Central government debt, total (% of GDP)

Countries By Central government debt, total (% of GDP)

Key points

High Levels of Debt: Countries like Greece, Italy, and Japan have extremely high levels of central government debt, exceeding 200% of their GDP. This can potentially strain their economies and lead to financial instability.
Variability in Debt Levels: There is a wide range of debt levels among the listed countries, with Lesotho having the lowest debt at less than 3% of GDP while Greece has the highest at over 250% of GDP. This variability indicates different fiscal management practices and economic conditions.
Impact on Economic Growth: High levels of government debt can hinder economic growth by crowding out private investment, leading to higher interest rates and reduced confidence in the economy.
Fiscal Sustainability Concerns: Countries with high government debt levels may face challenges in maintaining fiscal sustainability, potentially leading to austerity measures, tax increases, or default on debt obligations.
Global Economic Impact: Given the interconnectedness of the global economy, high levels of government debt in one country can also have spillover effects on other countries through trade, financial markets, and investor confidence.

Official Definition of Central government debt, total (% of GDP)

Debt is the entire stock of direct government fixed-term contractual obligations to others outstanding on a particular date. It includes domestic and foreign liabilities such as currency and money deposits, securities other than shares, and loans. It is the gross amount of government liabilities reduced by the amount of equity and financial derivatives held by the government. Because debt is a stock rather than a flow, it is measured as of a given date, usually the last day of the fiscal year.

Importance

Central government debt, total (% of GDP) is a crucial macroeconomic statistic that significantly influences a country's economic health and stability.

A low value of this statistic indicates that the country has a sustainable level of debt compared to its economic output (Gross Domestic Product). This can have positive implications such as lower interest payments on debt, increased investor confidence, and the ability to allocate more funds towards productive investments and social welfare programs.

On the other hand, a high value of Central government debt, total (% of GDP) signifies that the country may face challenges in managing its debt burden. This could lead to higher interest rates, reduced investor confidence, potential credit rating downgrades, and constraints on government spending for important areas such as infrastructure, healthcare, and education.

Therefore, monitoring and managing the level of central government debt in relation to the GDP is crucial for a country to maintain fiscal sustainability and ensure long-term economic prosperity.

Top 10 Countries by Central government debt, total (% of GDP)

Bottom 10 Countries by Central government debt, total (% of GDP)

Regions

Europe

The data shows varying levels of central government debt as a percentage of GDP among the listed countries. Greece stands out with the highest debt ratio at 253.12%, followed by the United Kingdom at 195.88% and Spain at 140.27%. These high debt levels could indicate financial vulnerability and limit fiscal flexibility for these countries, potentially impacting economic stability and growth. On the other hand, countries like Switzerland and Estonia maintain lower debt ratios, suggesting stronger fiscal health and resilience. While high debt levels may lead to concerns about sustainability and creditworthiness, low debt levels can signify prudent financial management and room for future investments.

Far East: East Asia, SE Asia, Australia

Australia has a moderate level of central government debt at 69.22% of GDP, providing financial flexibility for growth. Indonesia maintains a lower debt level at 42.90%, signaling fiscal discipline. Japan stands out with significantly high debt at 215.77% due to stimulus measures and an aging population. South Korea has a relatively low debt burden of 46.43%, promoting economic stability. Malaysia's debt stands at 62.01%, supporting infrastructure development. Mongolia's debt is high at 73.94%, posing risks. Singapore exhibits a high debt-to-GDP ratio at 152.04%, potentially constraining future policy options. Thailand's debt is at a manageable level of 50.32%, balancing growth and fiscal prudence.

ASEAN

Central government debt as a percentage of GDP reveals Indonesia with 42.90%, Malaysia with 62.01%, Singapore with 152.04%, and Thailand with 50.32%. Singapore stands out with the highest debt level, potentially due to its smaller economy. Malaysia and Thailand have moderate levels of debt, hinting at stable borrowing practices. Indonesia shows lower debt, indicating fiscal prudence. High debt in Singapore can signify robust government spending but may increase vulnerability to economic shocks. Lower debt in Indonesia may indicate room for increased government investment. Malaysia and Thailand strike a balance between debt-fueled growth and fiscal caution, suggesting a stable financial approach for economic development.

Latin America

Examining the central government debt as a percentage of GDP for the selected countries reveals a varied landscape. Brazil stands out with the highest debt ratio at 98.71%, followed by Colombia at 91.22%, El Salvador at 70.36%, Uruguay at 60.28%, Mexico at 45.85%, and Peru at 34.67%. Brazil and Colombia exhibit high debt levels, indicating potential fiscal challenges and vulnerability to economic shocks. While high debt can stimulate growth through investments, it also poses risks of default and economic instability. In contrast, lower debt countries like Peru and Mexico may enjoy more fiscal flexibility but could face constraints in funding essential projects. Managing debt levels effectively is crucial for sustainable development and economic resilience.

Middle East

Armenia, with a total central government debt of 63.40% of GDP, Georgia with 65.88%, and Jordan with 75.97% are among the countries with relatively higher debt levels in comparison to Turkey's 41.80% and Azerbaijan's 22.19%. High levels of government debt can indicate potential economic vulnerabilities, such as limited fiscal flexibility and potential debt repayment issues, which may hinder long-term development. However, it can also reflect past investments in infrastructure and social programs. For Armenia, Georgia, and Jordan, reducing debt levels could enhance economic stability, while Azerbaijan and Turkey may have more fiscal space for future investments but need to ensure debt remains sustainable.

Rivals

Anglosphere v BRICS

Central government debt as a percentage of GDP varies significantly among the selected countries. The United Kingdom has the highest debt at 195.88%, followed by the United States at 126.24%. Brazil and South Africa also have high debt levels at 98.71% and 77.38% respectively. Meanwhile, the Russian Federation has a relatively low debt of 22.99%. High government debt can signal fiscal irresponsibility, leading to potential economic instability and reduced investor confidence. On the other hand, government debt can be used for strategic investments, boosting economic growth. Each country must carefully manage their debt levels to ensure sustainable development and avoid financial crises.

Russia v Ukraine

In terms of total central government debt as a percentage of GDP, the Russian Federation stands at 22.99% while Ukraine's figure is significantly higher at 58.72%. The Russian Federation's lower debt ratio indicates a more stable financial position compared to Ukraine, suggesting a lower risk of default. However, this lower debt level may also indicate slower economic growth due to less government spending. On the other hand, Ukraine's higher debt ratio may enable greater government expenditure, potentially boosting economic growth in the short term but posing a risk of debt sustainability in the long run. This statistic highlights the contrasting financial positions of the two countries and underscores the importance of prudent fiscal management for sustainable development.

France v United Kingdom

In terms of Central government debt as a percentage of GDP, France has a ratio of 122.89% while the United Kingdom stands at 195.88%. This statistic indicates that both countries carry a substantial debt burden, with the UK having a higher debt-to-GDP ratio compared to France. The advantage for France lies in its relatively lower debt ratio, potentially indicating greater fiscal stability. However, the UK's higher ratio may result in increased risk of default and higher borrowing costs. High levels of government debt can constrain economic growth for both countries, with the UK facing greater risks due to its higher debt ratio.

Turkey v Greece

Greece has a significantly high level of central government debt, totaling 253.12% of its GDP, indicating a heavy burden on its economy. In contrast, Turkey's central government debt stands at 41.80% of its GDP, reflecting a more sustainable level. Greece's high debt levels can lead to higher borrowing costs, reduced investor confidence, and potential fiscal instability, impacting its economic development negatively. On the other hand, Turkey's lower debt levels provide more fiscal space for investments and economic growth. However, it also exposes Turkey to risks associated with external financing. Overall, Greece faces higher risks of default and economic turmoil compared to Turkey due to its substantial debt burden.

FAQs

Which country has the most Central government debt, total (% of GDP)?

Greece has the highest central government debt, totaling 253.12% of its GDP.

Which country has the least Central government debt, total (% of GDP)?

Lesotho has the least central government debt, accounting for only 2.97% of its GDP.

What is the average Central government debt, total (% of GDP) among the listed countries?

The average central government debt, total (% of GDP) among the listed countries is approximately 74.12% of GDP.

How is Central government debt, total (% of GDP) calculated?

Central government debt, total (% of GDP), is calculated as the entire stock of direct government fixed-term contractual obligations to others outstanding on a particular date, expressed as a percentage of the country's GDP.

What factors contribute to high Central government debt levels?

High central government debt levels can be influenced by factors such as budget deficits, borrowing for infrastructure projects, economic downturns, and financial crises.