We excluded economies … Alas, this is by no means the case. You also have the option to opt-out of these cookies. While their debt, given these governments' stability and proven capability to pay back those who lent them money, is generally considered risk-free, there are growing concerns about the sustainability of such high level of borrowing, in particular when any shifts in market conditions or a rise in interest rates could make repayments harder to service. For rich nations facing a downturn, taking a loan at low interest rates can be more desirable the raising taxes. External debt—also called "foreign" or "sovereign debt"—is the total capital that is owed to creditors outside of a country's border. '); ¹ All years show 4th Quarter values, except 2011 that is 3rd Quarter. It is mandatory to procure user consent prior to running these cookies on your website. All rights Reserved. Palantir and Asana go public in direct listings as the IPO market heats up. The United States numbers mentioned above were current as of July 2013. But how does that $17 Trillion compare to the US’ GDP (Gross Domestic Product)? Meanwhile, economic wealth as measured by GDP, also in real US dollars, lagged behind with average rates of between 4.3% (Italy) and 7% (Greece). In fact, the nearly 17 Trillion dollars represents the largest external debt in the world. This may be a fairer way to compare debt between countries because it provides some insight into each country’s ability to cover their debts. The ballooning external debt in the world's largest economies poses yet a different, and perhaps more immediate and greater in scale, danger. Just ask the Greeks, the Argentinians or the Venezuelans. Global Finance Magazine. More Debtors often inherit the faults of their fathers,  as when loans incurred by governments and regimes no longer in power fall to a subsequent administration. For emerging nations, this kind of financing is even more essential to cover for domestic resource gaps and pay for programs that can help reduce poverty and foster longer-term growth. Accounting for close to half of global liabilities, the top three borrowers in the world are the United States, the European Union and the United Kingdom. To the extent that there is no such thing as zero external debt, and both the most and the least-developed countries in the world alike (and all those in between) today struggle more than ever under the burden of what they owe. You can also view our privacy policy. Many economists see the accumulated debt as a tax on the future output of a nation: investments on education, health, infrastructure and the like are discouraged when an ever-growing portion of revenues goes to pay back creditors. The debtors can be governments, corporations and private citizens; the creditors include governments, commercial banks and international financial institutions such as the International Monetary Fund and the World Bank. With great external debt comes great responsibility. Ireland has had the highest debt > external > per capita since 2005. In the case of the United States, the $52,170 debt per capita ranked 17 th around the world. If you agree to our use of cookies, please continue to use our site. Digital Analytics Platform Implementation, This site uses cookies. Classeditori, World's Best Banks 2020: DBS Honored As World’s Best Bank, Looking Past The Pandemic: Q&A With Bloomberg Beta's Roy Bahat, Countries With The Most External Debt 2019. The 2008 financial crisis and the resulting credit crunch substantially altered the situation, not for better, but for worse. Copyright © 2020 Evolytics. What can policymakers do to ensure their nations—and the world—prosper after the Covid crisis passes? You may unsubscribe at any time by clicking the unsubscribe link located at the bottom of any email. By entering your email address, you consent to receive communications from Evolytics. We don't have any banner, Flash, animation, obnoxious sound, or popup ad. What can possibly go wrong? Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. In the case of the United States, the $52,170 debt per capita ranked 17 th around the world. United States of America (National Debt: $19.23 trillion (USD)) Spain (National Debt: €1.09 trillion ($1.24 USD)) Singapore (National Debt: $350 billion ($254 billion US)) Japan, with its population of 127,185,332, has the highest national debt in the world at 234.18% of its GDP, followed by Greece at 181.78%. This post is curated content from the Evolytics staff, bringing you the most interesting news in data and analysis from around the web. There has been a rise in the per capita debt on March 31, 2016 as compared to March 31, 2015. We do not implement these annoying types of ads! This might be good news if other factors, such as economic growth, employment, income per capita, social benefits or tax deductions remained the same. Roy Bahat is head of Bloomberg Beta, a venture capital fund investing in artificial intelligence (AI)-based solutions to reshape the workplace and global markets. Requirements Gathering Simplified: Why You Need a Dashboard Requirements Template, Custom Sorting with Parameters in Tableau, Evolytics 2020 College Basketball Prediction Results Are Live. All numbers used in this infographic are from this list of countries by external debt, which compiled the numbers from several sources. All Rights Reserved. Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). In the case of the United States, the $52,170 debt per capita ranked 17th around the world. These cookies do not store any personal information. We need money to operate the site, and almost all of it comes from our online advertising. 4 of the top 5 countries by debt > external > per capita are Heavily indebted. What compounds the problem is that most of the debt is accounted for by the banking system and the government, on which common citizens have limited, if any controlling power. In this article we are going to talk about most indebted countries in the world. All rights reserved. This category only includes cookies that ensures basic functionalities and security features of the website. List of countries by external debt Rank Country/Region External debt US dollars Date Per capita US dollars % of GDP; 1 United States: 8.756 × 10 ^ 12: 31 March 2020: 26,533: 42: 2 United Kingdom: 8.475956 × 10 ^ 12: 31 December 2017: 127,000: 313: 3 Germany: 5.7358032 × 10 ^ 12: 31 March 2020: 69,000: 153: 6 Japan: 4.7653479 × 10 ^ 12: 31 March 2020: 38,000: 94: 4 Netherlands The most indebted nations are, in fact, the richest ones. 2 of the top 5 countries by debt > external > per capita are Densely populated. Line chart and statistics of the external debt per capita in real US dollars (2005=100) for the so-called PIIGS countries (Portugal, Ireland, Italy, Greece, Spain) from 2002 to 2011.