How deep in debt is the UK compared to other countries?

Global public debt – the total sum of money owed by governments around the world – has skyrocketed past a record $100 trillion (£74.4trn). Fuelled by everything from soaring defence spending to rising tariffs, governments are in the midst of a borrowing bonanza, in spite of high interest rates.

The International Monetary Fund (IMF) has warned public debt is set to soar to 100% of global GDP by 2030, up from 95.1% this year. But plenty of countries have already surpassed this alarming threshold.

With nations racking up IOUs like there’s no tomorrow, read on for the current debt-to-GDP ratios for the world’s 25 leading economies, starting with the smallest. All dollar amounts in US dollars.

The debt-to-GDP ratio compares a nation’s public debt to its annual economic output. This crucial metric indicates a country’s ability to manage its liabilities. A higher ratio suggests a country will have greater difficulty servicing debt. Yet this isn’t set in stone; some economies are more than able to sustain a super-steep ratio that would lead others to collapse.

As for when a debt-to-GDP ratio starts to harm growth, there isn’t a magic number beyond which economies slow. That said, experts have cited figures between 40% and 100%, with the bar set lower for emerging economies.

Russia’s debt-to-GDP ratio is extremely modest by global standards, though the figure is rising. After annexing Crimea in 2014, Russia worked to protect its economy from sanctions, minimising external debt through strict fiscal and monetary restraint. This strategy, buttressed by bumper oil and gas revenues, helped fund its 2022 invasion of Ukraine. But the Russian economy is now in big trouble.

With fossil fuel revenues drying up amid ongoing military spending, the Putin regime has been forced to turn to aggressive borrowing. Cut off from international markets, it’s relying on internal financing as its primary – and increasingly strained – lifeline.

Prosperous Taiwan has slashed its debt-to-GDP ratio from 39.2% in 2012 to an enviable 24%. The country’s government prides itself on its fiscal prudence and a debt-to-GDP threshold of 40.6% is enshrined in law. But some experts argue this preoccupation with reducing public debt comes at the detriment of critical military spending, especially given the ongoing threat from Beijing.

Looking ahead, the strong Taiwanese dollar is likely to further lower the debt-to-GDP ratio by reducing the value of liabilities held in foreign currencies. But this could be offset by slower growth as exports become less competitive.

Türkiye’s debt-to-GDP ratio is very low from a global standpoint. But while the number appears healthy on paper, much of the debt is in foreign currency, making it susceptible to currency volatility and high inflation – issues that have long plagued the Turkish economy.

It’s also important to point out that the nation’s private sector holds substantial foreign currency debt. This amplifies Türkiye’s exposure to external financial risks, though the household debt-to-GDP figure is low at just 11.3%.

After a severe financial crisis in the 1990s, Sweden went all out to slash its public debt. Successive governments implemented tough measures, including welfare cuts, tax hikes and privatisation programmes. They also leveraged national pension savings to pay down liabilities.

This full-on approach has brought the debt-to-GDP ratio down from over 80% to around a third of GDP today. Sweden’s finances are so strong, in fact, that the IMF has suggested it should loosen its strict budget rules to boost public investment.

Saudi Arabia’s debt-to-GDP ratio is low by global standards but the figure stood at just 1.5% in 2014 when the nation’s coffers were overflowing with bumper oil revenues. With prices for the commodity muted and the Saudi government on a spending spree to fund its Vision 2030 diversification programme, borrowing has mushroomed. Last year, Saudi Arabia was the leading issuer of debt in emerging markets.

The nation can certainly afford it though thanks to its robust fiscal position, which provides plenty of leeway.

Renowned for its thriftiness and aversion to getting in the red, the Swiss government introduced a stringent debt brake in 2003 and has managed to reduce the country’s debt-to-GDP ratio from 56.9% to a lean 36.9%. But with tighter public spending, Swiss households have taken on more of the burden.

Combined with other factors like the country’s stiff house prices, this has pushed Switzerland’s household debt to over 128% of GDP, the highest ratio in the world.

The Indonesian government is legally bound to ensure its debt-to-GDP ratio doesn’t exceed 60%. While the current figure is higher than the pre-pandemic 30.6%, it remains around the 40% mark. This is traditionally considered the ideal figure for an emerging economy, though this has been challenged in recent years.

In any case, the new Subianto administration has deemed the current ratio underleveraged. It’s embarked on a wide-ranging public spending programme, largely facilitated by foreign borrowing.

For developed countries, a debt-to-GDP ratio of 60% is the conventional benchmark for fiscal health. Like the 40% figure for emerging economies, this number has faced increased scrutiny in recent years. Within the European Union, however, 60% is the legally mandated limit –though many member states exceed it, with the bloc’s average sitting at a hefty 83.6%. Like Sweden, the Netherlands remains comfortably below the 60% threshold. ​

The figure is almost at its lowest for three decades, courtesy of the Dutch government’s sustained commitment to budget surpluses and debt reduction.

Australia’s debt-to-GDP ratio remains on the low side but the number has snowballed since the late noughties when it stood at around 10%. Citing OECD data, The Australian reports the country’s ratio has seen the biggest rise in the developed world over the past two decades.

This speedy increase has sparked sustainability concerns, putting pressure on the government to rein in public spending and avoid burdening future generations. Adding to the anxiety is Australia’s household debt-to-GDP ratio, which is the second-highest in the world at 112%.

Likewise, South Korea’s debt-to-GDP ratio has shot up over the past couple of decades, more than doubling since 2005. Though public debt is still under control, household debt is incredibly high, as is the nation’s corporate debt.

When combined, South Korea’s total debt comes in at two-and-a-half times its GDP, which is among the highest ratios globally. Such a high overall debt figure is particularly perplexing given the country’s rapidly ageing population, which will strain its ability to manage these liabilities in the future.

Mexico’s debt-to-GDP ratio has swelled significantly over the past couple of decades. Elected last year, President Claudia Sheinbaum and her Morena administration inherited a substantial budget deficit from the previous government, which heavily invested in grand infrastructure projects.

Despite headwinds such as the Trump tariffs, her government appears committed to bringing the country’s debt levels under control, having promised to narrow the fiscal deficit next year by a significant degree.

Poland’s public debt hit a record 2 trillion zloty ($540bn/£401bn) in 2024 as the government turbo-charged infrastructure and defence spending amid the growing threat from Russia.

The powers-that-be are now under pressure to cut back on spending and raise taxes given the deficit has ballooned and the debt-to-GDP ratio has surpassed the 60% threshold set by the EU, as well as the Polish constitution.

Public spending is on the rise in Germany, and with it, the nation’s debt-to-GDP ratio. In March, the nation’s parliament gave the green light to a massive boost in infrastructure and defence expenditure to upgrade the nation and counter Russia’s increasing aggression. A break with the country’s pacifist stance and fiscal discipline, the move was met with protests.​

The expectation is that the investment will generate sufficient returns to limit the impact on the debt-to-GDP ratio, which isn’t expected to increase hugely going forward.

A perennial financial basket case, Argentina has undergone drastic economic reforms since libertarian Javier Milei was elected president in 2023. The country’s debt-to-GDP ratio has dropped to 73.1% from 155.4% in 2023, but this shock therapy has come at a heavy social cost.

Despite promising he would curb government borrowing, President Milei recently agreed a new $20 billion (£14.8bn) IMF bailout, adding to the country’s onerous debt to the organisation, which was already equivalent to 5% of its GDP. The move will almost certainly increase the nation’s debt-to-GDP ratio, at least in the short-term.

Bolstered by stellar economic growth and judicious fiscal policies, India’s debt-to-GDP ratio has declined from its pandemic peak of 88.4% in 2020, and is well on the way to returning to its pre-COVID figure of 75%.

In February, the government announced a road map to reduce the federal government debt-to-GDP ratio from 57.1% to 50% by 2031, affirming its emphasis on fiscal responsibility.

Brazil’s debt-to-GDP ratio has been on the increase since 2023, reversing a post-pandemic decline, with President Lula’s generous spending on social programmes a key driver. With interest rates stubbornly high, the country’s debt trajectory is becoming increasingly unsustainable and a debt crisis could well be on the horizon.

To put this into perspective, Brazil splurges over 8% of its GDP on interest for its public debt, more than any other country covered by the IMF.

China’s economy in the doldrums and the government is borrowing big to spend its way out of the crisis. Plans are afoot to increase its long-term debt from $370 billion (£274bn) to $2.1 trillion (£1.56trn). The aim is to stimulate growth to reduce public debt, but many people think the strategy is extremely risky.

This approach has seen the country’s debt-to-GDP ratio escalate to 96.3%, a jump from 88.3% last year and a stark contrast to the 25.9% from 2005.

Spanish government borrowing and spending rose sharply last year, with the devastating floods in Valencia last October contributing significantly to the upswing. Yet the nation’s debt-to-GDP ratio actually declined as strong growth outpaced the rise in public debt.

It now stands at 100.6% of GDP, down from its pandemic peak of 119.2% in 2020. The figure is forecast to drop to 93% by 2030.

On the flip side, the UK’s debt-to-GDP ratio is expected to creep up over the next few years, ending the decade at 106.1%. This would be a historic high not seen since the 1950s, when Britain was still recovering from the Second World War.

The IMF has warned the UK’s high debt levels could harm economic growth and leave it especially vulnerable to sudden shocks. This is mainly because a sizeable portion of its government bonds are now held by riskier hedge funds and foreign investors.

Belgium is on the EU debt naughty step. Together with Poland and five other member states, the country has been called out by regulators for its excessive public debt levels, which equate to a chunky 106.4% of GDP.

Last year, the OECD issued a dire warning for Belgium: if future governments fail to dial back on lavish borrowing and spending, the nation’s debt-to-GDP ratio could reach 200% by 2050.

Canada’s debt-to-GDP ratio stands at 112.5% of its GDP, up from 110.8% in 2024. Experts have sounded the alarm on the country’s mounting debt burden, which is compounded by exceptionally high household debt levels.

The new Carney government is tackling the public debt issue with the splurge rather than save approach. Instead of resorting to austerity, it’s aiming to cut the country’s liabilities by boosting economic growth through increased spending on infrastructure and defence.

France is among the seven member states which have been chastised by the EU for racking up an OTT budget deficit. With its famously generous welfare state and the tendency of the French public to resist reforms aimed at cutting public spending, the government is having a hard time reducing its debt.

It is taking some action, including shaving $5 billion (£3.2bn) off its budget, but this is unlikely to make much of a dent. France owes a staggering $3.8 trillion (£2.82trn) and the interest payments alone eclipse the entire French defence and education budgets.

The US sits on the biggest public debt pile in the world. Government liabilities amount to a bewildering $36.2 trillion (£28.65trn), which is more than double what runner-up China owes. To highlight the scale, the interest payments exceed what America spends on both defence and Medicare.

With US national debt on an unsustainable path, efforts to cut government spending have been made, chiefly by Elon Musk’s controversial DOGE, though the initiative hasn’t saved all that much in real terms. And of course Musk and President Trump have fallen out spectacularly over the One Big Beautiful Bill Act, which will inflate the nation’s debt, directly contradicting DOGE’s goals.

Drowning in liabilities, Italy just can’t stop accumulating debt, which is becoming ever more unsustainable and a growing drag not just on the country but the eurozone as a whole. One of the seven nations subject to the EU’s excessive debt measures, Italy urgently needs to reduce the amount it owes. But the country’s debt-to-GDP ratio is going in the opposite direction as growth stagnates.

This is likely to deter buyers of Italian bonds, which would further increase the government’s borrowing costs, worsening the nation’s debt spiral.

Japan’s debt-to-GDP ratio is the highest in the world at an astonishing 234.9% of GDP. This level of debt would spell disaster for many countries. But Japan is doing just fine, with its creditworthiness in the upper A category. Japan’s debt is mostly held in yen, which is itself a leading reserve currency, and owned domestically. Interest rates are very low by global standards, making the liabilities manageable, plus the government has ample foreign reserves and assets.

That said, the long-term sustainability of the debt is being called into question given Japan’s rapidly ageing population, which means soaring social costs and a shrinking tax base.

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