20 Countries with Highest Debt To GDP Ratio 2020

What is Debt To GDP Ratio?

Debt to GDP Ratio is the measurement of a country’s National debt in relation to its Gross Domestic Product (GDP). Which simply means comparing how much a country owes to how much it produces. This Comparison usually serves as an indicator for if the Country is able to pay its Debts

 

Generally, if a nation can keep up interest payments on its debt, it is considered to have a stable economy. 

 

Where a Country defaults on its debt it could trigger a Debt Crisis and send the Country tumbling into Economic Mayhem.

 

What is the Optimal Debt To GDP Ratio for any Country

 

According to the World Bank the Optimal Debt to GDP Ratio for any Nation who wishes to avoid Loan Defaults should not exceed 77%. The World Bank found that if the ratio of a country exceeds 77% for an extended period of time, it slows economic growth.

 

20 Countries with the Highest Debt-To-GDP Ratio

Countries with the Highest Debt to GDP Ratio 2020

A High Debt-To GDP Ratio is not good because this could trigger defaults in payment, higher interest rates on money borrowed and subsequent inability of the defaulting Nation to borrow again as Creditors would be deterred by the high default risk potential.

 

The Countries with the Highest Ratios include:

 

1. JAPANJapan is Currently the Country with the Highest Debt to GDP Ratio.

Ratio: 237.54%

Population: 126,561,897

 

2.VENEZUELA

Ratio: 214.45%

Population: 28,453,722

 

3.SUDAN

Ratio: 177.87%

Population: 43,616,267

 

4. GREECE

Ratio: 174.15%

Population: 10,434,262

 

5. LEBANON

Ratio: 157.81%

Population: 6,832,177

 

6. ITALY

Ratio: 133.43%

Population: 60,481,475

 

7. ERITREA

Ratio: 127.34%

Population: 3,535,377

 

8. CAPE VERDE

Ratio: 125.29%

Population: 554,633

 

9. MOZAMBIQUE

Ratio: 124.46%

Population: 31,055,066

 

10. PORTUGAL

Ratio: 119.46%

Population: 10,203,269

 

11. BARBADOS

Ratio: 117.27%

Population: 287,297

 

12. SINGAPORE

Ratio: 109.37%

Population: 5,840,062

 

13. UNITED STATES

Ratio: 106.70%

Population: 330,569,993

 

14.BHUTAN

Ratio: 103.85%

Population: 769,703

 

  1. CYPRUS

Ratio: 101.04%

Population: 1,205,397

 

  1. BAHRAIN

Ratio: 100.19%

Population: 1,687,930

 

  1. BELGIUM

Ratio: 99.57%

Population: 11,578,400

 

  1. FRANCE

Ratio: 99.20%

Population: 65,241,454

 

  1. SPAIN

Ratio: 95.96%

Population: 46,750,767

 

  1. JORDAN

Ratio: 94.83%

Population: 10,180,449

 

 

 

 

Feel free to Check out our posts on Countries with Cheapest and Most Expensive Currencies.

Sources

 

  1. World Population Review
  2. Worldometer

FINANCE WORLD

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