You may hear a popular myth that countries with highest public debt are the poorest nations of world, while the major lenders are the most developed countries. This may be correct in some cases but the fact is that advanced countries in the world have most national debts. Surprised? Actually Surplus budgeting has become unpopular in the world that, in other words, means putting more tax burden on masses and doing less public development projects in the country. Most economists consider deficits budgeting are the great approach to keep economic growth and employment at highest rate while putting less tax burden on masses. For smooth economic growth, borrowing is inevitable and it doesn’t mean stage of doom. Some of world’s largest economies have massive national debt but their GDP can afford it. However, Low debt-to-GDP ratio is favorable for the country that shows production is adequate for repayment of loan. World Bank Quarterly External Debt Statistics (QEDS) database provides detailed records of countries with most public outstanding loan.
List of Top Ten Countries with the Most Debt
| Country | GROSS EXTERNAL DEBT POSITION: first quarter of 2014 (US$ millions) |
|---|---|
| United States | 16,572,612 |
| United kingdom | 9,590,995 |
| France | 5,750,152 |
| Germany | 5,546,869 |
| Luxembourg | 3,472,282 |
| Japan | 2,861,488 |
| Italy | 2,651,413 |
| Netherlands | 2,526,895 |
| Spain | 2,305,648 |
| Switzerland | 1,610,897 |
United States debt is highest in the world which stood at 15 trillion dollar at the end of first quarter 2014. The country’s external debts equal to 106 percent of its GDP.
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