? To understand it, we have to go back to the 90s, when Japan’s financial sector exploded and gave way to the lost decade. However, the future does not seem encouraging. Some economists point out that from 2040 they could be in serious trouble.
In the case of Greece, remember that it was one of the biggest affected by the economic recession of 2008. The country, with a history of waste and poor financial management, seems to have stopped living with the rope around the neck. But you still have important financial problems that you have to see how to solve.
After Japan and Greece, we find other countries such as Barbados, Congo, Sudan, Eritrea, Cape Verde and, in Europe, countries like Portugal and Italy. All these countries exceed 100% of the volume of debt.
Closely followed by countries such as the United States with 105% and Spain with a level of debt of 98% compared to gross domestic product.
Of course, there are also countries that have a very low level of debt and that, however, their economic performance is questionable. For example, Afghanistan barely has a 7% debt. Although we also see the opposite effect in very rich countries such as Luxembourg, with a 23% debt.
Each country has its reasons. Moreover, many in apparent growth have seen their debt grow steadily in recent years. It can be seen as an immediate problem and even a mortgage for the development of the economy. A dilemma that we will see to see how they face it.
While it is true that in many cases the debt explains how prosperous or well managed a country is. Although it may seem a bit strange, no one would leave money to a country where they didn’t believe, don’t you think? Therefore, one could say that some of the countries that transmit more confidence have more debt.
The world is driven by debt
What is clear is that we are in a world driven by debt in which each country has its reasons and has been seen in that situation by certain decisions or reasons that have led there. But it doesn’t mean it’s bad. There are richer countries with more debt; The US is an example of that.
What is important to know, as Spanish citizens, is that Spain is at the top of the table. Although there are many countries with more debt, most have less debt than us. But as you see, that does not mean they are better. Mexico, for example, stands at an average of 49%.
And that would be the explanation of this image that we link at the beginning of the article and that shows us the countries with more debt in the world along with those in the middle and those with a very small debt. An image with a lot of work behind and that reveals a very valuable information.
How does this indebtedness affect the user?
It is important to know how this situation affects us, especially in the face of our long-term plans such as the purchase of a home or an important expense. To do this, we need to know the data and see what can happen.
In general, if the public debt is above the national GDP, we will have more difficulty repaying the borrowed money. That implies taking austerity and cutting measures that often hamper economic growth.
If the Government is not able to control the debt, unfortunately users could run into future cuts in services, since to reduce the debt it is necessary to enter more and spend less.
After all, we only have two paths to follow, or let the debt overflow or curb spending. However, everything that is raising taxes is bad news for taxpayers.