The national debt situation is a hot topic these days. Many people are worried about the rising debt levels in the United States. But did you know that 21 other countries around the world are actually in a worse debt crisis than the U.S.?
In this blog post, I’ll examine the 21 countries with national debt levels higher than America’s and explain what’s happening in each country and why its debt situation is so concerning.
Japan
Japan’s national debt is the highest in the world, reaching over 260% of its GDP. The country has struggled with slow economic growth and an aging population, making it difficult to pay down the debt. Japan’s debt levels are more than double that of the U.S., and the country has been unable to implement the necessary financial reforms to get its spending under control. With a rapidly declining working-age population, Japan faces an uphill battle in reducing its massive debt burden.
Greece
Greece’s debt crisis has been making headlines for over a decade. The country’s debt level is around 180% of GDP, and it has required multiple bailouts from the European Union to avoid default. Greece’s economic troubles stem from years of overspending, corruption, and a failure to collect taxes effectively. Despite austerity measures and reforms, Greece has struggled to grow its economy and get its finances in order.
Lebanon
Lebanon’s national debt is around 170% of GDP. The country has faced political instability and economic challenges, leading to a severe debt crisis. Corruption, mismanagement, and the impact of the Syrian refugee crisis have all contributed to Lebanon’s debt woes. The country’s dysfunctional government and sectarian divisions have made it difficult to implement the necessary fiscal reforms.
Italy
Italy’s national debt is over 150% of GDP. The country’s slow economic growth and high government spending have contributed to the ballooning debt levels. Italy has struggled to implement the reforms needed to get its finances under control, and its aging population and lack of productivity growth have exacerbated the debt crisis. Political instability has also hampered Italy’s ability to address its fiscal challenges.
Belgium
Belgium’s national debt stands at around 114% of GDP. The country has grappled with political gridlock and a lack of fiscal discipline, making it difficult to rein in government spending and reduce the debt burden. Belgium’s aging population and sluggish economic growth have added to the challenges.
Sudan
Sudan’s national debt is estimated to be around 200% of its GDP. The country has faced economic turmoil, hyperinflation, and political instability, all of which have contributed to its debt crisis. Sudan’s reliance on oil exports and a history of mismanagement have compounded its fiscal woes.
Jamaica
Jamaica’s debt-to-GDP ratio is approximately 94%. The Caribbean nation has struggled with high interest rates, limited access to international markets, and a heavy debt service burden. Jamaica has implemented austerity measures and debt restructuring efforts, but progress has been slow.
Spain
Spain’s national debt stands at around 123% of GDP. The country’s debt levels spiked during the Eurozone crisis, and it has since grappled with sluggish economic growth, high unemployment, and the lingering effects of a real estate bubble. Political instability has also hampered Spain’s ability to address its fiscal challenges.
France
France’s national debt is around 119% of GDP. The country has struggled with a lack of competitiveness, high government spending, and a rigid labor market, all of which have contributed to its debt problems. France has attempted various reforms, but progress has been slow due to political opposition and social unrest.
Portugal
Portugal’s national debt is approximately 135% of GDP. The country experienced a severe debt crisis during the Eurozone debt crisis, requiring an international bailout. Portugal has since implemented austerity measures and structural reforms, but its high level of public and private debt continues to be a drag on the economy.
Croatia
Croatia’s national debt is around 85% of GDP. The country has faced economic challenges since the global financial crisis, including high unemployment, sluggish growth, and a large public sector. Croatia has made efforts to reduce its debt burden, but progress has been gradual.
Argentina
Argentina’s national debt is estimated to be around 88% of GDP. Repeated economic mismanagement by the government has led to a long history of crises, hyperinflation, and defaults. Political instability and a failure to implement necessary reforms have further exacerbated Argentina’s debt problems, as the government struggles to address the underlying fiscal and economic challenges.
Cyprus
Cyprus’ national debt is approximately 94% of GDP. The small Mediterranean island nation experienced a severe banking crisis in 2013, which led to a bailout and restructuring of its financial sector. Cyprus has since worked to reduce its debt levels, but the process has been slow and challenging.
Bhutan
Bhutan’s national debt is around 130% of GDP. The small Himalayan country has relied heavily on hydropower projects and loans from India to finance its development, leading to a rapid accumulation of debt. Bhutan’s limited economic diversification and dependence on a single industry have made it vulnerable to external shocks.
Cabo Verde
Cabo Verde’s national debt is estimated to be around 151% of GDP. The small island nation off the west coast of Africa has struggled with a narrow economic base, high unemployment, and limited access to international markets. Cabo Verde’s debt burden has been exacerbated by the impact of the COVID-19 pandemic on its tourism-dependent economy.
Eritrea
Eritrea’s national debt is believed to be around 174% of GDP. The authoritarian government in Eritrea has mismanaged the country’s resources and engaged in widespread human rights abuses. This has led to economic stagnation, isolation from the global financial system, and a spiraling debt crisis that the government has struggled to address.
Iraq
Iraq’s national debt is approximately 89% of GDP. The country has faced numerous challenges, including political instability, sectarian violence, and the impact of low oil prices. The Iraqi government has struggled to manage these issues, which has led to a spiraling debt burden. The costs of rebuilding infrastructure and addressing the humanitarian crisis caused by conflicts have further exacerbated Iraq’s debt problems.
Congo (Brazzaville)
Congo (Brazzaville)’s national debt is around 118% of GDP. The Central African country has struggled with corruption, mismanagement of natural resource revenues, and political instability, all of which have contributed to its mounting debt problems.
São Tomé and Príncipe
São Tomé and Príncipe’s national debt is estimated to be around 95% of GDP. This small island nation off the west coast of Africa has faced economic challenges, including a heavy reliance on foreign aid and a lack of diversification in its economy. Debt servicing has become a significant burden for the government.
Mozambique
Mozambique’s national debt is approximately 135% of GDP. The country has faced a debt crisis in recent years, stemming from hidden loans, corruption, and the impact of natural disasters. Mozambique has struggled to implement the necessary fiscal reforms to address its debt problems.
Venezuela
Venezuela’s national debt is believed to be around 353% of GDP, the highest in the world. The country has experienced a severe economic and political crisis, leading to hyperinflation, a collapse in oil production, and a humanitarian emergency. Venezuela’s debt crisis has been compounded by its inability to access international financial markets.
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