Global and National Debt: Non-Adjusted and Adjusted Debt-to-GDP Ratios by Country

Global Public Debt

     Global public debt is estimated to have passed $100 trillion. Governments are borrowing despite high interest rates. According to the International Monetary Fund (IMF), the global debt-to-GDP ratio is at 95.1% at the latest tabulation and is expected to pass 100% by 2030. There are different views and much debate on how much debt is sustainable.

 

National Debt

According to an article in Love Money:

  “…some economies are more than able to sustain a super-steep ratio that would lead others to collapse.

As for when a debt-to-GDP ratio starts to harm growth, there isn't a magic number beyond which “economies slow. That said, experts have cited figures between 40% and 100%, with the bar set lower for emerging economies.”

     Government debt-to-GDP ratios may be different than household debt-to-GDP ratios. Some countries are legally bound to keep debt-to-GDP ratios below certain thresholds. These vary. Corporate debt is another variable that should be taken into account.  

     Whether a high debt-to-GDP ratio is harmful or whether a low one is beneficial is dependent on several factors. One is the nature of a country’s investments. For example, if the debt is in foreign currency, it may be more susceptible to currency volatility and high inflation. The Love Money article by Daniel Coughlin looks at the nuances of the debt of several countries, showing the different aspects of each economy and how they are leveraged. The debt-to-GDP ratio alone is only one economic indicator among many.

“For developed countries, a debt-to-GDP ratio of 60% is the conventional benchmark for fiscal health. Like the 40% figure for emerging economies, this number has faced increased scrutiny in recent years. Within the European Union, however, 60% is the legally mandated limit – though many member states exceed it, with the bloc's average sitting at a hefty 83.6%. Like Sweden, the Netherlands remains comfortably below the 60% threshold.” ​    

     Argentine President Milei enacted libertarian reforms that lowered the ratio in Argentina to 73.1% from 155.4% in 2023. Milei recently agreed to a new $20 billion IMF bailout, which will increase that ratio significantly upward, at least for a while.

     In terms of magnitude, the U.S. is the undisputed king of debt at $36.2 trillion, which is more than double what runner-up China owes. Italy, Singapore, and Japan have among the highest ratios. Japan has the highest debt-to-GDP ratio in the world, yet it has good creditworthiness.

“Japan's debt is mostly held in yen, which is itself a leading reserve currency, and owned domestically. Interest rates are very low by global standards, making the liabilities manageable, plus the government has ample foreign reserves and assets.”

     Debt-to-GDP ratios by country determine that country’s relative level of debt vs. other countries. The graphs below are simple debt-to-GDP ratios.

     World Economics Research, out of London, makes some adjustments to that data based on what is known as Purchase Power Parity (PPP), with further adjustments for the estimated size of the informal economy and the non-updated GDP data, as better explained below.

“World Economics has upgraded each country's GDP presenting it in Purchasing Power Parity terms with added estimates for the size of the informal economy and adjustments for out-of-date GDP base year data. Using the World Economics GDP Database it is possible to see more realistic debt levels for each country.”

     Below is a simple histogram I made using the data above for the 30 countries with the highest adjusted debt-to-GDP ratios.

     I know that there are great advantages to having low debt, in my case, household debt. Due to having no mortgage, no car payment, no health insurance, and no homeowners' insurance, I can live cheaply. However, if I need a more reliable car, if my health deteriorates, or if something major breaks down, I may need to borrow again at some point. However, I hope not.  

 

 

References:

 

Debt to GDP Ratio by Country 2025. World Population Review. Debt to GDP Ratio by Country 2025

How deep in debt is America compared to other nations? Daniel Coughlin. Love Money. November 16 2025. How deep in debt is America compared to other nations?

Debt-to-GDP Ratio by Size. ESTIMATES FOR DEBT-TO-GDP IN PPP INT$ ADJUSTED for BASE YEAR AND INFORMAL ECONOMY. World Economics. Debt to GDP Ratio | 2025 | Economic Data | World Economics