Countries with the Highest Government Debt (2025)

Data

💡 Note: What Is Government Debt?

A plain-English look at how countries pile up debt, what the numbers above really mean, and why a high debt ratio is not always a crisis.

The basics

Government debt is the total amount a national government owes to its creditors. That includes money borrowed through bonds, treasury bills, and loans from domestic banks, foreign governments, and international institutions. When a government spends more than it raises in taxes, it borrows to cover the gap, and the accumulated borrowing becomes the public debt.

Economists rarely talk about the raw number in dollars, because a huge economy can carry a huge absolute debt without strain. The much more useful measure is the debt-to-GDP ratio, which compares the debt to the size of the whole economy in a given year. This is the figure shown on this page. A ratio of 100% means the government owes about as much as its country produces in an entire year in goods and services.

Gross vs net debt

The table above shows two measures. Gross debt counts all the money a government owes, without subtracting the financial assets it holds. Net debt subtracts assets such as cash reserves, holdings in foreign currency, and accumulated pension and sovereign-wealth funds. A country can look heavily indebted on a gross basis yet much lighter on a net basis because it owns a pile of assets that can, in principle, be used to settle liabilities.

Japan is the classic example: it tops the gross chart yet runs a far more moderate net debt, because the government holds large financial assets. Canada similarly shows a striking gap between its gross and net figures for the same reason.

Why debt is not automatically bad

Borrowing lets a government invest in infrastructure, education, and defence, or smooth out recessions by supporting demand when the private sector pulls back. Debt becomes worrying when it grows faster than the economy and the interest bill crowds out other spending. What matters most is whether creditors keep lending, at what interest rate, and whether the country can service its obligations without inflation or default.

• A key part of the story is who holds the debt. Japan's debt is overwhelmingly held by its own citizens and institutions, which makes refinancing far easier than for a country dependent on foreign lenders.
• Venezuela reached the top of this ranking amid hyperinflation and currency collapse, where the economy shrank so fast that even modest nominal debt rocketed as a share of GDP.
• Greece rose through the ranks during the 2010s European debt crisis, when borrowing costs spiked and international bailouts were needed.
• The United States, despite a ratio just above 120%, still benefits from the dollar's status as the world's reserve currency, which keeps its borrowing costs comparatively low.

How countries borrow

Most government borrowing is done by selling bonds on financial markets. A buyer hands over money today in exchange for a promise of regular interest payments plus repayment of the principal at maturity. The interest rate a government must pay is set by the market and reflects lenders' view of default risk. Countries perceived as risky pay more; countries seen as safe pay less, often even less than private companies.

Fun facts

• A debt-to-GDP ratio above 100% does not automatically spell trouble. During and just after World War II, the United States carried a ratio above 100% and then spent decades gradually paying it down relative to the economy.
• Debt ratios are normally measured for "general government," which combines central, state, and local levels, not just the national treasury.
• Governments can also default, in which case they stop paying bondholders on time. Sovereign defaults are rare for rich countries but common in emerging markets.
• Because the ratio compares debt to GDP, a recession can push a country higher on this chart without it borrowing another dollar, simply because the size of the economy shrank.
• Several jurisdictions on the full international list, such as Bermuda, Jersey, and the Cayman Islands, appear at the very bottom with ratios near zero.

Taken together, these numbers paint a picture of fiscal pressure across the world, but the ratio alone never tells the full story. Exchange rates, inflation, who holds the paper, and the strength of the underlying economy all decide whether a big debt number stays manageable or becomes a crisis. That is why the rankings above are best read as a starting point, not a verdict.