Which Country Is Highest in Debt? Dollars vs. GDP

The United States has the most government debt in total dollar terms, so it is usually the answer when “highest in debt” means the largest amount owed. That measure reflects the size of an economy as well as its borrowing, though, and it does not tell you which country faces the greatest debt burden relative to its resources.

To compare countries of very different sizes, look at government debt as a percentage of gross domestic product, or GDP, rather than total dollars alone. Japan has long had one of the highest debt-to-GDP ratios among major advanced economies, but the country at the very top of a worldwide ranking can change with the year, the data source, and the definition of government debt.

Before you compare a list of countries, see whether it measures central-government debt, all levels of government, or a broader category that includes private borrowing. You should also look at the date: debt totals and GDP both change, so a ranking from one year may not answer a question about another.

A country’s debt and your personal debt work differently, so a national ranking cannot tell you whether a loan is affordable or whether consolidation is a good fit. If you are weighing options with bad credit, our guide to comparing debt consolidation loan costs and our printable eBook, A Real-World Guide to Debt Consolidation Loans with Bad Credit, are relevant places to start; our team encourages you to compare the full repayment cost, not just the monthly payment.