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:
- Cape Verde: 123.4%
- Portugal: 121.5%
- Congo: 117.7%
- Singapore: 112.2%
- Mozambique: 110.5%
- Bhutan: 108.64%
- United States: 105.4%
- Jamaica: 103.3%
- Cyprus: 102.5%
- Belgium: 102%
- Egypt: 101.2%
The nations with the lowest debt-to-GDP ratios include:
- Brunei: 2.4%
- Afghanistan: 7.1%
- Estonia: 8.4%
- Swaziland: 9.95%
- Russia: 13.5%
- Burundi: 14.4%
- Cayman Islands: 14.5%
- Kuwait: 14.8%
- Libya: 16.5%
- Republic of the Congo: 17%
- Kosovo: 17.12%
- Palestine: 17.5%
- Cuba: 18.2%
- United Arab Emirates: 18.6%
- Guinea: 18.66%
- Saudi Arabia: 19.1%
- Togo: 19.6%
- Bulgaria: 19.7%
- New Zealand: 19.9%