📊 Top 10 Richest Countries in the World — But With the Biggest Debt Ratios
We often think of wealthy countries as financially secure, but many of the world’s richest nations also carry staggering amounts of debt. External debt is the money a country owes to foreign creditors — including banks, governments, and international institutions — and it’s measured against the country’s GDP (Gross Domestic Product). A high debt-to-GDP ratio can signal financial risk, even for wealthy nations.
Here’s a deeper look at the top 10 richest countries that also carry the highest external debts:
1️⃣ United States
- GDP (2023): $27.72 trillion
- External Debt: $26 trillion
- Debt-to-GDP Ratio: 96%
The U.S. is the world’s richest and most indebted country. Despite moderate inflation and solid economic freedom, its $26 trillion debt is nearly equal to its GDP. This enormous financial burden exerts global pressure, affecting markets and interest rates worldwide. While past administrations, including Donald Trump’s, tried reducing spending and foreign aid, the debt remains a significant challenge.
2️⃣ Singapore
- Debt-to-GDP Ratio: 418.87%
Singapore tops the list with the highest debt-to-GDP ratio globally. While this sounds alarming, it’s important to note that much of Singapore’s debt is internal — owed to its own citizens and institutions. The country balances this risk with very low inflation (0.9%) and one of the highest economic freedom scores (84.1).
3️⃣ United Kingdom
- External Debt: $10.5 trillion
- Debt-to-GDP Ratio: 250%
The UK carries a debt load 2.5 times the size of its economy. With inflation around 2.8%, it faces pressure on household incomes and government budgets alike. Moderate economic freedom offers some stability, but public finances remain strained.
4️⃣ France
- External Debt: $8.04 trillion
- Debt-to-GDP Ratio: 260.77%
France maintains low inflation (0.8%) but struggles with a high debt ratio and weaker economic freedom compared to its European peers. This impacts public investment and policy flexibility.
5️⃣ Switzerland
- External Debt: $2.32 trillion
- Debt-to-GDP Ratio: 250%
Switzerland’s financial sector-heavy economy explains its high debt ratio. Fortunately, ultra-low inflation (0.3%) and strong economic governance help the country manage its financial position effectively.
6️⃣ Germany
- GDP (2023): $4.525 trillion
- Debt-to-GDP Ratio: 160.56%
As Europe’s largest economy, Germany keeps a tighter fiscal balance. With moderate inflation (2.2%) and prudent financial policies, it’s better positioned than many of its neighbours.
7️⃣ Belgium
- External Debt: $1.65 trillion
- Debt-to-GDP Ratio: 250%
- GDP (2023): $644.78 billion
Belgium suffers from high inflation (2.9%) and a large debt load, stressing its economy and adding pressure on government finances.
8️⃣ Finland
- External Debt: $686.77 billion
- Debt-to-GDP Ratio: 232.80%
- GDP (2023): $295.53 billion
Finland has a relatively small economy but heavy external obligations, over twice the size of its GDP, reflecting its integration into European financial markets.
9️⃣ Argentina
- GDP (2023): $646.08 billion
- Debt-to-GDP Ratio: 46.47%
Though its debt ratio seems lower than others, Argentina battles extreme inflation (55.9%) and poor economic freedom, driving financial stress and social instability higher. It’s also the only South American country in this ranking.
🔟 Canada
- GDP (2023): $2.14 trillion
- External Debt: $3.16 trillion
- Debt-to-GDP Ratio: 145.70%
Canada enjoys strong economic freedom and moderate inflation (2.3%). Despite a sizable debt load, it manages financial stress well, maintaining stable public services and a resilient economy.
📌 What This Tells Us About Global Debt
Even rich nations face major economic risks due to rising debts. Some manage it through strong institutions and stable inflation, while others struggle with economic freedom and social tensions. High debt doesn’t always mean immediate crisis, but it limits flexibility in responding to financial shocks, pandemics, or recessions.
