The statistic shows the 20 countries with the lowest national debt in 2022 in relation to the gross domestic product (GDP). The data refer to the debts of the entire state, including the central government, the provinces, municipalities, local authorities and social insurance. In 2022, Russia's estimated level of national debt reached about 18.89 percent of the GDP, ranking 16th of the countries with the lowest national debt.
National debt and GDP
The debt-to-GDP ratio is an indicator of a country’s ability to produce and sell goods in order to pay back any present debts, however these countries should not retain newer debts in the process. Many economists believe that if a country is able to produce more without impairing its own economical growth, it can be considered more stable, particularly for the future. However, the listed countries, with the exception of Russia and Saudi Arabia, are not necessarily economic first-world powers. Additionally, economically powerful countries such as the United States and France maintain one of the highest debt-to-GDP ratios, signifying that occurring debt does not necessarily damage the state of the economy and is sometimes necessary in order to help develop it.
Saudi Arabia has maintained one of the lowest debt-to-GDP ratios due to its high export rates, which primarily consist of petroleum and petroleum goods. Given the significance of oil in today’s world, Saudi Arabia produces enough oil and earns enough revenue to maintain a high GDP and additionally refrain from incurring debt.
FAQs
Japan has the highest percentage of national debt in the world at 259.43% of its annual GDP.
What countries have the lowest national debt? ›
Countries with the Lowest National Debt
- Brunei. 3.2%
- Afghanistan. 7.8%
- Kuwait. 11.5%
- Democratic Republic of Congo. 15.2%
- Eswatini. 15.5%
- Palestine. 16.4%
- Russia. 17.8%
Japan has the highest percentage of national debt in the world at 259.43% of its annual GDP.
Which country has the most debt 2022 list? ›
Japan consistently ranks among the countries with the highest national debt. In 2022, the nation's debt was estimated at almost 10 trillion U.S. dollars , while it's GDP is just 4.2 trillion .
What is the top 10 countries national debt? ›
- Canada. Debt-to-GDP ratio: 112.8% ...
- Portugal. Debt-to-GDP ratio: 116.6% ...
- France. Debt-to-GDP ratio: 137.7% ...
- Spain. Debt-to-GDP ratio: 142.7% ...
- United States. Debt-to-GDP ratio: 144.4% ...
- Italy. Debt-to-GDP ratio: 172.5% ...
- Greece. Debt-to-GDP ratio: 191.5% ...
- Japan. Debt-to-GDP ratio: 256% Total debt: $10.1 trillion.
There is only one “debt-free” country as per the IMF database. For many countries, the unusually low national debt could be due to failing to report actual figures to the IMF.
What is the lowest the national debt has been? ›
Notably, the public debt actually shrank to zero by January 1835, under President Andrew Jackson. But soon after, it quickly grew into the millions again.
What country has the worst debt? ›
At the top is Japan, whose national debt has remained above 100% of its GDP for two decades, reaching 255% in 2023.
Which country has the worst national debt? ›
List of countries by debt
| Country or territory | External debt (USD) |
|---|
| Per capita | % of GDP |
|---|
| Hong Kong | 248,153 | 504.10 |
| Spain | 34,920 | 111.84 |
| Brazil | 6,925 | 71.59 |
78 more rowsThe United States is the undisputed heavyweight when it comes to the economies of the world. America's gross domestic product in 2022 was more than 40% greater than that of China, the world No. 2. Even more striking, U.S. GDP was over five times that of the next two largest economies, Japan and Germany.
Nearly half of all US foreign-owned debt comes from five countries. All values are adjusted to 2023 dollars. As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).
How many countries owe the US money? ›
The 20 countries that owe the US money include Korea as well. As of January, the country owes a total of $105.8 billion to the United States. Korea's external debt has also been increasing in recent years.
Why is Japan's debt not a problem? ›
Around 70% of Japanese government bonds are purchased by the Bank of Japan, and much of the remainder is purchased by Japanese banks and trust funds, which largely insulates the prices and yields of such bonds from the effects of the global bond market and reduces their sensitivity to credit rating changes.
Which 5 countries own the most U.S. debt? ›
- Japan. Japan held $1.15 trillion in Treasury securities as of January 2024, beating out China as the largest foreign holder of U.S. debt. ...
- China. China gets a lot of attention for holding a big chunk of the U.S. government's debt. ...
- The United Kingdom. ...
- Luxembourg. ...
- Canada.
It began rising at a fast rate in the 1980's and was accelerated through events like the Iraq Wars and the 2008 Great Recession. Most recently, the debt made another big jump thanks to the pandemic with the federal government spending significantly more than it took in to keep the country running.
What country is in the worst debt? ›
At the top is Japan, whose national debt has remained above 100% of its GDP for two decades, reaching 255% in 2023. *For the U.S. and Canada, gross debt levels were adjusted to exclude unfunded pension liabilities of government employees' defined-benefit pension plans.
What countries owe the US money? ›
All values are adjusted to 2023 dollars. As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).
What country do we owe the most debt to? ›
In total, other territories hold about $7.4 trillion in U.S. debt. Japan owns the most at $1.1 trillion, followed by China, with $859 billion, and the United Kingdom at $668 billion.
How much does the US owe China? ›
US Treasurys Owned by China, in USD Billions
$797.7 billion of the total $8,023.7 billion U.S. national debt.
