Government debt, measured as a percentage of a rustic’s gross domestic product (GDP), indicates how large a government’s liabilities are relative to the scale of the economy.
A debt ratio above one hundred pc signifies that the country owes greater than it produces in a yr. Below are a number of the countries with the best debt rates, each discussed in a separate section.
1. Sudan
Sudan currently has the best level of public debt amongst countries, with debt exceeding roughly 250 percent of GDP. Many aspects contribute to this high level of debt, particularly the prolonged conflict, economic instability and the collapse of revenue collection.
The war and political turmoil disrupted oil exports and other sources of revenue, forcing the federal government to borrow heavily simply to cover basic expenses.
Servicing this debt is amazingly difficult in a situation of high inflation, unstable currency values, and foreign creditors demanding more favorable terms or higher rates of interest to compensate for the perceived risk.
2. Japan
Japan is one of the indebted major economies, and its debt-to-GDP ratio is commonly quoted at 230-250%.
High debt levels reflect a long time of fiscal stimulus, high public spending, especially on pensions and health care, driven by an aging population, and periods of very low economic growth.
Due to high debt, interest payments and social welfare budgeting take up a big a part of public funds.
Nevertheless, Japan has benefits similar to borrowing in its own currency and a powerful domestic savings base, which helps it avoid a number of the external risks that more indebted countries may face.
3. Singapore
Singapore’s debt-to-GDP ratio is way lower than the extremes seen in Sudan or Japan, but continues to be very high in comparison with most countries. Many recent data sets put it at 170-180 percent. However, most of Singapore’s public debt is taken into account very dangerous.
The country has strong institutions, high creditworthiness and effective use of public funds. The amount of debt is partly because of loans to finance infrastructure, housing and government securities held within the country.
Since many Singapore government bonds are held by domestic investors, there may be less risk of foreign currency exposure or sudden capital flight.
4. Greece
Greece has long been an example of debt crises in Europe. Its indicator is frequently above 140%. GDP. The country has collected large debts in consequence of presidency spending, structural inefficiencies, and low income growth in some years.
The 2010 sovereign debt crisis forced Greece to simply accept bailout programs and implement stringent austerity measures, hurting economic growth.
Even after reforms, political pressures and the necessity for public spending on pensions and social services remain high and the economic recovery fragile.
5. Bahrain
Bahrain’s debt can be amongst the best in relative terms, and in recent rankings its values are roughly just like those of Greece or the Maldives.
The tiny island state has relatively limited economic diversification, with spending often driven by subsidies, dependence on oil prices, foreign borrowing and servicing state liabilities.
External pressures similar to fluctuations in oil revenues, currency risks and geopolitical uncertainty make maintaining stability more difficult.
6. Maldives
The Maldives can be within the upper bracket, with debt levels exceeding 140 percent of GDP in response to many recent sources.
Dependence on tourism, infrastructure investment (including the prices of adapting to environmental threats similar to sea level rise) and limited domestic tax bases contribute to large borrowing.
When revenues decline (for instance, because of a downturn in tourism), the federal government must proceed to fulfill debt service obligations, which can exceed financial capability.
7. Italy
Italy has considered one of the best public debts amongst European Union members, with its debt ratio often quoted at 135-140%. GDP. The predominant causes are slow growth, an aging population, high spending on social welfare and health, and challenges in increasing productivity.
Italy also faces risks related to borrowing costs: as rates of interest rise, servicing its debt becomes costlier, especially since most of its debt is held externally or abroad.
8. United States
The United States is less indebted than a number of the extreme cases above, however it continues to be very heavily indebted: many estimates for 2025 put its debt-to-GDP ratio within the range of 120-125%.
Due to its large economy, the United States can borrow enormous sums, but interest obligations and deficit spending (for social programs, defense, stimulus during crises) contribute significantly to the debt.
Moreover, since the United States borrows in its own currency and advantages from strong global demand for its debt, it has greater flexibility, although rising deficits raise concerns about long-term sustainability.
9. France
In many rankings, France’s public debt also exceeds 110%. GDP. France has major social welfare and public sector liabilities, significant government spending, and structural rigidities in labor law and other areas.
Economic slowdowns, periods of high rates of interest and inflationary pressures also raise debt servicing costs.
10. Canada
Canada rounds out the highest ten in lots of rankings with a debt of 110-115%. GDP. Canada’s debt reflects each large government spending (health, social services) and borrowing for stimulus, infrastructure and public investment.
Because Canada has relatively strong institutions and a stable economy, risks are moderate in comparison with more fragile countries, but rising interest costs and global economic shocks remain concerns.
