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Every few months, someone somewhere declares that the world is drowning in debt.
Headlines scream about record borrowings. Economists warn about sustainability. Politicians promise discipline. And somewhere in between all the noise, the numbers quietly keep rising.
But before we zoom into which rich country owes how much, let’s take a step back.
Because the real story might not start in Washington or Tokyo. It starts with the global picture.
Global debt nears 100% of GDP
Global public debt has climbed sharply over the past two decades, rising from nearly 65% of GDP in the early 2000s to close to 100% today.
The pandemic spike stands out, but what’s more striking is what comes next.
According to the IMF’s April 2025 projections, debt levels are expected to remain elevated and continue inching higher through the decade. Back in 2019, forecasts painted a far more moderate path. Reality has turned out heavier.
This isn’t just a temporary surge. It looks increasingly like the new baseline.
Now zoom in
The IMF’s latest Debt-to-GDP snapshot shows that even the richest economies are carrying serious baggage.
- Japan stands tallest at around 227%, meaning its government debt is more than twice the size of its annual economic output.
- Singapore follows at roughly 176%.
- The United States sits near 129%
Italy hovers around 138% and France crosses 120%. China is just over 100%, and the UK isn’t far behind at roughly 105%. Spain is close to 99%.
Then come the relative outliers. India stands at about 81%, noticeably lower than many advanced peers. Germany is even lower at around 66%, and Israel sits near 70%.
Debt-to-GDP, at its core, measures how much a country owes compared to what it earns in a year. A 100% ratio means the debt equals one year of national income.
Higher numbers don’t automatically signal crisis, but they do shrink fiscal room.
And that’s the striking takeaway, some of the world’s largest and most developed economies are also among the most indebted.
