There are many different equations used to determine how economically sound a nation is, and one of these calculations is the debt-to-GDP ratio. This ratio measures a country’s government debt compared to its gross domestic product (GDP) – or the value of all goods and services produced by the country.
The debt-to-GDP ratio is usually expressed as a percentage and is used to indicate whether or not a country is able to pay back its debts. If the ratio indicates that a nation is unable to pay its government debts, there is a risk of default, which could wreak havoc on the markets.
As of June 2019, the nation with the highest debt-to-GDP ratio is Japan with a ratio of 253%. The next highest ratio is from Greece, which at 181.1%, lags significantly behind Japan.
Lebanon has the next highest debt-to-GDP ratio at 152%, followed by Italy at 123.4%. Other nations with high debt-to-GDP ratios include: